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Question about a 'final and binding' arbitration clause in a freelance web dev contract from a Denver client last week
My lawyer says it locks me out of court and could be costly, but the client argues it's standard and keeps disputes simple, so has anyone here successfully negotiated a fairer version or walked away from a deal over this?
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stella1111mo ago
Been there, it's a tough spot. Your lawyer is right to flag it, those clauses can really screw you over if something goes wrong. I've walked from a couple deals over stuff like that, the risk just wasn't worth it. Pushing for a mutual right to choose small claims court is a fair middle ground if you want to try and keep the client.
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finleyrivera1mo ago
But sometimes you gotta take the risk to land the client. A good relationship makes those clauses less scary. Seen plenty of deals work out fine with them in place.
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Oh come on, that's just bad advice from @finleyrivera. I get that you want to land the client, but a good relationship doesn't fix a BAD contract clause. If things go south, that "good relationship" disappears real fast. I've seen this exact thing happen to a buddy of mine who does freelance graphic design - the client was super friendly until a payment dispute came up, then they used that clause to force arbitration in a different state. @gray314 is totally right to point out how the client can stack the deck against you. That's not a standard clause if they get to pick everything themselves. You're better off losing a deal than signing something that puts you at a permanent disadvantage.
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gray3141mo ago
Walked away from a similar Denver contract last month. The clause gave them all the power to pick the arbitrator and location. That's not simple, that's a trap. Your lawyer is giving you good advice.
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