Business Dispute Resolution

Conflict takes the joy out of business. It may be challenging to know how to negotiate resolution without compromising a valued relationship.  There are also times when no relationship exists and the resolution of the dispute is the only priority.   Mediation and arbitration are confidential processes that allow participants to address business disputes in a less formal way and retain the enforceablility of a court order when agreement is reached in mediation (through a signed Memorandum of Understanding / MOU) or through an arbitration award.

Alternative Dispute Resolution (ADR) encompasses any process outside the judicial venues to resolve disputes. 

Contract Provisions for Mediation or Arbitration

Alternative Dispute Resolution clauses, also known as ADR provisions or clauses, are commonly written into business and commercial contracts. 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 transaction contracts, phone service agreements, credit card and loan application agreements, etc.

Mediation resolves conflicts while preserving relationships Mediation is increasingly recognized as a preferred way to address disputes and to avoid litigation.  Mediation yields agreement in the majority of cases and is often a mandatory step prior to arbitration or litigation.

Arbitration provisions in a signed contract require parties' participation in arbitration, thereby excluding a court hearing when parties have a dispute arising from 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:

United States Arbitration Association (USADR), an affiliate of Colorado Mediators & Arbitrators, administers arbitrations filed with CoMA.

Arbitration is a creature of contract, and parties may agree on many aspects of how the arbitration is conducted:  the specific rules of procedure [2], governing law (federal or state specific) [3], where and how the hearing will be conducted, etc.

Sample Arbitration Clauses

• Comprehensive [4]
• Simple [5]

Recommended Use of Mediation after Arbitration is Filed

An estimated 85-90% of disputes filed for arbitration resolve before the hearing. For this purpose, CoMA encourages parties to consider mediating prior to 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.  There is no additional filing fee for this service; the mediator's hourly rates apply.

Non-Use of Legal Proceedings Coinciding with Arbitration

Parties are prohibited from filing any legal action through the courts on the same disputed matters submitted to arbitration during the course of the arbitration hearing.