Guidance

Arbitration versus Trial

Rising costs of arbitration combined with the uncertainty regarding the nature of the panel and the lack of reported decisions has made many companies rethink their dispute strategy. Many are opting to have disputes settled by the court system, but on condition that the matter is decided by a judge and not a jury. See, Companies Ask People To Waive Right to Jury Trial, Wall Street Journal, August 17, 2004.

Enforcement

"A number of federal circuits have also addressed the enforceability of contractual jury waivers, generally finding them enforceable where they are entered knowingly and voluntarily." Jury Waivers As An Alternative To Arbitration Clauses, Law360, March 14, 2007.

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  • Organization: Public
  • Updated: 01/23/2018
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Overview

The Waiver of Jury Trial clause provides that the parties waive their Seventh Amendment right to a trial by jury if there is any dispute arising out of or relating to the agreement or the transaction. All dispute are still handled by the court system, with all discovery and appellate rights, but any trial will be decided by judge, and not a jury.