Ken Adams is the main authority, because you clearly say what you mean in a contract. He is the author of A Manual of Style for Contract Drafting and offers online and in-person training worldwide. He is also the Chief Content Officer of LegalSifter, Inc., a company that combines artificial intelligence and expertise to help verify contracts. Yes, I know that the AAA`s model clause, in the words of AAA`s Drafting Dispute Resolutions: A Practical Guide,” “has always received legal support.” I think that means it`s been “tested,” but excuse me if I don`t have to shake in my boots. No rational judge would see anything sinister in my amendments, and writing for the irrational judge is a lost proposition. (By the way, the standard clause as specified in the development of dispute settlement procedures is slightly different from that specified in the AAA`s Commercial Arbitration Rules.) The parties hereby submit the following dispute to mediation administered by the American Arbitration Association as part of its commercial mediation proceedings [the clause may also provide for the qualifications of the mediator(s), the method of apportionment of fees and expenses, the location of meetings, time limits, or other concerns for the parties]. A well-designed dispute settlement clause is the basis for a cost-effective and efficient dispute settlement procedure. Nevertheless, the courts are regularly confronted with arbitration clauses that are problematic in some respects. When entering into a contract with a company across the Canada-U.S.

border, questions may arise as to which courts in the country have jurisdiction over the parties. A popular and effective way to mitigate objections to jurisdiction is an agreement between the parties to settle their disputes in private rather than settle them in court. To demonstrate the power of arbitration clauses, in the United States, a contractual arbitration clause is generally a valid defense against a lawsuit alleging breach of contract. Some parties prefer not to engage in mediation as a condition precedent for filing the arbitration. This clause provides for the parties to settle their dispute, but gives them the flexibility to choose when to schedule their mediation conference. Once the arbitration is filed, the ICDR will contact the parties to discuss the appointment of a mediator and their planning preferences for the mediation conference. Alternative Dispute Resolution (ADR) allows parties to adapt their dispute resolution process. Parties can include the standard arbitration or mediation clause in their contract and further adjust their clause with options that control time and cost. Arbitration is known for its limited discoveries and therefore generally lower costs than litigation, as serial filings and complex claims can significantly increase the costs of litigation. Arbitrators typically provide some limited findings and claims, but generally much less than in litigation.

The reduced costs and the generally shorter time for a decision make arbitration an attractive dispute resolution tool. Any controversy or claim arising out of or related to this Agreement or its breach shall be resolved by arbitration administered by the American Arbitration Association in accordance with its Commercial Arbitration Rules, and judgment of arbitral awards rendered by arbitrators may be submitted to any court of competent jurisdiction. (b) “The place of arbitration is (city and/or country)”; or the AAA developed the online tool ClauseBuilder® – a simple and self-directed process – to help individuals and organizations develop clear and effective arbitration and mediation agreements. As the exclusive means of resolving any dispute arising out of this Agreement or [describe the subject matter hereof], a party may request that such dispute be resolved by arbitration administered by the American Arbitration Association in accordance with its Commercial Arbitration Rules, and each party hereby agrees that such disputes shall be resolved in such manner. Judgment on the award rendered in such arbitration may be entered in any court of competent jurisdiction. “Any dispute or claim arising out of or in connection with this Agreement shall be resolved by arbitration in accordance with the International Arbitration Rules of the International Dispute Resolution Centre.” The parties may copy and paste these clauses into their contracts. If a dispute arises out of or relates to this Agreement, or relates to it, and if the dispute cannot be resolved by negotiation, the parties first agree to make a good faith attempt to resolve the dispute through mediation administered by the American Arbitration Association as part of its commercial mediation proceedings: before resorting to arbitration, litigation or other dispute resolution. (c) “The language(s) of the arbitration are __ Because a rational contractual process requires consistent contractual language.

For anyone drafting a contract in accordance with the MSCD, the AAA standard clause in its current form would have a disharmonious tone. The use of mediation is increasing worldwide. In mediation, the parties are free to negotiate business solutions that are not limited by law or contract. The mediator acts as a neutral mediator of these negotiations. Parties to CIDR-AAA mediations have benefited from a high percentage of settlements in the past. And either way, you should always strive to improve the language of the model. The AAA is considering revising its commercial arbitration rules and welcomes suggestions that you can email to rules@adr.org. The registration deadline is September 1, 2009; Think of it as my entry that creeps in under the deadline.

The inclusion of an alternative dispute resolution (ADR) clause in their contracts allows the parties to tailor dispute resolution to their individual situation. Since arbitration is a creature of the contract, the parties need to be very clear about the process they have chosen to resolve potential disputes. The arbitration clause does not have to provide for AAA rules. Instead, it could simply provide that the dispute must be settled in a place where the parties can agree. If arbitration is necessary, by not indicating that the AAA`s arbitration rules apply, the parties may develop a rational and cost-effective arbitration plan. In the event of any controversy or claim arising out of or in connection with this Agreement or its breach, the parties first agree to attempt to resolve the Dispute through mediation administered by the International Dispute Resolution Center in accordance with its Mediation Rules. If the agreement is not concluded within 60 days of service of a written request for mediation, any unresolved dispute or claim arising out of or in connection with this Agreement shall be resolved by arbitration in accordance with the International Arbitration Rules of the International Dispute Resolution Centre. . . .