Expert Determination Agreement Template for United States

An Expert Determination Agreement sets up a formal process to resolve specific technical, financial, or specialized disputes through an independent expert's binding decision. When parties can't agree on complex matters like business valuations, construction specifications, or accounting issues, this agreement establishes the ground rules for getting an expert's final say.

The agreement spells out key details like who will serve as the expert, what questions they'll answer, how they'll gather information, and when their decision becomes binding. Unlike mediation or arbitration, expert determination focuses purely on technical questions and typically moves faster, making it popular for time-sensitive business disputes in the U.S.

Expert Determination Agreements work best when you need quick resolution of technical disputes without going through lengthy court proceedings. They're particularly valuable for complex valuations during mergers and acquisitions, engineering disagreements in construction projects, or specialized accounting conflicts where standard legal proceedings might miss crucial technical nuances.

Consider using this agreement when your dispute centers on factual or technical matters rather than legal interpretation. It's especially useful in time-sensitive situations where you need a qualified expert's binding decision, like determining the fair market value of shares during a business sale or resolving disputes about product specifications in manufacturing contracts.

• Single-Issue Agreements: Focus on one specific technical matter, like a property valuation or engineering specification. These offer the fastest resolution and clearest scope.
• Multi-Issue Framework Agreements: Cover several related technical disputes under one expert's authority, common in complex construction or M&A deals.
• Industry-Specific Agreements: Tailored to particular sectors like IT, healthcare, or finance, with specialized terminology and expert qualification requirements.
• Conditional Agreements: Include specific triggers or thresholds that activate the expert determination process, often used in ongoing business relationships.

• Disputing Parties: Business partners, contractors, or companies who agree to submit their technical disputes to expert determination instead of litigation.
• Independent Experts: Qualified professionals like engineers, accountants, or industry specialists who evaluate evidence and make binding decisions.
• Corporate Legal Teams: In-house counsel who draft and review these agreements to ensure they align with company interests and legal requirements.
• Outside Counsel: Law firms that help structure complex expert determination processes, especially in high-stakes commercial disputes.
• Industry Associations: Organizations that often maintain rosters of qualified experts and help establish standard procedures.

• Dispute Parameters: Define the exact technical issues the expert will address and any specific questions they must answer.
• Expert Qualifications: List required credentials, experience, and professional certifications for your chosen expert.
• Timeline Details: Map out key deadlines for submissions, expert review periods, and final determination.
• Evidence Rules: Specify what information parties can submit, formats accepted, and how the expert will gather additional data.
• Cost Structure: Outline expert fees, administrative costs, and how expenses will be shared between parties.
• Enforcement Terms: Detail the binding nature of the expert's decision and any appeal limitations.

• Parties and Expert: Clear identification of all parties and the appointed expert's qualifications and role.
• Scope Definition: Precise description of technical issues to be determined and decision parameters.
• Process Rules: Detailed procedures for submissions, evidence gathering, and expert communication.
• Confidentiality Terms: Protection of sensitive information shared during the determination process.
• Decision Format: Requirements for the expert's written determination and reasoning.
• Binding Effect: Clear statement on the final and binding nature of the expert's decision.
• Cost Allocation: Distribution of expert fees and related expenses among parties.

An Expert Determination Agreement differs significantly from an Arbitration Agreement, though both offer alternatives to court litigation. The key distinctions lie in their scope, process, and application.

• Technical Focus vs. Legal Disputes: Expert determination tackles specific technical, valuation, or scientific issues, while arbitration handles broader legal disputes and contractual interpretations.
• Decision-Making Process: Experts make determinations based on their specialized knowledge and investigation, whereas arbitrators act more like judges, hearing arguments from both sides.
• Procedural Requirements: Expert determination typically follows simpler, faster procedures without formal hearings or extensive legal submissions required in arbitration.
• Cost and Time: Expert determination usually costs less and concludes faster than arbitration, making it ideal for single-issue technical disputes.
• Appeal Rights: Expert decisions are typically final with very limited grounds for challenge, while arbitration awards often have broader appeal options.