SB 319: "An Act relating to arbitration; amending Rules 57(a) and 77(g), Alaska Rules of Civil Procedure; and providing for an effective date."
00SENATE BILL NO. 319 01 "An Act relating to arbitration; amending Rules 57(a) and 77(g), Alaska Rules 02 of Civil Procedure; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 09.43.010 is amended to read: 05 Sec. 09.43.010. Arbitration agreements valid; application of article. A 06 written agreement that complies with AS 09.43.015 to submit a [AN EXISTING] 07 controversy existing at the time the agreement is entered into to arbitration or a 08 provision in a written contract to submit to arbitration a subsequent controversy 09 between the parties is valid, enforceable, and irrevocable, except on [UPON] grounds 10 that exist at law or in equity for the revocation of a contract. [HOWEVER, 11 AS 09.43.010 - 09.43.180 DO NOT APPLY TO A LABOR-MANAGEMENT 12 CONTRACT UNLESS THEY ARE INCORPORATED INTO THE CONTRACT BY 13 REFERENCE OR THEIR APPLICATION IS PROVIDED FOR BY STATUTE.] 14 * Sec. 2. AS 09.43.010 is amended by adding a new subsection to read:
01 (b) A provision in a written agreement that complies with AS 09.43.015 to 02 submit to arbitration a controversy between the parties occurring after the agreement 03 is entered into is valid and enforceable except on grounds that exist at law or in equity 04 for the revocation of a contract. This subsection does not apply to 05 (1) claims arising out of personal injury, whether based on contract or 06 tort; 07 (2) a contract by an individual for the acquisition of real or personal 08 property, services, money, or credit if the total consideration to be paid or furnished 09 by the individual does not exceed the jurisdictional limit set out in AS 22.15.040 at 10 the time the controversy arose; 11 (3) an agreement concerning or relating to insurance policies or annuity 12 contracts, except for contracts between insurance companies; or 13 (4) a labor-management agreement unless AS 09.43.020 - 09.43.180 are 14 incorporated into the contract by reference or their application is provided for by 15 statute. 16 * Sec. 3. AS 09.43 is amended by adding a new section to read: 17 Sec. 09.43.015. Arbitration agreement requirement. (a) In order for an 18 agreement to provide for arbitration, the agreement must contain a notice that states 19 that a party has the option to compel arbitration and to bind the other party to the 20 arbitration decision, and that arbitration limits the rights and remedies otherwise 21 available under the law. This notice must be typed in capital letters within the 22 agreement or on a separate document. If an agreement fails to contain the notice 23 required by this subsection, a party may not compel arbitration, an arbitration decision 24 is not binding, and otherwise available rights and remedies are not limited. 25 (b) Language in substantially the following form satisfies the notice 26 requirement of (a) of this section: 27 NOTICE: THIS CONTRACT INCLUDES AN ARBITRATION 28 CLAUSE. IF YOU SIGN THIS CONTRACT, YOU CAN BE 29 COMPELLED TO SUBMIT ANY DISPUTE UNDER THIS 30 CONTRACT TO MANDATORY BINDING ARBITRATION. 31 BY SIGNING THIS CONTRACT WITH AN ARBITRATION
01 CLAUSE, YOU WILL BE OR MAY BE LIMITING OR 02 WAIVING YOUR RIGHTS TO 03 (1)HAVE A DISPUTE UNDER THE CONTRACT RESOLVED 04 IN A COURT OF LAW, EVEN WHERE THE CONTRACT 05 WITH THE ARBITRATION CLAUSE IS VOID OR 06 VOIDABLE DUE TO REPUDIATION, RESCISSION, FRAUD, 07 DURESS, MISTAKE, OR OTHER GROUNDS; 08 (2)APPEAL THE ARBITRATOR'S DECISION TO A COURT OF 09 LAW; 10 (3)EXERCISE STATUTORY REMEDIES, SUCH AS A LIEN, 11 INJUNCTION, OR CLAIM FOR DAMAGES; 12 (4)OBTAIN JUDICIAL DETERMINATION OF WHETHER A 13 DISPUTE UNDER THE CONTRACT IS ARBITRABLE; 14 (5)HAVE THE DISPUTE DECIDED BY A DECISION MAKER 15 WITH APPROPRIATE TRAINING TO DECIDE THE 16 DISPUTE; 17 (6)USE DISCOVERY AND OTHER EVIDENCE-GATHERING 18 PROCEDURES OTHERWISE AVAILABLE IN AN ACTION 19 BEFORE A COURT OF LAW; 20 (7)OBTAIN A DECISION CONSISTENT WITH THE LAW AND 21 THE FACTS; 22 (8)OBTAIN A WRITTEN STATEMENT OF THE LEGAL AND 23 FACTUAL BASES OF THE DECISION; 24 (9)RECOVER PUNITIVE DAMAGES; 25 (10)RECOVER ATTORNEY FEES AND COSTS. 26 * Sec. 4. AS 09.43.020(a) is amended to read: 27 (a) On application of a party showing an agreement described in AS 09.43.010, 28 and the opposing party's refusal to arbitrate, the court shall order the parties to proceed 29 with arbitration, but , if the opposing party denies the existence of the agreement to 30 arbitrate or alleges that the agreement does not comply with AS 09.43.015 , the court 31 shall proceed [SUMMARILY] to determine [THE DETERMINATION OF] the issue
01 and , if the agreement is found to exist and to comply with AS 09.43.015, shall order 02 arbitration. 03 * Sec. 5. AS 09.43.020(b) is amended to read: 04 (b) On application, the court may stay an arbitration proceeding commenced 05 or threatened on a showing that there is no agreement to arbitrate or that the 06 agreement does not comply with AS 09.43.015 . The issue, when in substantial and 07 bona fide dispute, shall be determined [IMMEDIATELY AND SUMMARILY 08 TRIED] and the stay ordered if no agreement is found to exist or if the agreement 09 does not comply with AS 09.43.015 . If found for the opposing party, the court shall 10 order the parties to proceed to arbitration. 11 * Sec. 6. AS 09.43.020 is amended by adding a new subsection to read: 12 (f) When a party challenges under (a) or (b) of this section the existence of 13 an agreement to arbitrate or the compliance of the agreement with AS 09.43.015, the 14 court shall immediately proceed with an expedited hearing. 15 * Sec. 7. AS 09.43.120(a) is amended to read: 16 (a) On application of a party, the court shall vacate an award if 17 (1) the award was procured by fraud or other undue means; 18 (2) there was evident partiality by an arbitrator appointed as a neutral 19 or corruption in any of the arbitrators or misconduct prejudicing the rights of a party; 20 (3) the arbitrators exceeded their powers; 21 (4) the arbitrators refused to postpone the hearing upon sufficient cause 22 being shown for postponement or refused to hear evidence material to the controversy 23 or otherwise so conducted the hearing, contrary to the provisions of AS 09.43.050, as 24 to prejudice substantially the rights of a party; [OR] 25 (5) there was no arbitration agreement and the issue was not adversely 26 determined in proceedings under AS 09.43.020 and the party did not participate in the 27 arbitration hearing without raising the objection ; or 28 (6) the arbitration agreement does not comply with AS 09.43.015 . 29 * Sec. 8. AS 09.43.190, 09.43.200, 09.43.210, and 09.43.220 are repealed. 30 * Sec. 9. COURT RULE CHANGES. The provisions of sec. 6 of this Act have the effect 31 of changing
01 (1) Rule 77(g), Alaska Rules of Civil Procedure, by changing the requirements 02 for having an expedited hearing and removing in certain situations the court's discretion 03 whether to expedite a hearing; 04 (2) Rule 57(a), Alaska Rules of Civil Procedure, by removing in certain 05 situations, which may include a declaratory judgment, the court's discretion whether to order 06 a speedy hearing. 07 * Sec. 10. APPLICABILITY. Sections 1 - 7 of this Act only apply to an arbitration 08 proceeding that is in progress or begun on or after the effective date of this Act, except that, 09 if an award has been made by the arbitrator in the proceeding and the time for a request to 10 modify or vacate the award has expired, secs. 1 - 7 of this Act do not apply to the proceeding. 11 * Sec. 11. Section 5 of this Act takes effect only if sec. 9 of this Act receives the two- 12 thirds majority vote of each house required by art. IV, sec. 15, Constitution of the State of 13 Alaska. 14 * Sec. 12. This Act takes effect immediately under AS 01.10.070(c).