Commercial & Business Disputes

Contract Provisions for Mediation or Arbitration

Alternative Dispute Resolution clauses are written into business and commercial contracts with increasing frequency. Most people have agreed to mediate or arbitrate whether or not they are aware of having done so. Examples include software and internet service agreements, real estate transactions, phone service agreements, credit card and loan application agreements, etc.

	MEDIATION clauses make the attempt to settle a mandatory first step to resolving issues before filing arbitration or litigation.
	ARBITRATION provisions require that parties to a contract arbitrate rather than litigate disputes arising from a breach of the terms and agreements specified in the contract. Parties may also voluntarily submit a matter to arbitration in the absence of an arbitration provision when a dispute arises.

Specific Arbitration Rules:

Many contracts require arbitration be governed by the rules of a particular arbitration forum. Claimants may elect one of the following options when filing for Arbitration:

1. Specify that CoMA's Arbitrator conduct the arbitration under the rules of another arbitration forum (AAA, NAF, etc)
2. Request that the Arbitrator use CoMA's Arbitration Rules

Recommended Use of Mediation after Arbitration is Filed

Approximately 85-90% of disputes filed for arbitration resolve before the hearing. For this purpose, CoMA suggests that parties consider mediating to attempt to resolve the matter before the arbitration hearing. If the parties are willing, a choice of 3 mediators are presented for both sides to choose a first and second choice. The overlapping named mediator facilitates the negotiation.

Non-Use of Legal Proceedings Coinciding with Arbitration

Parties may not initiate an action through the courts at the same time an arbitration is taking place, which touch upon any of the matters referred to arbitration.

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