Can I require customers to sign contracts with binding arbitration clauses in West Virginia? What are the requirements?

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Requirements for binding arbitration clauses in West Virginia

Yes, you can require customers to sign contracts with binding arbitration clauses in West Virginia. However, there are certain requirements that must be met.

According to WVCO 55-10-6, a party to an agreement to arbitrate or to an arbitration proceeding may waive or vary the effect of the requirements of the West Virginia Uniform Arbitration Act (WVCO 55-10-1 et seq.) to the extent permitted by law. However, before a controversy arises that is subject to an agreement to arbitrate, a party to the agreement may not waive or agree to vary the effect of certain requirements, including:

• The right to notice of the initiation of an arbitration proceeding (Section 11)
• The right to disclosure of any facts by a neutral arbitrator (Section 14)
• The right to be represented by a lawyer at any proceeding or hearing under the West Virginia Uniform Arbitration Act (Section 18)

Additionally, pursuant to WVCO 55-10-9, a motion to compel or stay arbitration may be made in the circuit court of the county in which the agreement to arbitrate specifies the arbitration hearing is to be held or, if the hearing has been held, in the circuit court of the county in which it was held. Otherwise, the motion may be made in the court of any county in which an adverse party resides or has a place of business or, if no adverse party has a residence or place of business in this state, in the circuit court of Kanawha County, West Virginia.

Furthermore, according to WVCS 28-04-3, prior to performing contracting work on a construction project with an aggregate value of $10,000 or more, a licensee shall have a written contract with an owner and with any subcontractor that the licensee hires to work on the project.

Therefore, to require customers to sign contracts with binding arbitration clauses in West Virginia, the contract must comply with the requirements of the West Virginia Uniform Arbitration Act, including the limitations on waiving certain rights, and any other relevant laws and regulations. Additionally, if the contract is for construction work with an aggregate value of $10,000 or more, it must be a written contract.

Jurisdiction

West Virginia

• General