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 Maryland Private Dispute Resolution Clause, also commonly referred to as the Maryland DR Clause, is a legal provision included in contracts and agreements to establish the process by which any disputes or disagreements will be resolved between the parties involved. It essentially offers an alternative to litigation by encouraging private and non-judicial means of resolving conflicts. Maryland recognizes several types of Private Dispute Resolution Clauses that parties can incorporate into their contracts, depending on their specific needs and preferences. These clauses may include: 1. Mediation Clause: This type of clause typically requires the parties to engage in mediation, where a neutral third party, known as a mediator, facilitates communication and negotiation between the disputing parties. The mediator helps the parties explore possible solutions and reach a mutually acceptable agreement. 2. Arbitration Clause: An arbitration clause stipulates that disputes between the parties will be resolved through binding arbitration rather than litigation. In arbitration, a neutral arbitrator or panel of arbitrators is appointed to hear the case and render a final decision, which is legally binding and enforceable. 3. Collaborative Law Clause: This type of clause promotes a collaborative approach, emphasizing open communication and mutual problem-solving. The parties agree to work together, often with the assistance of attorneys and other professionals, to find a resolution that addresses the interests and needs of both parties. 4. Neutral Evaluation Clause: A neutral evaluation clause allows the parties to present their case to a neutral third party, typically an expert in the field related to the dispute. This third party provides an evaluation of the strengths and weaknesses of each party's positions. Although non-binding, this evaluation can serve as a valuable tool in facilitating settlement negotiations. It is crucial to note that the specific language and provisions of a Maryland Private Dispute Resolution Clause can vary depending on the nature of the contract, the parties involved, and their specific goals and preferences. Consulting with a skilled attorney is recommended to ensure the clause is appropriately tailored to meet the unique needs of the parties and comply with Maryland law.
