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<b><i>Clause & Effect</b></i>Challenges in Drafting Clauses to Arbitrate

By Stan Soocher
September 01, 2003

Parties to entertainment industry agreements often include a provision for the arbitration of contract disputes. This may be motivated by the lower cost and less formality than court proceedings that arbitration can offer, as well as the ability to keep arbitrated disputes out of public view. But the simple language of an arbitration clause can lead to challenges over whether the arbitration process was proper.

A typical arbitration clause – one used in a contract between the agent International Creative Management and the promoter Big Nine Productions (DLLP) for the Moody Blues rock group to perform in concert in Chattanooga, TN – stated:

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