{"componentChunkName":"component---src-templates-blog-post-ts","path":"/multi-tiered-dispute-resolution-clauses-enforceable-if-4-criteria-are-met/","result":{"data":{"site":{"siteMetadata":{"title":"Clausehound Blog","author":"Joshua Koudys"}},"markdownRemark":{"id":"b401634e-38b7-535f-8dcb-61fd970c6dd4","excerpt":"Multi-tiered dispute resolution clauses may be enforceable if (i) the procedure is certain (eg. specific mediator or center is specified); (ii) mandatory…","html":"<p><strong>Multi-tiered dispute resolution</strong> clauses may be enforceable if <strong>(i)</strong> the procedure is certain (eg. specific mediator or center is specified); <strong>(ii)</strong> mandatory language is used (‘shall’ instead of ‘may’); <strong>(iii)</strong> a clear time limit is provided before arbitration is available; and <strong>(iv)</strong> duties to act ‘in good faith’ to resolve the dispute are in the context of a clause which is certain in all other aspects noted above.</p>\n<p>A 2014 English Commercial Court case upheld ‘friendly discussion’ obligation clauses in a contract because it had the certainty required for an enforceable contract clause. The clause was a ‘multi-tier’ or <strong>escalation clause</strong>, which provided for different ways of dispute resolution as disputes escalated. The case marked a departure from previous English decisions, but is consistent with other jurisdictions, including Australia.</p>\n<p><a href=\"http://www.lexology.com/library/detail.aspx?g=8978eb7f-517e-4d8a-8d31-64df76489948\" target=\"_blank\" rel=\"nofollow noopener\">Read the article here.</a></p>\n<h3>Takeaway:</h3>\n<ul>\n<li>To be enforceable, the four (4) elements of a multi-tiered dispute resolution mechanism must be drafted in mandatory language (‘shall’, ‘must’).</li>\n</ul>","frontmatter":{"title":"Multi-Tiered Dispute Resolution Clauses are Enforceable if the Four (4) Criteria Are Met","date":"September 16, 2015","description":"Multi-tiered dispute resolution clauses may be enforceable if the procedure is certain, mandatory language is used, a clear time limit is provided before arbitration is available and duties to act 'in good faith' to resolve the dispute are in the context of a clause.","author":{"id":"info@clausehound.com","first":"","last":null,"bio":null,"image":null},"tags":["Dispute Resolution","Informal Discussions","Dispute Resolution","info@clausehound.com"]}}},"pageContext":{"slug":"/multi-tiered-dispute-resolution-clauses-enforceable-if-4-criteria-are-met/","previous":{"fields":{"slug":"/informal-negotiation-or-friendly-discussion-clause-may-constitute-condition-precedent-to-arbitration/"},"frontmatter":{"title":"‘Informal Negotiation' Or 'Friendly Discussion' Clause May Constitute Condition Precedent to Arbitration","tags":["Dispute Resolution","Informal Discussions","Dispute Resolution","Rajah"],"author":{"id":"rajah@cobaltcounsel.com","first":"Rajah","last":"Lehal"}}},"next":{"fields":{"slug":"/there-is-no-one-size-fits-all-marriage-contract/"},"frontmatter":{"title":"There is No One-Size-Fits-All Marriage Contract","tags":["Purpose","Marriage Contract","Commercial Activities","Rajah"],"author":{"id":"rajah@cobaltcounsel.com","first":"Rajah","last":"Lehal"}}}}}}