A common issue comes up regarding alternative dispute resolution agreements is that they either go too far or that they don’t go far enough. Sometimes we hear that dispute resolution agreements are weighted to advance the drafting party, or that the resolution process doesn’t take full advantage of the opportunity to mediate and arbitrate fairly.
MDRS believes it’s important to create an agreement that gives equal opportunities to both sides to resolve the issue out of court. Making an agreement that’s amicable to both sides helps to ensure the relationship between parties is as stable as possible. Arbitration agreements should state what can be governed under ADR and give the maximum power to the arbitrator to decide the dispute without trips to court.
Other ways to strike a fair balance in arbitration and mediation agreements is to craft an agreement that avoids burdensome travel to a single party and also considers extraneous costs. Agreements that are balanced for each party are more often than not held up in court, allowing for a more cost effective dispute resolution practice.
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