The Mediation and Arbitration Clause is essential in modern U.S. commercial relationships, providing a framework for resolving disputes outside traditional court systems. This clause becomes particularly relevant when parties wish to maintain confidentiality, reduce costs, and expedite dispute resolution. Typically incorporated into various commercial agreements, it specifies the sequence of dispute resolution methods, starting with mediation and proceeding to binding arbitration if necessary. The clause must comply with both federal and state arbitration laws, including the Federal Arbitration Act, while being tailored to specific business needs and circumstances.
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1. Agreement to Mediate: Establishes parties' commitment to attempt mediation before arbitration, including scope and timing requirements
2. Mediation Process: Details the steps and timeline for initiating and conducting mediation, including mediator selection and procedural requirements
3. Arbitration Agreement: Specifies terms for binding arbitration if mediation fails, including scope of arbitrable disputes
4. Arbitration Rules: Identifies governing rules (e.g., AAA, JAMS) and procedures for conducting the arbitration
5. Arbitrator Selection: Process for choosing arbitrator(s), including qualifications and appointment procedures
1. Class Action Waiver: Waiver of right to participate in class actions, typically used in consumer or employment contracts
2. Cost Allocation: Specifies how mediation and arbitration costs will be shared between parties when default rules aren't desired
3. Confidentiality Provisions: Enhanced confidentiality requirements for sensitive commercial matters
1. Mediation Procedures: Detailed step-by-step procedures for conducting the mediation process
2. Fee Schedule: Comprehensive breakdown of applicable fees and costs for both mediation and arbitration
3. Approved Mediators/Arbitrators: List of pre-approved neutrals with their qualifications and specialties
Relevant legal definitions
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