What is a post-dispute arbitration agreement?

Get Legal Help Today

secured lock Secured with SHA-256 Encryption

Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

Full Bio →

Written by Jeffrey Johnson
Insurance Lawyer Jeffrey Johnson

UPDATED: Jul 15, 2021

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.

A post-dispute arbitration agreement means that an issue has arisen that could lead to litigation, but the parties instead decide to make an agreement to submit the case to binding arbitration. A post dispute arbitration agreement is different from a pre-dispute arbitration agreement or arbitration clause found in a contract, because a pre-dispute agreement is used before and in case an issue arises. A post-dispute arbitration agreement is used afterward. This means when the parties sign one, they know for sure they are actually going to end up in arbitration.

Understanding a Post-Dispute Arbitration Agreement

Parties who are involved in some kind of legal dispute may choose to sign a post-dispute arbitration agreement for several reasons. For one, as a form of alternative dispute resolution, arbitration may be less contentious than courtroom litigation. The arbitration process often resolves disputes faster than litigation. Arbitration may also be less expensive than a full, protracted, drawn out court battle. Furthermore, and perhaps most importantly to some, when a dispute is arbitrated, private matters remain private instead of becoming court record.

A post-dispute arbitration agreement can also be made in many different types of situations. A divorcing couple may decide to sign a post-dispute arbitration agreement if they can’t work out a property settlement or custody division in their divorce. A company who is having a dispute with a customer or client may decide arbitration will be a more equitable way of resolving their issue and still be able to maintain a business relationship. Whatever the reason, once the parties agree and arbitrate an issue, the arbitrator’s decision is binding on them. 

Getting Help

Before signing a post-dispute arbitration agreement, be sure to get proper legal advice from an attorney who can advise you on whether or not signing is the best course of action.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption