Mediation and Arbitration Agreement

Overview

This Mediation and Arbitration Agreement is a standalone contract designed to guide business parties through a two-step dispute resolution process — good-faith mediation followed, if necessary, by binding arbitration. It promotes private, efficient resolution of disputes outside of court while offering strong enforcement mechanisms and fee-shifting protections for prevailing parties.

Whether you're incorporating this into broader business agreements or using it as a standalone policy, this document is structured to be clear, enforceable, and fair.

Users will need to tailor this Agreement to the laws of the state where their LLC is organized.

What’s Included

• PDF format

• Two-tier ADR clause:

  • Initial mediation in good faith with a mutually agreed mediator

  • Binding arbitration before a neutral arbitrator if mediation fails

• Provisions providing for California venue and governing law

• Optional Jury Trial Waiver and Attorney’s Fees provision

• Customizable language for:

  • Scope of covered disputes

  • Mediation timeframe and selection process

  • Rules (e.g., JAMS, AAA, or custom)

• Attorney Notes explaining customization points and state-specific considerations

Who It’s For

• Employers and startups incorporating ADR into employment agreements, IP contracts, or business relationships

• Companies that want to resolve disputes efficiently and privately

• Parties dealing with multi-party contracts, commercial leases, or founder agreements

Why It Matters

Litigation is expensive, public, and time-consuming. This agreement provides a roadmap for resolving disputes confidentially and efficiently. It also includes attorney-drafted protections to help ensure the prevailing party recovers legal fees, and that any award is enforceable under California law.

For companies raising capital, preparing for M&A, or scaling HR processes, this template helps reduce risk while demonstrating legal maturity.

🧠 Founder Tip

Including a well-crafted arbitration clause in standalone form (or as part of an agreement bundle) can save thousands in future litigation — especially in employment or founder-related disputes.