How to Use Dispute Resolution Clauses to Protect Your Florida Business

Disputes are an unfortunate reality in business. But how you plan to handle them—before they happen—can make the difference between a quick resolution and years of costly litigation.

A well-drafted dispute resolution clause in your Florida contracts gives you control over how, where, and under what rules disagreements will be resolved.

At the Law Offices of Adam G. Hill, we help Florida businesses add strong, enforceable clauses that save time, money, and stress when conflicts arise.

Why Dispute Resolution Clauses Matter

Without clear language, disagreements may default to public, expensive court battles. A dispute resolution clause:

  • Sets the process in advance, avoiding uncertainty

  • Can require private mediation or arbitration instead of court

  • Lets you choose the venue and applicable law

  • Reduces overall legal costs

Types of Dispute Resolution in Florida Contracts

1. Mediation

  • Informal process with a neutral mediator

  • Non-binding unless parties reach a written agreement

  • Often faster and less expensive than court

2. Arbitration

  • More formal than mediation but still private

  • Can be binding or non-binding

  • Rules and arbitrator selection can be tailored in the contract

3. Litigation (Court)

  • Public and often lengthier

  • Sometimes necessary for certain disputes (e.g., injunctive relief)

Florida-Specific Considerations

  • Venue Selection: Without a clause, you may end up litigating in another state or inconvenient county. Florida courts will generally enforce valid venue provisions.

  • Attorney’s Fees: Florida follows the “American Rule” (each party pays their own fees) unless the contract says otherwise. Include an attorney’s fees provision if you want the prevailing party to recover costs.

  • Enforceability: Courts in Florida typically uphold arbitration clauses, but they must be drafted clearly and in compliance with the Federal Arbitration Act and Florida law.

Example Clause (for illustration purposes only)

Mediation and Arbitration: The parties agree that any dispute, claim, or controversy arising out of or relating to this Agreement shall first be submitted to mediation in Orange County, Florida. If mediation is unsuccessful, the dispute shall be resolved by binding arbitration under the rules of the American Arbitration Association, with venue in Orange County, Florida. The prevailing party shall be entitled to recover reasonable attorney’s fees and costs.

Common Mistakes to Avoid

  • Leaving dispute resolution out entirely

  • Using unclear or conflicting language

  • Failing to specify the governing law and venue

  • Omitting attorney’s fee provisions when needed

Protect Your Business Before Disputes Happen

The best time to decide how disputes will be handled is before they occur. A clear, enforceable dispute resolution clause can keep your business focused on growth—not courtroom battles.

Call the Law Offices of Adam G. Hill at 833-918-1877 today to have your contracts reviewed or to add custom dispute resolution provisions that protect your Florida business.

This article is part of our series on 5 Contract Pitfalls That Could Cost Florida Businesses.