Create Customized Mediation & Arbitration Clauses for Agreements

Including mediation and arbitration clauses in agreements makes good sense. They allow the parties involved in a contractual relationship to address disputes privately, confidentially and cost effectively.  As well, they ensure that the dispute resolution mechanisms to be used are tailored to meet the needs of the parties, for example, by ensuring that neutrals retained to assist have specialized expertise in the area of dispute and by providing flexible scheduling.

The American Arbitration Association (AAA) recently rolled out a tool that allows you to build mediation and arbitration clauses for agreements.  The tool is called ClauseBuilder.  I first learned about the tool through Robert Ambrogi's LawSites blog.  Robert describes himself as Massachusetts lawyer, writer and media consultant with a passion for tracking new and intriguing websites for the legal profession.  Robert provides a review of ClauseBuilder and I would commend you to check it out here.

Briefly, there are four notable features of ClauseBuilder:  

1. It's free to use - no-sign up, no strings attached.

2. It's web-based.
 
3. It's flexible - you create the clause you want starting from a mediation or arbitration clause template that is customizable (for example, in the arbitration context you're led through a series of options including composition of the arbitration panel, panel selection, governing law, pre-hearing discovery (if any), confidentiality, arbitrator deliverables (reasons/no reasons), appeal rights).

4.  At the end, you come away with a document that you can review, save, edit and re-use as a precedent.

I like the idea behind the concept and the price is certainly right.  However, having given it a trial run, I would say that ClauseBuilder needs some further testing and refining.  Here are my initial criticisms:

1.  I found clicking through the customizable options slow and the document I was creating didn't always include the options I selected.

2.  Currently, ClauseBuilder has limited functionality and application.  The only clauses that can be built are "arbitration" and/or "arbitration and mediation" clauses for "commerical" agreements.  However, I understand that ClauseBuilder is in the beta testing stage at this point and that it intends to include options to build "construction", "international" and "employment" clauses very soon.  It says as much on the ClauseBuilder link.

3.  ClauseBuilder creates clauses with a U.S and AAA bias.  The clauses created are geared to those intending to follow the AAA's Commercial Arbitration Rules and Procedures.  If you're in Canada and you're intending to follow the ADR Institute of Canada's National Mediation Rules or National Arbitration Rules, then you'll have to do some tweaking.