Binding Arbitration

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For resolving any disputes, OSE favors binding arbitration as opposed to legal suit in court. The typical language that we use in our contracts is our Conflict Resolution Clause:

CONFLICT RESOLUTION: If case of unresolved conflict - any dispute, claim or grievance arising out of or relating to the interpretation or application of this agreement shall be submitted to arbitration under the Arbitration Rules of the National Arbitration Association. The parties further agree to accept the Arbitrator’s award as final and binding upon them. Costs of arbitration are to be shared 50/50 between the two parties. Unresolved conflict is determined by either party submitting a notice to this effect via email to the other party. Arbitration is a well-established and widely used means to end disputes. It is one of several kinds of Alternative Dispute Resolution, which provide parties to a controversy with a choice other than litigation. Unlike litigation,arbitration takes place out of court: the two sides select an impartial third party, known as an arbitrator; agree in advance to comply with the arbitrator's award; and then participate in a hearing at which both sides can present evidence and testimony. The arbitrator's decision is usually final, and courts rarely reexamine it.


  • Associated costs of hiring private arbitrators are high - $200-$1000/hr - but may be lower if other mediation association assistance is used. [1]
  • Language - [2]
  • Cost comparisons to other methods - Comparative prices and fees for ADR