A recent decision reminds parties about the need to draft dispute resolution clauses that are tailored to the parties’ agreement.
By Oliver E. Browne and Duncan Graves
The Court of Appeal recently ruled that an alternative dispute resolution (ADR) clause in a contract was unenforceable due to lack of clarity. The ruling signals to contracting parties that they should draft ADR clauses carefully, outlining the process to be followed with sufficient detail and clarity so that the clause can be enforced.