THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY GRELL, CUTLER, DALLY, GINGRICH, MILLER, MOUL, PYLE, RAPP, SONNEY AND TALLMAN, SEPTEMBER 1, 2009

REFERRED TO COMMITTEE ON JUDICIARY, SEPTEMBER 1, 2009  

AN ACT

Amending Title 42 (Judiciary and Judicial Procedure) of the

Pennsylvania Consolidated Statutes, extensively revising the

Uniform Arbitration Act; and making editorial changes.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Sections 7302, 7303, 7304, 7305, 7306, 7307,

7308, 7309, 7310, 7311, 7312, 7313, 7314, 7315, 7316, 7317,

7318, 7319 and 7320 of Title 42 of the Pennsylvania Consolidated

Statutes are repealed:

[§ 7302.  Scope of subchapter.

(a)  General rule.--An agreement to arbitrate a controversy

on a nonjudicial basis shall be conclusively presumed to be an

agreement to arbitrate pursuant to Subchapter B (relating to

common law arbitration) unless the agreement to arbitrate is in

writing and expressly provides for arbitration pursuant to this

subchapter or any other similar statute, in which case the

arbitration shall be governed by this subchapter.

(b)  Collective bargaining agreements.--This subchapter shall

apply to a collective bargaining agreement to arbitrate

controversies between employers and employees or their

respective representatives only where the arbitration pursuant

to this subchapter is consistent with any statute regulating

labor and management relations.

(c)  Government contracts.--This subchapter shall apply to

any written contract to which a government unit of this

Commonwealth is a party to the same extent as if the government

unit were a private person, except that where a contract to

which the Commonwealth government is a party provides for

arbitration of controversies but does not provide for

arbitration pursuant to any specified statutory provision, the

arbitration shall be governed by this subchapter.

(d)  Special application.--

(1)  Paragraph (2) shall be applicable where:

(i)  The Commonwealth government submits a

controversy to arbitration.

(ii)  A political subdivision submits a controversy

with an employee or a representative of employees to

arbitration.

(iii)  Any person has been required by law to submit

or to agree to submit a controversy to arbitration

pursuant to this subchapter.

(2)  Where this paragraph is applicable a court in

reviewing an arbitration award pursuant to this subchapter

shall, notwithstanding any other provision of this

subchapter, modify or correct the award where the award is

contrary to law and is such that had it been a verdict of a

jury the court would have entered a different judgment or a

judgment notwithstanding the verdict.

§ 7303.  Validity of agreement to arbitrate.

A written agreement to subject any existing controversy to

arbitration or a provision in a written agreement to submit to

arbitration any controversy thereafter arising between the

parties is valid, enforceable and irrevocable, save upon such

grounds as exist at law or in equity relating to the validity,

enforceability or revocation of any contract.

§ 7304.  Court proceedings to compel or stay arbitration.

(a)  Compelling arbitration.--On application to a court to

compel arbitration made by a party showing an agreement

described in section 7303 (relating to validity of agreement to

arbitrate) and a showing that an opposing party refused to

arbitrate, the court shall order the parties to proceed with

arbitration. If the opposing party denies the existence of an

agreement to arbitrate, the court shall proceed summarily to

determine the issue so raised and shall order the parties to

proceed with arbitration if it finds for the moving party.

Otherwise, the application shall be denied.

(b)  Stay of arbitration.--On application of a party to a

court to stay an arbitration proceeding threatened or commenced

the court may stay an arbitration on a showing that there is no

agreement to arbitrate. When in substantial and bona fide

dispute, such an issue shall be forthwith and summarily tried

and determined and a stay of the arbitration proceedings shall

be ordered if the court finds for the moving party. If the court

finds for the opposing party, the court shall order the parties

to proceed with arbitration.

(c)  Venue.--If a controversy alleged to be or not to be

referable to arbitration under the agreement is also involved in

an action or proceeding pending in a court having jurisdiction

to hear applications to compel or stay arbitration, the

application shall be made to that court. Otherwise, subject to

section 7319 (relating to venue of court proceedings), the

application may be made in any court of competent jurisdiction.

(d)  Stay of judicial proceedings.--An action or proceeding,

allegedly involving an issue subject to arbitration, shall be

stayed if a court order to proceed with arbitration has been

made or an application for such an order has been made under

this section. If the issue allegedly subject to arbitration is

severable, the stay of the court action or proceeding may be

made with respect to the severable issue only. If the

application for an order to proceed with arbitration is made in

such action or proceeding and is granted, the court order to

proceed with arbitration shall include a stay of the action or

proceeding.

(e)  No examination of merits.--An application for a court

order to proceed with arbitration shall not be refused, nor

shall an application to stay arbitration be granted, by the

court on the ground that the controversy lacks merit or bona

fides or on the ground that no fault or basis for the

controversy sought to be arbitrated has been shown.

§ 7305.  Appointment of arbitrators by court.

If the agreement to arbitrate prescribes a method of

appointment of arbitrators, the prescribed method shall be

followed. In the absence of a prescribed method or if the

prescribed method fails or for any reason cannot be followed, or

when an arbitrator appointed fails to act or is unable to act

and his successor has not been appointed, the court on

application of a party shall appoint one or more arbitrators. An

arbitrator so appointed has all the powers of an arbitrator

specifically named in the agreement.

§ 7306.  Action by arbitrators.

The powers of the arbitrators shall be exercised by a

majority unless otherwise prescribed by the agreement or

provided by this subchapter.

§ 7307.  Hearing before arbitrators.

(a)  General rule.--Unless otherwise prescribed by the

agreement:

(1)  The arbitrators shall appoint a time and place for

the arbitration hearing and cause written notice thereof to

be served personally or by registered or certified mail on

all parties not less than ten days before the hearing.

Appearance at the hearing constitutes a waiver of such

notice.

(2)  The arbitrators may adjourn the hearing from time to

time as necessary and, on request of a party and for good

cause, or upon their own motion, may postpone the hearing to

a time not later than the date fixed by the agreement for

making the award unless the parties consent to a later date.

(3)  The arbitrators may hear and determine the

controversy upon the evidence produced at the arbitration

hearing notwithstanding the failure of a duly notified party

to appear. On application by a party the court may direct the

arbitrators to proceed promptly with the hearing and

determination of the controversy.

(4)  The parties and their attorneys have the right to be

heard, to present evidence material to the controversy and to

cross-examine witnesses appearing at the hearing.

(5)  The hearing shall be conducted by all the

arbitrators but a majority may determine any issue and render

a final award. If, during the course of the hearing, an

arbitrator for any reason ceases to act, the remaining

arbitrator or arbitrators appointed to act as neutrals may

continue with the hearing and determine the controversy.

(b)  Record.--On request of a party who shall pay the fees

therefor all testimony shall be taken stenographically and a

transcript thereof made a part of the record.

§ 7308.  Representation by attorney.

A party has the right to be represented by an attorney at any

proceeding or hearing under this subchapter. A waiver thereof

prior to the proceeding or hearing is ineffective.

§ 7309.  Witnesses, subpoenas, oaths and depositions.

(a)  General rule.--The arbitrators may issue subpoenas in

the form prescribed by general rules for the attendance of

witnesses and for the production of books, records, documents

and other evidence. Subpoenas so issued shall be served and,

upon application to the court by a party or by the arbitrators,

shall be enforced in the manner provided or prescribed by law

for the service and enforcement of subpoenas in a civil action.

(b)  Depositions.--On application of a party and for use as

evidence the arbitrators, in the manner and upon the terms

designated by them, may permit a deposition to be taken of a

witness who cannot be served with a subpoena or who is unable to

attend the hearing.

(c)  Compulsory testimony.--The arbitrators shall have power

to administer oaths. All provisions of law compelling a person

under subpoena to testify are applicable.

(d)  Fees.--Fees and expenses for attendance as a witness

shall be governed by the provisions of section 5903 (relating to

compensation and expenses of witnesses).

§ 7310.  Award of arbitrators.

(a)  General rule.--The award of the arbitrators shall be in

writing and signed by the arbitrators joining in the award. The

arbitrators shall deliver a copy of the award to each party

personally or by registered or certified mail, or as prescribed

in the agreement to arbitrate.

(b)  Time limitation.--The award shall be made within the

time fixed by the agreement or, if not fixed by the agreement,

within such time as is ordered by the court on application of a

party. The parties by written stipulation may extend the time

either before or after the expiration thereof. A party waives

the objection that an award was not made within the time

required unless he notifies the arbitrators of his objection

prior to delivery of the award to him.

§ 7311.  Change of award by arbitrators.

(a)  General rule.--On application of a party to the

arbitrators, or on submission to the arbitrators by the court

under such conditions as the court may order if an application

to the court is pending under section 7313 (relating to

confirmation of award by court), section 7314 (relating to

vacating award by court) or section 7315 (relating to

modification or correction of award by court), the arbitrators

may modify or correct the award upon the grounds stated in

section 7315(a)(1) and (2), or for the purpose of clarifying the

award.

(b)  Time limitation.--An application to the arbitrators

under subsection (a) shall be made within ten days after

delivery of the award to the applicant. Written notice of

presentation of the application shall be given forthwith by the

applicant to all other parties stating that they must serve

objections thereto within ten days from the date of the notice.

The award as modified or corrected is subject to the provisions

of sections 7313, 7314 and 7315.

§ 7312.  Fees and expenses of arbitration.

Unless otherwise prescribed in the agreement to arbitrate,

the expenses and fees of the arbitrators and other expenses (but

not including counsel fees) incurred in the conduct of the

arbitration shall be paid as prescribed in the award.

§ 7313.  Confirmation of award by court.

On application of a party, the court shall confirm an award,

unless within the time limits imposed by this subchapter,

grounds are urged for vacating or modifying or correcting the

award, in which case the court shall proceed as provided in

section 7314 (relating to vacating award by court) or section

7315 (relating to modification or correction of award by court).

§ 7314.  Vacating award by court.

(a)  General rule.--

(1)  On application of a party, the court shall vacate an

award where:

(i)  the court would vacate the award under section

7341 (relating to common law arbitration) if this

subchapter were not applicable;

(ii)  there was evident partiality by an arbitrator

appointed as a neutral or corruption or misconduct in any

of the arbitrators prejudicing the rights of any party;

(iii)  the arbitrators exceeded their powers;

(iv)  the arbitrators refused to postpone the hearing

upon good cause being shown therefor or refused to hear

evidence material to the controversy or otherwise so

conducted the hearing, contrary to the provisions of

section 7307 (relating to hearing before arbitrators), as

to prejudice substantially the rights of a party; or

(v)  there was no agreement to arbitrate and the

issue of the existence of an agreement to arbitrate was

not adversely determined in proceedings under section

7304 (relating to court proceedings to compel or stay

arbitration) and the applicant-party raised the issue of

the existence of an agreement to arbitrate at the

hearing.

(2)  The fact that the relief awarded by the arbitrators

was such that it could not or would not be granted by a court

of law or equity is not a ground for vacating or refusing to

confirm the award.

(b)  Time limitation.--An application under this section

shall be made within 30 days after delivery of a copy of the

award to the applicant, except that, if predicated upon

corruption, fraud, misconduct or other improper means, it shall

be made within 30 days after such grounds are known or should

have been known to the applicant.

(c)  Further hearing.--If the court vacates the award on

grounds other than stated in subsection (a)(1)(v), the court may

order a rehearing before new arbitrators chosen as prescribed in

the agreement to arbitrate. Absent a method prescribed in the

agreement to arbitrate, the court shall choose new arbitrators

in accordance with section 7305 (relating to appointment of

arbitrators by court). If the award is vacated on grounds not

affecting the competency of the arbitrators under subsection (a)

(1)(i) through (iv), the court may order a rehearing before the

arbitrators who made the award or their successors appointed in

accordance with section 7305. The time period within which the

agreement requires the original award to be made is applicable

to the rehearing and commences from the date of the court order

directing a rehearing.

(d)  Confirmation of award.--If an application to vacate the

award is denied and no application to modify or correct the

award is pending, the court shall confirm the award.

§ 7315.  Modification or correction of award by court.

(a)  General rule.--On application to the court made within

30 days after delivery of a copy of the award to the applicant,

the court shall modify or correct the award where:

(1)  there was an evident miscalculation of figures or an

evident mistake in the description of any person, thing or

property referred to in the award;

(2)  the arbitrators awarded upon a matter not submitted

to them and the award may be corrected without affecting the

merits of the decision upon the issues submitted; or

(3)  the award is deficient in a matter of form, not

affecting the merits of the controversy.

(b)  Confirmation of award.--If an application to modify or

correct the award is granted, the court shall modify and correct

the award so as to effect its intent and shall confirm the award

as so modified and corrected. Otherwise, the court shall confirm

the award as made by the arbitrators.

(c)  Alternative applications.--An application to modify or

correct an award may be joined in the alternative with an

application to vacate the award.

§ 7316.  Judgment or decree on award.

Upon the granting of an order of court confirming, modifying

or correcting an award, a judgment or decree shall be entered in

conformity with the order. The judgment or decree may be

enforced as any other judgment or decree. Subject to general

rules, costs of any application to the court and of the

proceedings subsequent thereto, and disbursements may be imposed

by the court.

§ 7317.  Form and service of applications to court.

Except as otherwise prescribed by general rules, an

application to the court under this subchapter shall be by

petition and shall be heard in the manner and upon the notice

provided or prescribed by law for the making and hearing of

petitions in civil matters. Unless the parties otherwise agree,

notice of an initial application for an order of court shall be

served in the manner provided or prescribed by law for the

service of a writ of summons in a civil action.

§ 7318.  Court and jurisdiction.

The following words and phrases when used in this subchapter

shall have, unless the context clearly indicates otherwise, the

meanings given to them in this section:

"Court."  As used in this subchapter means any court of

competent jurisdiction of this Commonwealth.

"Jurisdiction."  The making of an agreement described in

section 7303 (relating to validity of agreement to arbitrate)

providing for arbitration in this Commonwealth confers

jurisdiction on the courts of this Commonwealth to enforce the

agreement under this subchapter and to enter judgment on an

award made thereunder.

§ 7319.  Venue of court proceedings.

Except as otherwise prescribed by general rules:

(1)  An initial application to a court under this

subchapter shall be made to the court of the county in which

the agreement prescribes that the arbitration hearing shall

be held or, if the hearing has been held, in the county in

which the hearing was held.

(2)  If an application to a court cannot be made under

paragraph (1) the application shall be made to the court in

the county where the adverse party resides or has a place of

business or, if he has no residence or place of business in

this Commonwealth, to the court of any county.

(3)  All subsequent applications to a court shall be made

to the court hearing the initial application unless that

court otherwise directs.

§ 7320.  Appeals from court orders.

(a)  General rule.--An appeal may be taken from:

(1)  A court order denying an application to compel

arbitration made under section 7304 (relating to proceedings

to compel or stay arbitration).

(2)  A court order granting an application to stay

arbitration made under section 7304(b).

(3)  A court order confirming or denying confirmation of

an award.

(4)  A court order modifying or correcting an award.

(5)  A court order vacating an award without directing a

rehearing.

(6)  A final judgment or decree of a court entered

pursuant to the provisions of this subchapter.

(b)  Procedure.--The appeal shall be taken in the manner,

within the time and to the same extent as an appeal from a final

order of court in a civil action.]

Section 2.  Title 42 is amended by adding sections to read:

§ 7301.1.  Definitions.

The following words and phrases when used in this subchapter

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Arbitration organization."  Any association, agency, board,

commission or other entity, that is neutral and initiates,

sponsors or administers an arbitration proceeding or is involved

in the appointment of an arbitrator.

"Arbitrator."  An individual appointed to render an award,

alone or with others, in a controversy that is subject to an

agreement to arbitrate.

"Court."  A court of competent jurisdiction in this

Commonwealth.

"Knowledge."  Actual knowledge.

"Person."  Any individual, corporation, business trust,

estate, trust, partnership, limited liability company,

association, joint venture; a government; a governmental

subdivision, agency or instrumentality; a public corporation; or

any other legal or commercial entity.

"Record."  Information that is inscribed on a tangible medium

or that is stored in an electronic or other medium and is

retrievable in perceivable form.

§ 7302.  Notice.

(a)  Giving notice.--Except as otherwise provided in this

subchapter, a person gives notice to another person by taking

action that is reasonably necessary to inform the other person

in ordinary course, whether or not the other person acquires

knowledge of the notice.

(b)  Having notice.--A person has notice if the person has

knowledge of the notice or has received notice.

(c)  Receiving notice.--A person receives notice when it

comes to the person's attention or the notice is delivered at:

(1)  the person's place of residence or place of

business; or

(2)  another location held out by the person as a place

of delivery of such communications.

§ 7303.  When subchapter applies.

(a)  Subsequent agreements.--This subchapter governs an

agreement to arbitrate made on or after the effective date of

this subchapter unless the parties have expressly provided in

writing to the contrary.

(b)  Prior agreements.--Except as set forth in subsection

(c), this subchapter governs an agreement to arbitrate made

before the effective date of this subchapter if all the parties

to the agreement or to the arbitration proceeding so agree in a

record.

(c)  Absolute date.--On or after January 1, 2009, this

subchapter governs an agreement to arbitrate whenever made

unless the parties have expressly provided in writing to the

contrary.

§ 7304.  Effect of agreement to arbitrate; nonwaivable

provisions.

(a)  Waiver or variance.--Except as otherwise provided in

subsections (b) and (c), a party to an agreement to arbitrate or

to an arbitration proceeding may waive, or the parties may vary

the effect of, the requirements of this subchapter to the extent

permitted by law.

(b)  Prior to controversy.--Before a controversy arises that

is subject to an agreement to arbitrate, a party to the

agreement may not do any of the following:

(1)  Waive or agree to vary the effect of the

requirements of section 7305(a) (relating to application for

judicial relief), 7306(a) (relating to validity of agreement

to arbitrate), 7308 (relating to provisional remedies),

7317(a) or (b) (relating to witnesses; subpoenas;

depositions; discovery), 7326 (relating to jurisdiction) or

7328 (relating to appeals).

(2)  Agree to unreasonably restrict the right under

section 7309 (relating to initiation of arbitration) to

notice of the initiation of an arbitration proceeding.

(3)  Agree to unreasonably restrict the right under

section 7312 (relating to disclosure by arbitrator) to

disclosure of any facts by a neutral arbitrator.

(4)  Waive the right under section 7316 (relating to

representation by lawyer) of a party to an agreement to

arbitrate to be represented by a lawyer at any proceeding or

hearing under this subchapter, but an employer and a labor

organization may waive the right to representation by a

lawyer in a labor arbitration.

(c)  Absolute prohibition.--A party to an agreement to

arbitrate or an arbitration proceeding may not waive, or the

parties may not vary the effect of, the requirements of this

section or section 7303(a) or (c) (relating to when subchapter

applies), 7307 (relating to motion to compel or stay

arbitration), 7314 (relating to immunity of arbitrator;

competency to testify; attorney fees and costs), 7318 (relating

to judicial enforcement of preaward ruling by arbitrator),

7320(d) or (e) (relating to change of award by arbitrator), 7322

(relating to confirmation of award), 7323 (relating to vacating

award), 7324 (relating to modification or correction of award),

7325(a) or (b) (relating to judgment on award; attorney fees and

litigation expenses), 7329 (relating to uniformity of

application and construction) or 7330 (relating to relationship

to Electronic Signatures in Global and National Commerce Act).

§ 7305.  Application for judicial relief.

(a)  Procedure.--Except as otherwise provided in section 7328

(relating to appeals), an application for judicial relief under

this subchapter must be made by motion to the court and heard in

the manner provided by law or rule of court for making and

hearing motions.

(b)  Service.--Unless a civil action involving the agreement

to arbitrate is pending, notice of an initial motion to the

court under this subchapter must be served in the manner

provided by law for the service of a summons in a civil action.

Otherwise, notice of the motion must be given in the manner

provided by law or rule of court for serving motions in pending

cases.

§ 7306.  Validity of agreement to arbitrate.

(a)  General rule.--An agreement contained in a record to

submit to arbitration any existing or subsequent controversy

arising between the parties to the agreement is valid,

enforceable, and irrevocable except upon a ground that exists at

law or in equity for the revocation of a contract.

(b)  Court decision.--The court shall decide whether an

agreement to arbitrate exists or a controversy is subject to an

agreement to arbitrate.

(c)  Arbitrator decision.--An arbitrator shall decide whether

a condition precedent to arbitrability has been fulfilled and

whether a contract containing a valid agreement to arbitrate is

enforceable.

(d)  Challenge to arbitration.--If a party to a judicial

proceeding challenges the existence of, or claims that a

controversy is not subject to, an agreement to arbitrate, the

arbitration proceeding may continue pending final resolution of

the issue by the court, unless the court otherwise orders.

§ 7307.  Motion to compel or stay arbitration.

(a)  Refusal to arbitrate under agreement.--On motion of a

person showing an agreement to arbitrate and alleging another

person's refusal to arbitrate pursuant to the agreement:

(1)  if the refusing party does not appear or does not

oppose the motion, the court shall order the parties to

arbitrate; and

(2)  if the refusing party opposes the motion, the court

shall proceed summarily to decide the issue and order the

parties to arbitrate unless it finds that there is no

enforceable agreement to arbitrate.

(b)  Agreement challenged.--On motion of a person alleging

that an arbitration proceeding has been initiated or threatened

but that there is no agreement to arbitrate, the court shall

proceed summarily to decide the issue. If the court finds that

there is an enforceable agreement to arbitrate, it shall order

the parties to arbitrate.

(c)  Enforceable agreement required.--If the court finds that

there is no enforceable agreement, it may not pursuant to

subsection (a) or (b) order the parties to arbitrate.

(d)  Court refusal.--The court may not refuse to order

arbitration because the claim subject to arbitration lacks merit

or grounds for the claim have not been established.

(e)  Appropriate court.--If a proceeding involving a claim

referable to arbitration under an alleged agreement to arbitrate

is pending in court, a motion under this section must be made in

that court. Otherwise a motion under this section may be made in

any court as provided in section 7327 (relating to venue).

(f)  Stay of claims alleged subject to arbitration.--If a

party makes a motion to the court to order arbitration, the

court on just terms shall stay any judicial proceeding that

involves a claim alleged to be subject to the arbitration until

the court renders a final decision under this section.

(g)  Stay of claims subject to arbitration.--If the court

orders arbitration, the court on just terms shall stay any

judicial proceeding that involves a claim subject to the

arbitration. If a claim subject to the arbitration is severable,

the court may limit the stay to that claim.

§ 7308.  Provisional remedies.

(a)  Court.--Before an arbitrator is appointed and is

authorized and able to act, the court, upon motion of a party to

an arbitration proceeding and for good cause shown, may enter an

order for provisional remedies to protect the effectiveness of

the arbitration proceeding to the same extent and under the same

conditions as if the controversy were the subject of a civil

action.

(b)  Arbitrator.--After an arbitrator is appointed and is

authorized and able to act:

(1)  the arbitrator may issue such orders for provisional

remedies, including interim awards, as the arbitrator finds

necessary to protect the effectiveness of the arbitration

proceeding and to promote the fair and expeditious resolution

of the controversy, to the same extent and under the same

conditions as if the controversy were the subject of a civil

action; and

(2)  a party to an arbitration proceeding may move the

court for a provisional remedy only if the matter is urgent

and the arbitrator is not able to act timely or the

arbitrator cannot provide an adequate remedy.

(c)  Effect.--A party does not waive a right of arbitration

by making a motion under subsection (a) or (b).

§ 7309.  Initiation of arbitration.

(a)  Notice.--A person initiates an arbitration proceeding by

giving notice in a record to the other parties to the agreement

to arbitrate in the agreed manner between the parties or, in the

absence of agreement, by certified or registered mail, return

receipt requested and obtained, or by service as authorized for

the commencement of a civil action. The notice must describe the

nature of the controversy and the remedy sought.

(b)  Lack of notice.--Unless a person objects for lack or

insufficiency of notice under section 7315(c) (relating to

arbitration process) not later than at the beginning of the

arbitration hearing, the person by appearing at the hearing

waives any objection to lack of or insufficiency of notice.

§ 7310.  Consolidation of separate arbitration proceedings.

(a)  Conditions.--Except as otherwise provided in subsection

(c), upon motion of a party to an agreement to arbitrate or to

an arbitration proceeding, the court may order consolidation of

separate arbitration proceedings as to all or some of the claims

if:

(1)  there are separate agreements to arbitrate or

separate arbitration proceedings between the same persons, or

one of them is a party to a separate agreement to arbitrate

or a separate arbitration proceeding with a third person;

(2)  the claims subject to the agreements to arbitrate

arise in substantial part from the same transaction or series

of related transactions;

(3)  the existence of a common issue of law or fact

creates the possibility of conflicting decisions in the

separate arbitration proceedings; and

(4)  prejudice resulting from a failure to consolidate is

not outweighed by the risk of undue delay or prejudice to the

rights of or hardship to parties opposing consolidation.

(b)  Partial consolidation.--The court may order

consolidation of separate arbitration proceedings as to some

claims and allow other claims to be resolved in separate

arbitration proceedings.

(c)  Agreement governs.--The court may not order

consolidation of the claims of a party to an agreement to

arbitrate if the agreement prohibits consolidation.

§ 7311.  Appointment of arbitrator; service as a neutral

arbitrator.

(a)  Appointment.--If the parties to an agreement to

arbitrate agree on a method for appointing an arbitrator, that

method must be followed, unless the method fails. If the parties

have not agreed on a method, the agreed method fails or an

arbitrator appointed fails or is unable to act and a successor

has not been appointed, the court, on motion of a party to the

arbitration proceeding, shall appoint the arbitrator. An

arbitrator appointed by the court has all the powers of an

arbitrator designated in the agreement to arbitrate or appointed

pursuant to the agreed method.

(b)  Neutral service.--An individual who has a known, direct

and material interest in the outcome of the arbitration

proceeding or a known, existing and substantial relationship

with a party may not serve as an arbitrator required by an

agreement to be neutral.

§ 7312.  Disclosure by arbitrator.

(a)  Preappointment.--Before accepting appointment, an

individual who is requested to serve as an arbitrator, after

making a reasonable inquiry, shall disclose to all parties to

the agreement to arbitrate and the arbitration proceeding and to

any other arbitrators any known facts that a reasonable person

would consider likely to affect the impartiality of the

arbitrator in the arbitration proceeding, including:

(1)  a financial or personal interest in the outcome of

the arbitration proceeding; and

(2)  an existing or past relationship with any of the

parties to the agreement to arbitrate or the arbitration

proceeding, their counsel or representatives, a witness or

another arbitrator.

(b)  Continuing.--An arbitrator has a continuing obligation

to disclose to all parties to the agreement to arbitrate and the

arbitration proceeding and to any other arbitrators any facts

that the arbitrator learns after accepting appointment which a

reasonable person would consider likely to affect the

impartiality of the arbitrator.

(c)  Objection.--If an arbitrator discloses a fact required

by subsection (a) or (b) to be disclosed and a party timely

objects to the appointment or continued service of the

arbitrator based upon the fact disclosed, the objection may be a

ground under section 7323(a)(2) (relating to vacating award) for

vacating an award made by the arbitrator.

(d)  Nondisclosure.--If the arbitrator does not disclose a

fact as required by subsection (a) or (b), upon timely objection

by a party, the court under section 7323(a)(2) may vacate an

award.

(e)  Presumption of neutrality.--An arbitrator appointed as a

neutral arbitrator who does not disclose a known, direct and

material interest in the outcome of the arbitration proceeding

or a known, existing and substantial relationship with a party

is presumed to act with evident partiality under section 7323(a)

(2).

(f)  Procedure to challenge arbitrator.--If the parties to an

arbitration proceeding agree to the procedures of an arbitration

organization or any other procedures for challenges to

arbitrators before an award is made, substantial compliance with

those procedures is a condition precedent to a motion to vacate

an award on that ground under section 7323(a)(2).

§ 7313.  Action by majority.

If there is more than one arbitrator, the powers of an

arbitrator must be exercised by a majority of the arbitrators;

but all of them shall conduct the hearing under section 7315(c)

(relating to arbitration process).

§ 7314.  Immunity of arbitrator; competency to testify; attorney

fees and costs.

(a)  Immunity.--An arbitrator or an arbitration organization

acting in that capacity is immune from civil liability to the

same extent as a judge of a court of this Commonwealth acting in

a judicial capacity.

(b)  Other immunity.--The immunity afforded by this section

supplements any immunity under other law.

(c)  Failure to disclose.--The failure of an arbitrator to

make a disclosure required by section 7312 (relating to

disclosure by arbitrator) does not cause any loss of immunity

under this section.

(d)  Competence to testify.--In a judicial, administrative or

similar proceeding, an arbitrator or representative of an

arbitration organization is not competent to testify and may not

be required to produce records as to any statement, conduct,

decision or ruling occurring during the arbitration proceeding,

to the same extent as a judge of a court of this Commonwealth

acting in a judicial capacity. This subsection does not apply:

(1)  to the extent necessary to determine the claim of an

arbitrator, arbitration organization or representative of the

arbitration organization against a party to the arbitration

proceeding; or

(2)  to a hearing on a motion to vacate an award under

section 7323(a)(1) or (2) (relating to vacating award) if the

movant establishes prima facie that a ground for vacating the

award exists.

(e)  Attorney fees and costs.--If a person commences a civil

action against an arbitrator, arbitration organization or

representative of an arbitration organization arising from the

services of the arbitrator, organization or representative or if

a person seeks to compel an arbitrator or a representative of an

arbitration organization to testify or produce records in

violation of subsection (d) and the court decides that the

arbitrator, arbitration organization or representative of an

arbitration organization is immune from civil liability or that

the arbitrator or representative of the organization is not

competent to testify, the court shall award to the arbitrator,

organization or representative reasonable attorney fees and

other reasonable expenses of litigation.

§ 7315.  Arbitration process.

(a)  Discretion of arbitrator.--An arbitrator may conduct an

arbitration in such manner as the arbitrator considers

appropriate for a fair and expeditious disposition of the

proceeding. The authority conferred upon the arbitrator includes

the power to hold conferences with the parties to the

arbitration proceeding before the hearing and, among other

matters, determine the admissibility, relevance, materiality and

weight of any evidence.

(b)  Summary disposition.--An arbitrator may decide a request

for summary disposition of a claim or particular issue:

(1)  if all interested parties agree; or

(2)  upon request of one party to the arbitration

proceeding if that party gives notice to all other parties to

the proceeding and if the other parties have a reasonable

opportunity to respond.

(c)  Notice and hearing.--If an arbitrator orders a hearing,

the arbitrator shall set a time and place and give notice of the

hearing not less than five days before the hearing begins.

Unless a party to the arbitration proceeding makes an objection

to lack or insufficiency of notice not later than the beginning

of the hearing, the party's appearance at the hearing waives the

objection. Upon request of a party to the arbitration proceeding

and for good cause shown, or upon the arbitrator's own

initiative, the arbitrator may adjourn the hearing as necessary

but may not postpone the hearing to a time later than that fixed

by the agreement to arbitrate for making the award unless the

parties to the arbitration proceeding consent to a later date.

The arbitrator may hear and decide the controversy upon the

evidence produced although a party who was notified of the

arbitration proceeding did not appear. The court, on request,

may direct the arbitrator to conduct the hearing promptly and

render a timely decision.

(d)  Procedure.--At a hearing under subsection (c), a party

to the arbitration proceeding has a right to be heard, to

present evidence material to the controversy and to cross-

examine witnesses appearing at the hearing.

(e)  Replacement.--If an arbitrator ceases or is unable to

act during the arbitration proceeding, a replacement arbitrator

must be appointed in accordance with section 7311 (relating to

appointment of arbitrator; service as a neutral arbitrator) to

continue the proceeding and to resolve the controversy.

§ 7316.  Representation by lawyer.

A party to an arbitration proceeding may be represented by a

lawyer.

§ 7317.  Witnesses; subpoenas; depositions; discovery.

(a)  Subpoenas.--An arbitrator may issue a subpoena for the

attendance of a witness and for the production of records and

other evidence at any hearing and may administer oaths. A

subpoena must be served in the manner for service of subpoenas

in a civil action and, upon motion to the court by a party to

the arbitration proceeding or the arbitrator, may be enforced in

the manner for enforcement of subpoenas in a civil action.

(b)  Depositions.--In order to make the proceedings fair,

expeditious and cost effective, upon request of a party to or a

witness in an arbitration proceeding, an arbitrator may permit a

deposition of any witness to be taken for use as evidence at the

hearing, including a witness who cannot be subpoenaed for or is

unable to attend a hearing. The arbitrator shall determine the

conditions under which the deposition is taken.

(c)  Discovery.--An arbitrator may permit discovery as the

arbitrator decides is appropriate in the circumstances, taking

into account the needs of the parties to the arbitration

proceeding and other affected persons and the desirability of

making the proceeding fair, expeditious and cost effective.

(d)  Compliance with discovery.--If an arbitrator permits

discovery under subsection (c), the arbitrator may order a party

to the arbitration proceeding to comply with the arbitrator's

discovery-related orders, issue subpoenas for the attendance of

a witness and for the production of records and other evidence

at a discovery proceeding and take action against a noncomplying

party to the extent a court could if the controversy were the

subject of a civil action in this Commonwealth.

(e)  Protective orders.--An arbitrator may issue a protective

order to prevent the disclosure of privileged information,

confidential information, trade secrets and other information

protected from disclosure to the extent a court could if the

controversy were the subject of a civil action in this

Commonwealth.

(f)  Compulsory laws.--All laws compelling a person under

subpoena to testify and all fees for attending a judicial

proceeding, a deposition or a discovery proceeding as a witness

apply to an arbitration proceeding as if the controversy were

the subject of a civil action in this Commonwealth.

(g)  Enforcement.--The court may enforce a subpoena or

discovery-related order for the attendance of a witness within

this Commonwealth and for the production of records and other

evidence issued by an arbitrator in connection with an

arbitration proceeding in another state upon conditions

determined by the court so as to make the arbitration proceeding

fair, expeditious and cost effective. A subpoena or discovery-

related order issued by an arbitrator in another state must be

served in the manner provided by law for service of subpoenas in

a civil action in this Commonwealth and, upon motion to the

court by a party to the arbitration proceeding or the

arbitrator, may be enforced in the manner provided by law for

enforcement of subpoenas in a civil action in this Commonwealth.

§ 7318.  Judicial enforcement of preaward ruling by arbitrator.

If an arbitrator makes a preaward ruling in favor of a party

to the arbitration proceeding, the party may request the

arbitrator to incorporate the ruling into an award under section

7319 (relating to award). A prevailing party may make a motion

to the court for an expedited order to confirm the award under

section 7322 (relating to confirmation of award), in which case

the court shall summarily decide the motion. The court shall

issue an order to confirm the award unless the court vacates,

modifies or corrects the award under section 7323 (relating to

vacating award) or 7324 (relating to modification or correction

of award).

§ 7319.  Award.

(a)  Record.--An arbitrator shall make a record of an award.

The record must be signed or otherwise authenticated by any

arbitrator who concurs with the award. The arbitrator or the

arbitration organization shall give notice of the award,

including a copy of the award, to each party to the arbitration

proceeding.

(b)  Time.--An award must be made within the time specified

by the agreement to arbitrate or, if not specified in the

agreement, within the time ordered by the court. The court may

extend or the parties to the arbitration proceeding may agree in

a record to extend the time. The court or the parties may do so

within or after the time specified or ordered. A party waives

any objection that an award was not timely made unless the party

gives notice of the objection to the arbitrator before receiving

notice of the award.

§ 7320.  Change of award by arbitrator.

(a)  Motion.--On motion to an arbitrator by a party to an

arbitration proceeding, the arbitrator may modify or correct an

award:

(1)  upon a ground stated in section 7324(a)(1) or (3)

(relating to modification or correction of award);

(2)  because the arbitrator has not made a final and

definite award upon a claim submitted by the parties to the

arbitration proceeding; or

(3)  to clarify the award.

(b)  Time for motion.--A motion under subsection (a) must be

made and notice given to all parties within 20 days after the

movant receives notice of the award.

(c)  Time for objection to motion.--A party to the

arbitration proceeding must give notice of any objection to the

motion within ten days after receipt of the notice.

(d)  Pending motion to court.--If a motion to the court is

pending under section 7322 (relating to confirmation of award),

7323 (relating to vacating award) or 7324, the court may submit

the claim to the arbitrator to consider whether to modify or

correct the award:

(1)  upon a ground stated in section 7324(a)(1) or (3);

(2)  because the arbitrator has not made a final and

definite award upon a claim submitted by the parties to the

arbitration proceeding; or

(3)  to clarify the award.

(e)  Other provisions applicable.--An award modified or

corrected pursuant to this section is subject to sections

7319(a) (relating to award), 7322, 7323 and 7324.

§ 7321.  Remedies; fees and expenses of arbitration proceeding.

(a)  Punitive damages.--An arbitrator may award punitive

damages or other exemplary relief if such an award is authorized

by law in a civil action involving the same claim and the

evidence produced at the hearing justifies the award under the

legal standards otherwise applicable to the claim.

(b)  Attorney fees and costs.--An arbitrator may award

reasonable attorney fees and other reasonable expenses of

arbitration if such an award is authorized by law in a civil

action involving the same claim or by the agreement of the

parties to the arbitration proceeding.

(c)  Additional remedies.--As to all remedies other than

those authorized by subsections (a) and (b), an arbitrator may

order remedies as the arbitrator considers just and appropriate

under the circumstances of the arbitration proceeding. The fact

that a remedy could not or would not be granted by the court is

not a ground for refusing to confirm an award under section 7322

(relating to confirmation of award) or for vacating an award

under section 7323 (relating to vacating award).

(d)  Arbitrator costs and fees.--An arbitrator's expenses and

fees, together with other expenses, must be paid as provided in

the award.

(e)  Justification for punitive damages.--If an arbitrator

awards punitive damages or other exemplary relief under

subsection (a), the arbitrator shall specify in the award the

basis in fact justifying and the basis in law authorizing the

award and state separately the amount of the punitive damages or

other exemplary relief.

§ 7322.  Confirmation of award.

After a party to an arbitration proceeding receives notice of

an award, the party must make a motion to the court for an order

confirming the award, at which time the court shall issue a

confirming order unless the award is modified or corrected

pursuant to section 7320 (relating to change of award by

arbitrator) or 7324 (relating to modification or correction of

award) or is vacated pursuant to section 7323 (relating to

vacating award).

§ 7323.  Vacating award.

(a)  Grounds.--Upon motion to the court by a party to an

arbitration proceeding, the court shall vacate an award made in

the arbitration proceeding if:

(1)  the award was procured by corruption, fraud or other

undue means;

(2)  there was:

(i)  evident partiality by an arbitrator appointed as

a neutral arbitrator;

(ii)  corruption by an arbitrator; or

(iii)  misconduct by an arbitrator prejudicing the

rights of a party to the arbitration proceeding;

(3)  an arbitrator refused to postpone the hearing upon

showing of sufficient cause for postponement, refused to

consider evidence material to the controversy or otherwise

conducted the hearing contrary to section 7315 (relating to

arbitration process), so as to prejudice substantially the

rights of a party to the arbitration proceeding;

(4)  an arbitrator exceeded the arbitrator's powers;

(5)  there was no agreement to arbitrate, unless the

person participated in the arbitration proceeding without

raising the objection under section 7315(c) not later than

the beginning of the arbitration hearing; or

(6)  the arbitration was conducted without proper notice

of the initiation of an arbitration as required in section

7309 (relating to initiation of arbitration) so as to

prejudice substantially the rights of a party to the

arbitration proceeding.

(b)  Time.--A motion under this section must be filed within

30 days after the movant receives notice of the award pursuant

to section 7319 (relating to award) or within 30 days after the

movant receives notice of a modified or corrected award pursuant

to section 7320 (relating to change of award by arbitrator),

unless the movant alleges that the award was procured by

corruption, fraud or other undue means, in which case the motion

must be made within 30 days after the ground is known or by the

exercise of reasonable care would have been known by the movant.

(c)  Rehearing.--If the court vacates an award on a ground

other than that set forth in subsection (a)(5), it may order a

rehearing. If the award is vacated on a ground stated in

subsection (a)(1) or (2), the rehearing shall be before a new

arbitrator. If the award is vacated on a ground stated in

subsection (a)(3), (4) or (6), the rehearing may be before the

arbitrator who made the award or the arbitrator's successor. The

arbitrator shall render the decision in the rehearing within the

same time as that provided in section 7319(b) for an award.

(d)  Confirmation.--If the court denies a motion to vacate an

award, it shall confirm the award unless a motion to modify or

correct the award is pending.

§ 7324.  Modification or correction of award.

(a)  Grounds.--Upon motion made within 90 days after the

movant receives notice of the award pursuant to section 7319

(relating to award) or within 90 days after the movant receives

notice of a modified or corrected award pursuant to section 7320

(relating to change of award by arbitrator), the court shall

modify or correct the award if:

(1)  there was an evident mathematical miscalculation or

an evident mistake in the description of a person, thing or

property referred to in the award;

(2)  the arbitrator has made an award on a claim not

submitted to the arbitrator and the award may be corrected

without affecting the merits of the decision upon the claims

submitted; or

(3)  the award is imperfect in a matter of form not

affecting the merits of the decision on the claims submitted.

(b)  Court action.--If a motion made under subsection (a) is

granted, the court shall modify or correct and confirm the award

as modified or corrected. Otherwise, unless a motion to vacate

is pending, the court shall confirm the award.

(c)  Joinder.--A motion to modify or correct an award

pursuant to this section may be joined with a motion to vacate

the award under section 7323 (relating to vacating award).

§ 7325.  Judgment on award; attorney fees and litigation

expenses.

(a)  Judgment.--Upon granting an order confirming, vacating

without directing a rehearing, modifying or correcting an award,

the court shall enter a judgment in conformity with the order.

The judgment may be recorded, docketed and enforced as any other

judgment in a civil action.

(b)  Court costs.--A court may allow reasonable costs of the

motion and subsequent judicial proceedings.

(c)  Attorney fees and costs.--On application of a prevailing

party to a contested judicial proceeding under section 7322

(relating to confirmation of award), 7323 (relating to vacating

award) or 7324 (relating to modification or correction of

award), the court may add reasonable attorney fees and other

reasonable expenses of litigation incurred in a judicial

proceeding after the award is made to a judgment confirming,

vacating without directing a rehearing, modifying or correcting

an award.

§ 7326.  Jurisdiction.

(a)  Enforcement.--A court having jurisdiction over the

controversy and the parties may enforce an agreement to

arbitrate.

(b)  Exclusivity.--An agreement to arbitrate providing for

arbitration in this Commonwealth confers exclusive jurisdiction

on the court to enter judgment on an award under this

subchapter.

§ 7327.  Venue.

A motion pursuant to section 7305 (relating to application

for judicial relief) must be made in the court of the county in

which the agreement to arbitrate specifies the arbitration

hearing is to be held or, if the hearing has been held, in the

court of the county in which it was held. Otherwise, the motion

may be made in the court of any county in which an adverse party

resides or has a place of business or, if no adverse party has a

residence or place of business in this Commonwealth, in the

court of any county in this Commonwealth. All subsequent motions

must be made in the court hearing the initial motion unless the

court otherwise directs.

§ 7328.  Appeals.

(a)  Appealable orders.--An appeal may be taken from:

(1)  an order denying a motion to compel arbitration;

(2)  an order granting a motion to stay arbitration;

(3)  an order confirming or denying confirmation of an

award;

(4)  an order modifying or correcting an award;

(5)  an order vacating an award without directing a

rehearing; or

(6)  a final judgment entered pursuant to this

subchapter.

(b)  Procedure.--An appeal under this section must be taken

as from an order or a judgment in a civil action and must be

taken within 30 days of the order or judgment.

§ 7329.  Uniformity of application and construction.

In applying and construing this subchapter, consideration

shall be given to the need to promote uniformity of the law with

respect to its subject matter among states that enact it.

§ 7330.  Relationship to Electronic Signatures in Global and

National Commerce Act.

The provisions of this subchapter governing the legal effect,

validity and enforceability of electronic records or electronic

signatures and of contracts performed with the use of such

records or signatures conform to the requirements of section 102

of the Electronic Signatures in Global and National Commerce Act

(Public Law 106-229, 15 U.S.C. § 7002).

Section 3.  Section 7342 of Title 42 is amended to read:

§ 7342.  Procedure.

(a)  General rule.--The following provisions of Subchapter A

(relating to statutory arbitration) shall be applicable to

arbitration conducted pursuant to this subchapter:

[Section 7303 (relating to validity of agreement to

arbitrate).

Section 7304 (relating to court proceedings to compel or stay

arbitration).

Section 7305 (relating to appointment of arbitrators by

court).

Section 7309 (relating to witnesses, subpoenas, oaths and

depositions).

Section 7317 (relating to form and service of applications to

court).

Section 7318 (relating to court and jurisdiction).

Section 7319 (relating to venue of court proceedings).

Section 7320 (relating to appeals from court orders), except

subsection (a)(4).]

Section 7305 (relating to application for judicial relief).

Section 7306(a) (relating to validity of agreement to

arbitrate).

Section 7307 (relating to motion to compel or stay

arbitration).

Section 7311(a) (relating to appointment of arbitrator;

service as a neutral arbitrator).

Section 7317 (relating to witnesses; subpoenas; depositions;

discovery).

Section 7326 (relating to jurisdiction).

Section 7327 (relating to venue).

Section 7328 (relating to appeals), except subsection (a)(4).

(b)  Confirmation and judgment.--On application of a party

made more than 30 days after an award is made by an arbitrator

under section 7341 (relating to common law arbitration), the

court shall enter an order confirming the award and shall enter

a judgment or decree in conformity with the order. [Section

7302(d)(2) (relating to special application) shall not be

applicable to proceedings under this subchapter.]

Section 4.  This act does not affect an action or proceeding

commenced or right accrued before the effective date of this

section. Subject to 42 Pa.C.S. § 7303, as added by section 2 of

this act, an arbitration agreement made before the effective

date of this section is governed by the former provisions of 42

Pa.C.S. §§ 7302 through 7320, as set forth in section 1 of this

act.

Section 5.  This act shall take effect January 1, 2011.