Drafting a Mutual Agreement to Arbitrate Claims

Note: Want to skip the guide and go straight to the free templates? No problem - scroll to the bottom.
Also note: This is not legal advice.

Introduction

When it comes to resolving disputes, arbitration is an increasingly popular option for businesses and individuals alike. It provides a fast, affordable, and private way of settling disagreements without the need for costly litigation or public attention. By agreeing to mutual agreement to arbitrate claims, parties are able to select their own arbitrator and tailor the process according to their specific needs and interests. Furthermore, they can save on fees associated with attorneys, court costs and other expenses due to the shorter timeline of arbitration proceedings when compared to litigation.

At Genie AI we believe that everyone should have access to effective dispute resolution methods no matter their financial means or legal background. That’s why our expert team has developed a comprehensive open source legal template library which covers everything from documents for ordinary contracts through to mutual agreements for dispute resolution. The millions of datapoints that drive Genie AI’s artificial intelligence (AI) facilitate the creation of high-quality legal documents without requiring any payment from those using our service.

Using this approach ensures that each template is up-to-date with market standards - providing you with all of the information you need in order to draft your own mutual agreement quickly and easily. This step-by-step guide will help you understand more about drafting your own agreement as well as giving you access to our impressive library of templates today - so read on for more guidance!

Definitions (feel free to skip)

Arbitration: A form of dispute resolution that takes place outside of a courtroom, where a third-party arbitrator makes a decision to resolve a dispute.
Arbitration Agreement: A document that outlines the scope of the arbitration, including the parties involved, the subject of the arbitration, and any applicable laws.
Mediation: A method of dispute resolution involving a neutral third-party mediator who helps the parties to reach an agreement.
Negotiation: A method of dispute resolution in which the parties involved negotiate directly with each other to reach an agreement.
Claim: A statement made by one of the parties that outlines the details of the dispute.
Evidence: Information presented to the arbitrator to support a claim.
Award: The final decision of the arbitrator.
Appeal: A challenge to the award made by one of the parties.
Enforcement: The process of making sure that the award is carried out.
Remedies: Legal actions taken to enforce an award.
Termination: The end of an arbitration agreement.

Contents

• Explain the concept of arbitration and why it is beneficial
• Outline the scope of the arbitration agreement, including the parties to the agreement, the subject of the arbitration, and any applicable laws
• Discuss the process for selecting an arbitrator, including:
• Establishing criteria for selecting an arbitrator
• Determining the number of arbitrators
• Deciding whether the arbitrator should be impartial or affiliated with one of the parties
• Describe the various options for dispute resolution, including mediation and negotiation
• Discuss the process for submitting claims, including:
• Filing the claim with the arbitrator
• Providing the other party with a copy of the claim
• Providing the other party with a timeline for responding to the claim
• Explain the process for submitting evidence, including:
• How to obtain witnesses and documents
• Deadlines for providing evidence
• Discuss the process for making an award, including:
• Providing a written opinion explaining the award
• Specifying the damages, if any, that are to be awarded
• Describe the process for appealing an award, including:
• Establishing the grounds for appeal
• Establishing the timeline for filing an appeal
• Discuss the enforcement of an award, including any legal remedies available
• Outline the procedures for terminating an arbitration agreement, including:
• Providing notice of the termination
• Establishing a timeline for the termination to take effect

Get started

Explain the concept of arbitration and why it is beneficial

• Understand arbitration: arbitration is a type of dispute resolution process that is used to settle disputes without going through the court system. It is typically less expensive and quicker than litigation.
• Learn about the advantages of arbitration: it is private, less adversarial, and can be tailored to the parties’ specific needs. It also allows for more flexibility in terms of the rules of evidence and procedure.
• Consider the limits of arbitration: while arbitration is often more efficient, it is not always binding and the parties may have limited rights to appeal the decision.
• Decide if arbitration is right for you: consider the pros and cons of arbitration and decide if it’s the right choice for your situation.

When you have a basic understanding of what arbitration is and why it is beneficial, you can check this off your list and move on to the next step.

Outline the scope of the arbitration agreement, including the parties to the agreement, the subject of the arbitration, and any applicable laws

• Identify the parties to the agreement, including their full names and contact information
• Outline the subject of the arbitration and any relevant details
• Specify any applicable laws and regulations that will govern the arbitration
• Make sure to include language that states that the parties agree to be bound by the arbitration agreement
• Once the scope of the agreement is outlined, you can check this step off your list and move on to discussing the process for selecting an arbitrator.

Discuss the process for selecting an arbitrator, including:

• Identify the qualifications and criteria for selecting an arbitrator to ensure the parties are satisfied with the choice
• Consider the availability of the arbitrator and the ability to meet the timeline set out in the agreement
• Decide if the parties will agree to a single arbitrator or a panel of arbitrators
• Consider the impartiality of the arbitrator, the ability to communicate with the arbitrator, and any other relevant criteria
• Agree on any other procedures for selecting an arbitrator and document those in the agreement

When you can check this off your list:
Once you and the other party have discussed and agreed on the qualifications and criteria for selecting an arbitrator, and any other procedures for selecting an arbitrator, you can check this off your list and move on to the next step.

Establishing criteria for selecting an arbitrator

• Agree on criteria for selecting an arbitrator that is suitable for the dispute.
• Consider factors such as the arbitrator’s availability, knowledge of applicable law, experience, and cost.
• Make sure to include language in the agreement that details the criteria used in the selection process.

When you can check this off your list and move on to the next step:

• When the criteria for selecting an arbitrator have been discussed and agreed upon by both parties, you can move on to determining the number of arbitrators.

Determining the number of arbitrators

• Determine the number of arbitrators needed for the arbitration process.
• Consider whether the parties require a single arbitrator or a panel of three arbitrators.
• Decide whether the parties would prefer a sole arbitrator or a three-member tribunal.
• Establish whether the parties would prefer that the arbitrator or tribunal be composed of professionals in a particular field, such as an attorney, or if they would prefer a layperson.
• Consider the complexity of the dispute, the amount of money involved, and the amount of time available to reach a decision when deciding how many arbitrators are needed.
• Once the parties have agreed on the number of arbitrators, they can move on to the next step of the process.

Deciding whether the arbitrator should be impartial or affiliated with one of the parties

• Consider the various interests of each party and the context of the dispute to decide whether an impartial or affiliated arbitrator would be more appropriate.
• Discuss the pros and cons of each option with the other party and come to an agreement on which type of arbitrator would be more suitable.
• Once an agreement is reached, make sure to include it in the mutual agreement to arbitrate claims.

When you can check this off your list and move on to the next step:

• Once you and the other party have discussed the options and agreed on the type of arbitrator to use, you can move on to the next step of the guide.

Describe the various options for dispute resolution, including mediation and negotiation

• Explain the definition of arbitration, mediation, and negotiation as options for dispute resolution.
• List the pros and cons for each for dispute resolution.
• Explain how the parties can choose a combination of different approaches to dispute resolution.
• Discuss the implications of each of the different approaches to dispute resolution.
• Agree on which approach to dispute resolution to be used.
• When you have agreed on the approach to dispute resolution to be used, you can check this off your list and move on to the next step.

Discuss the process for submitting claims, including:

• Identify the proper arbitrator to submit the claim to, based on the agreement and type of dispute involved
• Collect all necessary documents and evidence to support the claim
• Draft the claim in accordance with the rules of the arbitrator
• Submit the claim to the arbitrator, paying any applicable filing fees
• Keep a copy of the claim and proof of filing for your records

Once the claim has been submitted to the arbitrator, the next step is filing the claim with the arbitrator.

Filing the claim with the arbitrator

• Prepare the arbitration claim and relevant documents in accordance with the rules of the chosen arbitrator.
• Contact the arbitrator and submit the claim.
• Obtain proof of filing from the arbitrator.
• You will know you have completed this step when you have obtained proof of filing from the arbitrator.

Providing the other party with a copy of the claim

• Make a copy of the claim for the other party
• Send the copy of the claim to the other party via an agreed-upon method (secure email, postal service, etc.)
• Keep a record of when the other party received the copy of the claim
• When you have confirmation that the other party received the copy of the claim, you can check this step off your list and move on to the next step.

Providing the other party with a timeline for responding to the claim

• Set a reasonable deadline for the other party to respond to the claim - for example, two weeks from the date of receiving the claim
• Be sure to consider any legal or contractual timeframes for responding to the claim
• Give the other party a copy of the timeline you have set
• Ask the other party to confirm that they have received and reviewed the timeline
• Make sure to document all of the communication steps taken with the other party
• Once the other party has responded to the claim, you can check this step off your list and move on to the next step.

Explain the process for submitting evidence, including:

• Make sure that you understand the process for submitting evidence in the mutual agreement to arbitrate claims.
• Provide the other party with a detailed outline of what evidence you intend to submit.
• Discuss what kinds of evidence are needed, such as documents, witness testimony, or expert opinions.
• Make sure that the other party knows how to submit their evidence, including the timeline and any other requirements.
• Agree on a deadline for when all evidence must be submitted.
• Make sure that you keep a copy of all the evidence that is submitted.
• When all of the evidence is submitted, you will know you can check this off your list and move on to the next step.

How to obtain witnesses and documents

• Determine who may have relevant information pertaining to the dispute
• Subpoena witnesses or documents as necessary
• Make sure to follow your state’s guidelines for issuing subpoenas
• Send out letters to witnesses or custodians of documents requesting their presence or copies of documents
• Inform all parties of the request and provide them with an opportunity to respond

You can check this off your list when you have received the information and documents requested or when the deadline for providing them has passed.

Deadlines for providing evidence

• Review the applicable law to determine the deadline for each party to submit evidence
• Set a deadline for each party to submit any witnesses and documents that support their case
• Contact any witnesses to set a date for their testimony
• Agree on a timeline for the submission of evidence
• Make sure that both parties are in agreement on the timeline for submission of evidence
• When all evidence is submitted, you can move forward to the next step.

Discuss the process for making an award, including:

• Discuss with all parties the process for making an award, including the time frame and the criteria for making a decision.
• Agree on the process for selecting the arbitrator or arbitrators, including their qualifications and how they will be chosen.
• Establish the procedures and rules that will be followed during the arbitration, such as how hearings will be conducted and how evidence will be presented.
• Determine the deadlines for submitting evidence, filing briefs, and other formalities.
• Agree on how the award will be issued, including the format and delivery method.
• Agree on the language that will be used in the award.

You will know you can check this step off your list and move on to the next step once all parties have agreed on the process for making an award.

Providing a written opinion explaining the award

• Draft a written opinion that explains the reasons for the award, including a clear statement of the facts and legal principles that have been applied
• Ensure that the opinion outlines the decision made, any damages awarded, and any obligations imposed on the parties
• Make sure the opinion is signed by the arbitrator and dated
• Check that the opinion meets the requirements of the applicable law and the agreement between the parties
• When the opinion is finalized, it can be checked off your list and you can move on to the next step.

Specifying the damages, if any, that are to be awarded

• List all of the damages that may be awarded to the prevailing party in the arbitration.
• Include the amount of money damages, if any, that may be awarded.
• Specify any other damages, such as injunctive relief, that may be awarded.
• Determine if there is a cap on the amount of damages that can be awarded and include that in the agreement.
• When you are finished specifying the damages, if any, that may be awarded, review the language of the agreement and make sure it is clear and accurate.
  You can check this step off your list when you have completed specifying all of the damages that may be awarded in the arbitration.

Describe the process for appealing an award, including:

• Determine the rules and regulations that will govern the appeal process, including:
• Setting a timeline for filing and responding to appeals
• Specifying the required documents that must accompany the appeal
• Making provisions for a neutral third party arbitrator to resolve the appeal
• Establish the appeals process in writing and include it in the mutual agreement to arbitrate
• You can check this off your list when the appeals process has been included in the mutual agreement to arbitrate.

Establishing the grounds for appeal

• Address in the agreement what types of claims are subject to binding arbitration.
• Identify the acceptable grounds for appeal, including factual error, legal error, or other exceptional circumstances.
• Establish a timeline for filing an appeal, such as a set number of days after the initial award is rendered.
• Outline the procedures for appealing the award.
• When you have included all the necessary information, you can check this step off your list and move on to the next step.

Establishing the timeline for filing an appeal

• Determine the time limit for filing an appeal: the time limit must be reasonable and both parties must agree to it before the arbitration begins.
• Set out the timeline for filing an appeal in the agreement: this should include the time limit for filing an appeal, the process for filing the appeal, and any other relevant terms.
• Confirm that both parties agree to the timeline: both parties must sign and date the agreement in order to confirm their acceptance of the timeline.

How you’ll know when you can check this off your list and move on to the next step:

• Once the timeline for filing an appeal is established, both parties have agreed to the timeline, and the agreement is signed and dated, the timeline for filing an appeal has been set and the step is complete.

Discuss the enforcement of an award, including any legal remedies available

• Draft a clause in the Mutual Agreement to Arbitrate Claims regarding enforcement of the award and any legal remedies available if one of the parties fails to comply
• Include specific language regarding the jurisdiction of enforcement, as well as any applicable laws and regulations that must be followed
• Ensure any remedies, such as injunctive relief, are clearly defined
• When you are confident the language is clear and concise and covers all necessary aspects, you have completed this step and can move on to the next.

Outline the procedures for terminating an arbitration agreement, including:

• Determine how the arbitration agreement should be terminated:
• By mutual agreement between the parties
• By either party giving notice to the other
• Establish the procedures for terminating the arbitration agreement
• Determine the format for giving notice
• Written notice
• Electronic notice
• Establish the timeline for giving notice
• Establish who is responsible for providing notice
• Outline the consequences of terminating an arbitration agreement
• Determine whether the parties are able to immediately file a claim in court
• Determine whether any additional steps are required before filing a claim in court
• Checklist:
• Have the procedures for termination been established?
• Has the format for notice been determined?
• Has the timeline for giving notice been established?
• Has the responsibility for providing notice been determined?
• Have the consequences of terminating an arbitration agreement been determined?

When you have completed outlining the procedures for termination and have checked off all points in the checklist, you can move on to the next step of providing notice of the termination.

Providing notice of the termination

• Provide written notice to all parties involved in the arbitration agreement, including the arbitrator, that you intend to terminate the agreement
• Make sure that all parties receive written notice in a timely manner
• Make sure that the written notice includes the date on which the agreement will be terminated
• Track the date that written notice was provided to all parties
• Once all parties have received written notice, you have completed this step and can move on to the next step - establishing a timeline for the termination to take effect.

Establishing a timeline for the termination to take effect

• Draft a timeline for the termination to take effect. This timeline should include a date for the termination to begin and a date for it to end.
• Discuss the timeline with the other party, and make sure both parties agree upon it.
• Once the timeline has been finalized, include it in the agreement.
• You’ll know you can check this off your list and move on to the next step when the timeline has been agreed upon, reviewed, and included in the agreement.

FAQ:

Q: What is the difference between UK and US arbitration laws?

Asked by Andrew on January 12th 2022.
A: The laws governing arbitration in the UK and US are quite similar, but there are some differences. In the UK, arbitration is governed by the Arbitration Act 1996, while in the US, it is governed by the Federal Arbitration Act. Generally speaking, UK arbitration laws are more flexible, allowing for parties to agree on a variety of different rules and procedures to govern the process. In contrast, US arbitration law is more rigidly structured. Additionally, US arbitration awards are subject to judicial review, while those in the UK are final and binding.

Q: How does arbitration work in the EU?

Asked by Sarah on April 7th 2022.
A: Arbitration in the EU is regulated by a series of directives and regulations that have been implemented in each of the Member States. Generally speaking, EU arbitration laws are quite similar to those in the UK and US. Parties can agree upon a variety of different rules and procedures to govern their arbitration proceedings, and awards issued by arbitrators are generally final and binding. Additionally, arbitral proceedings are usually confidential, meaning that they are not open to public scrutiny.

Q: What types of disputes can be arbitrated?

Asked by Michael on November 2nd 2022.
A: Arbitration is a flexible form of dispute resolution that can be used to resolve a wide variety of civil disputes. These include contractual disputes, such as breach of contract or non-performance; tort claims; intellectual property disputes; employment disputes; and family law disputes. Additionally, some states allow for criminal matters to be arbitrated as well.

Q: What are the benefits of using arbitration over other forms of dispute resolution?

Asked by Emily on June 8th 2022.
A: Arbitration offers several advantages over other forms of dispute resolution such as litigation or mediation. Arbitration is typically faster than litigating a dispute in court, as there is no need for lengthy discovery processes or appeals. Additionally, it tends to be less expensive than litigation since parties do not need to pay for court fees or attorney’s fees associated with litigating a dispute in court. Furthermore, arbitration is confidential in nature, meaning that parties can reach a resolution without having their dispute become public knowledge. Finally, parties have more control over the outcome of their dispute since they can agree upon a variety of rules and procedures to govern their arbitration proceedings.

Q: What happens if one party refuses to comply with an arbitral award?

Asked by Isabella on August 3rd 2022.
A: If one party refuses to comply with an arbitral award, there are a few different options available for enforcing it. Generally speaking, if the award was issued in a country that is signatory to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (such as most countries in Europe), then it should be relatively easy for parties to enforce an award against recalcitrant parties both domestically and internationally. Parties can also take steps such as seeking assistance from their legal counsel or filing an enforcement action in court if necessary.

Q: How long does it take for an arbitral award to become final?

Asked by Jacob on July 25th 2022.
A: The length of time for an arbitral award to become final depends on a few different factors such as the complexity of the dispute being resolved and how quickly parties file necessary paperwork after the award has been issued (e.g., if they need to file an appeal). Generally speaking, however, it usually takes anywhere from several weeks to several months for an award to become final once it has been issued by an arbitrator or tribunal.

Q: Are there any costs associated with initiating arbitration proceedings?

Asked by Madison on May 15th 2022.
A: Yes, there are typically costs associated with initiating arbitration proceedings such as filing fees for initiating the claim and administrative fees charged by the arbitrator or tribunal (e.g., for preparing documents). Additionally, parties may incur costs associated with legal counsel if they choose to hire attorneys to represent them during their proceedings or hire experts such as appraisers or accountants if needed. However, these costs tend to be much lower than what would be incurred when litigating a case in court due to shorter timelines and less paperwork involved in arbitration proceedings.

Q: What are my options if I am unsatisfied with an arbitral award?

Asked by Matthew on March 10th 2022.
A: If you are unsatisfied with an arbitral award, you have several options available depending on where you live and the terms that were agreed upon between the parties during their proceedings (e.g., whether appeals were allowed). Generally speaking, you may be able to file an appeal if your jurisdiction permits this (though appeals tend to be very rare) or seek assistance from your legal counsel regarding other possible options such as filing an enforcement action in court if necessary or negotiating further with your opponent’s counsel about modifying or vacating the award altogether.

Q: What happens if one party fails to appear at an arbitration hearing?

Asked by David on September 17th 2022.
A: If one party fails to appear at an arbitration hearing without providing adequate notice or justification for their absence (e.g., illness), then they may forfeit their right to participate in further proceedings unless they can show good cause for their absence or obtain permission from the arbitrator or tribunal presiding over the case afterwards (if applicable). Additionally, if one party fails to appear at a hearing without providing proper notice or justification beforehand then they may also face sanctions such as having their case dismissed altogether or having default judgment entered against them in favor of their opponent if applicable under applicable rules and laws governing arbitration proceedings in their jurisdiction (e.g., rules set forth by relevant professional organizations).

Q: Do I need an attorney when participating in arbitration?

Asked by Joshua on October 21st 2022.
A: Whether you need an attorney when participating in arbitration depends largely on your individual circumstances and needs surrounding your particular dispute being resolved through arbitration proceedings (e.g., complexity of issues involved). Generally speaking however, it can be beneficial for parties involved in arbitration proceedings—especially those who do not have experience with legal matters—to hire attorneys who specialize in this area so that they can provide advice regarding relevant laws governing their case as well as how best to present arguments before an arbitrator or tribunal during hearings taking place throughout those proceedings (if applicable).

Q: Are there any alternatives available if I cannot afford legal representation during my arbitral proceedings?

Asked by Noah on February 14th 2022…
A: Yes, there are alternatives available if you cannot afford legal representation during your arbitral proceedings such as free resources available online (e.g., do-it-yourself guides) or seeking assistance from non-profit organizations that specialize in providing free legal advice related to particular types of cases being resolved through alternative dispute resolution methods such as arbitration (e.g., consumer protection agencies). Additionally, depending upon your individual circumstances you may qualify for free legal aid through government-funded programs provided within your jurisdiction (e

Example dispute

Suing a Company for Breach of a Mutual Agreement to Arbitrate Claims

• Plaintiff must be able to show that a valid, mutual agreement to arbitrate claims exists between the parties.
• Plaintiff must be able to demonstrate that the defendant had knowledge of the agreement and failed to abide by it.
• Plaintiff must be able to prove that the defendant breached the agreement and caused damage or loss, either financial or otherwise.
• Plaintiff must be able to show that the damages or losses suffered were a result of the defendant’s breach of the agreement.
• A court may order the defendant to pay the plaintiff damages if the plaintiff is able to prove their case.
• The court may also order the defendant to pay the plaintiff’s attorney fees and costs associated with the suit.

Templates available (free to use)

Mutual Agreement To Arbitrate Claims

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