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Simply put, the arbitration clause requires that the two parties to an agreement will go through arbitration rather than either party initiating a lawsuit if a dispute arises.
If either side does not want to accept the arbitrator's decision, the case may go back before a judge or jury for a decision. A party wishing to appeal the arbitration award must do so within 20 days after the arbitration award is filed with the court. The case then goes to a new trial (trial de novo).
Refusing to participate in an arbitration will not prevent an arbitration award against that party once it has agreed to arbitrate. Given courts' great deference to arbitration awards, it is essential for a respondent to present its defense on the merits during the arbitration.
Cases Subject to Arbitration. The statutory scheme for mandatory arbitration is found in ORS 36.400 to 36.425. It applies to civil cases where the only relief claimed is for the recovery of money or damages and the amount claimed is less than $50,000.00, exclusive of attorney fees, costs and disbursements.
Mandatory arbitration clause is a pre-dispute provision included in contractual agreements. Mandatory arbitration clauses require consumers to waive their right to go to court, and force consumers to submit claims to arbitration.