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Denver, Colorado

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Are Arbitration Clauses Enforceable in Colorado?

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Several people have asked me the if arbitration clauses are enforceable in Colorado. They are absolutely enforceable. In fact, Colorado case law strongly favors such clauses. Arbitration clauses are generally considered to be favorable to defendants and businesses, although the better practice is to decide whether to include an arbitration agreement on a case by case basis. The court system is typically a longer process. However, arbitrations have their own problems, such as enforcement, and the loss of having a jury of your peers decide your fate. If you decide that an arbitration clause is right for your contract – be careful. If you take action inconsistent with the clause, for example, you miss a deadline to give notice of arbitration, or you refuse to mediate the case before arbitration even though the contract requires you to mediate disputes first, you may ‘waive’ the right to arbitrate and end up in the dreaded courtroom anyway!