DISPUTE RESOLUTION (MULTI-TIERED & HYBRID)
Other Names: Alternative Dispute Resolution • ADR • Dispute Resolution • Dispute Resolution Procedures • Disputes • Escalation • Mediation • Arbitration • Negotiation
Sample Clause Language:
(a) Negotiation. In accordance with the terms of this Agreement, and upon written notice of any controversy, dispute, disagreement or claim arising out of or relating to this Agreement, the Parties shall attempt to resolve in good faith the controversy, dispute, disagreement or claim promptly by negotiation between the Parties (the “Negotiation”).
(b) Mediation. If the controversy, dispute, disagreement or claim has not been resolved by the Negotiation in accordance to clause (a) above within [thirty (30) calendar days] after either Party requested in writing negotiation under clause (a) above, then the Parties agree to try in good faith to settle the controversy, dispute, disagreement or claim by mediation administered by the American Arbitration Association (“AAA”) under its Commercial Mediation Procedures, which are incorporated by reference into this clause (b). The mediation will take place in [COUNTY], [STATE].
(c) Arbitration. If the Parties are unable to settle the controversy, dispute, disagreement or claim through mediation in accordance with clause (b) above within [thirty (30) calendar days] after appointment of the mediator, or within such other period as the Parties may agree in writing, their sole avenue for relief shall be through binding arbitration administered by the AAA under its Arbitration Rules and Mediation Procedures, which are incorporated by reference into this clause (c). The arbitration will take place in [COUNTY], [STATE] and the arbitrator(s) shall apply the law of the State of [STATE] to the merits of any dispute or claim, without reference to rules of conflicts of laws. Judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. The Parties will determine the number of arbitrators in writing within [forty-five (45) calendar days] after appointment of the mediator, or within such other period as the Parties may agree in writing. If the Parties cannot make a decision within that [forty-five (45) calendar day] period of time, the AAA will determine the number of arbitrators.
Source: Body & Mind Inc. (2019, March 21). Form 8-K. Retrieved from SEC EDGAR website http://www.sec.gov/edgar.shtml
Description:
Dispute resolution clauses require the parties to resolve disputes using a variety of alternative dispute resolutions rather than taking it directly to court. The sample clause here requires parties to first go through negotiations, then mediation, and if both negotiations and mediation fail, through arbitration.
Common Contracts with this Clause:
- All Commercial Agreements
What you'll see with Lawgood:
Five (5) Alternative Positions
- Multi-Tiered – Negotiation + Mediation
- Multi-Tiered – Negotiation + Arbitration
- Multi-Tiered – Mediation + Arbitration
- Multi-Tiered – Negotiation + Mediation + Arbitration
- Hybrid – Negotiation + Mediation or Arbitration
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