February 5, 2007 6:32 AM EST
Depending upon the business of my client, I may or may not recommend arbitration clauses in their contracts. Arbitration clauses can also be drafted in many different ways, including the ability to appeal the arbitrator`s decision to a court, or to make it binding, without an opportunity to appeal.
For my clients that are in the high technology business, or who are providing intellectual property to their customers, arbitration is not always a good option, since you potentially lose the ability to collect certain damages that would otherwise be available to you in court. Also, arbitrators tend to "split the baby," so that sort of result is not always in a client`s best interests.
There are also various other considerations (place of the arbitration, the number of arbitrators, the rules the arbitration must follow, what sorts of claims are not subject to arbitration, etc.) so these types of clauses in contracts must be handled carefully.
Pepper Law Group, LLC
21 E. High Street, Suite D
Somerville, NJ 08876
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