Tiered Dispute Resolution
Use this clause when you want disputes below a certain dollar threshold handled through DecisionLayer arbitration, while reserving larger disputes for traditional arbitration or litigation. This hybrid approach can be useful for commercial agreements where parties prefer court adjudication for higher-stakes matters. Replace the bracketed placeholders with your preferred dollar-value threshold (a current default of $100,000 is included), state, county, and opt-out contact information.
Amount-in-Controversy Threshold Clause
Disputes Below [$100,000.00]: Any controversy or claim with an amount in controversy of [one hundred thousand dollars ($100,000)] or less, arising out of or relating to this agreement, including the interpretation, formation, breach, termination, validity, arbitrability or enforceability thereof, shall be settled by binding arbitration administered by Decision Science Research Corporation (“DecisionLayer”) in accordance with its rules then in effect at https://www.decisionlayer.ai/rules (the “Rules”), and governed by the Federal Arbitration Act, 9 U.S.C. §§ 1-16, and the internal laws of the State of New York. Judgment on any arbitration award may be entered in any State or Federal Court located in New York State or any other court of competent jurisdiction. Subject to the Rules, DecisionLayer arbitrations will be conducted by an arbitrator utilizing DecisionLayer artificial intelligence systems or, upon mutual agreement of the parties, by DecisionLayer’s artificial intelligence system itself. [You may opt out of this arbitration provision by sending written notice to [Insert Email or Address] within thirty (30) days of the date you first agree to this provision.] Any arbitration shall be conducted entirely virtually via the DecisionLayer platform. DecisionLayer has the authority to determine if a dispute is arbitrable. Each litigant’s relationship with DecisionLayer is governed by the DecisionLayer Terms of Service available at https://www.decisionlayer.ai/terms. Each party hereto consents to receive service of process commencing any arbitration via the DecisionLayer website (if such party has an account), by email, by registered mail pursuant to New York CPLR § 7503(c), or in accordance with applicable laws and waives any objection to service by these means. FOR ALL CONTROVERSIES OR CLAIMS WITH AN AMOUNT IN CONTROVERSY OF LESS THAN [$100,000.00], THE PARTIES HERETO WAIVE ANY RIGHT TO A JURY TRIAL.
Disputes Above $100,000.00: Any controversy or claim with an amount in controversy of greater than [one hundred thousand dollars], arising out of or relating to this agreement, including the interpretation, formation, breach, termination, validity or enforceability thereof, shall be subject to the internal laws of [State] without reference to its conflict of law doctrine and each party irrevocably and unconditionally submits to the exclusive jurisdiction of the State and Federal courts located in [County], [State], for the resolution of any such claim or controversy, and each party hereto waives any objection based on inconvenient forum (forum non conveniens).
For All Disputes: THE PARTIES HERETO AGREE THAT ANY CLAIMS ARISING FROM OR RELATED TO THIS AGREEMENT MUST BE BROUGHT IN AN INDIVIDUAL CAPACITY, NOT AS A PLAINTIFF OR CLASS MEMBER IN ANY CLASS OR REPRESENTATIVE PROCEEDING. The invalidity of any portion of this arbitration provision shall not affect the validity of any other portion, and any invalid provision shall be modified to the least extent necessary to render it valid.