Under what circumstance does a dispute resolution clause mandate arbitration before any party can initiate legal action against the escrow holder?

A dispute resolution clause mandates arbitration before legal action can be initiated against an escrow holder when the parties have expressly agreed to an arbitration provision within the escrow instructions or the underlying purchase contract. Arbitration is a private process where an impartial third party, known as an arbitrator, hears evidence and makes a binding decision to resolve a conflict instead of a judge....