Sample Mediation Clause

Business and commercial contracts include mediation and arbitration clauses with increasing frequency. This is true with contracts between business to business, business to consumer, and public policy / government contracts such as:

  1. Contracts to Buy and Sell Real Estate in Colorado require mandatory mediation for disputes that arises related to the contract (paragraph 22)
  2. Concerning Common Interest Communities, SB 06-089 amended the Colorado Revised Statute 38-33.3-124 to read:
    Legislative declaration - alternative dispute resolution encouraged - policy statement required. (1) (a) The general assembly finds and declares that the cost, complexity, and delay inherent in court proceedings make litigation a particularly inefficient means of resolving neighborhood disputes. Therefore, common interest communities are encouraged to adopt protocols that make use of mediation or arbitration as alternatives to, or preconditions upon, the filing of a complaint between a unit owner and association in situations that do not involve an imminent threat to the peace, health, or safety of the community.
  3. Virtually all Credit Card Agreements
  4. Online Service Agreements for E-commerce
  5. Banking Agreements to open Checking or Savings Accounts
  6. Corporate Contracts
  7. Private Business Contracts

The interview with panel member Samuel Cheris contains some things to think about when drafting arbitration and mediation clauses. 

Sample mediation clause language may be used when drafting contracts.

  The parties have entered into this Agreement as persons who know and trust one another, and this trust is material to their decision to enter into this Agreement. As a result, if any dispute, claim or controversy ("dispute") arises between them, unless otherwise provided in this Agreement, they agree that they will first attempt to resolve the dispute by entering into mediation with a mediator selected from the Panel Members of CoMA . If mediation fails to resolve the dispute, the parties agree that any and all claims, controversies or disputes arising from or related to this Agreement, including, but not limited to those claims, controversies or disputes pertaining to the formation, construction, performance, applicability, interpretation, enforceability, or breach of this Agreement, or any claim or assertion that all or part of this Agreement is void or voidable, shall be settled by binding arbitration according to the rules of CoMA. Further, venue for the arbitration proceeding shall be in Denver, Colorado. The Parties hereto also agree that any award tendered by the arbitrator may be entered as a judgment in any court in Colorado and enforceable as an order of said court and the Parties hereby submit to the venue and jurisdiction of that court for purposes of enforcement of any arbitration award.  

 

Disclaimer: The above sample clause is applicable to contracts interpreted pursuant to Colorado law. It is for informational purposes only and is not intended to constitute legal advice. Please consult with your legal advisor for specific language applicable to your contracts.