Getting to Mediation Through Contract Clauses
Most leading organisations try to avoid getting into court by negotiating their way to an acceptable outcome before a dispute escalates to the point that legal action is threatened or begun. Most cases settle before a legal trial (in the US, the most recent available statistics (2002) indicate that only 1.8% of legal actions filed in the US Federal Court go to full trial). Modern risk avoidance and preventive lawyering practices dictate the need for dispute resolution clauses that embrace negotiation and mediation prior to and during any legal action.
Practical guidance is available from several leading sources on framing dispute resolution clauses and there are also many useful model dispute resolution clauses that can be used to aid those preparing contracts. Inspiration for the framing of clauses can be drawn from the many examples available online.
Please advise IMI of any guidance or model clauses that might be of value to users – they can be added to the links below:
Guidance on drafting the right dispute resolution clause
American Bar Association Section of Dispute Resolution paper by Karol K. Denniston of DLA Piper US LLP includes the CPR Institute Master Guide on Drafting Dispute Resolution Clauses (also obtainable from CPR Institute Store)
AAA - American Arbitration Association – Drafting Dispute Resolution Clauses: A Practical Guide
Examples of Model Clauses