Michael Quinn is the former Director of Risk Management with Kaiser Permanente. With more than twenty years of experience in risk management, Mr. Quinn is an expert in the field. As a former Kaiser senior executive who has overseen more than one thousand mediations, arbitrations, and lawsuits in a range of areas, Michael Quinn understands that drafting an effective arbitration clause can save organizations from time-consuming litigation and its expense and shares the following tips for writing an effective arbitration clause.
Create Certainty
An organization's contract should expressly state that class-action lawsuits are not permitted. Further, an arbitration clause must make it clear whether a court or an arbitrator will make arbitration decisions. Additionally, any arbitration clause should specifically state what claims will be decided by the arbitrator.
Make it Obvious
An organization's arbitration clause should be prominent and include terms that are easily understandable by a consumer or employee. Michael Quinn, former legal department executive with Kaiser, also emphasizes that an arbitration clause should include language that gives consumers or employees that option of small claims court, forgoing arbitration entirely.
Avoid Invalid Terms and Provisions
An organization must ensure that any arbitration clause not includes provisions that are invalid based on unconscionability principles of contract law. A well-written arbitration clause should also include language allowing the arbitrator the option to award any relief that a consumer has available in a court of law, including injunctive relief, attorneys' fees, and/or punitive damages.
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