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<b><i>Clause & Effect</b></i>Challenges in Drafting Clauses to Arbitrate
Parties to entertainment industry agreements often include a provision for the arbitration of contract disputes. This may be motivated by the lower cost and less formality than court proceedings that arbitration can offer, as well as the ability to keep arbitrated disputes out of public view. But the simple language of an arbitration clause can lead to challenges over whether the arbitration process was proper.
A typical arbitration clause – one used in a contract between the agent International Creative Management and the promoter Big Nine Productions (DLLP) for the Moody Blues rock group to perform in concert in Chattanooga, TN – stated:
“Any claim or dispute arising out of or relating to this agreement or the breach thereof shall be settled by arbitration in New York, New York in accordance with the rules and regulations then obtaining of the American Arbitration Association governing three-member panels. The parties hereto agree to be bound by such award in such arbitration and judgment upon the award rendered by the arbitrators may be entered in any court having jurisdiction thereof.”
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