R
Rachel in TX
Guest
We're negotiating a custom home build in TX and the builder has furnished us with their standard contracts. We've had the contracts reviewed by a real estate attorney, but I didn't think to raise this question with him.
Is arbitration binding by definition? There's a clause in the contract that sounds reasonable to me (I've quoted it below)since it doesn't say that the arbitration is binding, so it seems that it just requires that we explore other alternatives prior to suing. Is this so?
'The parties hereto agree that should any dispute, controversy, or claim arise between them with respect to any matter relating to this Contract, which cannot be resolved by the mutual, good faith negotiations between the parties, such dispute shall first be submitted to mediation before a mediator mutually agreed upon by the parties. In the event a mediator is not mutually agreed upon or the mediation does not occur for any reason within 60 days of one party's written request to the other party to mediate or such mediation is unsuccessful in resolving any or all of the dispute, the parties agree to then submit such dispute to arbitration before an arbitrator licensed and approved by the AAA and such arbitration shall be conducted in accordance with the rules and regulations promulgated by the AAA. Neither party shall be entitled to bring or cause any dispute to be raised before any federal or state civil court or tribunal, each party hereby waiving its right to do so, prior to, in good faith, exhausting the modes of resolution set forth herein'.
Thanks,
Rachel
Is arbitration binding by definition? There's a clause in the contract that sounds reasonable to me (I've quoted it below)since it doesn't say that the arbitration is binding, so it seems that it just requires that we explore other alternatives prior to suing. Is this so?
'The parties hereto agree that should any dispute, controversy, or claim arise between them with respect to any matter relating to this Contract, which cannot be resolved by the mutual, good faith negotiations between the parties, such dispute shall first be submitted to mediation before a mediator mutually agreed upon by the parties. In the event a mediator is not mutually agreed upon or the mediation does not occur for any reason within 60 days of one party's written request to the other party to mediate or such mediation is unsuccessful in resolving any or all of the dispute, the parties agree to then submit such dispute to arbitration before an arbitrator licensed and approved by the AAA and such arbitration shall be conducted in accordance with the rules and regulations promulgated by the AAA. Neither party shall be entitled to bring or cause any dispute to be raised before any federal or state civil court or tribunal, each party hereby waiving its right to do so, prior to, in good faith, exhausting the modes of resolution set forth herein'.
Thanks,
Rachel