Law Office of Amos Weinberg

49 Somerset Drive S., Great Neck, NY 11020 Phone: (516) 829-3900 Fax: (516) 829-3915
Sun
Mon
Tue
Wed
Thu
Fri
Sat
27
28
29
30
31
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Search articles
 

Articles

All articles
 → 
law
 → 
Beware of arbitration clauses
11/29/2011
Beware of arbitration clauses

Clients frequently use form contracts with their customers.  The clients figure that whoever put these contracts together for them must have known what they were doing and that all the provisions are solely for their benefit.  Unfortunately, there is one type of provision in a standard contract that often backfires instead of helping.  That provision is an arbitration clause.  For instance, if a client is owed $15,000, the court filing fee to start a law suit is $45.  However, the filing fee to arbitrate is an initial fee of $975, final fee of $300, plus the fee for the arbitrator, which is usually around $400 per hour. An arbitration award does not at all give any right to payment. A court proceeding has to be brought to "confirm" the arbitration award. This is true even if the debtor defaults. The loser of the arbitration can contest the award on limited grounds. If instead of arbitation a collection lawsuit is filed, the law is that the debtor-defendant need only point out to the court the arbitration clause, and the court is then forced to put a stop to the suit and the only choice left to the client is to pay the exorbitant fees for arbitration.  Still, arbitration can be useful to avoid drawn out pre-trial proceedings where a large sum is owed and a genuine dispute exists.  Also, arbitration provisions are strictly interpreted and a contract can very narrowly define exactly when arbitration is required. Accordingly, the following type of provision has been recommended by us for insertion in a form contract or credit application: “Any invoice from you shall be deemed conclusive proof of its contents unless written objection to it is received by you within 30 days of its issuance. As to any such invoice so timely protested or objected, the subject of the objection shall be settled by binding arbitration.”

Tags: contract, law
evdlpunic
05/18/2019
 
http://mewkid.net/buy-amoxicillin/ - Amoxicillin 500 Mg <a href="http://mewkid.net/buy-amoxicillin/">Amoxicillin Online</a> wtm.bjim.amoslegal.com.ndb.bq http://mewkid.net/buy-amoxicillin/
uiqasacegazo
05/18/2019
 
http://mewkid.net/buy-amoxicillin/ - Amoxicillin 500 Mg <a href="http://mewkid.net/buy-amoxicillin/">Buy Amoxicillin Online</a> csf.wjgq.amoslegal.com.xtc.mw http://mewkid.net/buy-amoxicillin/
© 2011-2019 Amos Weinberg Law Office, All rights reserved.