Regular Session 2015-2016 House Bill 0034 P.N. 3639

SENATE AMENDED

PRIOR PRINTER'S NOS. 356, 1201

PRINTER'S NO. 3639

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

Session of

2015

INTRODUCED BY NESBIT, CUTLER, MARSICO, EVERETT, JAMES,

OBERLANDER, M. K. KELLER, PETRI AND MOUL, FEBRUARY 5, 2015

SENATOR GREENLEAF, JUDICIARY, IN SENATE, AS AMENDED,

JUNE 27, 2016

AN ACT

Amending Title 42 (Judiciary and Judicial Procedure) of the

Pennsylvania Consolidated Statutes, extensively revising

statutory arbitration; and making editorial changes.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Chapter 73 of Title 42 of the Pennsylvania

Consolidated Statutes is amended by adding a subchapter to read:

SUBCHAPTER A.1

REVISED STATUTORY ARBITRATION

Sec.

7321.1. Short title of subchapter.

7321.2. Definitions.

7321.3. Notice.

7321.4. When subchapter applies.

7321.5. Effect of agreement to arbitrate; nonwaivable

provisions.

7321.6. Application for judicial relief.

7321.7. Validity of agreement to arbitrate.

7321.8. Motion to compel or stay arbitration.

7321.9. Provisional remedies.

7321.10. Initiation of arbitration.

7321.11. Consolidation of separate arbitration proceedings.

7321.12. Appointment of arbitrator; service as a neutral

arbitrator.

7321.13. Disclosure by arbitrator.

7321.14. Action by majority.

7321.15. Immunity of arbitrator; competency to testify; attorney

fees and costs.

7321.16. Arbitration process.

7321.17. Representation by lawyer.

7321.18. Witnesses; subpoenas; depositions; discovery.

7321.19. Judicial enforcement of preaward ruling by arbitrator.

7321.20. Award.

7321.21. Change of award by arbitrator.

7321.22. Remedies; fees and expenses of arbitration proceeding.

7321.23. Confirmation of award.

7321.24. Vacating award.

7321.25. Modification or correction of award.

7321.26. Judgment on award; attorney fees and litigation

expenses.

7321.27. Jurisdiction.

7321.28. Venue.

7321.29. Appeals.

7321.30. Uniformity of application and construction.

7321.31. Relationship to Electronic Signatures in Global and

National Commerce Act.

§ 7321.1. Short title of subchapter.

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This subchapter shall be known and may be cited as the

Statutory Arbitration Act.

§ 7321.2. 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.

"CONSUMER." AN INDIVIDUAL WHO INCURS AN OBLIGATION IN AN

AGREEMENT WITH A MERCHANT FOR PERSONAL, FAMILY OR HOUSEHOLD

PURPOSES.

"CONSUMER TRANSACTION." A TRANSACTION BETWEEN A CONSUMER

DOMICILED IN THIS COMMONWEALTH AND A MERCHANT, INCLUDING ALL

PERSONAL INJURY CLAIMS ARISING OUT OF SUCH A TRANSACTION.

" Court. " A court of competent jurisdiction in this

Commonwealth.

" Knowledge. " Actual knowledge.

"MERCHANT." A PERSON WHO IN THE ORDINARY COURSE OF BUSINESS

OFFERS OR SELLS GOODS OR SERVICES TO CONSUMERS OR HOLDS ITSELF

OUT AS HAVING KNOWLEDGE OR SKILL PECULIAR TO SUCH TRANSACTIONS,

INCLUDING A MANUFACTURER, SUPPLIER OR DISTRIBUTOR OF GOODS, OR A

SUPPLIER OF PERSONAL OR PROFESSIONAL SERVICES.

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

estate, trust, partnership, limited liability company,

association, joint venture; a government; a governmental

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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.

§ 7321.3. 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.

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.

§ 7321.4. 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.--For an agreement to arbitrate made

before the effective date of this subchapter, except as set

forth in subsections (c) and (d):

(1) If all the parties to the agreement or to the

arbitration proceeding agree in a record that this subchapter

governs the agreement, this subchapter governs the agreement.

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(2) If paragraph (1) does not apply, Subchapter A

(relating to statutory arbitration) governs the agreement.

(1) Except as set forth in paragraph (2), this

subchapter governs an agreement to arbitrate whenever made

unless the parties have expressly provided in writing to the

contrary.

(2) This subchapter does not govern an agreement to

arbitrate made by the Commonwealth or a Commonwealth agency

prior to the effective date of this subchapter unless the

parties have expressly provided in writing to the contrary.

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

apply to collective bargaining agreements to arbitrate

controversies between employers and employees or their

respective representatives only to the extent that the

arbitration pursuant to this subchapter is consistent with any

other statute regulating labor and management relations.

§ 7321.5. 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 any of the following:

(i) Section 7321.6(a) (relating to application for

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judicial relief).

(ii) Section 7321.7(a) (relating to validity of

agreement to arbitrate).

(iii) Section 7321.9 (relating to provisional

remedies).

(iv) Section 7321.18(a) or (b) (relating to

witnesses; subpoenas; depositions; discovery).

(v) Section 7321.27 (relating to jurisdiction).

(vi) Section 7321.29 (relating to appeals).

(2) Agree to unreasonably restrict the right under

section 7321.10 (relating to initiation of arbitration) to

notice of the initiation of an arbitration proceeding.

(3) Agree to unreasonably restrict the right under

section 7321.13 (relating to disclosure by arbitrator) to

disclosure of any facts by a neutral arbitrator.

(4) Waive the right under section 7321.17 (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.

arbitrate or an arbitration proceeding may not waive, or the

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

the following:

(1) This section.

(2) Section 7321.4(a) or (c) (relating to when

subchapter applies).

(3) Section 7321.8 (relating to motion to compel or stay

arbitration).

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(4) Section 7321.15 (relating to immunity of arbitrator;

competency to testify; attorney fees and costs).

(5) Section 7321.19 (relating to judicial enforcement of

preaward ruling by arbitrator).

(6) Section 7321.21(d) or (e) (relating to change of

award by arbitrator).

(7) Section 7321.23 (relating to confirmation of award).

(8) Section 7321.24 (relating to vacating award).

(9) Section 7321.25 (relating to modification or

correction of award).

(10) Section 7321.26(a) or (b) (relating to judgment on

award; attorney fees and litigation expenses).

(11) Section 7321.30 (relating to uniformity of

application and construction).

(12) Section 7321.31 (relating to relationship to

Electronic Signatures in Global and National Commerce Act).

§ 7321.6. Application for judicial relief.

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

7321.29 (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.

§ 7321.7. Validity of agreement to arbitrate.

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(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.

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.

(E) GROUNDS FOR VALIDITY AND ENFORCEABILITY.--IN DETERMINING

THE VALIDITY AND ENFORCEABILITY OF AN AGREEMENT TO ARBITRATE, A

COURT MAY CONSIDER ANY GROUNDS THAT EXIST AT LAW OR IN EQUITY

FOR THE REVOCATION OF A CONTRACT, REGARDLESS OF WHETHER ARISING

OUT OF FEDERAL OR STATE LAW OR AS A MATTER OF PUBLIC POLICY,

THAT ARE APPLICABLE TO OTHER CONTRACTS, INCLUDING FRAUD, DURESS,

COERCION, UNCONSCIONABILITY OR THE IMPOSITION BY A CONTRACT OF

ADHESION OF ANY REQUIREMENT THAT UNREASONABLY FAVORS THE PARTY

THAT IMPOSED THE PROVISION, PROVIDED THAT DOING SO IS NOT

PROHIBITED BY THE FEDERAL ARBITRATION ACT (9 U.S.C. § 1 ET

SEQ.), OR OTHER FEDERAL LAW.

§ 7321.8. Motion to compel or stay arbitration.

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

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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. DECIDE THE ISSUE IF THERE

IS AN EXPRESS AND UNEQUIVOCAL AGREEMENT TO ARBITRATE. IF THERE

IS DOUBT WHETHER AN AGREEMENT TO ARBITRATE EXISTS, UPON PROPER

AND TIMELY DEMAND, THE QUESTION SHALL BE SUBMITTED TO A JURY. If

the court OR JURY finds that there is an enforceable agreement

to arbitrate, it THE COURT shall order the parties to arbitrate.

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 7321.28 (relating to venue).

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

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

court on just terms shall stay a 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 a

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.

§ 7321.9. 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 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.

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

§ 7321.10. 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 7321.16 (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.

§ 7321.11. 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

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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.

consolidation of the claims of a party to an agreement to

arbitrate if the agreement prohibits consolidation.

§ 7321.12. 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 . PURSUANT TO THE STANDARDS UNDER WHICH A

JUDGE WOULD BE REQUIRED TO DISQUALIFY HIMSELF OR HERSELF FROM

PARTICIPATION IN A PROCEEDING UNDER 207 PA. CODE RULE 2.11

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(RELATING TO DISQUALIFICATION).

§ 7321.13. 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 other arbitrators facts that the

arbitrator learns after accepting appointment that a reasonable

person would consider likely to affect the impartiality of the

arbitrator.

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 7321.24(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 7321.24(a)(2) may vacate an

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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

7321.24(a)(2).

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

arbitration proceeding agree to the procedures of an arbitration

organization or 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 7321.24(a)(2).

§ 7321.14. 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

7321.16(c) (relating to arbitration process).

§ 7321.15. 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.

make a disclosure required by section 7321.13 (relating to

disclosure by arbitrator) does not cause a loss of immunity

under this section.

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(d) Competency 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 7321.24(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 UPON

DECIDING WHETHER the arbitrator, arbitration organization or

representative of an arbitration organization is immune from

civil liability or that WHETHER the arbitrator or representative

of the organization is not competent to testify, the court shall

MAY award to the PREVAILING PARTY, INCLUDING THE arbitrator,

organization or representative , reasonable attorney fees and

other reasonable expenses of litigation.

§ 7321.16. Arbitration process.

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

arbitration in a 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.

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,

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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 7321.12 (relating

to appointment of arbitrator; service as a neutral arbitrator)

to continue the proceeding and to resolve the controversy.

(F) LOCATION FOR ARBITRATION HEARING FOR CONSUMER

TRANSACTIONS.--A HEARING CONDUCTED PURSUANT TO AN ARBITRATION

AGREEMENT APPLICABLE TO A CONSUMER TRANSACTION SHALL BE HELD AT

A LOCATION REASONABLY CONVENIENT TO THE CONSUMER.

§ 7321.17. Representation by lawyer.

A party to an arbitration proceeding may be represented by a

lawyer.

§ 7321.18. 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 a 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 a witness to be taken for use as evidence at the

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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.

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

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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.

§ 7321.19. 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

7321.20 (relating to award). A prevailing party may make a

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

under section 7321.23 (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 7321.24

(relating to vacating award) or 7321.25 (relating to

modification or correction of award).

§ 7321.20. Award.

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

The record must be signed or otherwise authenticated by a

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.

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(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 an

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.

§ 7321.21. 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 7321.25(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.

arbitration proceeding must give notice of an objection to the

motion within 10 days after receipt of the notice.

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

pending under section 7321.23 (relating to confirmation of

award), 7321.24 (relating to vacating award) or 7321.25, the

court may submit the claim to the arbitrator to consider whether

to modify or correct the award:

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(1) upon a ground stated in section 7321.25(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

7321.20(a) (relating to award), 7321.23, 7321.24 and 7321.25.

§ 7321.22. 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 the award is authorized by law in a civil action

involving the same claim or , by the agreement of the parties to

the arbitration proceeding OR BY THE TERMS OF AN AGREEMENT

SUBJECT TO ARBITRATION .

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

7321.23 (relating to confirmation of award) or for vacating an

award under section 7321.24 (relating to vacating award).

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(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.

§ 7321.23. 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 7321.21 (relating to change of award by

arbitrator) or 7321.25 (relating to modification or correction

of award) or is vacated pursuant to section 7321.24 (relating to

vacating award).

§ 7321.24. 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;

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(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 7321.16 (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 7321.16(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

7321.10 (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 7321.20 (relating to award) or within 30 days after

the movant receives notice of a modified or corrected award

pursuant to section 7321.21 (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.

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

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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 7321.20(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.

§ 7321.25. Modification or correction of award.

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

movant receives notice of the award pursuant to section 7321.20

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

notice of a modified or corrected award pursuant to section

7321.21 (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.

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

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the award under section 7321.24 (relating to vacating award).

§ 7321.26. 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.

party to a contested judicial proceeding under section 7321.23

(relating to confirmation of award), 7321.24 (relating to

vacating award) or 7321.25 (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 . IF ATTORNEY FEES AND OTHER EXPENSES ARE

AUTHORIZED BY LAW TO BE ADDED TO AN AWARD IN A CIVIL ACTION

INVOLVING THE SAME CLAIM AS THE ARBITRATION AWARD.

§ 7321.27. 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.

§ 7321.28. Venue.

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A motion pursuant to section 7321.6 (relating to application

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

which the agreement to arbitrate OR SECTION 7321.16(F) (RELATING

TO ARBITRATION PROCESS) 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

THE county in this Commonwealth AS PROVIDED BY THE PENNSYLVANIA

RULES OF CIVIL PROCEDURE . All subsequent motions must be made in

the court hearing the initial motion unless the court otherwise

directs.

§ 7321.29. 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.

§ 7321.30. Uniformity of application and construction.

(A) GENERAL RULE.-- In applying and construing this

subchapter, consideration shall be given to the need to promote

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uniformity of the law with respect to its subject matter among

states that enact it.

(B) RIGHT TO TRIAL BY JURY.--EXCEPT AS PROVIDED BY AN

AGREEMENT TO ARBITRATE, NOTHING IN THIS SUBCHAPTER IS INTENDED

TO REQUIRE A PARTY TO WAIVE THE RIGHT TO TRIAL BY JURY TO THE

EXTENT PROVIDED BY THE UNITED STATES CONSTITUTION AND THE

CONSTITUTION OF PENNSYLVANIA.

THE APPLICATION THEREOF TO ANY PERSON OR CIRCUMSTANCE IS HELD

INVALID, THE REMAINDER OF THIS SUBCHAPTER AND THE APPLICATION OF

SUCH PROVISIONS TO OTHER PERSONS OR CIRCUMSTANCES SHALL NOT BE

AFFECTED.

§ 7321.31. 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 2. Sections 7341 and 7342 of Title 42 are amended to

read:

§ 7341. Common law arbitration.

The award of an arbitrator in a nonjudicial arbitration which

is not subject to Subchapter A (relating to statutory

arbitration) or A.1 (relating to revised statutory arbitration)

or a similar statute regulating nonjudicial arbitration

proceedings is binding and may not be vacated or modified unless

it is clearly shown that a party was denied a hearing or that

fraud, misconduct, corruption or other irregularity caused the

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rendition of an unjust, inequitable or unconscionable award.

§ 7342. Procedure.

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

[A] A.1 (relating to revised 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 7321.6 (relating to application for judicial relief).

Section 7321.7(a) (relating to validity of agreement to

arbitrate).

Section 7321.8 (relating to motion to compel or stay

arbitration).

Section 7321.12(a) (relating to appointment of arbitrator;

service as a neutral arbitrator).

Section 7321.18 (relating to witnesses; subpoenas;

depositions; discovery).

Section 7321.27 (relating to jurisdiction).

Section 7321.28 (relating to venue).

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Section 7321.29 (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 3. This act shall not be construed to affect an

action or proceeding commenced or right accrued before the

effective date of this section.

Section 4. This act shall take effect January 1, 2016 2017.

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