Arbitration Submission Agreement Template for the United States

An Arbitration Submission Agreement serves as a crucial legal instrument when you need to resolve disputes through arbitration but lack a pre-existing arbitration clause in your contract. This document establishes the framework for conducting arbitration proceedings under United States law, specifically governed by the Federal Arbitration Act and applicable state arbitration statutes. You'll use this agreement to define the terms, procedures, and scope of arbitration when litigation alternatives become necessary.

When do you need this document?

You need an Arbitration Submission Agreement when disputes arise between parties who didn't previously agree to arbitration or when existing arbitration clauses require modification. This situation commonly occurs in business relationships, employment disputes, construction projects, or commercial transactions where parties prefer arbitration over costly court proceedings. You might also require this document when international elements are involved and you need to ensure compliance with the New York Convention for cross-border enforcement of arbitral awards. Additionally, you'll use this agreement when parties want to customize arbitration procedures beyond standard institutional rules or when specific expertise from specialized arbitrators is required for technical disputes.

Key legal considerations

Several critical legal elements must be addressed in your Arbitration Submission Agreement to ensure enforceability and effectiveness. The scope of arbitration clause defines exactly which disputes will be subject to arbitration, preventing future disagreements about arbitrability. Arbitrator selection provisions establish clear criteria and procedures for choosing qualified arbitrators, including provisions for challenging arbitrators and filling vacancies. You must specify which arbitration rules will govern the proceedings, whether institutional rules from organizations like the American Arbitration Association or customized procedures. The governing law clause determines which jurisdiction's substantive law applies to the underlying dispute versus the arbitration process itself. Cost allocation provisions clarify how arbitration fees, arbitrator compensation, and administrative costs will be divided between parties. Finally, the agreement should address confidentiality requirements, discovery limitations, and the finality and binding nature of the arbitral award.

Legal requirements in United States

Under United States law, your Arbitration Submission Agreement must comply with the Federal Arbitration Act, which establishes the validity and enforceability of arbitration agreements in interstate commerce. The FAA requires that arbitration agreements be written and relate to transactions involving interstate commerce to fall under federal jurisdiction. State arbitration laws, often based on the Uniform Arbitration Act, may provide additional procedural requirements and enforcement mechanisms that supplement federal law. Your agreement must clearly demonstrate mutual consent to arbitration and cannot be unconscionable or obtained through fraud or duress. Due process requirements mandate that parties receive adequate notice and opportunity to present their cases during arbitration proceedings. The agreement should specify compliance with applicable institutional rules if you're using established arbitration organizations, ensuring procedural fairness and professional standards. International arbitrations must consider the New York Convention requirements for recognition and enforcement of awards across borders.