Alternative dispute resolution clause: Copy, customize, and use instantly
Introduction
An alternative dispute resolution (ADR) clause defines the procedures to resolve disputes outside of traditional litigation. This can include mediation, arbitration, or other forms of non-court resolution. The clause typically outlines the steps to be followed in the event of a disagreement, specifying timelines, the process for appointing an ADR provider, and the binding or non-binding nature of the resolution.
Below are alternative dispute resolution clause templates tailored to various scenarios. Copy the one you need, customize it, and add it to your contract.
Standard ADR clause
This clause outlines a simple alternative dispute resolution process.
In the event of a dispute arising out of or relating to this agreement, the parties agree to first attempt to resolve the dispute through informal negotiations. If the dispute cannot be resolved informally within [insert time frame], the parties agree to submit the dispute to mediation. If the mediation does not resolve the dispute, the matter will be referred to binding arbitration, conducted in accordance with the rules of [insert arbitration body].
Mediation and arbitration clause
This clause outlines a two-step process involving both mediation and arbitration.
Any dispute, controversy, or claim arising out of or relating to this agreement will first be addressed through mediation, to be conducted by a mediator selected by mutual agreement of the parties. If the dispute is not resolved through mediation within [insert time frame], the dispute shall be submitted to binding arbitration in accordance with the rules of [insert arbitration body], and the decision of the arbitrator shall be final and binding on both parties.
Mediation clause with a specific mediator
This clause specifies the use of a specific mediator for resolving disputes.
In the event of a dispute arising under this agreement, the parties agree to submit the matter to mediation conducted by [insert name of mediator or mediation firm]. The mediation will take place in [insert location], and the parties will share the costs equally. If the dispute is not resolved through mediation within [insert time frame], either party may initiate litigation or proceed to binding arbitration.
Arbitration clause with venue specification
This clause specifies arbitration as the method of dispute resolution, along with a designated venue.
Any dispute, claim, or controversy arising out of or in connection with this agreement shall be resolved through binding arbitration, conducted in [insert location]. The arbitration shall be administered by [insert arbitration body], and the arbitrator’s decision shall be final, conclusive, and binding on both parties. Each party agrees to bear its own legal fees and costs, except as otherwise determined by the arbitrator.
Escalation clause for ADR
This clause includes an escalation process for resolving disputes through ADR.
If a dispute arises between the parties, the dispute will first be addressed by a senior representative of each party meeting in good faith to attempt to resolve the matter. If the dispute is not resolved within [insert time frame], the dispute will be referred to mediation. If the mediation does not result in a resolution within [insert time frame], the dispute will then be submitted to arbitration.
ADR clause with expedited process
This clause allows for an expedited ADR process.
In the event of a dispute, the parties agree to an expedited process for resolving the matter. If the dispute is not resolved within [insert time frame] of written notice of the dispute, the parties will submit the matter to mediation. If mediation is unsuccessful within [insert time frame], the parties will submit the dispute to binding arbitration, which will be conducted within [insert time frame] from the initiation of arbitration proceedings.
Binding arbitration clause with selection of arbitrator
This clause specifies the selection process for the arbitrator.
Any dispute arising out of or relating to this agreement shall be resolved by binding arbitration administered by [insert arbitration body]. The parties shall mutually select an arbitrator within [insert time frame] from the date of the dispute notice. If the parties are unable to agree on an arbitrator, one shall be appointed by [insert arbitration body]. The arbitration decision shall be final and binding, and the prevailing party may seek enforcement in any court of competent jurisdiction.
ADR clause with confidential mediation
This clause includes confidentiality provisions for mediation.
The parties agree that any dispute arising under this agreement shall be first submitted to mediation in a confidential setting. All discussions, negotiations, and documents exchanged during the mediation process shall be confidential and inadmissible in any subsequent legal proceedings. If the mediation does not result in a resolution, the dispute will be resolved through binding arbitration, with confidentiality preserved throughout the arbitration process.
ADR clause with procedural rules
This clause applies when the parties agree on specific procedural rules for ADR.
In the event of a dispute, the parties agree to submit the matter to alternative dispute resolution in accordance with the procedural rules set forth by [insert ADR body, e.g., “American Arbitration Association” or “International Chamber of Commerce”]. The chosen method of ADR, whether mediation or arbitration, will proceed according to the selected body’s rules and guidelines, and the decision will be final and binding.
Multi-step ADR clause
This clause applies when the dispute resolution includes multiple steps.
In the event of a dispute, the parties agree to the following process: (1) informal resolution through direct negotiation; (2) if unresolved, mediation with a mediator selected by the parties; and (3) if mediation fails, binding arbitration. The mediation and arbitration will take place in [insert location], and the arbitration will be governed by the rules of [insert arbitration body].
ADR clause with cost-sharing
This clause specifies how ADR costs will be shared.
The parties agree that the costs of mediation and arbitration, including the fees of the mediator or arbitrator, will be shared equally between the parties, unless the arbitrator awards the costs to the prevailing party. Each party will bear its own legal costs and expenses, unless otherwise specified in the arbitration award.
Hybrid ADR clause
This clause applies a hybrid approach, involving both mediation and arbitration in a specific order.
In the event of a dispute, the parties agree to first engage in non-binding mediation. If the dispute is not resolved through mediation, the parties agree to submit the dispute to binding arbitration. The arbitration will be conducted by an arbitrator chosen by mutual agreement, and the decision of the arbitrator shall be final and binding.
ADR clause with expedited arbitration
This clause applies when the arbitration process is expedited.
If a dispute arises, the parties agree to submit it to expedited arbitration under the rules of [insert arbitration body]. The arbitration shall be completed within [insert time frame, e.g., “30 days”], and the arbitrator’s decision will be final and binding. The parties agree to conduct any necessary hearings or proceedings in a manner that accelerates the resolution process.
ADR clause with location-based procedures
This clause specifies a location for dispute resolution procedures.
Any dispute arising under this agreement shall be resolved through alternative dispute resolution in [insert location]. The parties agree to submit the dispute to mediation, and if necessary, arbitration, in [insert location], with all ADR proceedings conducted in accordance with the rules of [insert ADR body]. The decision of the arbitrator shall be final and binding.
ADR clause for international disputes
This clause applies to international disputes where the parties are located in different countries.
In the event of a dispute arising from this agreement, the parties agree to submit the dispute to mediation in [insert location]. If mediation fails, the dispute will be resolved by binding arbitration under the rules of [insert international arbitration body]. The arbitration will take place in [insert location], and the decision will be binding on both parties, enforceable in any court of competent jurisdiction.
ADR clause with dispute resolution timeline
This clause sets a timeline for dispute resolution.
The parties agree that in the event of a dispute, the dispute resolution process will proceed as follows: (1) informal negotiation for [insert time frame, e.g., "5 business days"]; (2) mediation for [insert time frame, e.g., "15 business days"]; and (3) binding arbitration if the dispute is not resolved in the first two steps, with arbitration to take place within [insert time frame, e.g., "30 business days"]. The arbitrator’s decision will be final and binding.
ADR clause for a multi-step process
This clause sets a detailed, multi-step process for dispute resolution.
In the event of a dispute, the parties agree to the following process: (1) direct negotiation for [insert time frame, e.g., "10 business days"]; (2) mediation by a third-party mediator, if negotiation fails, within [insert time frame]; and (3) if mediation does not result in a settlement, the dispute will be submitted to binding arbitration. The arbitration process will be governed by the rules of [insert arbitration body].
ADR clause with specified mediator qualifications
This clause specifies the qualifications of the mediator.
In the event of a dispute, the parties agree to submit the matter to mediation, which will be conducted by a mediator who has [insert qualification, e.g., "experience in commercial contracts"]. If the dispute is not resolved through mediation within [insert time frame], the dispute will be referred to binding arbitration conducted under the rules of [insert arbitration body].
ADR clause with mediation as a condition before litigation
This clause requires mediation before pursuing litigation.
The parties agree that before initiating any litigation, they will first attempt to resolve any dispute through mediation. If mediation does not result in a resolution within [insert time frame], the parties may proceed with litigation in a court of competent jurisdiction, provided that the applicable laws permit such an action.
ADR clause with binding arbitration after mediation
This clause outlines a two-step process where arbitration follows mediation.
In the event of a dispute, the parties agree to first attempt to resolve the matter through mediation. If the mediation does not result in a settlement within [insert time frame], the dispute will be resolved through binding arbitration in accordance with the rules of [insert arbitration body]. The decision of the arbitrator shall be final and binding on both parties.
ADR clause with expedited resolution process
This clause includes an expedited process for dispute resolution.
In the event of a dispute, the parties agree to expedite the dispute resolution process by conducting mediation within [insert time frame, e.g., "10 business days"]. If mediation is unsuccessful, the dispute will proceed to expedited arbitration, which will be completed within [insert time frame, e.g., "30 days"] from the initiation of the arbitration process. The arbitrator's decision will be final and binding.
ADR clause with pre-agreed ADR provider
This clause specifies a pre-agreed provider for dispute resolution.
The parties agree that any dispute arising out of or related to this agreement will be resolved through alternative dispute resolution administered by [insert ADR provider, e.g., "American Arbitration Association"]. The process will begin with mediation, and if mediation does not resolve the dispute, the matter will be referred to binding arbitration. The decision of the arbitrator shall be final and binding.
ADR clause with cost-sharing for arbitration and mediation
This clause outlines how ADR costs will be shared.
In the event of a dispute, the parties agree to share the costs of mediation and arbitration equally, including any fees charged by the mediator or arbitrator. Each party will bear its own legal fees unless otherwise determined by the mediator or arbitrator. If a dispute is resolved through mediation, the mediator's fees will be divided equally, and if arbitration is necessary, the arbitrator’s fees will be divided equally as well.
ADR clause with confidentiality provision
This clause ensures confidentiality during the ADR process.
The parties agree that all proceedings, discussions, and documents related to mediation and arbitration will be kept confidential and will not be disclosed to any third party unless required by law. This confidentiality requirement will apply throughout the dispute resolution process, including post-resolution.
ADR clause for dispute resolution in case of force majeure
This clause applies to disputes arising from force majeure events.
In the event of a dispute arising out of a force majeure event, the parties agree to first attempt resolution through mediation. If mediation does not resolve the issue within [insert time frame], the dispute will proceed to binding arbitration. The arbitration will be governed by the rules of [insert arbitration body], and the arbitrator’s decision will be final and binding.
ADR clause with choice of law and venue for arbitration
This clause defines the choice of law and venue for arbitration.
Any dispute arising out of or relating to this agreement will be resolved through binding arbitration, governed by the laws of [insert jurisdiction, e.g., "New York"]. The arbitration will take place in [insert location], and the arbitration proceedings will be conducted in accordance with the rules of [insert arbitration body]. The decision of the arbitrator shall be final and binding on both parties.
ADR clause with payment of arbitration fees
This clause defines the payment of arbitration fees.
The parties agree to submit any disputes to binding arbitration, with the costs of arbitration being divided equally between the parties. The [party] initiating the arbitration will pay the filing fee, while all subsequent arbitration costs, including arbitrator fees, will be equally shared. Each party will bear its own legal costs unless otherwise determined by the arbitrator.
ADR clause with interim relief provision
This clause allows for interim relief during the dispute resolution process.
In the event of a dispute, either party may seek interim relief, such as an injunction or restraining order, from a court of competent jurisdiction before the mediation or arbitration process begins. The mediation and/or arbitration will proceed as scheduled, and the final resolution will be binding on both parties.
ADR clause with mandatory mediation before arbitration
This clause requires mandatory mediation before proceeding to arbitration.
The parties agree that before proceeding to arbitration, any dispute must first be submitted to mandatory mediation. If mediation does not result in a resolution within [insert time frame], the dispute will be submitted to binding arbitration under the rules of [insert arbitration body]. The arbitrator's decision will be final and binding on both parties.
ADR clause with location for mediation and arbitration
This clause specifies the location for mediation and arbitration.
Any dispute arising from or in connection with this agreement will be resolved through mediation and, if necessary, arbitration. The mediation will take place in [insert city, state/country]. If the dispute is not resolved through mediation, the arbitration will take place in [insert location], and the arbitration will be governed by the rules of [insert arbitration body]. The arbitrator’s decision will be final and binding.
ADR clause with a time limit for initiating arbitration
This clause sets a time limit for initiating arbitration.
Any dispute arising under this agreement must be submitted to arbitration within [insert time frame, e.g., "six months"] from the date of the dispute notice. Failure to initiate arbitration within this time frame will result in the forfeiture of the right to arbitrate the dispute. Once arbitration is initiated, it will proceed according to the rules of [insert arbitration body].
ADR clause with exclusive mediation first
This clause specifies that mediation will occur before other dispute resolution methods.
The parties agree that any dispute arising from this agreement will be first addressed through exclusive mediation. If the mediation does not resolve the dispute within [insert time frame], the dispute will be submitted to arbitration. The arbitration process will follow the rules of [insert arbitration body], and the arbitrator’s decision will be final and binding.
ADR clause with neutral arbitrator selection
This clause specifies how the neutral arbitrator will be selected.
In the event of a dispute, the parties agree to submit the matter to arbitration, to be administered by [insert arbitration body]. The parties will mutually select a neutral arbitrator from a list provided by the arbitration body. If the parties cannot agree on an arbitrator, one will be appointed by [insert arbitration body]. The decision of the arbitrator will be final and binding.
ADR clause with no right to litigate
This clause excludes the right to litigate.
In the event of any dispute arising under this agreement, the parties waive the right to initiate any court litigation and agree to submit the dispute to mediation, followed by binding arbitration if necessary. Both parties acknowledge that they are waiving their right to litigate the dispute in any court of law, and agree to resolve the matter exclusively through ADR.
ADR clause with fast-track mediation and arbitration
This clause specifies a fast-track process for resolving disputes.
In the event of a dispute, the parties agree to initiate mediation within [insert time frame, e.g., "7 days"] from the notice of dispute. If mediation does not resolve the issue within [insert time frame, e.g., "14 days"], the dispute will be fast-tracked to binding arbitration, which must be completed within [insert time frame, e.g., "30 days"] from the initiation of the arbitration process. The arbitration will be conducted in accordance with the rules of [insert arbitration body], and the arbitrator's decision will be final and binding.
ADR clause with multi-party mediation
This clause applies when there are multiple parties involved in the dispute.
If a dispute arises between the parties to this agreement and any third-party entities, the parties agree to submit the matter to mediation. All relevant parties, including [insert additional parties], will participate in the mediation process. If mediation fails to resolve the dispute, the matter will proceed to binding arbitration, governed by the rules of [insert arbitration body]. The decision of the arbitrator will be final and binding on all parties.
ADR clause with appointment of mediator and arbitrator
This clause specifies the process for appointing the mediator and arbitrator.
In the event of a dispute, the parties agree to select a mediator by mutual agreement within [insert time frame, e.g., "10 business days"]. If the mediation does not resolve the dispute within [insert time frame], the parties will mutually agree on an arbitrator to resolve the dispute. If the parties cannot agree on an arbitrator, one will be appointed by [insert arbitration body]. The decision of the arbitrator will be final and binding.
ADR clause with mandatory arbitration after failed mediation
This clause requires mandatory arbitration after failed mediation.
The parties agree to submit any dispute to mediation, and if the mediation does not result in a resolution within [insert time frame], the dispute will automatically be submitted to binding arbitration. The arbitration will take place in [insert location] and will be conducted in accordance with the rules of [insert arbitration body]. The decision of the arbitrator will be final and binding on both parties.
ADR clause with jurisdiction-specific ADR provider
This clause specifies the jurisdiction where the ADR provider will be located.
Any dispute arising from or relating to this agreement shall be submitted to an ADR process administered by [insert ADR provider], located in [insert jurisdiction]. The mediation and/or arbitration will be conducted in [insert location], and the decision rendered will be final and binding on both parties.
ADR clause with a cap on arbitration fees
This clause includes a cap on arbitration fees.
In the event of a dispute, the parties agree to submit the matter to binding arbitration, conducted by [insert arbitration body]. The parties agree that the total arbitration fees, including the arbitrator’s fees, will not exceed [insert amount]. If the fees exceed this amount, the [seller/provider] will be responsible for the additional costs. The arbitrator’s decision will be final and binding on both parties.
ADR clause with exclusion for certain types of disputes
This clause specifies that some disputes are excluded from ADR.
Notwithstanding the foregoing, the parties agree that any disputes related to the enforcement of intellectual property rights, including patent, trademark, or copyright disputes, shall not be subject to alternative dispute resolution. These disputes may be pursued directly in a court of competent jurisdiction. All other disputes arising out of this agreement shall be resolved through mediation, and if necessary, binding arbitration.
ADR clause for bilateral mediation and arbitration process
This clause specifies a bilateral process for dispute resolution.
Any dispute arising under or in connection with this agreement will first be resolved through bilateral mediation between the parties. If the dispute is not resolved through mediation within [insert time frame], it will proceed to binding arbitration. The arbitration will be conducted in accordance with the rules of [insert arbitration body], and the decision of the arbitrator will be final and binding on both parties.
ADR clause with decision finality
This clause applies when the arbitration decision is final and cannot be appealed.
The parties agree that the decision of the arbitrator is final and binding, and no party will have the right to appeal the decision or seek review of the arbitration award in any court or tribunal. This clause ensures the resolution of the dispute is final and that both parties agree to accept the arbitrator’s decision without recourse.
ADR clause with expedited procedures for urgent matters
This clause applies when expedited procedures are required for urgent disputes.
In the event of an urgent dispute, the parties agree to use expedited mediation and arbitration procedures. The mediation process will be completed within [insert time frame, e.g., "5 business days"], and if the dispute is not resolved through mediation, arbitration will be completed within [insert time frame, e.g., "10 business days"]. The arbitrator’s decision will be final and binding on both parties.
ADR clause for ADR facilitator appointment
This clause specifies the appointment of an ADR facilitator.
The parties agree to appoint an independent ADR facilitator to oversee the mediation process. The facilitator will help guide the parties through the mediation procedure and assist in resolving the dispute. If mediation does not lead to a resolution, the matter will proceed to binding arbitration, and the decision of the arbitrator will be final and binding.
ADR clause with no third-party involvement
This clause excludes third-party involvement in dispute resolution.
Any dispute arising from this agreement will be resolved through direct negotiations between the parties. If the dispute is not resolved through negotiation within [insert time frame], the parties agree to resolve the dispute exclusively through binding arbitration without third-party mediation or facilitation. The decision of the arbitrator shall be final and binding.
ADR clause with designated arbitration rules
This clause applies to a designated set of arbitration rules.
The parties agree to resolve any disputes arising under this agreement through binding arbitration administered in accordance with the rules of [insert arbitration body, e.g., "American Arbitration Association"]. The arbitration will take place in [insert location] and the arbitrator’s decision will be final and binding on both parties. Any costs associated with the arbitration will be divided equally unless the arbitrator decides otherwise.
ADR clause for post-dispute settlement
This clause applies when ADR is required after a dispute has already occurred.
In the event of a dispute, the parties agree to first attempt to settle the dispute through negotiation. If the dispute is not resolved through negotiation within [insert time frame, e.g., "15 days"], the parties will submit the matter to mediation. If mediation is unsuccessful, the dispute will be submitted to binding arbitration, which shall be conducted according to the rules of [insert arbitration body]. The decision of the arbitrator will be final and binding.
ADR clause for comprehensive dispute resolution
This clause applies to a comprehensive process for resolving disputes.
The parties agree to resolve any disputes arising from this agreement through a multi-step alternative dispute resolution process: (1) negotiation; (2) mediation; and (3) if necessary, binding arbitration. The dispute will first be attempted to be resolved through direct negotiation. If that fails, the parties will proceed to mediation with a mediator chosen by mutual consent. If the dispute remains unresolved after mediation, the matter will be submitted to binding arbitration governed by the rules of [insert arbitration body].
ADR clause with a cost-sharing mechanism for mediation
This clause applies to a cost-sharing arrangement for mediation.
In the event of a dispute, the parties agree to submit the matter to mediation. The parties will share equally the costs of the mediator’s fees and any other expenses associated with the mediation process. If the dispute is not resolved within [insert time frame], the parties will proceed to binding arbitration, and the costs of arbitration will be similarly shared equally between the parties.
ADR clause with confidentiality during arbitration
This clause ensures confidentiality during arbitration proceedings.
All mediation and arbitration proceedings under this agreement will be confidential. The parties agree that the details of the mediation or arbitration, including the existence of the dispute and any materials or evidence submitted, will not be disclosed to third parties, except as required by law or necessary for enforcement of the arbitration award. The confidentiality obligations will remain in effect even after the dispute is resolved.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.