2016 Mitigating Risk: Key Litigation Developments - Commercial Litigation: Procedural Issues >> No, Not All Arbitration Clauses Are Created Equal

April 5, 2016

Faced with the delays and burdens that often go hand-in-hand with resolving disputes in court, companies increasingly have turned to arbitration as a method of alternative dispute resolution. Not all arbitration clauses, however, are created equal. Indeed, apparently minute semantic variances can spell the difference between a three-month arbitration and a three-year court battle.

Consider these two similar arbitration clauses commonly found in commercial agreements:

• Any dispute, claim or controversy arising out of or relating to this Agreement shall be determined by arbitration in New York City before one arbitrator.
• Any dispute, claim or controversy concerning the interpretation or enforcement of this Agreement shall be determined by arbitration in New York City before one arbitrator.