Federal Cases
Arbitrator, Not Court, Must Decide Whether Arbitration Proceedings Should Be Consolidated
Certain Underwriters at Lloyd’s London v. Westchester Fire Insurance Co., No. 06-1457, 2007 WL 1673876 (3d Cir. June 12, 2007)
6/12/2007
In affirming a district court ruling that the arbitrators must decide whether the arbitration proceedings should be consolidated, the Third Circuit Court of Appeals held that consolidation is a procedural question for the arbitrators rather than a “question of arbitrability” for the court.
In Certain Underwriters at Lloyd’s London v. Westchester Fire Insurance Co., No. 06-1457, 2007 WL 1673876 (3d Cir. June 12, 2007), Lloyd’s and Westchester entered into a series of reinsurance contracts under two separate reinsurance programs: (1) a comprehensive reinsurance program that consisted of six virtually identical contracts covering different time periods; and (2) a risk-specific reinsurance program consisting of two virtually identical contracts covering different time periods... Full Story
Doctrine of "Complete Preemption" Creates Federal Jurisdiction over Petition to Compel Arbitration
Discover Bank v. Vaden, No. 06-1221, 2007 WL 1695758 (4th Cir. June 13, 2007)
6/13/2007
The Fourth Circuit Court of Appeals held that the doctrine of "complete preemption" warranted the exercise of federal jurisdiction over a petition to compel arbitration even though the presence of a federal question was based solely on a defense to the underlying claims.
In Discover Bank v. Vaden, No. 06-1221, 2007 WL 1695758 (4th Cir. June 13, 2007), Discover Financial Services (DFS) sued Vaden in state court on behalf of Discover Bank (Discover). The suit sought recovery of the unpaid balance on Vaden's Discover card. In response, Vaden filed class action counterclaims alleging that the finance charges violated Maryland law... Full Story
Arbitration Agreement Between Client and Investment Firm Covers Private Dispute Between Client and Broker
Downer v. Siegel, No. 06-30159, 2007 WL 1696020 (5th Cir. June 13, 2007)
6/13/2007
The Fifth Circuit Court of Appeals held that an arbitration agreement between a client and an investment firm was sufficiently broad to cover private disputes between a client and a broker.
In Downer v. Siegel, No. 06-30159, 2007 WL 1696020 (5th Cir. June 13, 2007), the Downers opened a brokerage account with Dain Rauscher, Inc. (DR). A DR broker, Michael Siegel, allegedly recommended that the Downers invest $300,000 in World Environmental Technology (WET). The Downers were unhappy with the investment's performance and filed claims against Siegel alleging fraud and violations of securities regulations... Full Story
Court Adjudication of Claims Arising Out of the Same Subject Matter As Arbitrated Claims Is Barred by Res Judicata
Digene Corp. v. Ventana Medical Systems, Inc., No. 01-752-MPT, 2007 WL 1697027 (D. Del. June 12, 2007)
6/12/2007
A party to arbitration that fails to bring claims arising out of the same subject matter as the claims arbitrated cannot later bring those related claims to a court for adjudication, according to a federal court in Delaware.
In Digene Corp. v. Ventana Medical Systems, Inc., No. 01-752-MPT, 2007 WL 1697027 (D. Del. June 12, 2007), co-defendant Beckman moved to dismiss further court action against it by Digene, alleging that Digene's claims arose out of the same patent rights that were to be fully arbitrated, and that Digene's failure to do so during arbitration barred the claims brought to court... Full Story
Consolidation of Arbitrable Claims Is a Procedural Matter for the Arbitrator to Decide
Twist v. Arbusto, No. 4:05-cv-0187-JDT-WGH, 2007 WL 1686950 (S.D. Ind. June 8, 2007)
6/8/2007
In the absence of an express provision in the agreement forbidding the consolidation of claims, an arbitrator is allowed to determine whether claims will be consolidated, regardless of whether a party preserves their objection to consolidation, according to a federal court in Indiana.
In Twist v. Arbusto, No. 4:05-cv-0187-JDT-WGH, 2007 WL 1686950 (S.D. Ind. June 8, 2007), Twist sought to compel separate arbitration of investors' securities-related claims, after an arbitrator had previously ordered the claims consolidated... Full Story
Federal Court Dismisses Vacatur Lawsuit on Ground That FAA Does Not Create Federal Jurisdiction
Svete v. Peltier, No. 4:06-CV-2000, 2007 WL 1724921 (N.D. Ohio June 12, 2007)
6/12/2007
In dismissing a vacatur lawsuit for lack of subject matter jurisdiction, a federal district court in Ohio explained that the Federal Arbitration Act (FAA) does not create federal jurisdiction but instead requires an independent basis for the exercise of federal jurisdiction.
In Svete v. Peltier, No. 4:06-CV-2000, 2007 WL 1724921 (N.D. Ohio June 12, 2007), Svete filed a motion to vacate an NASD arbitration award in Peltier's favor. In response, Peltier moved for dismissal on the ground that the Court lacked subject matter jurisdiction... Full Story
State Cases
New Jersey Arbitration Act Expressly Permits Parties to Contract for Heightened Judicial Review
Hogoboom v. Hogoboom, A-2794-05T5, 2007 WL 1702820 (N.J. Super. Ct. App. Div. June 14, 2007)
6/14/2007
As permitted by the New Jersey Uniform Arbitration Act, the parties to a divorce proceeding entered into an arbitration agreement that provided for heightened judicial review. Even though the provision for heightened review was valid, the appellate court refused to address the merits of the award because the parties had bypassed the trial court.
In Hogoboom v. Hogoboom, A-2794-05T5, 2007 WL 1702820 (N.J. Super. Ct. App. Div. June 14, 2007), John and Kelly Hogoboom obtained a divorce by entering into a property settlement agreement that required John to pay alimony and child support. Under the agreement, John’s obligation to pay alimony would terminate upon Kelly’s remarriage, and his child support obligation would be renegotiated on a periodic basis... Full Story
Arbitrator Exceeded His Powers by Disregarding Contractual Mandate to Award Attorney Fees to the Prevailing Party
Sooner Builders & Investments, Inc. v. Nolan Hatcher Construction Services, LLC, No. 103167, 2007 WL 1752788 (Okla. June 19, 2007)
6/19/2007
The Oklahoma Supreme Court has held that an arbitrator exceeded his powers by disregarding a contractual provision that required him to award attorney fees to the prevailing party. In affirming vacatur on this statutory basis, the Court avoided the question of whether "manifest disregard of the law" is a permissible basis for vacatur in Oklahoma.
In Sooner Builders & Investments, Inc. v. Nolan Hatcher Construction Services, LLC, No. 103167, 2007 WL 1752788 (Okla. June 19, 2007), Nolan Hatcher Construction (Hatcher) subcontracted construction work to Sooner Builders & Investments (Sooner) under six separate contracts... Full Story
California Court of Appeal Rejects Exceptions to Mediation Confidentiality
Wimsatt v. Superior Court, No. B196903, 2007 WL 1739704 (Cal. Ct. App. June 18, 2007)
6/18/2007
According to the California Court of Appeal, the California Code of Evidence requires that communication made "for the purpose of, in the course of, or pursuant to, a mediation or a mediation consultation" be held confidential, and does not permit courts to craft exceptions that would allow a court to avoid a harsh and inequitable result.
In Wimsatt v. Superior Court, No. B196903, 2007 WL 1739704 (Cal. Ct. App. June 18, 2007), law firm Magaña and attorney Wimsatt appealed a trial court's denial of their application for a protective order, and instead sought an order to protect certain briefs, e-mails, and oral communications related to an alleged unauthorized settlement agreement by Wimsatt as "mediation-related," and confidential under the California Code of Evidence. The trial court held that these particular communications were not protected because "the [L]egislature did not intend confidentiality of mediation proceedings to be so complete as to shield perjury or inconsistent statements"... Full Story
Court Remands Matter to Arbitrator for Clarification Because Indeterminate Basis for Award Was Determinative of Whether It Violated Public Policy
Tierney v. Murray, No. CV065002655S, 2007 WL 1675338 (Conn. Super. May 23, 2007)
5/23/2007
Faced with a public policy challenge to an arbitration award entered in a home improvement dispute, a Connecticut trial court remanded the matter to the arbitrator for clarification because the indeterminate basis for the award was determinative of whether the award violated public policy.
In Tierney v. Murray, No. CV065002655S, 2007 WL 1675338 (Conn. Super. May 23, 2007), the Tierneys hired Murray to remodel their home. The Tierneys claimed that Murray's work had significant defects and refused to pay the last several installments due under the contract... Full Story
Home Improvement Contract Did Not Allow Contractor to Recover Attorney Fees for Successfully Compelling Arbitration
Belfor USA Group, Inc. v. Thiel, No 79691-2, 2007 WL 1704209 (Wash. June 14, 2007)
6/14/2007
In reversing an attorney fee award, the Washington Supreme Court held that a contractual provision awarding attorney fees to the prevailing party in a collection action did not extend to awarding attorney fees for successfully compelling arbitration.
In Belfor USA Group, Inc. v. Thiel, No 79691-2, 2007 WL 1704209 (Wash. June 14, 2007), the Thiels hired Belfor to do home repair. When Belfor sued to recover for nonpayment and the Thiels counterclaimed for defective workmanship, Belfor moved to compel arbitration pursuant to the contract. The trial court granted the motion. When the Thiels sought discretionary review, the court of appeals denied their request and awarded Belfor attorney fees. The Thiels appealed from the attorney fee award... Full Story
Court Refuses to Entertain Vacatur Motion Filed over a Year After Notice of the Award
MBNA America Bank, N.A. v. Miles, No. 24867-4-III, 2007 WL 1711803, (Wash. Ct. App. June 14, 2007)
6/14/2007
Under Washington law, a motion to vacate an arbitration award is time-barred if not filed within three months of receiving notice of the award, according to the Washington Court of Appeals.
In MBNA America Bank, N.A. v. Miles, No. 24867-4-III, 2007 WL 1711803, (Wash. Ct. App. June 14, 2007), Miles appealed the denial of a motion to vacate an arbitration award, the denial of a motion for a new trial, and the confirmation of an award entered in favor of MBNA. Miles alleged that the award to MBNA for credit card charges was procured by corruption, fraud or undo means, and that a valid arbitration agreement never existed. MBNA asserted that any challenge to the arbitration award was barred under a statute of limitations... Full Story
FAA Does Not Apply to Sale of Condominiums Despite Use of Out-of-State Building Materials
Satomi Owners Ass'n v. Satomi, LLC, No. 56265-7-I, 2007 WL 1663086 (Wash. Ct. App. June 11, 2007)
6/11/2007
In affirming a lower court order denying arbitration of a warranty claim, the Washington Court of Appeals held that the transaction did not involve interstate commerce and, accordingly, that the Federal Arbitration (FAA) did not preempt a Washington statute which precluded arbitration.
In Satomi Owners Ass'n v. Satomi, LLC, No. 56265-7-I, 2007 WL 1663086 (Wash. Ct. App. June 11, 2007), the Satomi Owners Association (the Association) sued Satomi LLC (the Company), the developer of the Satomi condominiums, claiming that the Company was liable at common law and under the Washington Condominium Act (WCA)... Full Story
ADR Legislation & Regulation
LEGISLATION
CA A 1264
AUTHOR: Eng [D]
TITLE: Courts: Delay Reduction: Unnamed Defendants
INTRODUCED: 02/23/2007
LAST AMEND: 06/20/2007
DISPOSITION: Pending
LOCATION: Senate Judiciary Committee
Commentary:
Amending an existing act regarding the reduction in delay of court proceedings. Amendments include: AB 1264 (1) "Existing law also prohibits delay reduction rules from requiring a period for referral of a case to arbitration that is less than 210 days after the filing of the complaint," and, "The bill also would prohibit the court from conducting a post mediation status conference if the parties have participated in mediation and the mediator files a notice of agreement or Non-agreement at least 5 days before the hearing."
CT S 739
INTRODUCER: Doyle [D]
TITLE: Motor Vehicle Repair Antisteering Practices
INTRODUCED: 01/19/2007
DISPOSITION: To Governor
Commentary:
Substantially revises the arbitration procedures for the arbitration of consumer to manufacturer warranty disputes. Requires the Department of Consumer Protection to provide an independent arbitration procedure for the settlement of disputes between consumers and manufacturers of motor vehicles which do not conform to all applicable warranties under the terms of section 42 179. The Commissioner of Consumer Protection shall appoint as arbitrators individuals who shall not be employees or independent contractors with any business involved in the manufacture, distribution, sale or service of any motor vehicle. The arbitrator shall be a member of an arbitration organization and shall serve with compensation. The Department of Consumer Protection may refer an arbitration dispute to the American Arbitration Association or other arbitration organization in accordance with regulations adopted in accordance with the provisions of chapter 54, provided such organization and any arbitrators appointed by such organization to hear cases shall not be affiliated with any motor vehicle manufacturer, distributor, dealer or repairer. Such arbitration organizations shall comply with the provisions of subsections (b) and (c) of this section. The Commissioner of Consumer Protection shall adopt regulations, in accordance with the provisions of chapter 54, to carry out the purposes of this section. Written copies of the regulations and appropriate arbitration hearing procedures shall be provided to any person upon request.
FL H 7205
SIMILAR: FL H 1457, FL S 2488
AUTHOR: Economic Expansion and Infra Council Cmt
TITLE: Recreational Vehicle Manufacturers and Distributors
INTRODUCED: 04/23/2007
DISPOSITION: To Governor
Commentary:
An act relating to recreational vehicle manufacturers, distributors,
dealers, and importers; forbids a manufacturer or distributor from "coerce(ing) or attempt(ing) to coerce a dealer to...(e)nter into an agreement that requires the dealer to submit its disputes to binding arbitration or otherwise waive rights or responsibilities provided under ss. 320.3201 320.3211. However, provides extensive support for mediation.
FL S 902
COMPARE: FL H 1365, FL H 1373, FL S 2816
SIMILAR: FL H 433
AUTHOR: Judiciary Cmt
TITLE: Community Associations
INTRODUCED: 03/06/2007
ENACTED: 06/19/2007
DISPOSITION: Enacted
Commentary:
Makes adjustments to mediation provisions governing disputes over homeowners' associations.
FL S 978
SIMILAR: FL H 1351
AUTHOR: Aronberg [D]
TITLE: Court Ordered Nonbinding Arbitration
INTRODUCED: 03/06/2007
ENACTED: 06/20/2007
DISPOSITION: Enacted
Commentary:
Amends rules relating to court ordered non binding arbitration. The statute also provides for the awarding of costs and attorney fees if a party challenging an arbitrator's decision in court does not fare at least 25% better in court than it did in arbitration.
IL S 678
SPONSOR: Clayborne [D]
TITLE: Cable and Video Competition Law
INTRODUCED: 02/08/2007
DISPOSITION: To Governor
Commentary:
Amending an act to create the Cable and Video Competition Law of 2007. Amendments include (1) if an issue is not resolved "to the customer's satisfaction, the customer shall be informed of the cable or video provider's complaint procedures and procedures for billing dispute resolution and given a description of the rights and remedies available to customers to enforce the terms of this Article, including to request mediation. AND (q) Cable or video providers shall implement an informal process for handling inquiries from local units of government and customers concerning billing issues, service issues, privacy concerns and other consumer complaints. If this doesn't resolve issue, parties "may request nonbinding mediation with the cable or video provider, with each party to bear its own costs of such mediation. Selection of the mediator will be by mutual agreement, and preference will be given to mediation services that do not charge the consumer for their services."
LA S 256
AUTHOR: Hollis [R]
TITLE: Motor Vehicles
INTRODUCED: 04/30/2007
DISPOSITION: To Governor
Commentary:
Proposed law makes void and unenforceable any litigation or arbitration clause contained in a motor vehicle credit transaction which would remove the transaction outside of Louisiana (VENUE limitation law); and also makes void and unenforceable any such clause contained in a motor vehicle credit transaction that applies law other than Louisiana law (CHOICE OF LAW limitation law) "except as to a supervised financial organization."
ME H 1005
LD: 1431
AUTHOR: Valentino [D]
TITLE: Solid Waste Disposal Facility
INTRODUCED: 03/15/2007
DISPOSITION: To Governor
Commentary:
Expanding on the provisions of the bill that deal with host community agreements. Requires solid waste disposal facilities and incineration facilities to have in place host community agreements and directs the Commissioner of Environmental Protection to establish a mediation process to hear and review disputes concerning host community agreements. Expansion includes an outline of the mediation and arbitration process. Applies AAA rules for the conduct of commercial arbitration proceedings.
ME H 1186
LD: 1703
AUTHOR: Treat [D]
TITLE: Pre Settlement Lawsuit Funding
INTRODUCED: 03/27/2007
ENACTED: 06/21/2007
DISPOSITION: Enacted
Commentary:
Amendment creating a separate article in the Maine Consumer Credit Code to differentiate the activities of legal funding companies from lenders or creditors. Amendment includes a prohibition of the use of mandatory arbitration clauses in legal funding contracts.
ME H 1337
LD: 1903
AUTHOR: Koffman [D]
TITLE: Mold in Buildings
INTRODUCED: 05/09/2007
ENACTED: 06/20/2007
DISPOSITION: Enacted
Commentary:
This bill would regulate mold in buildings. As it relates to alternative dispute resolution, the bill establishes a mandatory mediation program for mold or excess moisture disputes between tenants and landlords to be administered by the Court Alternative Dispute Resolution Service.
NH H 921
AUTHOR: McLeod [D]
TITLE: Insurance Laws
INTRODUCED: 02/15/2007
DISPOSITION: To Governor
Commentary:
Makes various technical changes to the insurance laws; strikes sentence which required companies to remind customers that ADR avenues might be open to them, and instructing them on how to obtain more information.
NJ S 2868
SPONSOR: Sarlo [D]
TITLE: Binding Arbitration In Contract Disputes
PREFILED: 06/21/2007
DISPOSITION: Pending
LOCATION: SENATE
Commentary:
Though the text of the bill is not available, this act "requires binding arbitration in contract disputes between hospitals and health insurance carriers."
NV A 393
AUTHOR: Buckley [D]
TITLE: Repair of Motor Vehicles
INTRODUCED: 03/16/2007
ENACTED: 06/18/2007
DISPOSITION: Enacted
Commentary:
Makes various changes relating to the repair of motor vehicles. Supports use of arbitration.
NV A 431
AUTHOR: Horne [D]
TITLE: Condominium Hotels
INTRODUCED: 03/19/2007
ENACTED: 06/13/2007
DISPOSITION: Enacted
Commentary:
Establishes provisions governing condominium hotels. Provides for mediation, binding and non binding arbitration of certain disputes arising under the statute.
NV A 585
AUTHOR: Taxation Cmt
TITLE: Public Financial Administration Provision Changes
INTRODUCED: 03/26/2007
ENACTED: 06/13/2007
DISPOSITION: Enacted
Commentary:
Amending an act related to public financial administration. Revisions include: sending dispute over who is entitled to excess funds to mediation.
OR H 2117
AUTHOR: Minnis [R]
TITLE: Terminology of Landscaping Services
INTRODUCED: 01/08/2007
ENACTED: 06/22/2007
DISPOSITION: Enacted
Commentary:
Amending an act relating to landscaping. No substantive changes to arbitration mention; but slight change removing requirements regarding format of award.
OR H 2908
AUTHOR: Judiciary Cmt
TITLE: Uninsured Motorist Coverage
INTRODUCED: 03/01/2007
ENACTED: 06/18/2007
DISPOSITION: Enacted
Commentary:
Would require an insurance company to pay up to the limits of a policy for injuries sustained in an accident with an uninsured motorist. If a disagreement with the insurer arises, the dispute may be settled through arbitration.
OR S 198
AUTHOR: Courtney [D]
TITLE: Academic Degrees
INTRODUCED: 01/11/2007
ENACTED: 06/11/2007
DISPOSITION: Enacted
Commentary:
Amending act relating to academic degrees. Mediation mention unaffected; required arbitration of disputes deleted.
OR S 248
AUTHOR: Courtney [D]
TITLE: Employment Agreements
INTRODUCED: 01/12/2007
LAST AMEND: 06/07/2007
DISPOSITION: Pending
LOCATION: HOUSE
Commentary:
"A written arbitration agreement entered into between an employer and employee and otherwise valid ... is void and may not be enforced by the court unless: (a) The employer informs the employee at the time the offer of employment is first communicated to the employee that an arbitration agreement is required as a condition of employment; or (b) The arbitration agreement is entered into upon a subsequent bona fide advancement of the employee by the employer."
OR S 256
AUTHOR: Courtney [D]
TITLE: Motor Vehicle Liability Insurance
INTRODUCED: 01/12/2007
ENACTED: 06/11/2007
DISPOSITION: Enacted
Commentary:
Relating to arbitration of motor vehicle liability disputes; creating new provisions; and amending ORS 742.504, 742.520 and 742.522. Amends the rules governing vehicle liability arbitration in Oregon. The system does not provide for a sole administrator of arbitrations, but rather leaves the selection of arbitrators up to the parties.
OR S 271
AUTHOR: Courtney [D]
TITLE: Court Costs and Fees
INTRODUCED: 01/12/2007
ENACTED: 06/20/2007
DISPOSITION: Enacted
Commentary:
Revises laws governing court costs/arb awards. 5/17/07 amendment removed reference to arbitration.
OR S 484
AUTHOR: Commerce Cmt
TITLE: Unlawful Trade Practices
INTRODUCED: 02/05/2007
DISPOSITION: To Governor
Commentary:
The June 5, 2007 amended bill allows a consumer to revoke a provision of contract that requires the consumer to assert a claim against another party to a contract in a forum that is not in Oregon. The effect of a revocation of a clause requiring arbitration in another state is that the proceeding that requires or allows attendance by consumer must be conducted in Oregon.
OR S 544
AUTHOR: Morse [R]
TITLE: Department of State Lands
INTRODUCED: 02/12/2007
ENACTED: 06/20/2007
DISPOSITION: Enacted
Commentary:
Removes the provision providing for arbitration with the Department of State Lands as an alternative to the Court of Appeals from final orders of the Director relating to permits to remove material from beds or banks of any waters of the state (or permits for filling waters).
PA H 1625
AUTHOR: Grell [R]
TITLE: Judiciary and Judicial Procedure Code
PREFILED: 06/22/2007
INTRODUCED: 06/25/2007
LOCATION: House Judiciary Committee
Commentary:
Prefiled bill that would "extensively revis[e] the Uniform Arbitration Act." Text of the bill strikes existing language and replaces with new language governing arbitration procedure, including but not limited to: arbitral immunity, authority to determine enforceability of arbitration agreement, consolidation of arbitration claims, and remedies properly awarded by the arbitrator (authorizes the award of punitive damages if authorized under applicable civil law). Makes reference in section 7730 to the acts conformance to section 102 of the Electronic Signatures in Global and National Commerce Act. Section 7313(e) awards attorney fees in the event that any claims brought against an arbitrator, arbitration administrator, or representative of an arbitration administrator in relation to its duties performed in arbitration are dismissed on account of arbitral immunity. Section 23(6)(c) Provides for a new arbitration hearing if an award is vacated for a reason other than provided for by statute. Section 7326 "(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."
RI H 5275
AUTHOR: Ucci [D]
TITLE: Fair Dealership Act
INTRODUCED: 02/01/2007
ENACTED: 06/14/2007
DISPOSITION: Enacted
Commentary:
The bill provides protection for dealership owners from the superior economic power of dealership grantors, but does not apply to arbitration agreement under certain circumstances.
RI S 540
AUTHOR: Maselli [D]
TITLE: Commercial Law
INTRODUCED: 02/15/2007
ENACTED: 06/14/2007
DISPOSITION: Enacted
Commentary:
The "Rhode Island Fair Dealership Act" would provide protection for dealership owners within this state from the superior economic power of dealership grantors. "This chapter shall not apply to provisions for the binding arbitration of disputes contained in a dealership agreement, if the criteria for determining whether good cause existed for a termination, cancellation, nonrenewal or substantial change of competitive circumstances, and the relief provided is no less than that
provided for in this chapter."
TX H 610
AUTHOR: Brown F [R]
TITLE: Area Services Plan
INTRODUCED: 01/17/2007
ENACTED: 06/15/2007
DISPOSITION: Enacted
Commentary:
Relates to a plan to provide services to an area annexed by a municipality; allows voluntary arbitration of service plan disputes.
TX H 1038
AUTHOR: Ritter [D]
TITLE: Residential Construction Commission
INTRODUCED: 02/01/2007
ENACTED: 06/15/2007
DISPOSITION: Enacted
Commentary:
Relates to the operation of the Texas Residential Construction Commission: Makes strict requirements for placing/signing arbitration agreements:
(c) If a contract described ... contains a clause that requires the parties to submit a dispute arising under the contract to binding arbitration, the owner must acknowledge acceptance of the clause in writing by signing the contract in a space provided for that purpose immediately adjacent to the clause. The clause must be conspicuously printed or typed in a size equal to at least 14 point bold type. A May 15, 2007 amendment to the bill replaced the 14 point type requirement with a 10 point type requirement, and eliminated the signature requirement.
TX H 2278
AUTHOR: Deshotel [D]
TITLE: Business and Commerce Nonsubstantive Revisions
INTRODUCED: 03/01/2007
ENACTED: 06/15/2007
DISPOSITION: Enacted
Commentary:
"Relates to a nonsubstantive revision of statutes relating to business and commerce; includes conforming amendments." Amendments include: "(b) If a contract contains a provision making the contract or any conflict arising under the contract subject to another state's law, litigation in the courts of another state, or arbitration in another state, that provision is voidable by the party obligated by the contract to perform the construction or repair. (Bus. & Com. Code, Sec. 35.52(a); Sec.273.002.NOTICE OF APPLICABLE LAW OR FORUM. If a contract contains a provision making the contract or any conflict arising under the contract subject to another state's laws, litigation in the courts of another state, or arbitration in another state, that provision must be set out conspicuously in print, type, or other form of writing that is boldfaced, capitalized, underlined, or otherwise set out in such a manner that a reasonable person against whom the provision may operate would notice the provision."
TX H 3147
AUTHOR: Solomons [R]
TITLE: Contractors and Condominiums
INTRODUCED: 03/08/2007
ENACTED: 06/15/2007
DISPOSITION: Enacted
LOCATION: Signed by Governor
Commentary:
Relating to claims against a contractor for construction of common elements under a condominium or cooperative system. Allows arbitration of disputes over construction defects in common areas of condominiums, etc.
TX HCR 198
AUTHOR: Swinford [R]
TITLE: Authority Built Home Inspection Plan
INTRODUCED: 04/18/2007
ENACTED: 06/15/2007
DISPOSITION: Enacted
Commentary:
Enacting an act providing for mediation between home builders and residential owners.
VT H 526
AUTHOR: Education Cmt
TITLE: Public School Costs
INTRODUCED: 03/19/2007
ENACTED: 06/11/2007
DISPOSITION: Enacted
Commentary:
Enacting/Amending an act relating to education quality and cost control. Amendments include: Arbitration shall only occur if both parties agree in writing to submit to binding arbitration for one or more issues remaining in dispute. An agreement to accept binding interest arbitration may not be revoked and shall apply only to the parties to the arbitration.
REGULATION
No new regulations.
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