Q: Would a contract requiring arbitration in the following specific way be enforceable? Have you heard of such a practice?
The goal of these restrictions is to reduce the cost and length of an arbitration proceeding:
(1) Parties agree to use one specific arbitrator.
(2) Parties agree that arbitration will occur in two non-overlapping phases: In the first phase, on a pre-determined time frame, a pre-selected third-party will gather and validate facts and other information from both Parties. That third-party will abide by the rules of a separate agreement with the Parties. The third-party will generate a package containing all relevant information. In the second phase, the arbitrator will reach a decision based solely on the information package.
(3) Parties revoke their right to dispute the veracity or completeness of the third-party's information package in any forum.
(4) Parties revoke their right to communicate with the arbitrator.
A: That may be considered unconscionable language. More details are necessary to provide a professional analysis of your issue. The best first step is an Initial Consultation with an Attorney such as myself. You can read more about me, my credentials, awards, honors, testimonials, and media appearances/ publications on my law practice website, www.AEesq.com. I practice law in CA, NY, MA, and DC in the following areas of law: Business & Contracts, Criminal Defense, Divorce & Child Custody, and Education Law. This answer does not constitute legal advice; make any predictions, guarantees, or warranties; or create any Attorney-Client relationship.
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