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FedArb Model Clauses
FedArb recommends adding the following information to the arbitration clause:
- Where the arbitration will take place, e.g.: “The Arbitration will take place in New York, NY.”
- The choice of law, e.g.: “The Arbitration will be governed by the law of the state of New York.”
- The number of arbitrators, e.g. “The parties will select one arbitrator, and in the case of failure to agree, will proceed as per the FedArb Rules for selection of an arbitrator.”
- FedArb Rules do not provide for an appeal by default. To draft an arbitration contract clause that provides an appeal, the arbitration clause should specify that a party may appeal, e.g.: “The parties agree to one final appeal under the FedArb Rules.”
FedArb Model Clauses:
Parties wishing to agree in advance to arbitrate, under the FedArb Rules, disputes that may arise between them, may do so by including the following language in their agreements for this purpose:
Short Clause:
The Parties to this contract agree that all disputes arising out of or in connection with this contract, or in the application of any of its provisions (including the arbitrability of the dispute), shall be fully and finally resolved through confidential arbitration in [select venue] conducted in English under the administration of Federal Arbitration, Inc. and in accordance with its Rules for Arbitration in effect at the time the claim is made.
Detailed Clause:
The Parties to this contract agree that all disputes arising out of or in connection with this contract, or in the application of any of its provisions (including the arbitrability of the dispute and any interim relief), if not resolved by mediation, shall be fully and finally resolved by confidential arbitration proceedings by (select 1 or 3) arbitrator(s) who [are former Federal Court Judges – or other qualifications or expertise] under the administration and Rules of Federal Arbitration, Inc. in effect at the time the claim is made, in the English language, and which will take place in [select venue] and will be governed by the law of [select venue]; provided, however, that if the amount in controversy is less than $[1mm], then the dispute shall be governed by Federal Arbitration’s Rules for Expedited Arbitration.
Expedited Arbitration:
Parties wishing to agree to expedited arbitration may do so by using the following language:
“The Parties to this contract agree that all disputes arising out of any of its provisions shall be finally resolved through arbitration, under the administration of Federal Arbitration, Inc., in accordance with its Rules for Arbitration; provided, however, that if the amount in controversy is less than [$1mm], then the dispute shall be governed by Federal Arbitration’s Rules for Expedited Arbitration.”
Ad Hoc Arbitration:
Parties wishing to agree to arbitrate any dispute that has arisen between them on an ad hoc basis using FedArb’s rules and administration may do so by using the following language:
“The Parties to this agreement acknowledge that the dispute described below has arisen between them, and that they agree to have the dispute, and all issues related to it, finally resolved through arbitration under the administration of Federal Arbitration, Inc. and in accordance with its Rules for Arbitration.”