Categories: Articles

Contractual Arbitration Clauses: Arbitrator Selection and Qualifications

An increasing number of contracts contain arbitration clauses. But not all arbitration clauses are equally clear, precise, and specific–or equally enforceable.

Like other contract clauses, an arbitration clause may be invalidated under general principles of contract law. The U.S. Supreme Court has ruled that an arbitration clause may be invalid if it is indefinite, fraudulent or unconscionable, or was agreed upon under duress. As a result, commercial arbitration clauses should be clear and specific.

Before agreeing to an arbitration clause, consider how you would want any future arbitration to proceed, and the circumstances under which arbitration would be required.

For instance, consider whether you would like to use the services of a specific alternative dispute resolution provider, such as the American Arbitration Association. If you are considering such a provider, you might wish to examine its sample arbitration clauses and compare them to your own.

Next, consider the process established to select the arbitrator or arbitrators. Do you want to present your dispute to a single arbitrator or to an arbitration panel? For example, some arbitration clauses specify a panel of three arbitrators: each party picks one arbitrator, and then those two arbitrators choose the third arbitrator.

In addition to considering how the arbitrator will be chosen, you also should consider who will be qualified to serve as an arbitrator. For example, do you want the arbitrator to have relevant experience in a particular subject area (like architecture, engineering, software, publishing, or employment) or a particular qualification (like a CPA or a JD)? By considering these sort of issues prior to entering into an arbitration agreement, you can reduce the risk of future conflicts and add a degree of certainty to the arbitration process.

If you have any question, please contact Grant Killoran at grant.killoran@wilaw.com or 414-276-5000.

Published by
Grant Killoran

Recent Posts

The WiLaw Quarterly Newsletter

Newsletter Article Highlights: A Beginner’s Guide to Trademarks: Part One—Trademark Basics Wisconsin Expands Child and…

2 weeks ago

Employment LawScene Alert: FTC Bans Employee Non-Competes, but Legal Challenges Expected

The administrative agencies are having a busy week! In addition to the DOL issuing an…

3 weeks ago

Employment LawScene Alert: DOL Issues Final Overtime Rule with Significant Salary Threshold Increase

Under the Fair Labor Standards Act, non-exempt employees are entitled to overtime pay at 1.5…

3 weeks ago

A Beginner’s Guide to Trademarks: Part One—Trademark Basics

What is a Trademark? A trademark can be any mark representing words, phrases, symbols, designs,…

4 weeks ago

Employment LawScene Alert: Biden Proposed Budget Has Labor and Employment Signals

On March 11, 2024, President Biden released the Budget of the U.S. Government for Fiscal…

2 months ago

O’Neil Cannon Serves as Legal Advisor to Engendren Corporation in its Sale to Cummins Inc.

O’Neil Cannon advised Engendren Corporation in its recent sale to Cummins Inc., a global powertrain…

2 months ago