Business Law Topics: Arbitration

Arbitration Clauses Must Be Fair

The court of appeal opinion in Lhotka v. Geographic Expeditions, Inc. is a cogent reminder to any drafting a contract clause requiring arbitration of disputes. In the Geographic Expeditions case, the court refused to order arbitration, finding that the contract clause in question, which purported to require arbitration as a dispute resolution procedure, was unfair and biased against the plaintiff.