Option 3 – Stepped Mediation-Arbitration Process: If the parties are unable to resolve the dispute through negotiation, the dispute shall be referred to a stepped mediation-arbitration process, by way of a single Resolution Professional skilled in both mediation and arbitration jointly selected by the parties from The Electronic Courthouse international Roster of dispute resolution professionals or, in the event that the parties cannot agree, appointed by The Electronic Courthouse. The settlement of the parties reached through mediation, in writing and duly signed by all parties, is final and binding on the parties, with no rights of appeal, and shall be enforceable by the parties in accordance with contract law and any applicable legislation or treaties governing the enforceability of settlements reached through mediation in the jurisdiction of the party seeking to enforce the settlement. If the parties are unable to resolve the dispute through mediation, the process shall be stepped up to arbitration and the decision and award of the Resolution Professional, acting as an arbitrator, is final and binding on the parties, with no rights of appeal, and shall be enforceable by the parties in accordance with contract law and any applicable legislation or treaties governing the enforceability of arbitration awards in the jurisdiction of the party seeking to enforce the award. In particular, the following shall apply: 

(v)        The jurisdiction of the matter shall be: select one: [determined by the arbitrator] OR [name the jurisdiction, e.g. the State of New York]

(vi)      The Rules governing the arbitration shall be: select one [determined by the arbitrator], OR [name other Rules e.g. the United Nations Commission on International Trade Law (UNCITRAL) Rules,

(iii) A judgment upon the award of the arbitrator may be entered by court having jurisdiction, and

(iv) The arbitrator shall have the authority to award costs in any arbitration. 

Option 4 – Neutral Evaluation: If the parties are unable to resolve the dispute through discussion and negotiation, the dispute shall be referred for neutral evaluation, by way of a single Evaluator agreed to by the parties jointly selected by the parties from The Electronic Courthouse international Roster of dispute resolution professionals and subject matter experts or, in the event that the parties cannot agree, appointed by The Electronic Courthouse. The Evaluation Report of the Evaluator is not binding on the parties, and is without prejudice to either party’s right to pursue such other remedies as it deems appropriate. 

1.3             Qualifications of the Resolution Professional:  The [select one: mediator, arbitrator, evaluator], hereinafter referred to as the “Resolution Professional”, shall be a lawyer or attorney at law having a minimum of  [5] years of professional legal experience and having primary expertise in [commercial law], and licensed in the state or province in which both parties principally carry on business or, if the parties principally carry on business in different states, provinces, or countries, in a state, province or country other than one  in which either party principally carries on business. 

1.4      Selection of the Resolution Professional:  The parties shall request The Electronic Courthouse to provide, within 10 days of the request, a list of three (3) Resolution Professionals having the qualifications provided for herein, including current biographies for each, to be ranked by each party hereto, from first choice to 3rd choice.  Each party shall submit its ranking to The Electronic Courthouse within 10 days of receipt of the initial list.  Within 5 days of receipt of the rankings from both parties, The Electronic Courthouse shall appoint the Resolution Professional having the highest rank and give notice to the parties accordingly.  In the event of a tie, The Electronic Courthouse shall select the Resolution Professional having the most experience as a Resolution Professional with respect to the subject matter of the parties’ dispute. Either party has the right to reject the appointed Dispute Resolution Professional in the event of a party’s reasonable belief of a conflict in interest, in which event the next highest ranked Dispute Resolution Professional shall be appointed. 

1.5       Location.  The mediation shall be held through the Web-based service provided by The Electronic Courthouse, with each party participating from their respective office or other location of their choice. 

1.6             Costs:  Subject to the award of the Arbitrator, or to the agreement of the parties reached as apart of the overall settlement of the dispute, the cost of the Electronic Courthouse service shall be shared equally by the parties and, otherwise, each party shall bear its own costs, including any legal advice, associated with the resolution of such dispute. 

Disclaimer: These clauses are intended to provide straightforward sample clauses suitable for the needs of most industries and organizations. Provision of this clause does not constitute and shall in no way be construed as legal advice. No one shall be entitled to claim detrimental reliance on any information provided or expressed in these sample clauses. Please note that a settlement or decision arising out of a mediation or arbitration process creates a final and binding settlement or decision, enforceable in a court of law.

Sample ADR Clauses – Short Clauses

1.0    Binding Arbitration (authorizes a final and binding decision, enforceable in a court of law)

In the event of a dispute or claim arising under or associated with this contract, including any amendments or related agreements or understandings, whether verbal or in writing, either party may give notice in writing to the other requiring that the parties resolve the dispute through the Electronic Courthouse™ (www.ElectronicCourthouse.com), a Web-enabled international dispute resolution service, and the parties shall, within [3] business days after such notice has been given, jointly submit the dispute to a single arbitrator jointly selected by the parties from the Electronic Courthouse’s international roster or, if they cannot agree, appointed by Electronic Courthouse, and the decision of the arbitrator, who shall determine the jurisdiction of the matter and the arbitration rules that shall apply, shall be final and binding, with no rights of appeal, and a judgment on the award of the arbitrator may be entered by any court having jurisdiction. Subject to the award of the Arbitrator, the cost of  the Electronic Courthouse service shall be shared equally by the parties and, otherwise, each party shall bear its own costs, including any legal advice, associated with the resolution of such dispute.

2.0     Mediation  (settlement arising out of a mediation process creates a final and binding settlement, enforceable in a court of law)

In the event of a dispute or claim arising under or associated with this contract, including any amendments or related agreements or understandings, whether verbal or in writing, either party may give notice in writing to the other requiring that the parties resolve the dispute through The Electronic Courthouse™ (www.ElectronicCourthouse.com), a Web-enabled international dispute resolution service, and the parties shall, within three [3] business days after such notice has been given, jointly submit the dispute to a single mediator jointly selected by the parties from The Electronic Courthouse’s international roster or, if they cannot agree, appointed by Electronic Courthouse, to assist in the resolution of such dispute and the settlement of the parties, in writing and duly signed by the parties, shall be final and binding upon them, with no rights of appeal and may be entered by any court having jurisdiction and, if the parties are unable to resolve the dispute through mediation within [30] days of such notice being given, either party may commence a claim in a court of law against the other.  Subject to agreement of the parties reached as apart of the overall settlement of the dispute, the cost of the Electronic Courthouse service shall be shared equally by the parties and, otherwise, each party shall bear its own costs, including any legal advice, associated with the resolution of such dispute.

Disclaimer: These clauses are intended to provide straightforward sample clauses suitable for the needs of most industries and organizations. Provision of this clause does not constitute and shall in no way be construed as legal advice. No one shall be entitled to claim detrimental reliance on any information provided or expressed in these sample clauses. Please note that a settlement or decision arising out of a mediation or arbitration process creates a final and binding settlement or decision, enforceable in a court of law.