Mediation or Arbitration

Mediation or Arbitration is becoming a popular method of resolving disputes, and we are seeing more of these clauses in TTUHSC contracts. The method of mediation or arbitration and the selection of the mediators or arbiters is of utmost importance. Under no circumstances will TTUHSC approve a contract that contains a binding arbitration clause. Therefore, if your contract contains an arbitration clause, use this language:

In the event that the parties hereto fail to agree with respect to any matter covered by this agreement, the issue in dispute shall be submitted to non-binding arbitration or to mediation, conducted pursuant to Chapter 154, Alternate Dispute Resolution Procedures, Texas Civil Practice & Remedies Code, each Party to be responsible for its own costs. This clause will survive the expiration or termination of the Agreement, whether for cause or without cause.