Waiver of the Arbitration Agreement: What It Means and How It Works
Arbitration is a form of alternative dispute resolution that provides a quicker and more cost-effective alternative to traditional litigation. An arbitration agreement is a contract that contains a clause requiring disputes to be resolved through arbitration instead of the courts.
However, there are instances where one party may want to waive the arbitration agreement, which means they are giving up their right to settle the dispute through arbitration. In this article, we will discuss what waiver of the arbitration agreement means and how it works.
What is Waiver of the Arbitration Agreement?
Waiver of the arbitration agreement is the voluntary and intentional relinquishment of a party`s right to arbitrate a dispute. In other words, it is the act of giving up the option to use arbitration as a means of settling a dispute, and choosing to use traditional litigation instead.
In some cases, a party may choose to waive the arbitration agreement because they believe that traditional litigation will more effectively resolve the issue at hand. In other cases, a party may waive the arbitration agreement because they believe that the arbitrator may not be impartial or may have a conflict of interest.
How it Works
Waiver of the arbitration agreement is typically accomplished through a written agreement or contract. The party waiving the agreement will sign a document stating that they are waiving their right to arbitrate and choosing to proceed with traditional litigation instead.
Once the waiver has been signed, the dispute will be resolved through the court system rather than through arbitration. This may involve filing a lawsuit and going through the trial process.
However, it is important to note that not all disputes can be waived from arbitration. If the arbitration agreement is mandatory and the parties have not agreed to a waiver, the dispute may still have to be resolved through arbitration.
Waiver of the arbitration agreement is a voluntary and intentional relinquishment of a party`s right to arbitrate a dispute. It is typically accomplished through a written agreement or contract and may involve choosing to proceed with traditional litigation instead.
If you are considering waiving the arbitration agreement, it is important to consult with an experienced attorney who can help you weigh the pros and cons of this decision and determine if it is the best course of action for your specific circumstances.