Orange County Lawyer magazine published Ms. Callahan‘s article, “Arbitration Clauses: Hot Questions and Cool Answers” in February 2017 (Vol. 59 No. 2), p 42. This article is part one of two, which is slated to be published in March, 2017.
ARBITRATION CLAUSES:
HOT QUESTIONS AND COOL ANSWERS
This article aims to explain the basic considerations of drafting arbitration clauses. Arbitration clauses can save a business time and money, but only if they are drafted in a way that is enforceable. Pre-dispute agreements to arbitrate were not always enforceable in court.The origins of arbitration in America date back to the colonial era where it was popular in certain areas of commerce (e.g., admiralty) because the parties could pick a decision maker who was experienced in the trade or industry of the disputants. Arbitrators were usually recognized experts in their fields and frequently were not lawyers. Proceedings tended to be simple, informal, and short. As practiced in these early days of our country, arbitration was thought to be more predictable and expedient than pursuing dispute resolution in the courts.