How to switch your arbitration clause to People’s Court
Replace the arbitration paragraph in your template with the People’s Court model clause, choose a tier, and use it for every new and renewed agreement. For contracts already signed, amend them the way the contract allows. For a dispute that already exists, both sides can sign a submission agreement without touching the contract. Cases then cost 5.67% of the amount in dispute instead of about $10,100 for a traditional arbitration of a $10,000 claim.
- Model clause
- Six paragraphscopy from the clause page
- Seat
- WilmingtonDelaware
- Law
- FAA9 U.S.C. §§ 1 et seq.
- Tiers
- AI-onlyor AI-assisted human
- Existing disputes
- Submissionno contract change
Step 1. Inventory what you have
List every template and signed agreement with a dispute clause: customer contracts, vendor agreements, freelance and contractor agreements, terms of service, marketplace terms. For each, note the current forum, the amendment clause, any notice requirement, and the renewal date.
Step 2. Decide the tier
- AI-only: an AI Tribunal decides. 5.67% of the amount in dispute, $1.67 minimum.
- AI-assisted human: a human arbitrator decides with an AI draft and signs the Award. $310.00 plus 5.67%.
- Choose at filing: AI-only applies unless all parties choose AI-assisted human when the case is filed.
Every tier keeps one paid human appeal unless all parties waive it.
Step 3. Drop in the model clause
Replace the existing arbitration paragraph with this text, the same text as on the clause page. Pick one option in the bracketed tier sentence.
Any dispute, controversy, or claim arising out of or relating to this agreement, or the breach thereof, shall be resolved by binding arbitration administered by People’s Court (https://peoplescourt.ai), a service of Epistemic Labs Inc., under its Rules of Procedure & Evidence in effect when the case is filed. The juridical seat is Wilmington, Delaware, regardless of any party’s residence or the physical or virtual location of the proceedings. The arbitration agreement and arbitration are governed by the Federal Arbitration Act, 9 U.S.C. §§ 1 et seq.
The parties delegate to the People’s Court Tribunal authority to decide the formation, validity, enforceability, scope, and arbitrability of this arbitration agreement. This arbitration agreement is separable from the remainder of this agreement.
The parties agree to [the AI-only tier / the AI-assisted human tier / choose the tier when a case is filed, with AI-only applying unless all parties then choose AI-assisted human]. In the AI-only tier, an AI Tribunal decides and serves the first-instance Award without human merits review before service, except that a human Arbitrator may decide a question the AI Tribunal cannot. Any human appeal is limited, proceeds on the existing Record, and follows the deferential standards in the Rules.
The parties acknowledge that People’s Court uses proprietary AI adjudication technology that is not subject to disclosure except as required by applicable law. If disclosure is required, the parties consent to appropriate protective or confidential treatment.
The operative Award is final and binding, and judgment may be entered on it in any court having jurisdiction. Where funds are held under an authorized escrow or payment mechanism for the transaction, the parties authorize disposition of those funds in accordance with the Award.
A party may initiate an arbitration at https://peoplescourt.ai/intake. The parties consent to electronic notice in accordance with the Rules, including by email and through the People’s Court Case Page where applicable. The Rules are available at https://peoplescourt.ai/rules. Filing support is available at contact@peoplescourt.ai.
Step 4. Check the surrounding contract
Old arbitration clauses often have companions elsewhere in the agreement. Look for and reconcile:
- References to the old provider’s rules, fee splits, or arbitrator selection.
- Venue or forum selection clauses that point to a specific court.
- Jury waivers, class waivers, and carve-outs for small claims or injunctions. Keep one only if the deal still needs it next to the new clause.
- Notice provisions. The model clause consents to electronic notice by email and the Case Page, so make sure the contract has a reliable email for each party.
Step 5. Roll it out
- 01
New agreements
Update the template today.
- 02
Renewals
Swap the clause at renewal, with the change called out in the cover note.
- 03
Signed agreements
Amend under the contract’s own amendment clause, usually by a short signed amendment that replaces the dispute section.
- 04
Online terms
Follow your terms’ update and notice process, and show a link to the Rules at acceptance. Marketplaces can use the clauses for platform terms.
Step 6. For disputes that already exist
You do not need to amend the contract. Both sides can accept a submission agreement for that one dispute. The sample on the marketplaces page, Submission of an existing dispute, begins:
[Party A] and [Party B] agree to submit the following existing dispute to binding arbitration administered by People’s Court (https://peoplescourt.ai), a service of Epistemic Labs Inc., under its Rules of Procedure & Evidence in effect when the case is filed: [identify the transaction, such as the order or job number, and the dispute].
The full text continues with the same seat, delegation, tier, disclosure, and Award paragraphs as the model clause.
Cost difference
| Amount in dispute | People’s Court AI-only | Traditional arbitration (estimate) |
|---|---|---|
| $5,000 | $283.50 | about $10,100 |
| $10,000 | $567.00 | about $10,100 |
| $50,000 | $2,835.00 | about $10,100 |
The traditional figure is an estimate, not a quote. It assumes a $2,600 filing and administration fee plus 15 arbitrator hours at $500 an hour. Real fees vary by provider, claim size, and arbitrator, and exclude lawyers, appeals, and enforcement. Try your own numbers in the cost calculator.
Common questions
Can I change the arbitration clause in an existing contract?
Yes. Follow the contract’s amendment clause, usually a written amendment signed by both parties. Some terms of service allow an update on notice. Put the People’s Court model clause in the new text.
What does the People’s Court model clause say?
It sends any dispute arising out of or relating to the agreement to binding arbitration administered by People’s Court under its Rules, with a juridical seat in Wilmington, Delaware, governed by the Federal Arbitration Act. It also delegates arbitrability questions to the Tribunal, selects a tier, and provides that judgment may be entered on the Award.
What if a dispute already exists under the old clause?
Both sides can sign a submission agreement that sends that existing dispute to People’s Court. The underlying contract does not need to change.
Do I have to choose AI-only or AI-assisted human in the clause?
The clause can name either tier or let the parties choose when a case is filed, with AI-only applying unless all parties then choose AI-assisted human.
Is the model clause legal advice?
No. It is sample language that sends the dispute to People’s Court. Read the current Rules and Terms with it.
These answers describe People’s Court procedure and general law. They are not legal advice for a particular dispute.