HCS CSSB 319(JUD): "An Act relating to arbitration; amending Rules 57(a) and 77(g), Alaska Rules of Civil Procedure; and providing for an effective date."
00HOUSE CS FOR CS FOR SENATE BILL NO. 319(JUD) 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 06 ARTICLE]. A written agreement that is subject to and complies with 07 AS 09.43.015, or that is not subject to AS 09.43.015, to submit a [AN EXISTING] 08 controversy existing at the time the agreement is entered into to arbitration , or a 09 provision in a written agreement that is subject to and complies with AS 09.43.015, 10 or that is not subject to AS 09.43.015, [CONTRACT] to submit to arbitration a 11 [SUBSEQUENT] controversy between the parties occurring after the agreement is 12 entered into is valid, enforceable, and irrevocable, except on [UPON] grounds that 13 exist at law or in equity for the revocation of a contract. [HOWEVER, AS 09.43.010 - 14 09.43.180 DO NOT APPLY TO A LABOR-MANAGEMENT CONTRACT UNLESS
01 THEY ARE INCORPORATED INTO THE CONTRACT BY REFERENCE OR 02 THEIR APPLICATION IS PROVIDED FOR BY STATUTE.] 03 * Sec. 2. AS 09.43 is amended by adding new sections to read: 04 Sec. 09.43.013. Application to labor-management agreements. 05 AS 09.43.010 - 09.43.180 do not apply to a labor-management agreement unless 06 AS 09.43.010 - 09.43.180 are incorporated into the agreement by reference or their 07 application is provided for by statute. 08 Sec. 09.43.015. Arbitration agreement requirement. (a) In order for an 09 agreement to provide for arbitration, the agreement must contain a notice that states 10 that a party may have the option to compel arbitration or to bind the other party to the 11 arbitration decision, and that the arbitration may limit the rights and remedies 12 otherwise available under the law. The notice must also state whether parties to an 13 arbitration agreement waive their rights to obtain a judicial determination of whether 14 a dispute is arbitrable. This notice must be typed in capital letters within the 15 agreement or on a separate document. If an agreement fails to contain the notice 16 required by this subsection, a party may not compel arbitration, an arbitration decision 17 is not binding, and otherwise available rights and remedies are not limited. 18 (b) Language in substantially the following form satisfies the notice 19 requirement of (a) of this section: 20 NOTICE: THIS CONTRACT INCLUDES AN ARBITRATION 21 CLAUSE. IF YOU SIGN THIS CONTRACT, YOU MAY BE 22 COMPELLED TO SUBMIT ANY DISPUTE UNDER THIS 23 CONTRACT TO MANDATORY BINDING ARBITRATION. 24 HOWEVER, BY SIGNING THIS CONTRACT, YOU DO NOT 25 WAIVE YOUR RIGHT TO OBTAIN A JUDICIAL 26 DETERMINATION OF WHETHER A PARTICULAR 27 DISPUTE IS ARBITRABLE. BY SIGNING THIS 28 CONTRACT WITH AN ARBITRATION CLAUSE, YOU 29 WILL BE OR MAY BE LIMITING OR WAIVING YOUR 30 RIGHTS TO 31 (1)HAVE A DISPUTE UNDER THE CONTRACT RESOLVED
01 IN A COURT OF LAW, EVEN WHERE THE CONTRACT 02 WITH THE ARBITRATION CLAUSE IS VOID OR 03 VOIDABLE DUE TO REPUDIATION, RESCISSION, FRAUD, 04 DURESS, MISTAKE, OR OTHER GROUNDS; 05 (2)APPEAL THE ARBITRATOR'S DECISION TO A COURT OF 06 LAW; 07 (3)EXERCISE STATUTORY REMEDIES, SUCH AS A LIEN, 08 INJUNCTION, OR CLAIM FOR DAMAGES; 09 (4)HAVE THE DISPUTE DECIDED BY A DECISION MAKER 10 WITH APPROPRIATE TRAINING TO DECIDE THE 11 DISPUTE; 12 (5)USE DISCOVERY AND OTHER EVIDENCE-GATHERING 13 PROCEDURES OTHERWISE AVAILABLE IN AN ACTION 14 BEFORE A COURT OF LAW; 15 (6)OBTAIN A DECISION CONSISTENT WITH THE LAW AND 16 THE FACTS; 17 (7)OBTAIN A WRITTEN STATEMENT OF THE LEGAL AND 18 FACTUAL BASES OF THE DECISION; 19 (8)RECOVER PUNITIVE DAMAGES IF THE PARTIES' 20 CONTRACT OR ARBITRATION AGREEMENT EXPRESSLY 21 EXCLUDES A RIGHT TO RECOVER PUNITIVE DAMAGES; 22 (9)RECOVER ATTORNEY FEES AND COSTS. 23 (c) In this section, "agreement" does not include an agreement to submit to 24 arbitration a controversy between the parties occurring after the agreement is entered 25 into, if the agreement 26 (1) relates to claims arising out of personal injury, whether based on 27 contract or tort; 28 (2) is by an individual for the acquisition of real or personal property, 29 services, money, or credit and if the total consideration to be paid or furnished by the 30 individual does not exceed the jurisdictional limit set out in AS 22.15.040 at the time 31 the controversy arose; or
01 (3) concerns or relates to insurance policies or annuity contracts, except 02 for contracts between insurance companies. 03 * Sec. 3. AS 09.43.020(a) is amended to read: 04 (a) On application of a party showing an agreement described in AS 09.43.010, 05 and the opposing party's refusal to arbitrate, the court shall order the parties to proceed 06 with arbitration, but , if the opposing party denies the existence of the agreement to 07 arbitrate or alleges that the agreement is subject to but does not comply with 08 AS 09.43.015 , the court shall proceed [SUMMARILY] to determine [THE 09 DETERMINATION OF] the issue and , if the agreement is found to exist and, if 10 subject to AS 09.43.015, to comply with AS 09.43.015, shall order arbitration. 11 * Sec. 4. AS 09.43.020(b) is amended to read: 12 (b) On application, the court may stay an arbitration proceeding commenced 13 or threatened on a showing that there is no agreement to arbitrate or that the 14 agreement is subject to but does not comply with AS 09.43.015 . The issue, when 15 in substantial and bona fide dispute, shall be determined [IMMEDIATELY AND 16 SUMMARILY TRIED] and the stay ordered if no agreement is found to exist or if the 17 agreement is subject to but does not comply with AS 09.43.015 . If found for the 18 opposing party, the court shall order the parties to proceed to arbitration. 19 * Sec. 5. AS 09.43.020 is amended by adding a new subsection to read: 20 (f) When a party challenges under (a) or (b) of this section the existence of 21 an agreement to arbitrate or the compliance of the agreement with AS 09.43.015, the 22 court shall immediately proceed with an expedited hearing. 23 * Sec. 6. AS 09.43.120(a) is amended to read: 24 (a) On application of a party, the court shall vacate an award if 25 (1) the award was procured by fraud or other undue means; 26 (2) there was evident partiality by an arbitrator appointed as a neutral 27 or corruption in any of the arbitrators or misconduct prejudicing the rights of a party; 28 (3) the arbitrators exceeded their powers; 29 (4) the arbitrators refused to postpone the hearing upon sufficient cause 30 being shown for postponement or refused to hear evidence material to the controversy 31 or otherwise so conducted the hearing, contrary to the provisions of AS 09.43.050, as
01 to prejudice substantially the rights of a party; [OR] 02 (5) there was no arbitration agreement and the issue was not adversely 03 determined in proceedings under AS 09.43.020 and the party did not participate in the 04 arbitration hearing without raising the objection ; or 05 (6) the arbitration agreement is subject to but does not comply with 06 AS 09.43.015 . 07 * Sec. 7. AS 09.43.190, 09.43.200, 09.43.210, and 09.43.220 are repealed. 08 * Sec. 8. COURT RULE CHANGES. The provisions of sec. 5 of this Act have the effect 09 of changing 10 (1) Rule 77(g), Alaska Rules of Civil Procedure, by changing the requirements 11 for having an expedited hearing and removing in certain situations the court's discretion 12 whether to expedite a hearing; 13 (2) Rule 57(a), Alaska Rules of Civil Procedure, by removing in certain 14 situations, which may include a declaratory judgment, the court's discretion whether to order 15 a speedy hearing. 16 * Sec. 9. APPLICABILITY. Sections 1 - 6 of this Act only apply to an arbitration 17 proceeding that is in progress or begun on or after the effective date of this Act, except that, 18 if an award has been made by the arbitrator in the proceeding and the time for a request to 19 modify or vacate the award has expired, secs. 1 - 6 of this Act do not apply to the proceeding. 20 * Sec. 10. Section 5 of this Act takes effect only if sec. 8 of this Act receives the two- 21 thirds majority vote of each house required by art. IV, sec. 15, Constitution of the State of 22 Alaska. 23 * Sec. 11. This Act takes effect January 1, 1999.