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When you find yourself in a legal dispute but lack a pre-existing arbitration clause in your contract, an Arbitration Submission Agreement provides a pathway to resolve conflicts outside of court. This document allows you and the opposing party to agree on arbitration as your dispute resolution method, even after the dispute has already emerged.

When do you need this document?

You need an Arbitration Submission Agreement when you have an active dispute with another party and want to avoid costly and time-consuming litigation. This situation commonly arises in business partnerships where the original agreement lacked arbitration provisions, employment disputes where arbitration wasn't initially contemplated, or contract disagreements where both parties prefer private resolution. The document is also essential when you want to modify existing arbitration arrangements to better suit your specific dispute, such as changing the number of arbitrators or selecting different procedural rules than originally specified.

Key legal considerations

Several critical elements must be carefully addressed in your Arbitration Submission Agreement. The scope of arbitration clause defines exactly which issues will be submitted to arbitration and which remain outside the arbitrator's authority. Arbitrator selection provisions establish whether you'll use a single arbitrator or panel, qualification requirements, and appointment procedures. You must specify which institutional rules will govern the proceeding, such as American Arbitration Association (AAA) or JAMS rules, or whether you'll create custom procedures. Cost allocation determines who pays arbitration fees, administrative costs, and attorney fees. The governing law clause establishes which state or federal laws apply to both the arbitration process and the underlying dispute. Additionally, consider confidentiality provisions, discovery limitations, and whether the arbitrator's award will be binding or advisory.

Legal requirements in United States

Under the Federal Arbitration Act (FAA), your Arbitration Submission Agreement must involve transactions affecting interstate commerce to fall under federal jurisdiction. The agreement must demonstrate mutual consent from all parties, typically through signatures and acknowledgment of the arbitration terms. You must ensure the arbitration procedures comply with due process requirements, including adequate notice, opportunity to be heard, and impartial arbitrators. State arbitration laws may impose additional requirements, particularly regarding arbitrator qualifications, procedural safeguards, and award enforcement mechanisms. The agreement should reference relevant institutional rules if you're using an arbitration organization, as these rules become part of your contract. For international elements, ensure compliance with the New York Convention for recognition and enforcement of arbitral awards. Finally, consider whether your dispute involves any statutory claims that may require special handling under federal or state law, as some statutory rights cannot be waived through arbitration agreements.