Don’t trip on a poorly drafted step clause

By Gemma Healy-Murphy, Connor Campbell and Srinidhi Akkur (November 3, 2022, 11:12 AM EDT) -- Dispute resolution provisions are a common feature of commercial contracts. Parties often frame these as a series of escalating steps/tiers leading towards arbitration (step clauses). It is unfortunately common for such step clauses to be ambiguous, or lacking in procedural detail, leading to unwanted surprises for parties when it comes time to rely on the provisions. This article outlines some risks posed by ambiguous step clauses....