Abstract
Multi-tier dispute resolution agreements (also called escalation, step, stepped, cascading, or progressive clauses) are increasingly common in commercial contracts. Such clauses can have real value for parties but are also bedeviled by poor drafting and inconsistent judicial treatment. This article reviews the interpretation and enforcement of multi-tier agreements by Canadian courts, focusing in particular on agreements that culminate in arbitration, in order to derive actionable guidance for parties who are drafting or implementing such clauses, and for arbitrators and judges who are faced with them.