an excerpt from ALTERNATIVE DISPUTE RESOLUTION 2001 EDITION
published by the llinois Institute for Continuing Legal Education
© 2001 by Stephen E. Smith
This clause provision should be utilized in situations involving more than two contracting parties so as to allow proper provisions for jurisdiction, inclusion of all the parties’ claims and to determine all matters in one arbitration, if possible. The use of multi-party contracts can make the process economical in terms of both time and money.
This clause is the opposite of the broad clause and shows the parties’ intent not to submit all the matters contained in the contract to arbitration.
This is clause is a more exhaustive "mediation-as-a-first-step" clause that treats all aspects of ADR and suggests a tolling of any limitations period to allow meaningful negotiations to continue as long as necessary. Such a provision encourages good-faith efforts to resolve the dispute before turning to assistance from neutrals.