Arbitration agreements are commonly used in California to resolve disputes without going to court. These agreements require parties to submit their disputes to an impartial third party who makes a binding decision. If you are thinking of drafting an arbitration agreement in California, it is important to understand the legal requirements and best practices for doing so.
There are a few things to keep in mind when drafting an arbitration agreement in California. First, the agreement must be in writing and signed by all parties. Second, the agreement must be clear and unambiguous, and should specify the types of disputes that will be subject to arbitration. Third, the agreement should identify the arbitration rules and procedures that will apply, and should specify the location of the arbitration.
To help you get started, we have put together a California arbitration agreement template that you can use as a starting point. This template includes the essential provisions that should be included in an arbitration agreement.
California Arbitration Agreement Template:
This Arbitration Agreement (the “Agreement”) is entered into by and between ___________________ (“Employer”) and ___________________ (“Employee”).
1. Dispute Resolution: Any dispute, controversy, or claim arising out of or relating to this Agreement or its breach, including any claim based on contract, tort, or statute, shall be submitted to binding arbitration in accordance with the rules of _________________ (arbitration organization).
2. Arbitration Procedure: The arbitration shall be conducted in ________________ (location) before a single arbitrator selected in accordance with the rules of the arbitration organization. The arbitrator’s decision shall be final and binding, and may be entered as a judgment in any court of competent jurisdiction.
3. Costs and Fees: Each party shall bear its own costs and fees associated with the arbitration proceeding, including attorneys’ fees, unless otherwise awarded by the arbitrator.
4. Exceptions: This Agreement does not preclude parties from seeking provisional remedies from a court of appropriate jurisdiction, such as injunctive relief or specific performance, to protect their rights pending resolution of any dispute.
5. Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the State of California, without giving effect to any choice of law or conflict of law provisions.
6. Entire Agreement: This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof. Any modifications or waivers of this Agreement must be in writing and signed by both parties.
By signing below, the parties acknowledge that they have read and understand this Agreement, and agree to be bound by its terms and conditions.
_______________________ _______________________
Employer Employee
When using this template, it is important to consult with an attorney to ensure that the agreement is tailored to your specific needs and complies with California law. You should also carefully review any arbitration rules and procedures that you plan to incorporate into the agreement.
In conclusion, an arbitration agreement can be a useful tool for resolving disputes in California. With the right guidance and a well-drafted agreement, parties can avoid the costs and uncertainty of litigation and instead achieve a fair and efficient resolution of their disputes.
