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, and county.
Amount-in-Controversy Threshold Clause
Disputes Below [$100,000.00]: Any controversy or claim with an amount in controversy of [one hundred thousand dollars ($100,000.00)] 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 DecisionLayer in accordance with its rules then in effect at https://www.decisionlayer.ai/rules (the “Rules”). The substantive rights and obligations of the parties shall be governed by the internal laws of the State of New York. The Federal Arbitration Act, 9 U.S.C. §§ 1–16 (“FAA”), shall govern this arbitration provision, its interpretation and enforcement, all questions of arbitrability, and the arbitration proceedings. The FAA shall control over any conflicting provision of law. 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. The parties agree that the arbitrator selection mechanisms set forth in the Rules constitute a substantial and valuable contract right, and the designated administration by DecisionLayer is an essential term of this agreement. THE PARTIES HERETO WAIVE ANY RIGHT TO A JURY TRIAL AND 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. EACH PARTY CONSENTS TO RECEIVE SERVICE OF PROCESS COMMENCING AN ARBITRATION VIA THE DECISIONLAYER WEBSITE (IF IT HAS AN ACCOUNT), BY EMAIL, BY REGISTERED OR CERTIFIED MAIL, OR IN ACCORDANCE WITH APPLICABLE LAWS. EACH PARTY HERETO WAIVES ANY OBJECTION TO SERVICE BY THESE MEANS. Any arbitration shall be conducted virtually via the DecisionLayer platform. Each litigant’s relationship with DecisionLayer is governed by the DecisionLayer Terms of Service available at https://www.decisionlayer.ai/terms. If DecisionLayer is disqualified, unavailable, or otherwise unable to administer or hear any dispute for any reason, the parties shall apply to a court of competent jurisdiction for appointment of an arbitrator pursuant to Section 5 of the Federal Arbitration Act, 9 U.S.C. § 5, and the agreement to arbitrate shall remain fully enforceable. 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.
Disputes Above [$100,000.00]: Any controversy or claim with an amount in controversy of greater than [one hundred thousand dollars ($100,000.00)], 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 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.