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Arbitration

Arbitration of related claims - Sixth Circuit says yes and no

In NCR Corp. v. Korala Assoc., Ltd., No. 06-3685 (6th Cir. Jan. 16, 2008), a U.S. appeals court dealt with the question whether a claim that was only tangentially related to a contract was required to be arbitrated because of the contract's arbitration clause. The court's answer was no, because adjudicating the tangential claim did not require reference to the contract:

Arbitration in international transactions - Inside Counsel article

The January 2008 issue of Inside Counsel has a useful overview of international arbitration ("Foreign Feuds," by Mary Swanton, at p.43).

Excerpt:

“There is no such thing as a one-size-fits-all arbitration clause,” says Christopher Tahbaz, partner in Debevoise & Plimpton. “A well-drafted clause requires some attention, but it is well worth the effort.”

Among the variables you should define: the venue for the arbitration; the arbitration institution, if any, that will administer it; the law that governs the contract; the language in which the proceedings will be conducted; and the number of arbitrators who will decide the matter.

(The Pactix arbitration clause allows the user to address all these issues.)

Arbitration-clause rider

Here's an interactive PDF form document containing a stripped-down arbitration clause, entitled "Arbitration provisions rider," version Adrian (I'm basing the version names on those of hurricanes). Feel free to use this document as follows:

  • open the PDF document in Adobe Acrobat Reader (version 7.0 and up);
  • check the boxes, fill in the blanks, etc., for the provisions you want, in collaboration with your legal counsel;
  • print out the form document (the commentary in the right-hand margin, denoted by icons symbolizing yellow sticky notes and red keys, can be seen on the screen but won't print);
  • attach the printout to, and incorporate it by reference in, your contract.  (The form document should not be relied on as a substitute for legal advice, of course; ask your lawyer if it's right for you.)

Arbitration notes

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