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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY GRELL, CUTLER, M. K. KELLER, KORTZ, MILLER, MOUL, OBERLANDER, ROCK AND TALLMAN, MARCH 21, 2011 |
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| REFERRED TO COMMITTEE ON JUDICIARY, MARCH 21, 2011 |
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| AN ACT |
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1 | Amending Title 42 (Judiciary and Judicial Procedure) of the |
2 | Pennsylvania Consolidated Statutes, extensively revising the |
3 | Uniform Arbitration Act; and making editorial changes. |
4 | The General Assembly of the Commonwealth of Pennsylvania |
5 | hereby enacts as follows: |
6 | Section 1. Subchapter A of Chapter 73 of Title 42 of the |
7 | Pennsylvania Consolidated Statutes is repealed: |
8 | [SUBCHAPTER A |
9 | STATUTORY ARBITRATION |
10 | Sec. |
11 | 7301. Short title of subchapter. |
12 | 7302. Scope of subchapter. |
13 | 7303. Validity of agreement to arbitrate. |
14 | 7304. Court proceedings to compel or stay arbitration. |
15 | 7305. Appointment of arbitrators by court. |
16 | 7306. Action by arbitrators. |
17 | 7307. Hearing before arbitrators. |
18 | 7308. Representation by attorney. |
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1 | 7309. Witnesses, subpoenas, oaths and depositions. |
2 | 7310. Award of arbitrators. |
3 | 7311. Change of award by arbitrators. |
4 | 7312. Fees and expenses of arbitration. |
5 | 7313. Confirmation of award by court. |
6 | 7314. Vacating award by court. |
7 | 7315. Modification or correction of award by court. |
8 | 7316. Judgment or decree on award. |
9 | 7317. Form and service of applications to court. |
10 | 7318. Court and jurisdiction. |
11 | 7319. Venue of court proceedings. |
12 | 7320. Appeals from court orders. |
13 | § 7301. Short title of subchapter. |
14 | This subchapter shall be known and may be cited as the |
15 | "Uniform Arbitration Act." |
16 | § 7302. Scope of subchapter. |
17 | (a) General rule.--An agreement to arbitrate a controversy |
18 | on a nonjudicial basis shall be conclusively presumed to be an |
19 | agreement to arbitrate pursuant to Subchapter B (relating to |
20 | common law arbitration) unless the agreement to arbitrate is in |
21 | writing and expressly provides for arbitration pursuant to this |
22 | subchapter or any other similar statute, in which case the |
23 | arbitration shall be governed by this subchapter. |
24 | (b) Collective bargaining agreements.--This subchapter shall |
25 | apply to a collective bargaining agreement to arbitrate |
26 | controversies between employers and employees or their |
27 | respective representatives only where the arbitration pursuant |
28 | to this subchapter is consistent with any statute regulating |
29 | labor and management relations. |
30 | (c) Government contracts.--This subchapter shall apply to |
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1 | any written contract to which a government unit of this |
2 | Commonwealth is a party to the same extent as if the government |
3 | unit were a private person, except that where a contract to |
4 | which the Commonwealth government is a party provides for |
5 | arbitration of controversies but does not provide for |
6 | arbitration pursuant to any specified statutory provision, the |
7 | arbitration shall be governed by this subchapter. |
8 | (d) Special application.-- |
9 | (1) Paragraph (2) shall be applicable where: |
10 | (i) The Commonwealth government submits a |
11 | controversy to arbitration. |
12 | (ii) A political subdivision submits a controversy |
13 | with an employee or a representative of employees to |
14 | arbitration. |
15 | (iii) Any person has been required by law to submit |
16 | or to agree to submit a controversy to arbitration |
17 | pursuant to this subchapter. |
18 | (2) Where this paragraph is applicable a court in |
19 | reviewing an arbitration award pursuant to this subchapter |
20 | shall, notwithstanding any other provision of this |
21 | subchapter, modify or correct the award where the award is |
22 | contrary to law and is such that had it been a verdict of a |
23 | jury the court would have entered a different judgment or a |
24 | judgment notwithstanding the verdict. |
25 | § 7303. Validity of agreement to arbitrate. |
26 | A written agreement to subject any existing controversy to |
27 | arbitration or a provision in a written agreement to submit to |
28 | arbitration any controversy thereafter arising between the |
29 | parties is valid, enforceable and irrevocable, save upon such |
30 | grounds as exist at law or in equity relating to the validity, |
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1 | enforceability or revocation of any contract. |
2 | § 7304. Court proceedings to compel or stay arbitration. |
3 | (a) Compelling arbitration.--On application to a court to |
4 | compel arbitration made by a party showing an agreement |
5 | described in section 7303 (relating to validity of agreement to |
6 | arbitrate) and a showing that an opposing party refused to |
7 | arbitrate, the court shall order the parties to proceed with |
8 | arbitration. If the opposing party denies the existence of an |
9 | agreement to arbitrate, the court shall proceed summarily to |
10 | determine the issue so raised and shall order the parties to |
11 | proceed with arbitration if it finds for the moving party. |
12 | Otherwise, the application shall be denied. |
13 | (b) Stay of arbitration.--On application of a party to a |
14 | court to stay an arbitration proceeding threatened or commenced |
15 | the court may stay an arbitration on a showing that there is no |
16 | agreement to arbitrate. When in substantial and bona fide |
17 | dispute, such an issue shall be forthwith and summarily tried |
18 | and determined and a stay of the arbitration proceedings shall |
19 | be ordered if the court finds for the moving party. If the court |
20 | finds for the opposing party, the court shall order the parties |
21 | to proceed with arbitration. |
22 | (c) Venue.--If a controversy alleged to be or not to be |
23 | referable to arbitration under the agreement is also involved in |
24 | an action or proceeding pending in a court having jurisdiction |
25 | to hear applications to compel or stay arbitration, the |
26 | application shall be made to that court. Otherwise, subject to |
27 | section 7319 (relating to venue of court proceedings), the |
28 | application may be made in any court of competent jurisdiction. |
29 | (d) Stay of judicial proceedings.--An action or proceeding, |
30 | allegedly involving an issue subject to arbitration, shall be |
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1 | stayed if a court order to proceed with arbitration has been |
2 | made or an application for such an order has been made under |
3 | this section. If the issue allegedly subject to arbitration is |
4 | severable, the stay of the court action or proceeding may be |
5 | made with respect to the severable issue only. If the |
6 | application for an order to proceed with arbitration is made in |
7 | such action or proceeding and is granted, the court order to |
8 | proceed with arbitration shall include a stay of the action or |
9 | proceeding. |
10 | (e) No examination of merits.--An application for a court |
11 | order to proceed with arbitration shall not be refused, nor |
12 | shall an application to stay arbitration be granted, by the |
13 | court on the ground that the controversy lacks merit or bona |
14 | fides or on the ground that no fault or basis for the |
15 | controversy sought to be arbitrated has been shown. |
16 | § 7305. Appointment of arbitrators by court. |
17 | If the agreement to arbitrate prescribes a method of |
18 | appointment of arbitrators, the prescribed method shall be |
19 | followed. In the absence of a prescribed method or if the |
20 | prescribed method fails or for any reason cannot be followed, or |
21 | when an arbitrator appointed fails to act or is unable to act |
22 | and his successor has not been appointed, the court on |
23 | application of a party shall appoint one or more arbitrators. An |
24 | arbitrator so appointed has all the powers of an arbitrator |
25 | specifically named in the agreement. |
26 | § 7306. Action by arbitrators. |
27 | The powers of the arbitrators shall be exercised by a |
28 | majority unless otherwise prescribed by the agreement or |
29 | provided by this subchapter. |
30 | § 7307. Hearing before arbitrators. |
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1 | (a) General rule.--Unless otherwise prescribed by the |
2 | agreement: |
3 | (1) The arbitrators shall appoint a time and place for |
4 | the arbitration hearing and cause written notice thereof to |
5 | be served personally or by registered or certified mail on |
6 | all parties not less than ten days before the hearing. |
7 | Appearance at the hearing constitutes a waiver of such |
8 | notice. |
9 | (2) The arbitrators may adjourn the hearing from time to |
10 | time as necessary and, on request of a party and for good |
11 | cause, or upon their own motion, may postpone the hearing to |
12 | a time not later than the date fixed by the agreement for |
13 | making the award unless the parties consent to a later date. |
14 | (3) The arbitrators may hear and determine the |
15 | controversy upon the evidence produced at the arbitration |
16 | hearing notwithstanding the failure of a duly notified party |
17 | to appear. On application by a party the court may direct the |
18 | arbitrators to proceed promptly with the hearing and |
19 | determination of the controversy. |
20 | (4) The parties and their attorneys have the right to be |
21 | heard, to present evidence material to the controversy and to |
22 | cross-examine witnesses appearing at the hearing. |
23 | (5) The hearing shall be conducted by all the |
24 | arbitrators but a majority may determine any issue and render |
25 | a final award. If, during the course of the hearing, an |
26 | arbitrator for any reason ceases to act, the remaining |
27 | arbitrator or arbitrators appointed to act as neutrals may |
28 | continue with the hearing and determine the controversy. |
29 | (b) Record.--On request of a party who shall pay the fees |
30 | therefor all testimony shall be taken stenographically and a |
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1 | transcript thereof made a part of the record. |
2 | § 7308. Representation by attorney. |
3 | A party has the right to be represented by an attorney at any |
4 | proceeding or hearing under this subchapter. A waiver thereof |
5 | prior to the proceeding or hearing is ineffective. |
6 | § 7309. Witnesses, subpoenas, oaths and depositions. |
7 | (a) General rule.--The arbitrators may issue subpoenas in |
8 | the form prescribed by general rules for the attendance of |
9 | witnesses and for the production of books, records, documents |
10 | and other evidence. Subpoenas so issued shall be served and, |
11 | upon application to the court by a party or by the arbitrators, |
12 | shall be enforced in the manner provided or prescribed by law |
13 | for the service and enforcement of subpoenas in a civil action. |
14 | (b) Depositions.--On application of a party and for use as |
15 | evidence the arbitrators, in the manner and upon the terms |
16 | designated by them, may permit a deposition to be taken of a |
17 | witness who cannot be served with a subpoena or who is unable to |
18 | attend the hearing. |
19 | (c) Compulsory testimony.--The arbitrators shall have power |
20 | to administer oaths. All provisions of law compelling a person |
21 | under subpoena to testify are applicable. |
22 | (d) Fees.--Fees and expenses for attendance as a witness |
23 | shall be governed by the provisions of section 5903 (relating to |
24 | compensation and expenses of witnesses). |
25 | § 7310. Award of arbitrators. |
26 | (a) General rule.--The award of the arbitrators shall be in |
27 | writing and signed by the arbitrators joining in the award. The |
28 | arbitrators shall deliver a copy of the award to each party |
29 | personally or by registered or certified mail, or as prescribed |
30 | in the agreement to arbitrate. |
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1 | (b) Time limitation.--The award shall be made within the |
2 | time fixed by the agreement or, if not fixed by the agreement, |
3 | within such time as is ordered by the court on application of a |
4 | party. The parties by written stipulation may extend the time |
5 | either before or after the expiration thereof. A party waives |
6 | the objection that an award was not made within the time |
7 | required unless he notifies the arbitrators of his objection |
8 | prior to delivery of the award to him. |
9 | § 7311. Change of award by arbitrators. |
10 | (a) General rule.--On application of a party to the |
11 | arbitrators, or on submission to the arbitrators by the court |
12 | under such conditions as the court may order if an application |
13 | to the court is pending under section 7313 (relating to |
14 | confirmation of award by court), section 7314 (relating to |
15 | vacating award by court) or section 7315 (relating to |
16 | modification or correction of award by court), the arbitrators |
17 | may modify or correct the award upon the grounds stated in |
18 | section 7315(a)(1) and (2), or for the purpose of clarifying the |
19 | award. |
20 | (b) Time limitation.--An application to the arbitrators |
21 | under subsection (a) shall be made within ten days after |
22 | delivery of the award to the applicant. Written notice of |
23 | presentation of the application shall be given forthwith by the |
24 | applicant to all other parties stating that they must serve |
25 | objections thereto within ten days from the date of the notice. |
26 | The award as modified or corrected is subject to the provisions |
27 | of sections 7313, 7314 and 7315. |
28 | § 7312. Fees and expenses of arbitration. |
29 | Unless otherwise prescribed in the agreement to arbitrate, |
30 | the expenses and fees of the arbitrators and other expenses (but |
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1 | not including counsel fees) incurred in the conduct of the |
2 | arbitration shall be paid as prescribed in the award. |
3 | § 7313. Confirmation of award by court. |
4 | On application of a party, the court shall confirm an award, |
5 | unless within the time limits imposed by this subchapter, |
6 | grounds are urged for vacating or modifying or correcting the |
7 | award, in which case the court shall proceed as provided in |
8 | section 7314 (relating to vacating award by court) or section |
9 | 7315 (relating to modification or correction of award by court). |
10 | § 7314. Vacating award by court. |
11 | (a) General rule.-- |
12 | (1) On application of a party, the court shall vacate an |
13 | award where: |
14 | (i) the court would vacate the award under section |
15 | 7341 (relating to common law arbitration) if this |
16 | subchapter were not applicable; |
17 | (ii) there was evident partiality by an arbitrator |
18 | appointed as a neutral or corruption or misconduct in any |
19 | of the arbitrators prejudicing the rights of any party; |
20 | (iii) the arbitrators exceeded their powers; |
21 | (iv) the arbitrators refused to postpone the hearing |
22 | upon good cause being shown therefor or refused to hear |
23 | evidence material to the controversy or otherwise so |
24 | conducted the hearing, contrary to the provisions of |
25 | section 7307 (relating to hearing before arbitrators), as |
26 | to prejudice substantially the rights of a party; or |
27 | (v) there was no agreement to arbitrate and the |
28 | issue of the existence of an agreement to arbitrate was |
29 | not adversely determined in proceedings under section |
30 | 7304 (relating to court proceedings to compel or stay |
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1 | arbitration) and the applicant-party raised the issue of |
2 | the existence of an agreement to arbitrate at the |
3 | hearing. |
4 | (2) The fact that the relief awarded by the arbitrators |
5 | was such that it could not or would not be granted by a court |
6 | of law or equity is not a ground for vacating or refusing to |
7 | confirm the award. |
8 | (b) Time limitation.--An application under this section |
9 | shall be made within 30 days after delivery of a copy of the |
10 | award to the applicant, except that, if predicated upon |
11 | corruption, fraud, misconduct or other improper means, it shall |
12 | be made within 30 days after such grounds are known or should |
13 | have been known to the applicant. |
14 | (c) Further hearing.--If the court vacates the award on |
15 | grounds other than stated in subsection (a)(1)(v), the court may |
16 | order a rehearing before new arbitrators chosen as prescribed in |
17 | the agreement to arbitrate. Absent a method prescribed in the |
18 | agreement to arbitrate, the court shall choose new arbitrators |
19 | in accordance with section 7305 (relating to appointment of |
20 | arbitrators by court). If the award is vacated on grounds not |
21 | affecting the competency of the arbitrators under subsection (a) |
22 | (1)(i) through (iv), the court may order a rehearing before the |
23 | arbitrators who made the award or their successors appointed in |
24 | accordance with section 7305. The time period within which the |
25 | agreement requires the original award to be made is applicable |
26 | to the rehearing and commences from the date of the court order |
27 | directing a rehearing. |
28 | (d) Confirmation of award.--If an application to vacate the |
29 | award is denied and no application to modify or correct the |
30 | award is pending, the court shall confirm the award. |
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1 | § 7315. Modification or correction of award by court. |
2 | (a) General rule.--On application to the court made within |
3 | 30 days after delivery of a copy of the award to the applicant, |
4 | the court shall modify or correct the award where: |
5 | (1) there was an evident miscalculation of figures or an |
6 | evident mistake in the description of any person, thing or |
7 | property referred to in the award; |
8 | (2) the arbitrators awarded upon a matter not submitted |
9 | to them and the award may be corrected without affecting the |
10 | merits of the decision upon the issues submitted; or |
11 | (3) the award is deficient in a matter of form, not |
12 | affecting the merits of the controversy. |
13 | (b) Confirmation of award.--If an application to modify or |
14 | correct the award is granted, the court shall modify and correct |
15 | the award so as to effect its intent and shall confirm the award |
16 | as so modified and corrected. Otherwise, the court shall confirm |
17 | the award as made by the arbitrators. |
18 | (c) Alternative applications.--An application to modify or |
19 | correct an award may be joined in the alternative with an |
20 | application to vacate the award. |
21 | § 7316. Judgment or decree on award. |
22 | Upon the granting of an order of court confirming, modifying |
23 | or correcting an award, a judgment or decree shall be entered in |
24 | conformity with the order. The judgment or decree may be |
25 | enforced as any other judgment or decree. Subject to general |
26 | rules, costs of any application to the court and of the |
27 | proceedings subsequent thereto, and disbursements may be imposed |
28 | by the court. |
29 | § 7317. Form and service of applications to court. |
30 | Except as otherwise prescribed by general rules, an |
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1 | application to the court under this subchapter shall be by |
2 | petition and shall be heard in the manner and upon the notice |
3 | provided or prescribed by law for the making and hearing of |
4 | petitions in civil matters. Unless the parties otherwise agree, |
5 | notice of an initial application for an order of court shall be |
6 | served in the manner provided or prescribed by law for the |
7 | service of a writ of summons in a civil action. |
8 | § 7318. Court and jurisdiction. |
9 | The following words and phrases when used in this subchapter |
10 | shall have, unless the context clearly indicates otherwise, the |
11 | meanings given to them in this section: |
12 | "Court." As used in this subchapter means any court of |
13 | competent jurisdiction of this Commonwealth. |
14 | "Jurisdiction." The making of an agreement described in |
15 | section 7303 (relating to validity of agreement to arbitrate) |
16 | providing for arbitration in this Commonwealth confers |
17 | jurisdiction on the courts of this Commonwealth to enforce the |
18 | agreement under this subchapter and to enter judgment on an |
19 | award made thereunder. |
20 | § 7319. Venue of court proceedings. |
21 | Except as otherwise prescribed by general rules: |
22 | (1) An initial application to a court under this |
23 | subchapter shall be made to the court of the county in which |
24 | the agreement prescribes that the arbitration hearing shall |
25 | be held or, if the hearing has been held, in the county in |
26 | which the hearing was held. |
27 | (2) If an application to a court cannot be made under |
28 | paragraph (1) the application shall be made to the court in |
29 | the county where the adverse party resides or has a place of |
30 | business or, if he has no residence or place of business in |
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1 | this Commonwealth, to the court of any county. |
2 | (3) All subsequent applications to a court shall be made |
3 | to the court hearing the initial application unless that |
4 | court otherwise directs. |
5 | § 7320. Appeals from court orders. |
6 | (a) General rule.--An appeal may be taken from: |
7 | (1) A court order denying an application to compel |
8 | arbitration made under section 7304 (relating to proceedings |
9 | to compel or stay arbitration). |
10 | (2) A court order granting an application to stay |
11 | arbitration made under section 7304(b). |
12 | (3) A court order confirming or denying confirmation of |
13 | an award. |
14 | (4) A court order modifying or correcting an award. |
15 | (5) A court order vacating an award without directing a |
16 | rehearing. |
17 | (6) A final judgment or decree of a court entered |
18 | pursuant to the provisions of this subchapter. |
19 | (b) Procedure.--The appeal shall be taken in the manner, |
20 | within the time and to the same extent as an appeal from a final |
21 | order of court in a civil action.] |
22 | Section 2. Chapter 73 of Title 42 is amended by adding a |
23 | subchapter to read: |
24 | SUBCHAPTER A.1 |
25 | STATUTORY ARBITRATION |
26 | Sec. |
27 | 7321.1. Short title of subchapter. |
28 | 7321.2. Definitions. |
29 | 7321.3. Notice. |
30 | 7321.4. When subchapter applies. |
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1 | 7321.5. Effect of agreement to arbitrate; nonwaivable |
2 | provisions. |
3 | 7321.6. Application for judicial relief. |
4 | 7321.7. Validity of agreement to arbitrate. |
5 | 7321.8. Motion to compel or stay arbitration. |
6 | 7321.9. Provisional remedies. |
7 | 7321.10. Initiation of arbitration. |
8 | 7321.11. Consolidation of separate arbitration proceedings. |
9 | 7321.12. Appointment of arbitrator; service as a neutral |
10 | arbitrator. |
11 | 7321.13. Disclosure by arbitrator. |
12 | 7321.14. Action by majority. |
13 | 7321.15. Immunity of arbitrator; competency to testify; |
14 | attorney fees and costs. |
15 | 7321.16. Arbitration process. |
16 | 7321.17. Representation by lawyer. |
17 | 7321.18. Witnesses; subpoenas; depositions; discovery. |
18 | 7321.19. Judicial enforcement of preaward ruling by arbitrator. |
19 | 7321.20. Award. |
20 | 7321.21. Change of award by arbitrator. |
21 | 7321.22. Remedies; fees and expenses of arbitration proceeding. |
22 | 7321.23. Confirmation of award. |
23 | 7321.24. Vacating award. |
24 | 7321.25. Modification or correction of award. |
25 | 7321.26. Judgment on award; attorney fees and litigation |
26 | expenses. |
27 | 7321.27. Jurisdiction. |
28 | 7321.28. Venue. |
29 | 7321.29. Appeals. |
30 | 7321.30. Uniformity of application and construction. |
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1 | 7321.31. Relationship to Electronic Signatures in Global and |
2 | National Commerce Act. |
3 | § 7321.1. Short title of subchapter. |
4 | This subchapter shall be known and may be cited as the |
5 | Statutory Arbitration Act. |
6 | § 7321.2. Definitions. |
7 | The following words and phrases when used in this subchapter |
8 | shall have the meanings given to them in this section unless the |
9 | context clearly indicates otherwise: |
10 | "Arbitration organization." Any association, agency, board, |
11 | commission or other entity, that is neutral and initiates, |
12 | sponsors or administers an arbitration proceeding or is involved |
13 | in the appointment of an arbitrator. |
14 | "Arbitrator." An individual appointed to render an award, |
15 | alone or with others, in a controversy that is subject to an |
16 | agreement to arbitrate. |
17 | "Court." A court of competent jurisdiction in this |
18 | Commonwealth. |
19 | "Knowledge." Actual knowledge. |
20 | "Person." Any individual, corporation, business trust, |
21 | estate, trust, partnership, limited liability company, |
22 | association, joint venture; a government; a governmental |
23 | subdivision, agency or instrumentality; a public corporation; or |
24 | any other legal or commercial entity. |
25 | "Record." Information that is inscribed on a tangible medium |
26 | or that is stored in an electronic or other medium and is |
27 | retrievable in perceivable form. |
28 | § 7321.3. Notice. |
29 | (a) Giving notice.--Except as otherwise provided in this |
30 | subchapter, a person gives notice to another person by taking |
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1 | action that is reasonably necessary to inform the other person |
2 | in ordinary course, whether or not the other person acquires |
3 | knowledge of the notice. |
4 | (b) Having notice.--A person has notice if the person has |
5 | knowledge of the notice or has received notice. |
6 | (c) Receiving notice.--A person receives notice when it |
7 | comes to the person's attention or the notice is delivered at: |
8 | (1) the person's place of residence or place of |
9 | business; or |
10 | (2) another location held out by the person as a place |
11 | of delivery of such communications. |
12 | § 7321.4. When subchapter applies. |
13 | (a) Subsequent agreements.--This subchapter governs an |
14 | agreement to arbitrate made on or after the effective date of |
15 | this subchapter unless the parties have expressly provided in |
16 | writing to the contrary. |
17 | (b) Prior agreements.--Except as set forth in subsections |
18 | (c) and (d), this subchapter governs an agreement to arbitrate |
19 | made before the effective date of this subchapter if all the |
20 | parties to the agreement or to the arbitration proceeding so |
21 | agree in a record. |
22 | (c) Absolute date.--On or after January 1, 2014, this |
23 | subchapter governs an agreement to arbitrate whenever made |
24 | unless the parties have expressly provided in writing to the |
25 | contrary. |
26 | (d) Collective bargaining agreements.--This subchapter shall |
27 | apply to collective bargaining agreements to arbitrate |
28 | controversies between employers and employees or their |
29 | respective representatives only to the extent that the |
30 | arbitration pursuant to this subchapter is consistent with any |
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1 | other statute regulating labor and management relations. |
2 | § 7321.5. Effect of agreement to arbitrate; nonwaivable |
3 | provisions. |
4 | (a) Waiver or variance.--Except as otherwise provided in |
5 | subsections (b) and (c), a party to an agreement to arbitrate or |
6 | to an arbitration proceeding may waive, or the parties may vary |
7 | the effect of, the requirements of this subchapter to the extent |
8 | permitted by law. |
9 | (b) Prior to controversy.--Before a controversy arises that |
10 | is subject to an agreement to arbitrate, a party to the |
11 | agreement may not do any of the following: |
12 | (1) Waive or agree to vary the effect of the |
13 | requirements of section 7321.6(a) (relating to application |
14 | for judicial relief), 7321.7(a) (relating to validity of |
15 | agreement to arbitrate), 7321.8 (relating to provisional |
16 | remedies), 7321.18(a) or (b) (relating to witnesses; |
17 | subpoenas; depositions; discovery), 7321.17 (relating to |
18 | jurisdiction) or 7321.29 (relating to appeals). |
19 | (2) Agree to unreasonably restrict the right under |
20 | section 7321.10 (relating to initiation of arbitration) to |
21 | notice of the initiation of an arbitration proceeding. |
22 | (3) Agree to unreasonably restrict the right under |
23 | section 7321.13 (relating to disclosure by arbitrator) to |
24 | disclosure of any facts by a neutral arbitrator. |
25 | (4) Waive the right under section 7321.17 (relating to |
26 | representation by lawyer) of a party to an agreement to |
27 | arbitrate to be represented by a lawyer at any proceeding or |
28 | hearing under this subchapter, but an employer and a labor |
29 | organization may waive the right to representation by a |
30 | lawyer in a labor arbitration. |
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1 | (c) Absolute prohibition.--A party to an agreement to |
2 | arbitrate or an arbitration proceeding may not waive, or the |
3 | parties may not vary the effect of, the requirements of this |
4 | section or section 7321.4(a) or (c) (relating to when subchapter |
5 | applies), 7321.8 (relating to motion to compel or stay |
6 | arbitration), 7321.15 (relating to immunity of arbitrator; |
7 | competency to testify; attorney fees and costs), 7321.19 |
8 | (relating to judicial enforcement of preaward ruling by |
9 | arbitrator), 7321.21(d) or (e) (relating to change of award by |
10 | arbitrator), 7321.23 (relating to confirmation of award), |
11 | 7321.24 (relating to vacating award), 7321.25 (relating to |
12 | modification or correction of award), 7321.26(a) or (b) |
13 | (relating to judgment on award; attorney fees and litigation |
14 | expenses), 7321.30 (relating to uniformity of application and |
15 | construction) or 7321.31 (relating to relationship to Electronic |
16 | Signatures in Global and National Commerce Act). |
17 | § 7321.6. Application for judicial relief. |
18 | (a) Procedure.--Except as otherwise provided in section |
19 | 7321.29 (relating to appeals), an application for judicial |
20 | relief under this subchapter must be made by motion to the court |
21 | and heard in the manner provided by law or rule of court for |
22 | making and hearing motions. |
23 | (b) Service.--Unless a civil action involving the agreement |
24 | to arbitrate is pending, notice of an initial motion to the |
25 | court under this subchapter must be served in the manner |
26 | provided by law for the service of a summons in a civil action. |
27 | Otherwise, notice of the motion must be given in the manner |
28 | provided by law or rule of court for serving motions in pending |
29 | cases. |
30 | § 7321.7. Validity of agreement to arbitrate. |
|
1 | (a) General rule.--An agreement contained in a record to |
2 | submit to arbitration any existing or subsequent controversy |
3 | arising between the parties to the agreement is valid, |
4 | enforceable, and irrevocable except upon a ground that exists at |
5 | law or in equity for the revocation of a contract. |
6 | (b) Court decision.--The court shall decide whether an |
7 | agreement to arbitrate exists or a controversy is subject to an |
8 | agreement to arbitrate. |
9 | (c) Arbitrator decision.--An arbitrator shall decide whether |
10 | a condition precedent to arbitrability has been fulfilled and |
11 | whether a contract containing a valid agreement to arbitrate is |
12 | enforceable. |
13 | (d) Challenge to arbitration.--If a party to a judicial |
14 | proceeding challenges the existence of, or claims that a |
15 | controversy is not subject to, an agreement to arbitrate, the |
16 | arbitration proceeding may continue pending final resolution of |
17 | the issue by the court, unless the court otherwise orders. |
18 | § 7321.8. Motion to compel or stay arbitration. |
19 | (a) Refusal to arbitrate under agreement.--On motion of a |
20 | person showing an agreement to arbitrate and alleging another |
21 | person's refusal to arbitrate pursuant to the agreement: |
22 | (1) if the refusing party does not appear or does not |
23 | oppose the motion, the court shall order the parties to |
24 | arbitrate; and |
25 | (2) if the refusing party opposes the motion, the court |
26 | shall proceed summarily to decide the issue and order the |
27 | parties to arbitrate unless it finds that there is no |
28 | enforceable agreement to arbitrate. |
29 | (b) Agreement challenged.--On motion of a person alleging |
30 | that an arbitration proceeding has been initiated or threatened |
|
1 | but that there is no agreement to arbitrate, the court shall |
2 | proceed summarily to decide the issue. If the court finds that |
3 | there is an enforceable agreement to arbitrate, it shall order |
4 | the parties to arbitrate. |
5 | (c) Enforceable agreement required.--If the court finds that |
6 | there is no enforceable agreement, it may not pursuant to |
7 | subsection (a) or (b) order the parties to arbitrate. |
8 | (d) Court refusal.--The court may not refuse to order |
9 | arbitration because the claim subject to arbitration lacks merit |
10 | or grounds for the claim have not been established. |
11 | (e) Appropriate court.--If a proceeding involving a claim |
12 | referable to arbitration under an alleged agreement to arbitrate |
13 | is pending in court, a motion under this section must be made in |
14 | that court. Otherwise a motion under this section may be made in |
15 | any court as provided in section 7321.28 (relating to venue). |
16 | (f) Stay of claims alleged subject to arbitration.--If a |
17 | party makes a motion to the court to order arbitration, the |
18 | court on just terms shall stay any judicial proceeding that |
19 | involves a claim alleged to be subject to the arbitration until |
20 | the court renders a final decision under this section. |
21 | (g) Stay of claims subject to arbitration.--If the court |
22 | orders arbitration, the court on just terms shall stay any |
23 | judicial proceeding that involves a claim subject to the |
24 | arbitration. If a claim subject to the arbitration is severable, |
25 | the court may limit the stay to that claim. |
26 | § 7321.9. Provisional remedies. |
27 | (a) Court.--Before an arbitrator is appointed and is |
28 | authorized and able to act, the court, upon motion of a party to |
29 | an arbitration proceeding and for good cause shown, may enter an |
30 | order for provisional remedies to protect the effectiveness of |
|
1 | the arbitration proceeding to the same extent and under the same |
2 | conditions as if the controversy were the subject of a civil |
3 | action. |
4 | (b) Arbitrator.--After an arbitrator is appointed and is |
5 | authorized and able to act: |
6 | (1) the arbitrator may issue such orders for provisional |
7 | remedies, including interim awards, as the arbitrator finds |
8 | necessary to protect the effectiveness of the arbitration |
9 | proceeding and to promote the fair and expeditious resolution |
10 | of the controversy, to the same extent and under the same |
11 | conditions as if the controversy were the subject of a civil |
12 | action; and |
13 | (2) a party to an arbitration proceeding may move the |
14 | court for a provisional remedy only if the matter is urgent |
15 | and the arbitrator is not able to act timely or the |
16 | arbitrator cannot provide an adequate remedy. |
17 | (c) Effect.--A party does not waive a right of arbitration |
18 | by making a motion under subsection (a) or (b). |
19 | § 7321.10. Initiation of arbitration. |
20 | (a) Notice.--A person initiates an arbitration proceeding by |
21 | giving notice in a record to the other parties to the agreement |
22 | to arbitrate in the agreed manner between the parties or, in the |
23 | absence of agreement, by certified or registered mail, return |
24 | receipt requested and obtained, or by service as authorized for |
25 | the commencement of a civil action. The notice must describe the |
26 | nature of the controversy and the remedy sought. |
27 | (b) Lack of notice.--Unless a person objects for lack or |
28 | insufficiency of notice under section 7321.16 (relating to |
29 | arbitration process) not later than at the beginning of the |
30 | arbitration hearing, the person by appearing at the hearing |
|
1 | waives any objection to lack of or insufficiency of notice. |
2 | § 7321.11. Consolidation of separate arbitration proceedings. |
3 | (a) Conditions.--Except as otherwise provided in subsection |
4 | (c), upon motion of a party to an agreement to arbitrate or to |
5 | an arbitration proceeding, the court may order consolidation of |
6 | separate arbitration proceedings as to all or some of the claims |
7 | if: |
8 | (1) there are separate agreements to arbitrate or |
9 | separate arbitration proceedings between the same persons, or |
10 | one of them is a party to a separate agreement to arbitrate |
11 | or a separate arbitration proceeding with a third person; |
12 | (2) the claims subject to the agreements to arbitrate |
13 | arise in substantial part from the same transaction or series |
14 | of related transactions; |
15 | (3) the existence of a common issue of law or fact |
16 | creates the possibility of conflicting decisions in the |
17 | separate arbitration proceedings; and |
18 | (4) prejudice resulting from a failure to consolidate is |
19 | not outweighed by the risk of undue delay or prejudice to the |
20 | rights of or hardship to parties opposing consolidation. |
21 | (b) Partial consolidation.--The court may order |
22 | consolidation of separate arbitration proceedings as to some |
23 | claims and allow other claims to be resolved in separate |
24 | arbitration proceedings. |
25 | (c) Agreement governs.--The court may not order |
26 | consolidation of the claims of a party to an agreement to |
27 | arbitrate if the agreement prohibits consolidation. |
28 | § 7321.12. Appointment of arbitrator; service as a neutral |
29 | arbitrator. |
30 | (a) Appointment.--If the parties to an agreement to |
|
1 | arbitrate agree on a method for appointing an arbitrator, that |
2 | method must be followed, unless the method fails. If the parties |
3 | have not agreed on a method, the agreed method fails or an |
4 | arbitrator appointed fails or is unable to act and a successor |
5 | has not been appointed, the court, on motion of a party to the |
6 | arbitration proceeding, shall appoint the arbitrator. An |
7 | arbitrator appointed by the court has all the powers of an |
8 | arbitrator designated in the agreement to arbitrate or appointed |
9 | pursuant to the agreed method. |
10 | (b) Neutral service.--An individual who has a known, direct |
11 | and material interest in the outcome of the arbitration |
12 | proceeding or a known, existing and substantial relationship |
13 | with a party may not serve as an arbitrator required by an |
14 | agreement to be neutral. |
15 | § 7321.13. Disclosure by arbitrator. |
16 | (a) Preappointment.--Before accepting appointment, an |
17 | individual who is requested to serve as an arbitrator, after |
18 | making a reasonable inquiry, shall disclose to all parties to |
19 | the agreement to arbitrate and the arbitration proceeding and to |
20 | any other arbitrators any known facts that a reasonable person |
21 | would consider likely to affect the impartiality of the |
22 | arbitrator in the arbitration proceeding, including: |
23 | (1) a financial or personal interest in the outcome of |
24 | the arbitration proceeding; and |
25 | (2) an existing or past relationship with any of the |
26 | parties to the agreement to arbitrate or the arbitration |
27 | proceeding, their counsel or representatives, a witness or |
28 | another arbitrator. |
29 | (b) Continuing.--An arbitrator has a continuing obligation |
30 | to disclose to all parties to the agreement to arbitrate and the |
|
1 | arbitration proceeding and to any other arbitrators any facts |
2 | that the arbitrator learns after accepting appointment which a |
3 | reasonable person would consider likely to affect the |
4 | impartiality of the arbitrator. |
5 | (c) Objection.--If an arbitrator discloses a fact required |
6 | by subsection (a) or (b) to be disclosed and a party timely |
7 | objects to the appointment or continued service of the |
8 | arbitrator based upon the fact disclosed, the objection may be a |
9 | ground under section 7321.24(a)(2) (relating to vacating award) |
10 | for vacating an award made by the arbitrator. |
11 | (d) Nondisclosure.--If the arbitrator does not disclose a |
12 | fact as required by subsection (a) or (b), upon timely objection |
13 | by a party, the court under section 7321.24(a)(2) may vacate an |
14 | award. |
15 | (e) Presumption of neutrality.--An arbitrator appointed as a |
16 | neutral arbitrator who does not disclose a known, direct and |
17 | material interest in the outcome of the arbitration proceeding |
18 | or a known, existing and substantial relationship with a party |
19 | is presumed to act with evident partiality under section |
20 | 7321.24(a)(2). |
21 | (f) Procedure to challenge arbitrator.--If the parties to an |
22 | arbitration proceeding agree to the procedures of an arbitration |
23 | organization or any other procedures for challenges to |
24 | arbitrators before an award is made, substantial compliance with |
25 | those procedures is a condition precedent to a motion to vacate |
26 | an award on that ground under section 7321.24(a)(2). |
27 | § 7321.14. Action by majority. |
28 | If there is more than one arbitrator, the powers of an |
29 | arbitrator must be exercised by a majority of the arbitrators; |
30 | but all of them shall conduct the hearing under section |
|
1 | 7321.16(c) (relating to arbitration process). |
2 | § 7321.15. Immunity of arbitrator; competency to testify; |
3 | attorney fees and costs. |
4 | (a) Immunity.--An arbitrator or an arbitration organization |
5 | acting in that capacity is immune from civil liability to the |
6 | same extent as a judge of a court of this Commonwealth acting in |
7 | a judicial capacity. |
8 | (b) Other immunity.--The immunity afforded by this section |
9 | supplements any immunity under other law. |
10 | (c) Failure to disclose.--The failure of an arbitrator to |
11 | make a disclosure required by section 7321.13 (relating to |
12 | disclosure by arbitrator) does not cause any loss of immunity |
13 | under this section. |
14 | (d) Competence to testify.--In a judicial, administrative or |
15 | similar proceeding, an arbitrator or representative of an |
16 | arbitration organization is not competent to testify and may not |
17 | be required to produce records as to any statement, conduct, |
18 | decision or ruling occurring during the arbitration proceeding, |
19 | to the same extent as a judge of a court of this Commonwealth |
20 | acting in a judicial capacity. This subsection does not apply: |
21 | (1) to the extent necessary to determine the claim of an |
22 | arbitrator, arbitration organization or representative of the |
23 | arbitration organization against a party to the arbitration |
24 | proceeding; or |
25 | (2) to a hearing on a motion to vacate an award under |
26 | section 7321.24(a)(1) or (2) (relating to vacating award) if |
27 | the movant establishes prima facie that a ground for vacating |
28 | the award exists. |
29 | (e) Attorney fees and costs.--If a person commences a civil |
30 | action against an arbitrator, arbitration organization or |
|
1 | representative of an arbitration organization arising from the |
2 | services of the arbitrator, organization or representative or if |
3 | a person seeks to compel an arbitrator or a representative of an |
4 | arbitration organization to testify or produce records in |
5 | violation of subsection (d) and the court decides that the |
6 | arbitrator, arbitration organization or representative of an |
7 | arbitration organization is immune from civil liability or that |
8 | the arbitrator or representative of the organization is not |
9 | competent to testify, the court shall award to the arbitrator, |
10 | organization or representative reasonable attorney fees and |
11 | other reasonable expenses of litigation. |
12 | § 7321.16. Arbitration process. |
13 | (a) Discretion of arbitrator.--An arbitrator may conduct an |
14 | arbitration in such manner as the arbitrator considers |
15 | appropriate for a fair and expeditious disposition of the |
16 | proceeding. The authority conferred upon the arbitrator includes |
17 | the power to hold conferences with the parties to the |
18 | arbitration proceeding before the hearing and, among other |
19 | matters, determine the admissibility, relevance, materiality and |
20 | weight of any evidence. |
21 | (b) Summary disposition.--An arbitrator may decide a request |
22 | for summary disposition of a claim or particular issue: |
23 | (1) if all interested parties agree; or |
24 | (2) upon request of one party to the arbitration |
25 | proceeding if that party gives notice to all other parties to |
26 | the proceeding and if the other parties have a reasonable |
27 | opportunity to respond. |
28 | (c) Notice and hearing.--If an arbitrator orders a hearing, |
29 | the arbitrator shall set a time and place and give notice of the |
30 | hearing not less than five days before the hearing begins. |
|
1 | Unless a party to the arbitration proceeding makes an objection |
2 | to lack or insufficiency of notice not later than the beginning |
3 | of the hearing, the party's appearance at the hearing waives the |
4 | objection. Upon request of a party to the arbitration proceeding |
5 | and for good cause shown, or upon the arbitrator's own |
6 | initiative, the arbitrator may adjourn the hearing as necessary |
7 | but may not postpone the hearing to a time later than that fixed |
8 | by the agreement to arbitrate for making the award unless the |
9 | parties to the arbitration proceeding consent to a later date. |
10 | The arbitrator may hear and decide the controversy upon the |
11 | evidence produced although a party who was notified of the |
12 | arbitration proceeding did not appear. The court, on request, |
13 | may direct the arbitrator to conduct the hearing promptly and |
14 | render a timely decision. |
15 | (d) Procedure.--At a hearing under subsection (c), a party |
16 | to the arbitration proceeding has a right to be heard, to |
17 | present evidence material to the controversy and to cross- |
18 | examine witnesses appearing at the hearing. |
19 | (e) Replacement.--If an arbitrator ceases or is unable to |
20 | act during the arbitration proceeding, a replacement arbitrator |
21 | must be appointed in accordance with section 7321.12 (relating |
22 | to appointment of arbitrator; service as a neutral arbitrator) |
23 | to continue the proceeding and to resolve the controversy. |
24 | § 7321.17. Representation by lawyer. |
25 | A party to an arbitration proceeding may be represented by a |
26 | lawyer. |
27 | § 7321.18. Witnesses; subpoenas; depositions; discovery. |
28 | (a) Subpoenas.--An arbitrator may issue a subpoena for the |
29 | attendance of a witness and for the production of records and |
30 | other evidence at any hearing and may administer oaths. A |
|
1 | subpoena must be served in the manner for service of subpoenas |
2 | in a civil action and, upon motion to the court by a party to |
3 | the arbitration proceeding or the arbitrator, may be enforced in |
4 | the manner for enforcement of subpoenas in a civil action. |
5 | (b) Depositions.--In order to make the proceedings fair, |
6 | expeditious and cost effective, upon request of a party to or a |
7 | witness in an arbitration proceeding, an arbitrator may permit a |
8 | deposition of any witness to be taken for use as evidence at the |
9 | hearing, including a witness who cannot be subpoenaed for or is |
10 | unable to attend a hearing. The arbitrator shall determine the |
11 | conditions under which the deposition is taken. |
12 | (c) Discovery.--An arbitrator may permit discovery as the |
13 | arbitrator decides is appropriate in the circumstances, taking |
14 | into account the needs of the parties to the arbitration |
15 | proceeding and other affected persons and the desirability of |
16 | making the proceeding fair, expeditious and cost effective. |
17 | (d) Compliance with discovery.--If an arbitrator permits |
18 | discovery under subsection (c), the arbitrator may order a party |
19 | to the arbitration proceeding to comply with the arbitrator's |
20 | discovery-related orders, issue subpoenas for the attendance of |
21 | a witness and for the production of records and other evidence |
22 | at a discovery proceeding and take action against a noncomplying |
23 | party to the extent a court could if the controversy were the |
24 | subject of a civil action in this Commonwealth. |
25 | (e) Protective orders.--An arbitrator may issue a protective |
26 | order to prevent the disclosure of privileged information, |
27 | confidential information, trade secrets and other information |
28 | protected from disclosure to the extent a court could if the |
29 | controversy were the subject of a civil action in this |
30 | Commonwealth. |
|
1 | (f) Compulsory laws.--All laws compelling a person under |
2 | subpoena to testify and all fees for attending a judicial |
3 | proceeding, a deposition or a discovery proceeding as a witness |
4 | apply to an arbitration proceeding as if the controversy were |
5 | the subject of a civil action in this Commonwealth. |
6 | (g) Enforcement.--The court may enforce a subpoena or |
7 | discovery-related order for the attendance of a witness within |
8 | this Commonwealth and for the production of records and other |
9 | evidence issued by an arbitrator in connection with an |
10 | arbitration proceeding in another state upon conditions |
11 | determined by the court so as to make the arbitration proceeding |
12 | fair, expeditious and cost effective. A subpoena or discovery- |
13 | related order issued by an arbitrator in another state must be |
14 | served in the manner provided by law for service of subpoenas in |
15 | a civil action in this Commonwealth and, upon motion to the |
16 | court by a party to the arbitration proceeding or the |
17 | arbitrator, may be enforced in the manner provided by law for |
18 | enforcement of subpoenas in a civil action in this Commonwealth. |
19 | § 7321.19. Judicial enforcement of preaward ruling by |
20 | arbitrator. |
21 | If an arbitrator makes a preaward ruling in favor of a party |
22 | to the arbitration proceeding, the party may request the |
23 | arbitrator to incorporate the ruling into an award under section |
24 | 7321.20 (relating to award). A prevailing party may make a |
25 | motion to the court for an expedited order to confirm the award |
26 | under section 7321.23 (relating to confirmation of award), in |
27 | which case the court shall summarily decide the motion. The |
28 | court shall issue an order to confirm the award unless the court |
29 | vacates, modifies or corrects the award under section 7321.24 |
30 | (relating to vacating award) or 7321.25 (relating to |
|
1 | modification or correction of award). |
2 | § 7321.20. Award. |
3 | (a) Record.--An arbitrator shall make a record of an award. |
4 | The record must be signed or otherwise authenticated by any |
5 | arbitrator who concurs with the award. The arbitrator or the |
6 | arbitration organization shall give notice of the award, |
7 | including a copy of the award, to each party to the arbitration |
8 | proceeding. |
9 | (b) Time.--An award must be made within the time specified |
10 | by the agreement to arbitrate or, if not specified in the |
11 | agreement, within the time ordered by the court. The court may |
12 | extend or the parties to the arbitration proceeding may agree in |
13 | a record to extend the time. The court or the parties may do so |
14 | within or after the time specified or ordered. A party waives |
15 | any objection that an award was not timely made unless the party |
16 | gives notice of the objection to the arbitrator before receiving |
17 | notice of the award. |
18 | § 7321.21. Change of award by arbitrator. |
19 | (a) Motion.--On motion to an arbitrator by a party to an |
20 | arbitration proceeding, the arbitrator may modify or correct an |
21 | award: |
22 | (1) upon a ground stated in section 7321.25(a)(1) or (3) |
23 | (relating to modification or correction of award); |
24 | (2) because the arbitrator has not made a final and |
25 | definite award upon a claim submitted by the parties to the |
26 | arbitration proceeding; or |
27 | (3) to clarify the award. |
28 | (b) Time for motion.--A motion under subsection (a) must be |
29 | made and notice given to all parties within 20 days after the |
30 | movant receives notice of the award. |
|
1 | (c) Time for objection to motion.--A party to the |
2 | arbitration proceeding must give notice of any objection to the |
3 | motion within ten days after receipt of the notice. |
4 | (d) Pending motion to court.--If a motion to the court is |
5 | pending under section 7321.23 (relating to confirmation of |
6 | award), 7321.24 (relating to vacating award) or 7321.25, the |
7 | court may submit the claim to the arbitrator to consider whether |
8 | to modify or correct the award: |
9 | (1) upon a ground stated in section 7321.25(a)(1) or |
10 | (3); |
11 | (2) because the arbitrator has not made a final and |
12 | definite award upon a claim submitted by the parties to the |
13 | arbitration proceeding; or |
14 | (3) to clarify the award. |
15 | (e) Other provisions applicable.--An award modified or |
16 | corrected pursuant to this section is subject to sections |
17 | 7321.20(a) (relating to award), 7321.23, 7321.24 and 7321.25. |
18 | § 7321.22. Remedies; fees and expenses of arbitration |
19 | proceeding. |
20 | (a) Punitive damages.--An arbitrator may award punitive |
21 | damages or other exemplary relief if such an award is authorized |
22 | by law in a civil action involving the same claim and the |
23 | evidence produced at the hearing justifies the award under the |
24 | legal standards otherwise applicable to the claim. |
25 | (b) Attorney fees and costs.--An arbitrator may award |
26 | reasonable attorney fees and other reasonable expenses of |
27 | arbitration if such an award is authorized by law in a civil |
28 | action involving the same claim or by the agreement of the |
29 | parties to the arbitration proceeding. |
30 | (c) Additional remedies.--As to all remedies other than |
|
1 | those authorized by subsections (a) and (b), an arbitrator may |
2 | order remedies as the arbitrator considers just and appropriate |
3 | under the circumstances of the arbitration proceeding. The fact |
4 | that a remedy could not or would not be granted by the court is |
5 | not a ground for refusing to confirm an award under section |
6 | 7321.23 (relating to confirmation of award) or for vacating an |
7 | award under section 7321.24 (relating to vacating award). |
8 | (d) Arbitrator costs and fees.--An arbitrator's expenses and |
9 | fees, together with other expenses, must be paid as provided in |
10 | the award. |
11 | (e) Justification for punitive damages.--If an arbitrator |
12 | awards punitive damages or other exemplary relief under |
13 | subsection (a), the arbitrator shall specify in the award the |
14 | basis in fact justifying and the basis in law authorizing the |
15 | award and state separately the amount of the punitive damages or |
16 | other exemplary relief. |
17 | § 7321.23. Confirmation of award. |
18 | After a party to an arbitration proceeding receives notice of |
19 | an award, the party must make a motion to the court for an order |
20 | confirming the award, at which time the court shall issue a |
21 | confirming order unless the award is modified or corrected |
22 | pursuant to section 7321.21 (relating to change of award by |
23 | arbitrator) or 7321.25 (relating to modification or correction |
24 | of award) or is vacated pursuant to section 7321.24 (relating to |
25 | vacating award). |
26 | § 7321.24. Vacating award. |
27 | (a) Grounds.--Upon motion to the court by a party to an |
28 | arbitration proceeding, the court shall vacate an award made in |
29 | the arbitration proceeding if: |
30 | (1) the award was procured by corruption, fraud or other |
|
1 | undue means; |
2 | (2) there was: |
3 | (i) evident partiality by an arbitrator appointed as |
4 | a neutral arbitrator; |
5 | (ii) corruption by an arbitrator; or |
6 | (iii) misconduct by an arbitrator prejudicing the |
7 | rights of a party to the arbitration proceeding; |
8 | (3) an arbitrator refused to postpone the hearing upon |
9 | showing of sufficient cause for postponement, refused to |
10 | consider evidence material to the controversy or otherwise |
11 | conducted the hearing contrary to section 7321.16 (relating |
12 | to arbitration process), so as to prejudice substantially the |
13 | rights of a party to the arbitration proceeding; |
14 | (4) an arbitrator exceeded the arbitrator's powers; |
15 | (5) there was no agreement to arbitrate, unless the |
16 | person participated in the arbitration proceeding without |
17 | raising the objection under section 7321.16(c) not later than |
18 | the beginning of the arbitration hearing; or |
19 | (6) the arbitration was conducted without proper notice |
20 | of the initiation of an arbitration as required in section |
21 | 7321.10 (relating to initiation of arbitration) so as to |
22 | prejudice substantially the rights of a party to the |
23 | arbitration proceeding. |
24 | (b) Time.--A motion under this section must be filed within |
25 | 30 days after the movant receives notice of the award pursuant |
26 | to section 7321.20 (relating to award) or within 30 days after |
27 | the movant receives notice of a modified or corrected award |
28 | pursuant to section 7321.21 (relating to change of award by |
29 | arbitrator), unless the movant alleges that the award was |
30 | procured by corruption, fraud or other undue means, in which |
|
1 | case the motion must be made within 30 days after the ground is |
2 | known or by the exercise of reasonable care would have been |
3 | known by the movant. |
4 | (c) Rehearing.--If the court vacates an award on a ground |
5 | other than that set forth in subsection (a)(5), it may order a |
6 | rehearing. If the award is vacated on a ground stated in |
7 | subsection (a)(1) or (2), the rehearing shall be before a new |
8 | arbitrator. If the award is vacated on a ground stated in |
9 | subsection (a)(3), (4) or (6), the rehearing may be before the |
10 | arbitrator who made the award or the arbitrator's successor. The |
11 | arbitrator shall render the decision in the rehearing within the |
12 | same time as that provided in section 7321.20(b) for an award. |
13 | (d) Confirmation.--If the court denies a motion to vacate an |
14 | award, it shall confirm the award unless a motion to modify or |
15 | correct the award is pending. |
16 | § 7321.25. Modification or correction of award. |
17 | (a) Grounds.--Upon motion made within 90 days after the |
18 | movant receives notice of the award pursuant to section 7321.20 |
19 | (relating to award) or within 90 days after the movant receives |
20 | notice of a modified or corrected award pursuant to section |
21 | 7321.21 (relating to change of award by arbitrator), the court |
22 | shall modify or correct the award if: |
23 | (1) there was an evident mathematical miscalculation or |
24 | an evident mistake in the description of a person, thing or |
25 | property referred to in the award; |
26 | (2) the arbitrator has made an award on a claim not |
27 | submitted to the arbitrator and the award may be corrected |
28 | without affecting the merits of the decision upon the claims |
29 | submitted; or |
30 | (3) the award is imperfect in a matter of form not |
|
1 | affecting the merits of the decision on the claims submitted. |
2 | (b) Court action.--If a motion made under subsection (a) is |
3 | granted, the court shall modify or correct and confirm the award |
4 | as modified or corrected. Otherwise, unless a motion to vacate |
5 | is pending, the court shall confirm the award. |
6 | (c) Joinder.--A motion to modify or correct an award |
7 | pursuant to this section may be joined with a motion to vacate |
8 | the award under section 7321.24 (relating to vacating award). |
9 | § 7321.26. Judgment on award; attorney fees and litigation |
10 | expenses. |
11 | (a) Judgment.--Upon granting an order confirming, vacating |
12 | without directing a rehearing, modifying or correcting an award, |
13 | the court shall enter a judgment in conformity with the order. |
14 | The judgment may be recorded, docketed and enforced as any other |
15 | judgment in a civil action. |
16 | (b) Court costs.--A court may allow reasonable costs of the |
17 | motion and subsequent judicial proceedings. |
18 | (c) Attorney fees and costs.--On application of a prevailing |
19 | party to a contested judicial proceeding under section 7321.23 |
20 | (relating to confirmation of award), 7321.24 (relating to |
21 | vacating award) or 7321.25 (relating to modification or |
22 | correction of award), the court may add reasonable attorney fees |
23 | and other reasonable expenses of litigation incurred in a |
24 | judicial proceeding after the award is made to a judgment |
25 | confirming, vacating without directing a rehearing, modifying or |
26 | correcting an award. |
27 | § 7321.27. Jurisdiction. |
28 | (a) Enforcement.--A court having jurisdiction over the |
29 | controversy and the parties may enforce an agreement to |
30 | arbitrate. |
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1 | (b) Exclusivity.--An agreement to arbitrate providing for |
2 | arbitration in this Commonwealth confers exclusive jurisdiction |
3 | on the court to enter judgment on an award under this |
4 | subchapter. |
5 | § 7321.28. Venue. |
6 | A motion pursuant to section 7321.6 (relating to application |
7 | for judicial relief) must be made in the court of the county in |
8 | which the agreement to arbitrate specifies the arbitration |
9 | hearing is to be held or, if the hearing has been held, in the |
10 | court of the county in which it was held. Otherwise, the motion |
11 | may be made in the court of any county in which an adverse party |
12 | resides or has a place of business or, if no adverse party has a |
13 | residence or place of business in this Commonwealth, in the |
14 | court of any county in this Commonwealth. All subsequent motions |
15 | must be made in the court hearing the initial motion unless the |
16 | court otherwise directs. |
17 | § 7321.29. Appeals. |
18 | (a) Appealable orders.--An appeal may be taken from: |
19 | (1) an order denying a motion to compel arbitration; |
20 | (2) an order granting a motion to stay arbitration; |
21 | (3) an order confirming or denying confirmation of an |
22 | award; |
23 | (4) an order modifying or correcting an award; |
24 | (5) an order vacating an award without directing a |
25 | rehearing; or |
26 | (6) a final judgment entered pursuant to this |
27 | subchapter. |
28 | (b) Procedure.--An appeal under this section must be taken |
29 | as from an order or a judgment in a civil action and must be |
30 | taken within 30 days of the order or judgment. |
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1 | § 7321.30. Uniformity of application and construction. |
2 | In applying and construing this subchapter, consideration |
3 | shall be given to the need to promote uniformity of the law with |
4 | respect to its subject matter among states that enact it. |
5 | § 7321.31. Relationship to Electronic Signatures in Global and |
6 | National Commerce Act. |
7 | The provisions of this subchapter governing the legal effect, |
8 | validity and enforceability of electronic records or electronic |
9 | signatures and of contracts performed with the use of such |
10 | records or signatures conform to the requirements of section 102 |
11 | of the Electronic Signatures in Global and National Commerce Act |
12 | (Public Law 106-229, 15 U.S.C. § 7002). |
13 | Section 3. Sections 7341 and 7342 of Title 42 are amended to |
14 | read: |
15 | § 7341. Common law arbitration. |
16 | The award of an arbitrator in a nonjudicial arbitration which |
17 | is not subject to Subchapter [A] A.1 (relating to statutory |
18 | arbitration) or a similar statute regulating nonjudicial |
19 | arbitration proceedings is binding and may not be vacated or |
20 | modified unless it is clearly shown that a party was denied a |
21 | hearing or that fraud, misconduct, corruption or other |
22 | irregularity caused the rendition of an unjust, inequitable or |
23 | unconscionable award. |
24 | § 7342. Procedure. |
25 | (a) General rule.--The following provisions of Subchapter |
26 | [A] A.1 (relating to statutory arbitration) shall be applicable |
27 | to arbitration conducted pursuant to this subchapter: |
28 | [Section 7303 (relating to validity of agreement to |
29 | arbitrate). |
30 | Section 7304 (relating to court proceedings to compel or stay |
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1 | arbitration). |
2 | Section 7305 (relating to appointment of arbitrators by |
3 | court). |
4 | Section 7309 (relating to witnesses, subpoenas, oaths and |
5 | depositions). |
6 | Section 7317 (relating to form and service of applications to |
7 | court). |
8 | Section 7318 (relating to court and jurisdiction). |
9 | Section 7319 (relating to venue of court proceedings). |
10 | Section 7320 (relating to appeals from court orders), except |
11 | subsection (a)(4).] |
12 | Section 7321.6 (relating to application for judicial relief). |
13 | Section 7321.7(a) (relating to validity of agreement to |
14 | arbitrate). |
15 | Section 7321.8 (relating to motion to compel or stay |
16 | arbitration). |
17 | Section 7321.12(a) (relating to appointment of arbitrator; |
18 | service as a neutral arbitrator). |
19 | Section 7321.18 (relating to witnesses; subpoenas; |
20 | depositions; discovery). |
21 | Section 7321.27 (relating to jurisdiction). |
22 | Section 7321.28 (relating to venue). |
23 | Section 7321.29 (relating to appeals), except subsection (a) |
24 | (4). |
25 | (b) Confirmation and judgment.--On application of a party |
26 | made more than 30 days after an award is made by an arbitrator |
27 | under section 7341 (relating to common law arbitration), the |
28 | court shall enter an order confirming the award and shall enter |
29 | a judgment or decree in conformity with the order. [Section |
30 | 7302(d)(2) (relating to special application) shall not be |
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1 | applicable to proceedings under this subchapter.] |
2 | Section 4. This act shall not be construed to affect an |
3 | action or proceeding commenced or right accrued before the |
4 | effective date of this section. |
5 | Section 5. Subject to 42 Pa.C.S. § 7321.4 of this act, an |
6 | arbitration agreement made before the effective date of this |
7 | section shall be governed by the former provisions of 42 Pa.C.S. |
8 | Ch. 73 Subch. A. |
9 | Section 6. This act shall take effect January 1, 2013. |
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