04/01/1998 01:40 PM Senate JUD

                      SB 319 - ARBITRATION                                     
                                                                               
                                                                               
MR. JERRY BURNETT, staff to Senator Randy Phillips, presented the              
bill as a means to clear up some confusion surrounding arbitration.            
SB 319 requires any agreement to arbitration must clearly state                
that engaging in arbitration may limit or waive other rights to                
action. SB 319 also limits the amount of an arbitration to $7,500              
to correspond with the limit of small claims court. MR. BURNETT                
said the bill was drafted in response to a constituent complaint,              
and is modeled after the Montana code.                                         
                                                                               
MR. BILL MCNALL, an Anchorage attorney specializing in real estate             
law, testified that there is a misconception that arbitration is               
quick, easy and inexpensive. He said in his experience this is not             
the case. MR. MCNALL commented that there are no set standards in              
arbitration and SB 319 will bring this to the attention of                     
consumers and allow them to make a more informed decision about                
dispute resolution.                                                            
                                                                               
SENATOR PARNELL asked if on page 4, line 24, the term "a neutral"              
was used correctly. MR. MCNALL identified this as a term of art and            
said it was used correctly.                                                    
                                                                               
Number 466                                                                     
                                                                               
MR. STEVE DEVRIES, an assistant Attorney General for the Department            
of Law, testified that he had reviewed the bill and saw no legal               
impediments to it. CHAIRMAN TAYLOR asked if it accomplishes its                
purpose and MR. DEVRIES said it will go a long way toward the goal             
expressed by MR. MCNALL.                                                       
                                                                               
SENATOR PARNELL asked if the bill contained a provision relating to            
the competence of the arbitrator. MR. BURNETT replied that issue is            
not addressed in the bill, as the bill only attempts to inform                 
people of their rights and responsibilities under arbitration.                 
                                                                               
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CHAIRMAN TAYLOR remarked that they may soon find themselves talking            
about education, training and certification of arbiters, as                    
arbitration is becoming much more widespread. MR. BURNETT agreed,              
saying attorney's fees in a simple arbitration may considerably                
exceed the award.                                                              
                                                                               
SENATOR PARNELL moved CSSB 319 (L&C). Without objection, it was so             
ordered.