Enforcing An Arbitration Clause in a Construction Contract
Every contractor is familiar with arbitration, settling a dispute outside of court with a neutral third party called an arbitrator. Arbitration is the most commonly used method of alternative dispute resolution (ADR), and arbitration clauses are commonly found in construction contracts. This is one of the reasons why it is crucial to have a St. Petersburg contractor lawyer look over any contract draft before you sign it.
1. What Is an Arbitration Clause?
An arbitration clause is a written provision in a contract that states that all disputes between parties will be settled through the process of arbitration as opposed to court. Contractors typically include an arbitration clause in contracts with other parties because it allows them to settle disputes quickly and without having to spend extra time and money using the court system.
2. Is the Arbitration Clause Enforceable?
The Federal Arbitration Act (FAA) states that arbitration clauses will be enforced in all cases where there is a maritime transaction, or where a contract involves a transaction crossing state lines. However, in those cases where the Federal Arbitration Act does not apply, State law will determine whether or not the arbitration clause is enforceable.
3. What Are The Limits to Arbitration Clauses in Florida?
Check with your St. Petersburg contract attorney to see the official limits to the arbitration clause in Florida. There are a few requirements may differ by state, but are generally that:
- The arbitrator must be neutral as well as non-biased.
- The terms should be bilateral and both parties are bound by the rules.
- The plaintiff(s) should have a means of discovering evidence.
4. Do I Need an Attorney for My Arbitration Clause Issue?
Arbitration clauses can be complex and misleading so consult with a contractor attorneys in St. Petersburg to determine if the arbitration clause in your contract is binding. If your arbitration clause is enforceable, your attorney can help guide you through the arbitration process.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.