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.
The Hawaii Private Dispute Resolution Clause is a legal provision that aims to resolve disputes between parties to a contract or agreement in a private, confidential, and non-adversarial manner, without resorting to traditional litigation methods. It allows the parties involved to select a neutral third party, often an arbitrator or a mediator, to facilitate the resolution process and reach an acceptable outcome. The clause contains key elements that define how disputes will be handled, such as the specific rules and procedures to be followed, the chosen forum for resolution, and the appointment process for the neutral party. It provides an alternative to the conventional court system, promoting efficiency, flexibility, cost-effectiveness, and the preservation of confidentiality. Different types of Hawaii Private Dispute Resolution Clauses include: 1. Arbitration Clause: This type of clause mandates that any disputes arising from the contract must be resolved through arbitration, where a neutral arbitrator or arbitration panel renders a binding decision based on the evidence and arguments presented by both parties. 2. Mediation Clause: This clause requires the parties to attempt a mediation process before commencing litigation. Mediation involves a neutral mediator who facilitates communication, negotiation, and settlement discussions between the parties, but does not have the power to impose a resolution. 3. Hybrid Clause: This type of clause provides flexibility by combining elements of both arbitration and mediation. It may require the parties to attempt mediation first, and if unsuccessful, move on to arbitration. Alternatively, it may allow for a combination of mediation and arbitration in a single proceeding, known as median. 4. Mini-Trial Clause: This clause enables the parties to present their case before a neutral advisor or a panel of advisors who specialize in the subject of the dispute. The advisors then provide a non-binding opinion that aids the parties in negotiating a resolution. 5. Expert Determination Clause: In specific industries or sectors, this clause allows for disputes to be resolved by an independent expert who possesses specialized knowledge or expertise relevant to the subject in question. The expert's decision is usually binding on the parties. Hawaii Private Dispute Resolution Clauses provide parties with more control over the resolution process, helping them avoid lengthy court proceedings, maintain confidentiality, and save costs. By incorporating these clauses into contracts, individuals and businesses can ensure a smoother and more efficient resolution of disputes, tailored to their specific needs and preferences.
