Protecting Your Rights in Arbitration Agreements.

When you sign a contract with an arbitration clause, you're agreeing to resolve any future disputes through arbitration instead of going to court. Before signing such an agreement, it's important to understand what you're agreeing to and how to protect your rights.

Understanding What You're Signing

Know What's Covered An arbitration agreement should clearly state which types of disagreements must go through arbitration and which (if any) can still go to court. Read this part carefully to understand exactly what you're agreeing to.

Location and Rules The agreement will specify where the arbitration will take place and which rules will apply. This matters because different locations and rules can significantly affect how your case proceeds.

Who Decides Your Case

Choosing Arbitrators One of the most important parts of arbitration is who gets to decide your case. The agreement should explain how arbitrators are selected and what qualifications they must have. Ideally, the selection process should be fair to both sides.

Number of Arbitrators Some cases have one arbitrator, while others have three or more. More arbitrators can provide a balanced perspective but may increase costs.

Your Rights During the Process

Access to Information In court, you have broad rights to obtain documents and testimony from the other side. In arbitration, these rights are often more limited. Make sure the agreement allows you to access the information you'll need to present your case effectively.

Presenting Your Case The agreement should allow you adequate opportunity to present evidence, question witnesses, and make your arguments. It should also confirm your right to have a lawyer represent you.

Available Remedies Check what types of remedies (like money damages or specific actions) are available through arbitration. Some agreements limit the types of remedies arbitrators can award.

Privacy Considerations

Confidentiality Many people choose arbitration for its privacy. The agreement should clearly state what information remains confidential and what might become public.

Time and Cost Factors

Deadlines Look for time limits on when you can bring a claim and how long the process should take. These should give you reasonable time to prepare and present your case.

Cost Sharing Arbitration involves various costs, including arbitrator fees and administrative expenses. The agreement should specify who pays these costs. Be cautious about agreements that make you pay excessive fees, as this could effectively prevent you from pursuing legitimate claims.

Language and Multiple Parties

Language Requirements If you operate in multiple languages, check which language(s) will be used in the arbitration. This includes both spoken proceedings and written documents.

Involving Other Parties If your dispute might involve multiple parties, the agreement should address whether and how these parties can be brought into a single proceeding.

Before You Sign

Get Professional Advice Before signing any agreement with an arbitration clause, consider having a lawyer review it. An experienced attorney can spot potential issues and suggest changes to protect your interests.

Keep Records Save copies of the signed agreement and any related communications. These could be important if questions arise later about what you agreed to.

Making it Work for You

While arbitration has advantages over court litigation-including privacy, flexibility, and often faster resolution-it's important to ensure the process will be fair and effective for your specific situation. Taking time to understand and negotiate arbitration terms before signing can help protect your rights while still gaining the benefits of this alternative dispute resolution approach.

Our law firm can help review arbitration agreements before you sign them or assist you if you're already in a dispute involving an arbitration agreement. We work to ensure the arbitration process serves its purpose of efficient dispute resolution while maintaining appropriate protections for your rights and interests.

If you have questions on Arbitration Clauses, call the Nawash Law Office and make an

appointment at 202-776-7191.