Non Arbitration Agreement Template for England and Wales

A Non Arbitration Agreement is a legal contract that allows you to explicitly waive your rights to arbitration and ensure that any future disputes will be resolved through the traditional court system. This document serves as a proactive measure to preserve your access to judicial remedies, jury trials, and the transparency that comes with public court proceedings.

When do you need this document?

You need a Non Arbitration Agreement when entering into business relationships where you want to avoid mandatory arbitration clauses that might otherwise limit your legal options. This is particularly important in employment contracts where arbitration clauses have become standard, potentially restricting employees' access to federal and state employment law protections. The agreement is also valuable in commercial partnerships, service provider relationships, and vendor agreements where you prefer the procedural safeguards and appeal rights available in court systems. Additionally, you may need this document when state laws encourage judicial access or when dealing with complex disputes that benefit from formal discovery procedures and public oversight.

Key legal considerations

The most critical aspect of your Non Arbitration Agreement is ensuring it doesn't conflict with existing arbitration clauses in other contracts between the same parties. You must clearly define the scope of disputes covered by the waiver and specify whether it applies to all claims or only certain types of legal issues. The agreement should include explicit language waiving arbitration rights and establishing alternative dispute resolution procedures, such as mediation before litigation. Consider including provisions for attorney's fees, jurisdiction selection, and governing law to avoid future conflicts. You should also address whether the waiver applies to future modifications of your business relationship and ensure the agreement includes adequate consideration to make it legally binding.

Legal requirements in United States

Under United States law, your Non Arbitration Agreement must comply with the Federal Arbitration Act (FAA), which generally favors arbitration but allows parties to waive these rights through clear, mutual consent. The agreement must meet standard contract formation requirements including offer, acceptance, and consideration, and cannot be unconscionable or violate public policy. Many states have specific laws governing arbitration waivers, particularly in employment contexts, so you must ensure compliance with applicable state regulations. Employment-related non-arbitration agreements must consider federal laws like the Fair Labor Standards Act and Title VII, as some employment law claims cannot be waived even through valid agreements. The document should specify governing law and jurisdiction to provide clarity on which courts will handle disputes and which state's contract law will apply to interpretation of the agreement.