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 Washington Private Dispute Resolution Clause refers to a legal provision included in agreements or contracts to outline the chosen method for resolving disputes between parties outside of court. This clause helps parties avoid going through lengthy and expensive litigation processes and encourages them to address their conflicts through alternative means. By including this clause, parties agree to use private dispute resolution methods, such as mediation or arbitration, to settle any disputes that may arise. In Washington, there are primarily two types of Private Dispute Resolution Clauses commonly used: mediation and arbitration. 1. Mediation: This type of clause outlines that parties will engage in a mediation process to reach a mutually acceptable agreement with the assistance of a neutral third party, known as a mediator. Mediation provides a non-adversarial environment where each party can present their perspectives and concerns, and the mediator helps facilitate productive communication and negotiation. Mediation focuses on finding mutually agreeable solutions rather than determining who is right or wrong. 2. Arbitration: This type of clause states that parties will submit their dispute to arbitration rather than taking it to court. In arbitration, the parties involved agree to present their case before an impartial third-party arbitrator or a panel of arbitrators who will review the evidence, listen to arguments, and ultimately make a binding decision or award. This process is more formal than mediation and often follows rules and procedures set by arbitration organizations or agreed upon by the parties. Both mediation and arbitration offer benefits such as confidentiality, flexibility, and efficiency compared to traditional litigation. They enable parties to have more control over the outcome of their disputes and often result in quicker resolutions. However, it is essential for parties to carefully consider which method best suits their specific circumstances before including a Private Dispute Resolution Clause in a contract. Seeking legal advice is recommended to ensure the clause is properly drafted and aligned with the parties' intentions.
