Jury trial waiver: Overview, definition, and example
What is a jury trial waiver?
A jury trial waiver is a contractual provision in which the parties agree to waive their right to have disputes arising under the agreement decided by a jury. Instead, disputes will be resolved by a judge in a court trial or through other dispute resolution mechanisms, such as arbitration. This clause is commonly included in commercial contracts to avoid the complexity, unpredictability, and costs often associated with jury trials.
For example, a loan agreement might include a jury trial waiver to ensure that any disputes between the borrower and lender are decided by a judge, streamlining the litigation process.
Why is a jury trial waiver important?
A jury trial waiver is important because it provides certainty, efficiency, and cost-effectiveness in the resolution of disputes. Jury trials can be time-consuming and costly, and the outcomes may be less predictable due to the involvement of lay jurors. By waiving the right to a jury trial, the parties can streamline the litigation process and potentially resolve disputes more quickly.
For businesses, this clause minimizes litigation risks and costs. For counterparties, it clarifies the method of dispute resolution and helps ensure that disputes are resolved based on legal principles rather than jury discretion.
Understanding jury trial waiver through an example
Imagine a company and a supplier enter into a commercial agreement that includes a jury trial waiver. A dispute arises regarding late payments, and the case goes to court. Because of the jury trial waiver, the dispute is decided by a judge instead of a jury, reducing the time and expense involved in resolving the matter.
In another example, a franchise agreement includes a jury trial waiver. When the franchisor alleges breach of contract, the dispute is heard in a bench trial (by a judge), where the judge considers the evidence and issues a ruling without the involvement of a jury.
An example of a jury trial waiver clause
Here’s how a jury trial waiver clause might appear in an agreement:
“Each Party knowingly, voluntarily, and irrevocably waives any and all rights to a trial by jury in any legal proceeding arising out of or relating to this Agreement. This waiver applies to all claims, counterclaims, and defenses, whether based in contract, tort, or otherwise.”
Conclusion
A jury trial waiver is a valuable provision for parties seeking to streamline dispute resolution and reduce litigation risks. For businesses, it provides predictability and efficiency in resolving conflicts. For counterparties, it ensures disputes are decided based on legal principles in a bench trial. Including a clear and enforceable jury trial waiver in agreements promotes transparency, reduces costs, and minimizes the complexity of legal proceedings.
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.