PDA

View Full Version : Binding Arbitration Clause



Love&care
01-18-2018, 06:30 AM
Wondering does anyone use Binding Arbitration Clause in their contracts?

I am living on the property and use it for my daycare, however, the property belongs to my husband's BIG family. That's the reason I am thinking of putting this clause in it.

BlueRose
01-18-2018, 07:27 AM
You can put it in your contract, but keep in mind that a judge can over turn it if he/she feels you are taking away your clients rights in some way.

The best way to stop someone from going after the owners of the property (no matter who they are) is to make sure they don't get hurt on the property. The owners should also contact their insurance company to insure they are covered with you running a business there.

You should also contact your insurance company and make sure your you and your business is covered through them as well.

Suzie_Homemaker
01-19-2018, 05:23 AM
Wondering does anyone use Binding Arbitration Clause in their contracts?

I am living on the property and use it for my daycare, however, the property belongs to my husband's BIG family. That's the reason I am thinking of putting this clause in it.

I wanted to ask my son about this before responding as binding arbitration is something I never heard of.

He explain that it is a process that use third party to settle any dispute and that the decision of that third party is meant to be binding. However, having an advance agreement that any disputes would be addressed this way isn't always the safety net people imagine because while the objective is to reach a fair resolution, it's not uncommon that a lose-lose situation arises. The other issue is that the issue which has arisen is a contractual issue where negotiation is moot if one side has breached the contracted terms or if one side has been negligent.

It's hard to force a client down this route of resolution until the issue has arisen and been assessed as suitable for the problem.

He asked specifically what issue you envisage being directed to arbitration so he can be more specific.

In chatting with him about what issues could arise in a day home that potentially would lead to legal issues, client's not paying, not being respectful, not following your rules, should all fall under breach of contract on their side and be straight forward. You not delivering the service as sold would fall under breach of contract on your side. A child being hurt on your watch would either be an accident that was not able to have been forecast which would fall under your business insurance. Or a child being hurt on your watch when it was wholly preventable which would be negligence and therefore not covered by insurance - if that is the case, the matter wouldn't be suitable for arbitration as it would be the parent suing on behalf of the child vs the person who was hurt suing themselves. However, any judgement against you would be against you personally and/or your business and would stake claim on your personal assets and business assets. They wouldn't be able to go after an asset that belonged to someone (your husbands family) other than the person the Judgement is made against.

This would be same as if you ran a center and rented a commercial space. Any legal issues you had would not open up the landlord's property for placing a lien against or settlement.

Love&care
01-21-2018, 09:54 PM
Suzie_Homemaker thank you very much for the detail information! I was suggested to put it in my contract and I am hesitate to do it.

Bredlen
01-24-2018, 08:16 PM
Depending on the issues, here's some useful info:

https://www.duhaimelaw.com/2011/03/18/supreme-court-of-canada-rules-that-private-arbitration-does-not-apply-to-consumer-protection-contracts/

specifically:

The Supreme Court of Canada released its decision today on whether mandatory arbitration clauses in consumer contracts are enforceable under British Columbia’s consumer protection legislation. In Seidel v. Telus Communications Inc., 2011 SCC 15, it held that the Business Practices and Consumer Protection Act, S.B.C. 2004, c.22 (the “BPCPA“) must be interpreted generously in favour of consumers and as a result, an arbitration clause in a consumer contract requiring that all disputes be resolved by arbitration is, to the extent that it prevents a consumer from bringing an action in court to enforce the BPCPA’s consumer protection standards, void.