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Arbitration Clause

Discussion in 'Business Operations' started by tx_angler, Jan 4, 2004.

  1. tx_angler

    tx_angler LawnSite Senior Member
    Messages: 278

    I'm thinking of adding the following clause to my 2004 contract and want your opinion (good or bad). Let me know if you seen any loopholes that are a GotchYa!


    DISPUTE RESOLUTION: Both CUSTOMER and COMPANY NAME desire to resolve disputes arising out of this Agreement without resorting to litigation. Accordingly, except for action seeking a temporary restraining order or injunction related to the purposes of this Agreement, or suit to compel compliance with this dispute resolution process, CUSTOMER and COMPANY NAME agree to use the following alternative dispute resolution procedure as the sole remedy with respect to any controversy or claim arising out of or relating to this Agreement or its breach.

    At a written request, CUSTOMER and COMPANY NAME will appoint a knowledgeable, responsible representative to meet and negotiate in good faith to resolve any dispute arising under this Agreement. Both parties intend that business representatives who are not lawyers conduct these negotiations. The location, format, frequency, duration, and conclusion of these discussions shall be left to the discretion of the representatives. Upon agreement, the representatives may use alternative dispute resolution procedures such as mediation to assist in the negotiations.

    Discussions and correspondence among the representatives for purposes of these negotiations shall be treated as confidential information developed for purposes of settlement, exempt from discovery and production, which shall not be admissible in the arbitration described below without the concurrence of all parties. Documents identified in or provided with such communications that are not prepared for purposes of the negotiations are not so exempted and may, if otherwise admissible, be admitted in evidence in the arbitration.

    If the negotiations do not resolve the dispute within 60 days of the initial written request, the parties shall submit the dispute to binding arbitration before a single accredited arbitrator (pursuant to the Commercial Arbitration Rules of the American Arbitration Association). CUSTOMER or COMPANY NAME may demand such arbitration in accordance with the procedures set out in those rules. The arbitrator shall control discovery in such arbitration.

    The arbitration hearing shall be commenced within 120 days of the demand for arbitration. The arbitration shall be held in COUNTY NAME, STATE. The arbitrator shall control the scheduling so as to process the matter expeditiously. The parties may submit written briefs. The arbitrator shall rule on the dispute by issuing a written opinion within 30 days after the close of hearings. The arbitrator upon a showing of good cause may extend the times specified in this section upon mutual agreement of the parties or. Judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction.

    CUSTOMER and COMPANY NAME will each bear their respective costs of these procedures. Anyone seeking discovery will reimburse the other party for the costs of production of documents, which includes search time and reproduction costs.
  2. Fantasy Lawns

    Fantasy Lawns LawnSite Bronze Member
    Messages: 1,912

    Is this for a Landscape Contract ? if so than ya looks great .... fore our service agreements we have a very simple statement

    If lawsuit or other proceeding arises from a dispute over any terms of this agreement or its performance, the losing party will pay the winning party all the cost it causes the winning party to incur, including reasonable attorney fees at any court level. Law of the state where it was made will govern this agreement. If a court holds that any of its terms is invalid or unenforceable, the rest of the agreement will continue in full force and effect. Upon Cancellation Compensation for All Services will be pro-rated in conjunction with the work performed between First & Last Day of Service Agreement.

    fore the most part I'd rather lose the customer before I even got near a Lawyer

    Like your signature ...... Warren Zevon was a great man
  3. tx_angler

    tx_angler LawnSite Senior Member
    Messages: 278

    Actually this clause is going to be used in both my lawn maintenance and landscape contracts to avoid the involvement of any lawyers. Despite my signature, I feel there are too many attorneys and they just suck up valuable resources that could be used in much more productive endeavors.

    Lawyers are the reason that the American public has no sense of personal responsibility; the reason a person can win a multi-million dollar law suit against McDonald's for the coffee being too hot or the reason the replacement chain for your chainsaw has a warning to shut off the engine before attempting to replace the chain! McDonald's didn't pay that multi-million dollar settlement; you & I are paying it every time we stop for another McHeartAttack!

    There are no lawyer jokes just true stories that the average person thinks is too outragous to be true!

    I will not work for an attorney in any capacity under any circumstances! I can always tell when an attorney is lying because I can see their lips move!

    A university committee was selecting a new dean. They had narrowed the candidates down to a mathematician, an economist and a lawyer.

    Each was asked this question during their interview: “How much is two plus two?”

    The mathematician answered immediately, “Four.”

    The economist thought for several minutes and finally answered, “Four, plus or minus one.”

    Finally the lawyer stood up, peered around the room and motioned silently for the committee members to gather close to him. In a hushed, conspiratorial tone, he replied, “How much do you want it to be?”
  4. Team Gopher

    Team Gopher LawnSite Platinum Member
    from -
    Messages: 4,040

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