You should know what happens when you ignore boilerplate; it might be your worst nightmare.
In arbitration agreements, a company makes a blanket assertion that it will not disclose confidential information. In contrast, in a boilerplate policy, However, boilerplate statements Virtual do not indicate a blanket refusal to make disclosures.
Arbitration agreements are pre-disposition notices from a party. They specify that the party has a legal obligation to turn over documents that are needed for arbitration.
The point of the arbitration agreement is to inform the recipient of the agreement about the legal obligation to make disclosures. By law, the recipient of an arbitration agreement must comply with its terms.
What are the consequences of not using a boilerplate?
Arbitration agreements contain boilerplate statements that do not include a blanket refusal to disclose. If the recipient of an arbitration agreement contains a boilerplate that provides no assurance of disclosure. The recipient must make every effort to comply with the arbitration agreement and must produce documents that are relevant to the arbitration process.
A party that prevails in the arbitration is not entitled to obtain discovery from a party who prevails in the arbitrator’s review. If you seek a protective order to prevent discovery after the arbitrator’s review, you may obtain discovery under the Federal Rules of Civil Procedure (FRCP).
In summary, an arbitration agreement is not intended to create a blanket refusal to disclose and cannot be used as a device to block discovery. If a document provides no assurance of disclosure, that document is not a boilerplate document. In most situations, arbitration agreements are not enforceable unless they contain a waiver. In cases where the arbitration agreement is binding on a party, the party is not entitled to compel discovery.
Parties that receive a boilerplate are advised to ask for clarification of the policy. They are also advised to consider obtaining legal counsel to avoid conflicts of interest.