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ARTICLE · 18 MAY 2026

Check The Arbitral Organization’s Rules Before Agreeing To Arbitrate

A recent Seventh Circuit decision reveals how arbitration rules can create unexpected barriers to dispute resolution, leaving parties unable to proceed in either court or arbitration.

United StatesLitigation, Mediation & Arbitration

Whether to select arbitration as a dispute resolution mechanism is an important decision when entering into a contract. Deciding whether arbitration should be administered by an organization such as the American Arbitration Association (AAA), Judicial Arbitration and Mediation Services (JAMS), or their foreign counterparts, such as the International Chamber of Commerce (ICC), the International Centre for Dispute Resolution (ICDR), the London Court of International Arbitration (LCIA), etc., is equally important. One might think if the parties agreed to arbitrate, and further agreed on the governing rules of the selected organization, the arbitration will proceed should a dispute arise from the parties’ contract. A recent Seventh Circuit decision in Bernal v. Kohl’s Corp. and Kohl’s Inc., No. 24-2806 (7th Cir. May 1, 2026) shows that the foregoing conclusion really depends on the rules of the selected arbitral organization. Oftentimes, parties ask if there is a material difference

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