Arbitration clauses that actually hold up in New York courts

Most arbitration clauses are copied from the last contract someone had. That is where the trouble starts: the seat is wrong, the rules do not exist under that name, and the language of the proceedings is left to the tribunal.

Name the institution correctly

The AAA, the ICDR, the ICC and JAMS all have precise names. A clause pointing at ‘the international arbitration court in New York’ names nothing, and a New York court will say so before it sends anybody to arbitration.

Seat, rules, language, number of arbitrators

Four decisions, one sentence each. Leaving the number of arbitrators open is the most expensive omission: a three-member tribunal on a $300,000 claim costs more than the claim.

Consumer and employment matters

Consumer and employment arbitration clauses are enforceable, but only if they are drafted for it: cost-shifting, class waivers and venue are each tested separately. A clause that tries to cover everything the company signs will be struck out where it matters most.

Our standard clause is four lines and fits into any commercial contract. We hand it over free on the first call.