This form is a Private Dispute Resolution Clause usable to compel negotiation and mediation prior to arbitration or litigation in contracts where licensing, patents, or commercial trade secrets are a factor.
A Guam Private Dispute Resolution Clause refers to a legal provision found in contracts or agreements that specifies the agreed upon method for resolving disputes privately, without resorting to traditional litigation in a court of law. It aims to provide an efficient, cost-effective, and less adversarial means of settling conflicts between parties involved in a contractual relationship. In Guam, there are different types of Private Dispute Resolution Clauses that parties can opt for, depending on their specific needs and preferences. These include: 1. Arbitration: This is the most commonly chosen type of Private Dispute Resolution Clause in Guam. Arbitration involves submitting the dispute to one or more impartial arbitrators who review the case and make a binding decision that is enforceable by law. Parties may agree to use the services of a recognized arbitral institution such as the Guam International Arbitration Center (GMAC) or determine their own set of rules. 2. Mediation: Mediation is a voluntary and confidential process where a neutral third party, the mediator, assists the disputing parties in reaching a mutually acceptable resolution. The mediator facilitates communication and negotiation between the parties but does not make decisions. Implementation of the resolutions reached in mediation is typically voluntary, although some agreements may include binding mediation provisions. 3. Conciliation: Similar to mediation, conciliation involves a neutral third party, the conciliator, who helps parties resolve their disputes. However, the conciliator plays a more active role in proposing solutions and suggesting settlement options. The resolution reached through conciliation can be non-binding or binding, depending on the parties' agreement. 4. Expert determination: In certain cases where disputes involve technical or specialized matters, parties may prefer to include an expert determination clause. Here, an independent expert, usually with expertise in the relevant field, is appointed to evaluate the dispute and provide a binding decision based on their expertise. The expert's determination is enforceable unless challenged on limited grounds. By incorporating a Guam Private Dispute Resolution Clause into their contracts or agreements, parties can not only avoid the delays, expenses, and uncertainties associated with traditional court litigation but also maintain confidentiality and preserve business relationships. It is always important for the parties to carefully review and negotiate the terms of the clause to ensure that it suits their specific requirements and covers all potential disputes that may arise.
