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Arbitration isn't always the best option

Writer: Tanya S OsenskyTanya S Osensky

Recently my client showed me her standard form customer agreement which required that all disputes be resolved by mandatory arbitration. This is very common in contracts. Unfortunately, she got a taste of arbitration last year and she was frustrated because she found arbitration to be just as expensive and time-consuming as litigation. Arbitration is not always a practical way to handle every type of dispute. I revised her contract to add more flexibility, with negotiation and mediation for some types of minor disputes, resorting to arbitration only for the most important issues. I also changed it to minimize the expense of any future arbitration. I don't know about you, but I hate surprises in business. Have you ever had a project take longer than expected? A contract is a great tool to build in more predictability.

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