However, if a plaintiff unwittingly entered into an arbitration agreement due to coercion or deception, or if the terms of the arbitration agreement undermine the plaintiff's ability to vindicate their rights, courts can and sometimes do step in and invalidate the contract.
Under the new amended rule, an arbitration decision will be deemed rejected only if “a notice of rejection of the arbitration decision and request for trial” is filed within 20 days of service of the arbitrator's written decision.
As a general rule, only strong evidence of duress or fraud are sufficient to invalidate an arbitration clause.
Unconscionability requires a showing of both a procedural and substantive defect in the document for the agreement to be rendered unenforceable by the court. Procedural unconscionability results from oppression or unfair surprise to one party caused by unequal bargaining power.
1 The ICC Rules, Article 6(8) provides, “If any of the parties refuses or fails to take part in the arbitration or any stage thereof, the arbitration shall proceed notwithstanding such refusal or failure.” Similar provisions are also provided for in the LCIA Rules, Article 15.8; SIAC Rules, Rule 20.9; UNCITRAL Rules, ...
(1) An agreement contained in a record to submit to arbitration any existing or subsequent controversy arising between the parties to the agreement is valid, enforceable, and irrevocable except upon a ground that exists at law or in equity for the revocation of a contract.
The arbitration agreement must be contained in either a written document signed (including every adequate form of electronic signature) by the parties or in an exchange of letters, faxes, e-mails, or other forms of communication exchanged between the parties that provides proof of the existence of the agreement.
If the arbitration agreement is claimed to be invalid based on reasons such as error, fraud, or threat, the validity of the arbitration agreement will be governed by the law chosen by the parties, and in the absence of a choice of law, the law of the place of arbitration applied.
The Scope of the Clause. This section of the clause is critical; it sets the boundaries for which disputes the tribunal is authorised to determine. Choice of Rules. The Number of Arbitrators. Appointing Authority. Choice of Venue. The language of the proceedings. Finality. Exclusion of the right of appeal.