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April 3, 2025

New York Law Journal, "Who Decides If a Dispute Is Arbitratable?"

Michael J. Lane, partner, and Nicole Mastrocinque, associate, had their “Who Decides If a Dispute Is Arbitratable” article published by New York Law Journal. The article discusses the significant risks businesses face when drafting arbitration agreements and highlights a recent case where ambiguities in the arbitration clause led to unintended consequences, ultimately resulting in a costly and prolonged legal dispute.

For businesses, this case underscores the importance of clearly defining the scope, rules, and procedures within arbitration agreements to avoid similar pitfalls. Inadequately drafted clauses can lead to unexpected challenges and increased litigation costs, even when arbitration was intended as a streamlined alternative to court proceedings.

The key takeaway for business owners and executives, Michael and Nicole advised, is to work closely with legal counsel when drafting or revising arbitration agreements. Ensuring that all terms are unambiguous and well-aligned with the business’s goals can help protect against unforeseen disputes and maintain the intended efficiency of the arbitration process. The article states, “. . . clear drafting is critical to every document a lawyer creates. . . . you need to be careful in negotiating a subsequent agreement and the effect, no matter how small, of an overbroad provision that could be used ‘down the road’ against your client.”

Click here to read the full article.
 

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