Although significantly less utilized than emergent applications to a court, seeking temporary restraints or preliminary injunctive relief in arbitration can, in some instances, best serve a client’s interests.
Consider, for example, a business that requires its employees or independent contractors to sign a contract with a noncompetition clause. Clients who conduct business throughout the country face a challenging legal terrain when it comes to enforcing these restrictive covenants. Because this is a state law issue, a business might encounter inconsistent court treatment from state to state. This creates potential legal uncertainty. To try to avoid or lessen the effect of differing state law, many companies utilize a binding arbitration clause in their contracts.
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