Model Mediation/Arbitration Clause
Clause 3 - Agreement to Mediate/Arbitrate Disputes
If a dispute arises between the parties in relation to this Agreement, or out of this Agreement, the parties agree that the following dispute resolution process must be used.
- A meeting must be held promptly between the parties, attended by individuals with decision-making authority regarding the dispute, to attempt in good faith to negotiate a resolution of the dispute.
- If, within  days after such meeting, or such further period agreed to by the parties in writing, the parties have not succeeded in negotiating a resolution of the dispute, the parties agree to submit the dispute to mediation.
- The parties must jointly appoint a mutually acceptable mediator. If the parties are unable to agree upon the appointment of a mediator within  days after the end of the negotiation period referred to in paragraph (b), the parties must apply to the Mediate BC Society (formerly known as British Columbia Mediator Roster Society), or such other organization or person agreed to by the parties in writing, which will, within  days of the application, appoint a mediator taking into account.
- the need for the mediator to be neutral and independent,
- the qualifications of the mediator,
- the mediator’s fees,
- the mediator’s availability, and
- any other consideration likely to result in the selection of an impartial, competent and effective mediator.
- The parties agree to participate in good faith in a mediation session which must occur within  days after the appointment of the mediator, or such further period agreed to by the parties in writing.
- The parties agree that the mediation will be conducted in accordance with the Mediate BC Society.
- If the parties are unable to resolve all issues in dispute in the mediation, the parties agree that the remaining issues in dispute must be determined by arbitration under the Commercial Arbitration Act, R.S.B.C. 1996. The parties agree that the decision of the arbitrator will be final and binding and will not be subject to appeal on a question of fact, law or mixed fact and law.
- The parties agree to share equally the costs of the mediation and arbitration, which costs will not include costs incurred by a party for representation by counsel.