Glossary
Legal & Compliance
Arbitration Clause
A lease provision that sends unresolved CAM disputes to binding arbitration instead of court. It changes both how a dispute should be framed and where it ultimately gets decided.
Firm impact
An arbitration clause changes how your firm should frame a dispute letter draft and what timeline the client should expect. Check for this clause before finalizing any client-facing dispute plan.
How this gets abused
Your firm sends a dispute letter draft meant to open negotiation. The lease actually requires arbitration, and the landlord treats the letter as a formal arbitration demand, starting deadlines the client wasn't ready for.
Practitioner note
Check for an arbitration clause before finalizing dispute letter language or any client timeline, and have counsel confirm the letter won't accidentally trigger an arbitration deadline. The dispute letter draft itself is a draft for the client's review, not legal advice; have counsel review it before it goes out.
FAQ
Questions about arbitration clause
Does an arbitration clause change how a dispute letter draft should be worded?
Yes. A letter meant to open negotiation can accidentally read as a formal arbitration demand. Check for the clause first, and have counsel review the letter before it's sent.
Can a client still go to court if the lease has an arbitration clause?
Usually not for the disputes the clause covers. Most arbitration clauses are binding, meaning the parties give up the right to sue in court over the covered claims.
You know the term. Now check the math.
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