Question
Can a party still litigate if a contract requires mediation and arbitration?
I'm in a dispute with a former business partner, and our agreement says we must use mediation and arbitration. Can they bypass that and go straight to court despite the contract?
Answer
Generally, no. If a contract requires mediation and arbitration, courts expect the parties to follow those steps before pursuing litigation.
If a party skips these requirements, the other party can ask the court to enforce the dispute resolution clause. Courts will often treat mediation as a condition precedent to further action. If mediation was not completed, the court may stay or dismiss the case until that step is satisfied.
Arbitration is treated differently. If the contract requires arbitration, courts can actively compel the parties to arbitrate and pause or dismiss the court case while arbitration proceeds.
What happens if someone files a lawsuit anyway?
A party can still file a lawsuit, but the other side can respond by pointing to the contract's dispute clause.
Courts often pause or dismiss the case and require the parties to follow the agreed process, especially if arbitration is binding.
Are there any exceptions?
In some situations, a court may allow a case to proceed. This can happen if the clause is unclear, unfair, or does not apply to the specific dispute.
Courts may also get involved for limited issues, like enforcing an arbitration award or handling urgent matters.
What to do next...
- Review your contract to confirm mediation and arbitration steps.
- Document whether those steps were followed.
- Respond quickly if a lawsuit is filed.
- Consider starting the required ADR process yourself.
What to consider in your specific situation
While these clauses are usually enforced, outcomes can vary based on the details.
- Whether the clause clearly requires mediation and arbitration.
- If arbitration is binding or optional.
- Whether the dispute falls within the clause's scope.
- The clarity and fairness of the contract terms.
- The other party's willingness to follow the process.
- Local laws affecting enforceability.
Following the agreed process can help you avoid delays and keep control over how the dispute is resolved. Since every situation is different, consider more information through Rocket Copilot, a Legal Pro, or a legal document review to move forward with confidence.
At Rocket Lawyer, we follow a rigorous editorial policy to ensure every article is helpful, clear, and as accurate and up-to-date as possible. This page was created, edited and reviewed by trained editorial staff who specialize in translating complex legal topics into plain language, then reviewed by experienced Legal Pros—licensed attorneys and paralegals—to ensure legal accuracy.
Please note: This page offers general legal information, but not legal advice tailored for your specific legal situation. Rocket Lawyer Incorporated isn't a law firm or a substitute for one. For further information on this topic, you can Ask a Legal Pro.
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Explore more about dispute resolution contract clauses
Explore more questions about dispute resolution clauses
Dispute resolution clauses outline the overall process parties must follow if a disagreement arises. These questions explain different approaches to resolving disputes and how contracts can guide the process from start to finish.
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- What does this dispute resolution clause actually require me to do?
- Can a party still litigate if a contract requires mediation and arbitration?
- Can the other party challenge only the attorney's fees after arbitration?
- What is alternative dispute resolution (ADR)?
- What happens if I don't follow the ADR requirement in my contract?
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Disclosures
- This page offers general legal information, not legal advice tailored for your specific legal situation. Rocket Lawyer Incorporated isn't a law firm or a substitute for one. For further information on this topic, you can Ask a Legal Pro.