Hi, this is part of my shareholders
agreement that talks about dispute. What happens if the next step is to go through mediation but one side DOES NOT have money to pay for it? I need an extensive answer with all scenarios. Thanks.
9.7 Dispute Resolution. Any controversy, dispute, or claim arising out of, in connection with, or in relation to this Agreement (such controversies, disputes, and claims are hereinafter referred to as “Disputes”), shall initially be resolved, if possible (and each party shall use commercially reasonable efforts to achieve such resolution), in accordance with the following progressive dispute resolution provisions:
(a) In the event that any party has a Dispute, such party shall furnish written notice of such Dispute to each other party, specifying in reasonable detail the nature and basis of such Dispute and, in the event of a monetary dispute, the amount thereof (the “Dispute Notice”). Each party shall respond promptly to any reasonable request by any other party for additional information regarding any such Dispute.
(b) Upon receipt of the Dispute Notice, the parties shall immediately negotiate in good faith to resolve the Dispute. If the parties are unable to resolve the Dispute within thirty (30) days of the date of the Dispute Notice, then any party hereto involved in (or potentially affected by) such Dispute shall have the right to submit such Dispute to non-binding mediation before a mutually acceptable mediator (the “Mediator”), who shall be a retired judge or magistrate judge who served either in the Supreme Court of the State of New York, including the Appellate Division, or the United States District Court, Southern or Eastern Districts of New York, or the Second Circuit Court of Appeals. In the event of the inability or failure of the parties to agree on the identity of a Mediator within the foregoing thirty (30) day period, then any one of the parties shall be entitled to apply to a judge sitting in the Supreme Court of the State of New York, New York County, Commercial Division, who shall be authorized to appoint the Mediator, and whose appointment shall be final and binding upon the parties.
(c) Simultaneously with the submission of the Dispute to Mediation, the party submitting the Dispute to Mediation (the “Claimant”) shall submit to the Mediator and to the other party(ies) (the “Respondent”) any documentation or other material it may wish the Mediator to consider in mediating the Dispute. Within twenty (20) days after receiving notice that the matter has been submitted to the Mediator, the Respondent shall submit to the Mediator and the Claimant any documentation or other material it may wish the Mediator to consider. The Mediator shall call one or more meetings with the parties, which meetings may be joint meetings or ex parte meetings as the Mediator determines in the Mediator’s sole discretion. The fees of the Mediator shall be paid equally by Claimant and Respondent.