Common use of Starting an Arbitration Clause in Contracts

Starting an Arbitration. To the extent permitted by the Federal Arbitration Act (the “FAA”) and any other applicable federal law, arbitration may be elected by either party with respect to any Claim, even if that party has already initiated a lawsuit with respect to that Claim or to a related or different Claim. If a party files a lawsuit in court asserting Claim(s) that are subject to arbitration and the other party files a motion to compel arbitration with the court which is granted, it will be the responsibility of the party prosecuting the Claim(s) to select an arbitration Administrator in accordance with the following subparagraph (e) and commence the arbitration proceeding in accordance with the Administrator’s rules and procedures. Even if you and we have chosen to litigate a Claim in court, either party may elect arbitration of a new Claim or of a Claim made by a new party in that or any related or unrelated lawsuit. Arbitration is elected by giving a written demand for arbitration to the other party, by filing a motion to compel arbitration in court or by initiating an arbitration against the other party. We and you will not demand to arbitrate an individual Claim that you or we bring against one another that is within the jurisdiction of small claims court or your or our state’s equivalent court, if any. But if that Claim is transferred, removed or appealed to a different court, we and you then have the right to demand arbitration. After a case is filed with the arbitration Administrator, but before the arbitrator is formally appointed to the case, a party can send a written notice to the opposing party and the Administrator that the dispute is within the jurisdiction of the small claims court (or an equivalent court) and that it wants the case decided by said court. After receiving this notice, the Administrator will administratively close the case without requiring the payment of filing or any other administrative fees. Subject to subparagraph (g) below, captioned “Prohibition Against Certain Proceedings,” any party who desires to assert multiple Claims must assert all such Claims in a single lawsuit or arbitration; the defending party must demand arbitration with respect to all or none of such Claims; and if the defending party wishes to bring any counter- Claims, such counter-Claims must be asserted in the same lawsuit or arbitration that will resolve the initial Claims.