One Size Doesn't Fit All: Customizing Dispute Resolution For Commercial Contracts

Dispute resolution clauses are independent agreements within a contract and often do not get the attention they deserve. When drafting a complex agreement, it may be difficult to shift gears and imagine the problems that may arise in performance and the best way to deal with them. A court proceeding is a traditional remedy preferred by many. If the opposing party is leaning in that direction, seize the opportunity to discuss alternative dispute resolution methods to address contract disputes.

Building a Stepped Dispute Resolution Process

The dispute resolution agreement may include a stepped process providing that (a) executive negotiation shall occur for no more than a specific period of time (such as 60 days) after the notice of a dispute is properly served; (b) if direct executive negotiation does not resolve the dispute, the parties shall pursue mediation with a specific provider; and (c) if mediation is not desired, is not pursued within a specific number of