Legal Question in Business Law in California

First, is there an existing agreement containing a clause under which you have agreed to arbitrate any disputes that arise under the agreement? Or, will you and the other party to the dispute need to create an arbitration agreement? Binding arbitration is a right that arises under the terms of a contract between the parties. The contract can be one entered into before the dispute arose, or one entered into voluntarily but after the dispute arose.

Next, read the terms of the arbitration agreement or clause, whichever it is, and whenever it was agreed upon. Most arbitration clauses or agreements will specify something about the rules to be used, and sometimes where the arbitration is to take place. This in turn will tend to dictate where you will find your arbitrator and other conditions affecting the arbitration.

A typical arbitration clause will read something like, "If any dispute arises over the subject matter of this contract. whether sounding in contract or in tort, the parties agree that said dispute shall be arbotrated under the Civil Arbitration provisions of California's Code of Civil Procedure, sections 1280 et seq., and that the arbitration shall take place to the extent possible in Alameda County, California. A single arbitrator shall hear the dispute, and shall render a binding award applying the statutory and decisional laws of California and the commercial arbitration rules of the American Arbitration Association. The award of the arbitrator shall be final and binding and may be entered as a judgment in a court of competent jurisdiction. The arbitrator may award costs and fees to a prevailing party."

Some arbitration agreements specify that the arbitrator shall be selected from a particular panel, such as those who work under the Judicial Arbitration and Mediation Service ("JAMS"). If that's the case, you'll need to contact the local office of that agency, which will arrange for selection of an arbitrator and work with the parties on setting up a time and place and establishing the ground rules.

You can also get assistance in finding qualified arbitrators through the Alternative Dispute Resolution service of the local Superior Court. Since arbitration helps cut down the judges' workload, the courts are very happy to assist parties find qualified arbitrators.

If all else fails, look in the phone book or an on-line "Yellow Pages" under "Arbitrators" or "Mediators and Arbitrators."