Luke Dumpitiy calls you to represent him. He was driving his fathers car after a night out drinking with his new friends at a college he is attending in Michigan's Upper Pennisula, and he as in an auto accident. He swears he was not at fault, as he was stopped at a red light when another driver ran into him from behind causing significant damage to both vehicles.

To make matters worse, he admitted to the police officer who investigated the crash he had be drinking at Hooligans Irish Tinkers Travelling Beer Tavern (it's a motor home that parks in a different spot each night) even though he was underage. The police report indicates they interviewed the bar tender, who claims Luke had a driver's license showing him to be of age (it was a fake). The driver of the other car, named Felix Feline, has already retained an attorney and sent a demand letter for $500,000.00 in damages alleging his client has been in the hospital even since and cannot work. That attorney also sent a demand to the Irish Tavern, demanding they pay for damages for illegally serving a minor and serving him after his was visibly intoxicated under the so-called Dram Shop Act.

Hooligan, the owner of the Tavern, calls you both, and claims he has a sign over his traveling bar that binds any party drinking there to settle any dispute by private arbitration, with his cousin Pinkley Blindfellow as the arbitrator. Felix's attorney ignores that, and files suit in the local circuit court, and Judge Jennine Ferrari is assigned to hear the case. Luke needs to know how to proceed.

Draft a letter to your client of sufficient length answering his questions and advising him how to proceed.Be sure to include the following:

First, he wants to know if the private arbitration would be in his best interest, and at this stage if it is even a viable option.

Secondly, he wants to know if Judge Ferrairi orders arbitration (which local counsel tells you she always does), who decides the procedures to be followed, who the mediator will be, and how you would be involved as his attorney.

Third, he also wants to know if he would have to accept the arbitrators award in a court ordered arbitration, and what happens if one of the parties does not accept it?