An Arbitration clause is a contractual provision that mandates arbitration of disputes about the rights, duties, and liabilities of the contracting parties. This provision results in the avoidance of litigation.
District of Columbia Motion to Compel Arbitration - No Waiver of Right
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Motion to compel or stay arbitration. (2) If the refusing party opposes the motion, the court shall proceed summarily to decide the issue and order the parties to arbitrate unless it finds that there is no enforceable agreement to arbitrate.
Even if you don't currently have a dispute with the company, it is a good idea to opt out of the forced arbitration clause to preserve your options. You can always agree later to use an arbitrator to resolve any dispute. Moreover, if you have opted out, you will have more negotiating power if there is a problem.
The party seeking to compel arbitration bears the burden of proving by a preponderance of the evidence an agreement to arbitrate a dispute exists. (Pinnacle, supra, 55 Cal. 4th at p. 236; Rosenthal v.
Traditionally, to prove waiver of the right to arbitrate, a party must prove that (1) the waiving party had knowledge of an existing right to compel arbitration; (2) acted inconsistently with that existing rights; and (3) there was prejudice to the party opposing arbitration.
If the contract doesn't provide a way to opt out of the arbitration agreement, then tell the other party you don't want to agree to the arbitration clause. Ask them if they will allow you to sign the contract without the arbitration clause.
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.
Motions to Dismiss Some courts have found that a motion to dismiss can waive arbitration rights, but ?[n]ot every motion to dismiss is inconsistent with the right to arbitration.? See, e.g., Hooper, 589 F. 3d at 922.
[1] In the context of arbitration, waiver occurs when a party consciously and intentionally gives up its right to arbitrate a particular dispute, thereby choosing litigation as the preferred method of dispute resolution.