Staying out of court – the in-house playbook for proactive conflict resolution

When negotiating a contract, too often the dispute resolution provisions come last on the checklist - a classic 'midnight clause' scenario. Jurisdiction of the English courts is often the default. Yet the parties' business objectives and the unique features of their relationship might be better served by other methods of dispute resolution.

Recent research underscores this point: 50% of legal professionals believe that combining both adjudicative and non-adjudicative techniques delivers the most effective dispute resolution strategy, whilst professional mediation centres consistently report settlement rates of 70%-80%. These compelling statistics suggest that in-house counsel should always explore the full spectrum of dispute resolution options available.

Our August 2025 article provides a comprehensive playbook for in-house counsel seeking to draft effective dispute resolution clauses that truly support their commercial goals. We cover mediation, arbitration, expert determination and adjudication, exploring critical questions including:

• How can mediation preserve valuable commercial relationships?
• When should arbitration be preferred over court proceedings?
• Which matters are arbitrable and which are not?
• How can expert determination be deployed most effectively?
• What role does adjudication play in construction disputes?
• How can multi-tier clauses creatively combine different dispute resolution methods for maximum impact?

Our practical guidance covers each dispute resolution method in detail, clarifies enforceability requirements for dispute resolution clauses under English law, and provides essential drafting tips.

This is the second instalment in our quarterly series, 'Contentious Matters: essential legal insights for in-house teams'. Designed specifically for in-house legal departments, this series will provide practical, in-depth analysis of critical topics in dispute resolution.

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