You can add a FairClaims commercial arbitration clause to your agreement as an alternative to avoid small claims court and/or other legal proceedings, and use FairClaims instead, should you find yourself in the middle of a dispute.
Once you add the below clause to a valid executed agreement, the other side has to arbitrate with us if there’s a dispute and assuming you make a claim on our site.
Notwithstanding the foregoing, any dispute, claim or controversy under $25,000 in value arising out of or relating to this agreement, or the breach thereof, shall be settled by arbitration administered by FairClaims (www.fairclaims.com) in accordance with its Arbitration Rules & Procedures effective at the time a claim is made, and judgment on the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof.
The Parties consent to electronic service of process, with service to be made to the following email addresses _____________________________ and _____________________________. The Parties agree that, in the event of confirmation and enforcement, the delinquent party will be responsible for any attorney, court or other fees associated with such action.
[The parties agree to split all FairClaims fees evenly.] -OR- [ 'Paying Party Name' agrees to pay all FairClaims fees for both parties.] -OR- [The parties agree that 'Party 1' will pay ___% and 'Party 2' will pay ___% of all FairClaims fees for both parties.]
You can of course modify the above suggested language however you see fit. For example - if you and the other party only want to use FairClaims for $15,000 and below claims, just change "$25,000" to "$15,000".
For email addresses both sides include in the spaces above, we recommend you both use a personal email address that you check regularly and expect to check regularly in the foreseeable future.
You and the other party can decide to split the FairClaims fee 50/50 which is currently set at $79-159 per party. Or whatever other split you decide would be fair. So, for example, if you decide you would pay the entire FairClaims fee under the current pricing you would pay between $158 and $318 for any future small claims filing depending on the claim amount. Or if you decide to pay 70% of the fee, for example, you would pay between $110.60 and $220.60 while the other side would pay between $47.40 and $95.40 depending on the claim amount.
You can add the above clause anywhere you’d like but may want to add a heading that says "Arbitration" or "Dispute Resolution" (or add it to the "Arbitration" or "Dispute Resolution" or similar section if you already have one in the agreement). If you already have a signed agreement and want to add a FairClaims arbitration provision, you may be able to create an addendum with the above clause - if so, you'd likely want to sign it and have the other party/parties do the same.
Please note - none of the above is intended to be legal advice and particular situations and contracts may vary. Please seek the advice of counsel to be sure you understand the above, and that you properly incorporate a FairClaims arbitration agreement into your contract.
Please email firstname.lastname@example.org if you have any questions on the above. Again - we can't offer legal advice but happy to provide you with resources and answer questions about our service.
It'll help us process your claim if and when you have one. And we'll also send you key updates on our clauses, rules and other announcements. Including tips for protecting yourself from litigation and liability.