Most law firm partnership agreements include broad arbitration clauses which provide for the arbitration of all disputes concerning the partnership. A recent,1 partially successful challenge to a law firm’s arbitration provision, based upon the doctrine of unconscionability, is worth exploring to understand if one’s partnership agreement and practices could be susceptible to similar attack. In addition, the opinion raises the perennial question concerning whether such arbitration provisions are beneficial to all or whether they favor the firm as opposed to its individual partners.
Disputes
The rationale most law firms use for including arbitration provisions in their partnership agreements is that arbitration is confidential and faster than litigation thereby resulting in a less expensive proceeding. In addition, some law firms take advantage of the voluntary nature of arbitration and craft an arbitration procedure they believe works best for their particular culture and practice.
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