Bloomberg Law Publishes Akin Gump Article on Pitfalls of Arbitration Agreements
Bloomberg Law has published the article “INSIGHT: Arbitration Agreements—If You Use Them, Make the Language Ironclad,” written by Akin Gump litigation partner Anthony Pierce and associate Allison Thornton. The article examines recent court rulings on arbitration agreements, warning that even the most sophisticated entities can fall victim to flaws in the drafting of them.
Pierce and Thornton write that the need to re-examine the drafting of arbitration agreements “is particularly compelling in light of the recent line of U.S. Supreme Court decisions that have encouraged courts to shield opinions by arbitrators from judicial oversight.” They add that without “clear and unequivocal language, strict interpretation of arbitration agreements can lead to the distortion of parties’ intent.”
The article then looks at some instances in which arbitration can be beneficial, noting that, while it can be a “valuable alternative to litigation, parties will only reap the benefits of arbitration if their arbitration agreements are carefully crafted. If parties elect to arbitration, those drafting the agreement must ensure clarity in those terms.”
To read the article in its entirety, please click here.