ARBITRATION CLAUSE
Any contract, lease or
other written contract may contain an arbitration clause. By using such a
clause, the parties agree to arbitrate any future disputes. As
with any clause, all parties must agree to it, and the following arbitration
clause does not have to be used "as is" in order to use the services
of United States Arbitration & Mediation, Inc.
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SAMPLE ARBITRATION CLAUSE:
In the event a dispute shall arise between the parties to this [contract,
lease, etc.], it is hereby agreed that the dispute shall be referred to
United States Arbitration and Mediation, Midwest, Inc. for arbitration in
accordance with United States Arbitration and Mediation Midwest Inc. Rules of
Arbitration. The arbitrator's decision shall be final and binding and
judgment may be entered thereon.
In the event a
party fails to proceed with arbitration, unsuccessfully challenges the
arbitrator's award, or fails to comply with arbitrator's award, the other
party is entitled of costs of suit including a reasonable attorney's fee for
having to compel arbitration or defend or enforce the award.
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In Missouri,
arbitration contracts are required to contain the following language, in
boldface and "ten-point capital letters," above the signature lines:
THIS CONTRACT
CONTAINS A BINDING ARBITRATION PROVISION WHICH MAY BE ENFORCED BY THE PARTIES.
Other
Considerations:
- Fees Rule
9 sets forth how arbitration fees are to be paid. Alternative fee-paying
arrangements may be created by the parties in their arbitration clause, with
the consent of United States Arbitration and Mediation Midwest Inc.
- Number of
Arbitrators-- Unless the parties agree otherwise, only one arbitrator is to
be assigned to hear a case. In the arbitration clause, parties may specify a
different number of arbitrators (usually three) to hear their case.
- Attorney's
Fees--In most states, an arbitrator may not award attorney's fees unless a
statute or the parties' arbitration agreement specifically provides for such an
award.
- Mediation--We
strongly suggest that the parties mediate prior to arbitrating. Mediation can
save time and money, by either resolving the matter or narrowing the issues to
be arbitrated. The arbitration administrative fee will be waived if parties
agree to mediate in accordance with the USA&M Mediation
Procedures prior to arbitrating.
- Assistance--Upon
request, United States Arbitration & Mediation, Inc., will help the parties
customize a mediation/arbitration provision to fit their particular needs.
- Internal
Appeal--The Internal Appeal Procedure, found under Rule 16 of the Rules of Arbitration,
applies only when the parties specifically agree in their contract to
arbitrate. The Appeal Rule does not apply unless the parties specifically agree
that it will.
(c) 2005, United
States Arbitration & Mediation Midwest, Inc.