A comprehensive weekly ADR overview from the National Arbitration Forum
Week of May 11, 2007

IN THIS ISSUE


ADR Legislation & Regulation

 

 

 

State Cases

Arbitration Award Vacated Where Prevailing Party Failed to Exchange Evidence with Other Party
In re Arbitration of Cincinnati Insurance Co. v. Tyco Fire Products, 2007 WL 1248173 (Minn. Ct. App. May 1, 2007)
5/1/2007

In affirming vacatur of an arbitration award that was procured by "undue means," the Minnesota Court of Appeals rejected a narrow interpretation of "undue means" that would have required some evidence of an improper relationship between the arbitrator and the prevailing party.

In In re Arbitration of Cincinnati Insurance Co. v. Tyco Fire Products, No. A06-1264, 2007 WL 1248173 (Minn. Ct. App. May 1, 2007), Cincinnati brought a subrogation action against Tyco. The parties agreed to submit the dispute to arbitration by Arbitration Forums (AF)...  Full Story


Arkansas Supreme Court Holds That FAA Deadline for Challenging Awards Does Not Apply in the Absence of Written Arbitration Agreement
Danner v. MBNA America Bank, N.A., No. 06-1429, 2007 WL 1219747 (Ark. Apr. 26, 2007)
4/26/2007

In reversing a lower court ruling that a credit card holder's challenge to an arbitration award was untimely, the Arkansas Supreme Court held that the 90-day deadline for challenging an award under the Federal Arbitration Act does not come into play unless there is a written agreement to arbitrate.

In Danner v. MBNA America Bank, N.A., No. 06-1429, 2007 WL 1219747 (Ark. Apr. 26, 2007), MBNA filed an arbitration claim against Danner in an attempt to collect the balance allegedly owing on an MBNA credit card. The arbitrator awarded MBNA $6,198.13...  Full Story


Even After Trial Ends, Georgia Court of Appeals Finds No Waiver of Right to Arbitrate Home Warranty Dispute
Langfitt v. Jackson, No. A06A2428, 2007 WL 914330 (Ga. Ct. App. Mar. 28, 2007)
3/28/2007

Nearly five years and one fully completed jury trial after a complaint was filed against a homebuilder, the Georgia Court of Appeals has held that the dispute may nevertheless be subject to arbitration.

In Langfitt v. Jackson, No. A06A2428, 2007 WL 914330 (Ga. Ct. App. Mar. 28, 2007), Jackson contracted with Langfitt to build his home. When Jackson sued over alleged problems with workmanship and materials, Langfitt filed a motion to compel arbitration pursuant to the terms of the Home Buyers Warranty (HBW). The trial court denied the motion...  Full Story


ADR Legislation & Regulation

LEGISLATION

AR H 2743
AUTHOR: Breedlove [D]
TITLE: Damage and Compensation for Land Use
INTRODUCED: 03/05/2007
LAST AMEND: 03/13/2007
DISPOSITION: Failed
LOCATION: Died
Commentary:
Provides for mediation of land use disputes.

AR H 2801
AUTHOR: Rainey [D]
TITLE: Farm Mediation Act
INTRODUCED: 03/05/2007
DISPOSITION: Failed
LOCATION: Died
Commentary:
Exempts farm equipment financing and all agriculture loans not secured by land from the farm mediation act.

AZ S 1054
AUTHOR: Huppenthal [R]
TITLE: Claims Arbitration
INTRODUCED: 01/08/2007
ENACTED: 04/27/2007
DISPOSITION: Enacted
Commentary:
Amendment to Court Annexed ADR bill raising jurisdictional limits and per diem pay for arbitrators.

CO H 1215
SPONSOR: McGihon [D]
TITLE: Uniform Debt Management Services Act
INTRODUCED: 01/31/2007
DISPOSITION: Pending
LOCATION: Postponed Indefinitely
Commentary:
In an agreement providing debt management services, there should be no "provision that modifies or limits otherwise available forums or procedural rights, including the right to trial by jury," except as provided by Part 2 of the UAA.

CO H 1249
SPONSOR: Primavera [D]
TITLE: Movers of Household Goods
INTRODUCED: 02/01/2007
LAST AMEND: 04/24/2007
DISPOSITION: To Governor
LOCATION: Eligible for Governor
Commentary:
Creates a binding arbitration process for the resolution of disputes between a customer (shipper) and a mover. Makes the use of binding arbitration optional for the shipper. If the shipper chooses binding arbitration, requires the mover to participate in the process in good faith and to abide by the terms of the arbitrator’s award. Applies to moving and accessorial services provided on or after July 1, 2007.

CO H 1307
SPONSOR: Gallegos [D]
TITLE: Seed Act
INTRODUCED: 02/16/2007
ENACTED: 04/26/2007
DISPOSITION: Enacted
LOCATION: Chaptered
CHAPTER: 175
Commentary:
Amends law regarding seed arbitration.

CO S 57
SPONSOR: Veiga [D]
TITLE: Debt Settlement
INTRODUCED: 01/11/2007
LAST AMEND: 05/01/2007
DISPOSITION: To Governor
LOCATION: Eligible for Governor
Commentary:
ENACTING THE "DEBT SETTLEMENT SERVICES ACT." Notes that provisions to arbitrate must comply with Sec. 2 of the FAA.

CO S 216
SPONSOR: Veiga [D]
TITLE: Mortgage Loan Fraud
INTRODUCED: 03/06/2007
LAST AMEND: 05/03/2007
DISPOSITION: To Governor
LOCATION: Eligible for Governor
Commentary:
The amended version of this bill removes a previous provision that would have declared arbitration clauses requiring the consumer to pay the creditor's attorney fees, or unconscionable liquidated damages clause included in residential mortgage loan contract as "unconscionable."

FL H 433
COMPARE: FL H 1365, FL H 1373, FL S 2816
SIMILAR: FL S 902
AUTHOR: Domino [R]
TITLE: Community Associations
PREFILED: 01/22/2007
DISPOSITION: Pending
LOCATION: Tabled
Commentary:
Relating to community associations, this bill modifies statutorily required mediation provisions for aggrieved parties.

FL H 1351
SIMILAR: FL S 978
AUTHOR: Safety and Security Council Cmt
TITLE: Court Ordered Nonbinding Arbitration
PREFILED: 03/02/2007
INTRODUCED: 03/06/2007
LAST AMEND: 04/11/2007
DISPOSITION: Pending
LOCATION: Tabled
Commentary:
Relates to court ordered nonbinding arbitration; revises provisions regarding presentation of testimony and evidence in court ordered, nonbinding arbitration proceedings; revises provisions regarding award of specified costs of trial de novo following arbitration against party requesting trial when trial judgment differs from arbitration award by certain amount.

FL S 902
COMPARE: FL H 1365, FL H 1373, FL S 2816
SIMILAR: FL H 433
AUTHOR: Judiciary Cmt
TITLE: Community Associations
PREFILED: 01/25/2007
INTRODUCED: 03/06/2007
LAST AMEND: 04/17/2007
DISPOSITION: To Governor
LOCATION: To Enrollment
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
PREFILED: 01/26/2007
INTRODUCED: 03/06/2007
LAST AMEND: 04/25/2007
DISPOSITION: To Governor
LOCATION: To Enrollment
Commentary:
Amends rules relating to court ordered nonbinding arbitration.

FL S 2498
COMPARE: FL H 1267, FL H 1307, FL H 7077, FL S 1742, FL S 1866, FL S 2894
AUTHOR: Banking and Insurance Cmt
TITLE: Citizens Property Insurance Corporation
PREFILED: 03/01/2007
INTRODUCED: 03/20/2007
LAST AMEND: 05/04/2007
DISPOSITION: To Governor
LOCATION: To Enrollment
Commentary:
Amends pre existing law stating: "The corporation shall provide a process for neutral arbitration of any dispute between the [Citizens Property Insurance] Corporation and the insurer regarding the terms of the contract. The corporation shall review and monitor the performance of insurers under these contracts."

GA H 227
AUTHOR: Lewis [R]
TITLE: Consumer Choice for Television Act
INTRODUCED: 01/31/2007
LAST AMEND: 04/11/2007
DISPOSITION: To Governor
LOCATION: To Governor
Commentary:
Calls for rulemaking that would "include a requirement that the cable service provider or video service provider participate in mandatory nonbinding mediation with the affected local governing authority and the subscriber if the issue cannot be resolved between the cable service provider or video service provider and the subscriber."

HI H 1253
COMPANION: HI S 1339
AUTHOR: Say [D]
TITLE: Governors Package Bill
INTRODUCED: 01/22/2007
LAST AMEND: 03/21/2007
DISPOSITION: To Governor
LOCATION: Eligible for Governor
Commentary:
In actions (lawsuits or arbitration) against healthcare providers, this bill would exclude any expression of sympathy from evidence.

MI S 476
SPONSOR: Jansen [R]
TITLE: Additional Evidence
INTRODUCED: 05/03/2007
DISPOSITION: Pending
LOCATION: Senate Families & Human Services Committee
Commentary:
Amendment to the standard of review of an arbitrator's award relating to child custody.  States, "Except as provided in section 5081, a court shall not vacate or modify an award concerning child support, custody, or parenting time unless the court finds that the award is adverse to the best interests of the child who is the subject of the award.... A review or modification of a child support, amount, child custody, or parenting time provision under this section shall be based on the record made under section 5077(2). If the court finds that the record is insufficient to determine whether the award is adverse to the best interests of the child, the court may take additional evidence."

MT H 467
AUTHOR: Peterson K [R]
TITLE: Medical Legal Panel Laws
INTRODUCED: 01/26/2007
ENACTED: 04/26/2007
DISPOSITION: Enacted
LOCATION: Chaptered
CHAPTER: 270
Commentary:
Revising Montana Medical Legal Panel Act. Section 2. Section 27 6 105 provides for the panel's reviewability of all malpractice claims except: "those claims subject to a valid arbitration agreement allowed by law or upon which suit has been filed prior to April 19, 1977."

MT H 624
AUTHOR: Clark [R]
TITLE: Implement Nursing Compact
INTRODUCED: 02/09/2007
DISPOSITION: Failed
LOCATION: HOUSE
Commentary:
Implements the "Nurse Licensure Compact." States that the party states may submit the issues in dispute to an arbitration panel that is composed of an individual appointed by the compact administrator in the home state, an individual appointed by the compact administrator in the remote state involved, and an individual mutually agreed upon by the compact administrators.

MT S 78
AUTHOR: Larson [D]
TITLE: Stream Access
PREFILED: 12/12/2006
INTRODUCED: 01/03/2007
LAST AMEND: 02/09/2007
DISPOSITION: Failed
LOCATION: HOUSE
Commentary:
Clarifies stream access from bridges and provides for arbitration.

ND H 1002
AUTHOR: Appropriations Cmt
TITLE: Judicial Appropriation
PREFILED: 12/28/2006
INTRODUCED: 01/03/2007
LAST AMEND: 04/23/2007
ENACTED: 04/30/2007
DISPOSITION: Enacted
LOCATION: Signed by Governor
Commentary:
Providing an appropriation for defraying the expenses of the judicial branch: mediation included in budget.

ND H 1321
AUTHOR: Wrangham [R]
TITLE: Zoning
INTRODUCED: 01/08/2007
LAST AMEND: 04/20/2007
ENACTED: 05/02/2007
DISPOSITION: Enacted
LOCATION: Signed by Governor
Commentary:
Enacting and reenacting sections 40 47 01.1, 40 47 06, and 40 48 03 of the North Dakota Century Code, relating to extraterritorial zoning jurisdiction of cities. Disputes must be submitted to mediation.

NY A 7985
SPONSOR: Alessi [D]
TITLE: Manufactured Home Park Rent Increases
INTRODUCED: 05/02/2007
DISPOSITION: Pending
LOCATION: Assembly Judiciary Committee
Commentary:
"Provides recourse [through arbitration] for homeowners statewide, in manufactured home parks who are confronted with unjustifiable rent increases; delineates terms the court shall consider when determining whether the proposed rent increase is unjustifiable; creates a court alternative dispute resolution service."

NY S 5188
SPONSOR: Farley [R]
TITLE: Foreclosure Consultant Abuse Prevention
INTRODUCED: 04/25/2007
DISPOSITION: Pending
LOCATION: Senate Judiciary Committee
Commentary:
A bill to regulate the practices and services of persons engaging in activities relating to home loan defaults and mortgage foreclosures, including foreclosure consultants. As it relates to arbitration, the bill would make any arbitration clause in an agreement with a foreclosure consultant void at the option of the homeowner. 

NY S 5540
SPONSOR: Fuschillo [R]
TITLE: Health Care Claims and Payments
INTRODUCED: 04/25/2007
DISPOSITION: Pending
LOCATION: Senate Insurance Committee
Commentary:
This is a health claims prompt pay bill that would require an insurer or organization or corporation to pay claims to a policyholder or covered person or make a payment to a health care provider within fifteen days of receipt of an electronic claim or within thirty days of a manually filed claim. Any objections to refund requests that cannot be resolved amongst the insurer and health care provider within thirty days from the receipt of the objection shall be resolved according to procedures established by parties in their contract or by third party arbitration for a determination within thirty days.

OR H 2139
AUTHOR: Minnis [R]
TITLE: Mediation of Workplace Interpersonal Disputes
INTRODUCED: 01/08/2007
ENACTED: 03/29/2007
DISPOSITION: Enacted
LOCATION: Chaptered
CHAPTER: 12
Commentary:
Provides that mediation of workplace interpersonal disputes between employees of public body may be confidential.

PA S 812
PN: 952
AUTHOR: Greenleaf [R]
TITLE: Commercial Mobile Radio Service Providers
INTRODUCED: 05/02/2007
DISPOSITION: Pending
LOCATION: Senate Consumer Protection and Professional Licensure Committee
Commentary:
Provides for the regulation of commercial mobile radio service providers. Further provides for the powers and duties of the Pennsylvania Public Utility Commission. Imposes penalties. Contracts, "May not contain an arbitration clause or an automatic renewal clause unless the contract provides for a renewal option for continued membership which must be affirmatively accepted by the subscriber at the expiration of each contract term."

RI H 5405
AUTHOR: Kennedy [D]
TITLE: Commercial Law
INTRODUCED: 02/13/2007
DISPOSITION: 05/01/2007 Passed HOUSE, to SENATE.
LOCATION: SENATE
Commentary:
This act would prohibit credit card transactions from including a usurious rate of interest and would repeal the credit card lending act. Deletes existing law which explicitly allowed credit card issuers to make amendments, including arbitration clauses.

TX S 354
AUTHOR: Carona [R]
TITLE: Consolidated Insurance Program Regulation
INTRODUCED: 01/29/2007
LAST AMEND: 04/30/2007
DISPOSITION: Pending
LOCATION: SENATE
Commentary:
In an arbitration (or lawsuit) covered by a consolidated insurance program, the insurance policy or contract must provide coverage for the defense of each contractor.

TX S 1167
AUTHOR: Duncan [R]
TITLE: Appeals in Cases Under the Federal Arbitration Act
INTRODUCED: 03/05/2007
LAST AMEND: 04/16/2007
DISPOSITION: Pending
LOCATION: House Civil Practices Committee
Commentary:
Civil procedure bill relating to appeals under the FAA, allowing a person to "take an appeal or writ of error to the court of appeals from the judgment or interlocutory order of a district court, county court at law, or county court to the extent that appeal is permitted by 9 U.S.C. Section 16."

TX S 1782
AUTHOR: West [D]
TITLE: Arbitration Proceedings
INTRODUCED: 03/09/2007
LAST AMEND: 04/23/2007
DISPOSITION: Pending
LOCATION: House Civil Practices Committee
Commentary:
Establishes a state policy generally favoring arbitration, but also provides that "For each consumer arbitration or employment arbitration conducted in this state, the arbitrator or arbitration panel that conducts the arbitration or, if an arbitration services provider administers the arbitration, the arbitration services provider shall file an arbitration disclosure with the office of court administration before the 90th day after the date the arbitration award is signed." The bill also proposes that a court may "vacate, modify, or correct an award as if the award were a judgment entered by a court sitting without a jury." On appellate review, "An appellate court reviewing a judgment entered on an award must apply the same standard of review as if the judgment were entered by a court sitting without a jury."

US H 2061
SPONSOR: Jones [R]
TITLE: Predatory Lending Practices Protection
INTRODUCED: 04/26/2007
DISPOSITION: Pending
LOCATION: House Financial Services Committee
Commentary:
This bill would enact the "Predatory Mortgage Lending Practices Reduction Act." As it relates to arbitration, however, the bill seeks to amend the "Consumer Credit Protection Act," which applies to all consumer transactions. This amendment would render any predispute arbitration agreement in a contract for a consumer transaction unenforceable.

VT S 52
AUTHOR: Transportation Cmt
TITLE: Off Road Vehicles
INTRODUCED: 01/23/2007
DISPOSITION: To Governor
LOCATION: Eligible for Governor
Commentary:
Provides that the new motor vehicle arbitration board be attached to the department of motor vehicles.

WA S 5798
COMPANION: WA H 1849
AUTHOR: Swecker [R]
TITLE: Highway Design Build Construction
INTRODUCED: 02/01/2007
ENACTED: 04/20/2007
DISPOSITION: Enacted
LOCATION: Chaptered
CHAPTER: 2007 152
Commentary:
Requires the Department of Transportation to develop a process for awarding competitively bid highway construction contracts for project over a specified amount that may be constructed using a design build procedure; provides the process must include the scope of services required under the procedure, contractor prequalification requirements, criteria for evaluating technical information and project costs, contractor selection criteria and issue resolution procedures.
 

REGULATION

No new regulations.


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