ADR Contract Clauses are used to establish how disputes will be resolved using alternative dispute resolution (ADR). A simple dispute can cost you months in court and tens of thousands of dollars in legal fees just over a misunderstanding (94%). A proper ADR contract clause stops most court action and redirects the dispute to less adversarial methods to resolve the dispute
Who uses ADR Contract Clauses ?
ADR clauses can be simple short paragraphs that say how a dispute must be handled or multi-tiered so that if the dispute is not resolved within a specified timeline it goes to the next level.
Not every dispute needs to make it to the CEO’s desk or brought before the board of directors. Disputes not handled sufficiently risks the complaint making it to Facebook or the 5 o’clock news. This is where privacy and confidentiality policies help prevent unwanted publicity; whether they are part of your dispute process or employee agreement.
When supervisors are involved, you need an overview process before the dispute exacerbates or further transgression take place. Many complaints can be solved within the company quickly and peacefully, if done properly.
ABA 2011 Resolution 108
The American Bar Association approved in 2011 and released their recommendation that all should seek out more civil means to resolve disputes. This was not only government but also attorneys, law firms, government agencies, political parties, law schools, etc.
Sample ADR Clause Guidelines
Keep in mind that these guidelines are just a sample outline. There can be any number of dispute resolution processes you wish to employ, as-long-as it is reasonable. The goal is to resolve the issue with the least amount of cost, delay and stress to all involved. Some use very short processes and some very elaborate detailed processes. The choice is yours and we are glad to help guide you or your counsel.
General Contract
- Within a short period of time after notice, parties must meet to negotiate
- Before a suit can be filed, parties must select to mediate within a set number of days
- If not resolved, parties must submit to arbitration with a set number of days
Employment Contract
- Require a preliminary meeting within a short period after notice
- Require specific people to attend meeting
- Escalation if not resolved in a certain number of days
- Require a panel of selected employees to hear the matter
- If not resolve, refer over to Ombudsman
- If not resolved, refer out to Mediation
- If not resolved, refer out to Arbitration
Best Cost Around – Guaranteed
In support of ADR, we will write and structure a simple ADR clause at no cost to you. We also have many written sample clauses you’re welcomed to incorporate into your contract or provide to your legal counsel. This saves you time, money and stress while establishing an alternative dispute resolution clause that will make disputes easier to manage.
If you need a more robust ADR clause or need some direction, we would be happy to provide a free initial consultation to discuss your requirements. We can write very complex dispute clauses for you or work with your legal adviser to get you the the very best solution. Use our years of dispute resolution expertise to your advantage.
The last thing a business needs during an investor meeting is a visit from a plaintiff’s attorney, process server or county sheriff serving papers on a sexual harassment lawsuit.
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Give me a call 405-765-8030 or send us a message through the form below. One of our experienced ADR specialists will contact you and to help.
