Submission Agreement In Arbitration Template for the United States

A Submission Agreement in Arbitration is a crucial legal document that allows you to resolve existing disputes through arbitration when no prior arbitration agreement exists between the parties. Unlike arbitration clauses embedded in original contracts, this agreement is created after a dispute has already arisen, providing a structured pathway to alternative dispute resolution under United States law.

When do you need this document?

You need a Submission Agreement in Arbitration when you have an active dispute with another party but your original contract lacks an arbitration clause. This situation commonly arises in business relationships, employment disputes, construction projects, or commercial transactions where litigation costs would be prohibitive or where you prefer the confidentiality and efficiency of arbitration. The agreement becomes particularly valuable when both parties recognize that traditional court proceedings may be time-consuming, expensive, or unsuitable for the technical nature of their dispute. You might also use this document when international parties are involved and need a neutral forum for dispute resolution.

Key legal considerations

Several critical legal elements must be carefully addressed in your submission agreement. The scope of arbitration clause must precisely define which issues will be submitted to arbitration, as any ambiguity could lead to disputes about arbitrability later. Arbitrator selection procedures should establish clear criteria for choosing qualified arbitrators, including their expertise, independence, and any disqualification standards. The governing law provision must specify which substantive law applies to the underlying dispute versus which procedural law governs the arbitration process itself. You must also address discovery limitations, evidence rules, and whether the arbitrator's decision will be binding or non-binding. Confidentiality provisions protect sensitive business information, while cost allocation clauses determine how arbitration fees and expenses will be divided between parties.

Legal requirements in United States

Under United States law, your Submission Agreement in Arbitration must comply with the Federal Arbitration Act (9 U.S.C. §§ 1-16), which provides the primary framework for arbitration enforceability and governs disputes involving interstate commerce. State arbitration laws may also apply, particularly the Uniform Arbitration Act adopted by many states, which provides standardized procedures for arbitration proceedings. The agreement must demonstrate mutual consent from all parties and cannot be unconscionable or obtained through fraud or duress. For international disputes, you may need to consider the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, which facilitates enforcement of arbitration agreements and awards across international borders. The document should specify the arbitration venue, applicable arbitration rules (such as those of the American Arbitration Association or JAMS), and ensure compliance with any industry-specific arbitration requirements that may apply to your particular dispute.