Obtaining ADR Coverage

Parties deciding to write an MAA arbitration or mediation provision into their agreements may wish to consider these clauses:

Model clause for mediation only:

“Any dispute, claim or controversy arising out of or related to this contract, or the breach, termination, enforcement, interpretation or validity thereof, shall be settled through good faith negotiation. If the dispute cannot be settled through negotiation, the parties agree to attempt in good faith to settle the dispute by mediation administered by the Maritime Arbitration Association of the United States in accordance with its Rules.”

Model clause for mediation and arbitration:

If the parties wish to attempt to settle their dispute by mediation before arbitration, the following provision may be inserted in contracts (select desired option from among those provided in parentheses): 

“Any dispute, claim or controversy arising out of or related to this contract, or the breach, termination, enforcement, interpretation or validity thereof, including the determination of the scope or applicability of this agreement to arbitrate, shall be settled through good faith negotiation. If the dispute cannot be settled through negotiation, the parties agree to attempt in good faith to settle the dispute by mediation administered by the Maritime Arbitration Association of the United States in accordance with its Rules. If the parties are unsuccessful in settling the dispute through mediation, the parties agree to binding arbitration in (insert the desired city of arbitration), before (one) (three) arbitrator(s) administered by the Maritime Arbitration Association of the United States in accordance with its Rules, and final judgment on the award rendered by the arbitral tribunal may be entered in any court having jurisdiction thereof. The parties understand they are waiving any right to a jury trial. This clause shall not preclude parties from seeking provisional remedies in aid of arbitration from a court of competent jurisdiction.”

Model clause for arbitration only:

If the parties wish to arbitrate their dispute, the following provision may be inserted in contracts (select desired option from among those provided in parentheses):

“Any dispute, claim or controversy arising out of or related to this contract, or the breach, termination, enforcement, interpretation or validity thereof, including the determination of the scope or applicability of this agreement to arbitrate, shall be submitted to and decided by binding arbitration in (insert the desired city of arbitration), before (one) (three) arbitrator(s) administered by the Maritime Arbitration Association of the United States in accordance with its Rules, and final judgment on the award rendered by the arbitral tribunal may be entered in any court having jurisdiction thereof. The parties understand they are waiving any right to a jury trial. This clause shall not preclude parties from seeking provisional remedies in aid of arbitration from a court of competent jurisdiction.”

Model clause for choice of arbitral organizations:

If the parties wish to name the MAA or another provider, the following provision may be inserted in contracts (select desired option from among those provided in parentheses):

“Any dispute, claim or controversy arising out of or related to this contract, or the breach, termination, enforcement, interpretation or validity thereof, including the determination of the scope or applicability of this agreement to arbitrate, shall be submitted to and decided by binding arbitration in (insert the desired city of arbitration), before (one) (three) arbitrator(s).  At the option of the first party to file an arbitration, the arbitration shall be administered either by the Maritime Arbitration Association of the United States in accordance with its Rules, or by (name of alternate provider) pursuant to its (identify the rules that will govern) and final judgment on the award rendered by the arbitral tribunal may be entered in any court having jurisdiction thereof. The parties understand they are waiving any right to a jury trial. This clause shall not preclude parties from seeking provisional remedies in aid of arbitration from a court of competent jurisdiction.”

For further information about mediation or arbitration, contact us at 1.949.717.0000 or through this the Contact Form in website. Please advise us if you incorporate any of these provisions into a contract. This information should not be considered legal advice. We recommend you consult with legal counsel for advice on drafting your contracts.