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S1280................................................by JUDICIARY AND RULES
ARBITRATION - Repeals and adds to existing law to set forth the provisions
of the Revised Uniform Arbitration Act.
01/15 Senate intro - 1st rdg - to printing
01/16 Rpt prt - to Jud
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature Second Regular Session - 2002
IN THE SENATE
SENATE BILL NO. 1280
BY JUDICIARY AND RULES COMMITTEE
1 AN ACT
2 RELATING TO ARBITRATION; REPEALING CHAPTER 9, TITLE 7, IDAHO CODE; AND AMEND-
3 ING TITLE 7, IDAHO CODE, BY THE ADDITION OF A NEW CHAPTER 9, TITLE 7,
4 IDAHO CODE, TO DEFINE TERMS, TO PROVIDE FOR NOTICE, TO PROVIDE FOR APPLI-
5 CATION, TO PROVIDE FOR THE EFFECT OF AN AGREEMENT TO ARBITRATE, TO SPECIFY
6 WHICH PROVISIONS MAY NOT BE WAIVED, TO PROVIDE FOR THE APPLICATION FOR
7 JUDICIAL RELIEF, TO PROVIDE FOR THE VALIDITY OF AN AGREEMENT TO ARBITRATE,
8 TO PROVIDE FOR A MOTION TO COMPEL OR STAY ARBITRATION, TO SET FORTH PROVI-
9 SIONAL REMEDIES, TO PROVIDE FOR THE INITIATION OF ARBITRATION, TO PROVIDE
10 FOR THE CONSOLIDATION OF SEPARATE ARBITRATION PROCEEDINGS, TO PROVIDE FOR
11 THE APPOINTMENT OF AN ARBITRATOR, TO REQUIRE A NEUTRAL ARBITRATOR, TO PRO-
12 VIDE FOR DISCLOSURE BY AN ARBITRATOR, TO REQUIRE ACTION BY A MAJORITY OF
13 ARBITRATORS IF THERE IS MORE THAN ONE ARBITRATOR, TO PROVIDE THAT AN ARBI-
14 TRATOR IS IMMUNE FROM CERTAIN LIABILITIES, TO PROVIDE THAT AN ARBITRATOR
15 IS NOT COMPETENT TO TESTIFY AND MAY NOT BE REQUIRED TO PRODUCE CERTAIN
16 RECORDS EXCEPT IN SPECIFIED SITUATIONS, TO PROVIDE FOR ATTORNEY'S FEES AND
17 COSTS, TO SET FORTH THE ARBITRATION PROCESS, TO ALLOW FOR LEGAL REPRESEN-
18 TATION FOR PARTIES TO ARBITRATION PROCEEDINGS, TO PROVIDE FOR SUBPOENAS,
19 DEPOSITIONS, DISCOVERY AND PROTECTIVE ORDERS, TO PROVIDE FOR THE ENFORCE-
20 MENT OF SUBPOENAS AND DISCOVERY-RELATED ORDERS, TO PROVIDE FOR THE JUDI-
21 CIAL ENFORCEMENT OF A PREAWARD RULING BY AN ARBITRATOR, TO PROVIDE FOR
22 AWARDS, TO PERMIT THE MODIFICATION OR CORRECTION OF AWARDS BY AN ARBITRA-
23 TOR UNDER CERTAIN CIRCUMSTANCES, TO SPECIFY PERMISSIBLE REMEDIES, TO PRO-
24 VIDE FOR THE AWARD OF FEES AND EXPENSES OF ARBITRATION PROCEEDINGS, TO
25 PROVIDE FOR THE CONFIRMATION OF AWARDS, TO PROVIDE FOR THE VACATING OF
26 AWARDS, TO PROVIDE FOR THE MODIFICATION OR CORRECTION OF AN AWARD BY THE
27 COURT, TO PROVIDE FOR A JUDGMENT ON AN AWARD, TO PROVIDE FOR ATTORNEY'S
28 FEES AND LITIGATION EXPENSES, TO SET FORTH JURISDICTION FOR AGREEMENTS TO
29 ARBITRATE AND JUDGMENTS ON AWARDS, TO PROVIDE FOR VENUE, TO STATE WHEN AN
30 APPEAL MAY BE TAKEN, TO PROVIDE FOR UNIFORMITY OF APPLICATION AND CON-
31 STRUCTION, TO STATE THAT THE PROVISIONS OF THE ACT CONFORM WITH CERTAIN
32 REQUIREMENTS OF THE ELECTRONIC SIGNATURES IN GLOBAL AND NATIONAL COMMERCE
33 ACT AND TO PROVIDE FOR A SAVINGS CLAUSE.
34 Be It Enacted by the Legislature of the State of Idaho:
35 SECTION 1. That Chapter 9, Title 7, Idaho Code, be, and the same is
36 hereby repealed.
37 SECTION 2. That Title 7, Idaho Code, be, and the same is hereby amended
38 by the addition thereto of a NEW CHAPTER, to be known and designated as Chap-
39 ter 9, Title 7, Idaho Code, and to read as follows:
2
1 CHAPTER 9
2 REVISED UNIFORM ARBITRATION ACT
3 7-901. DEFINITIONS. In this act:
4 (1) "Arbitration organization" means an association, agency, board, com-
5 mission, or other entity that is neutral and initiates, sponsors, or adminis-
6 ters an arbitration proceeding or is involved in the appointment of an arbi-
7 trator.
8 (2) "Arbitrator" means an individual appointed to render an award, alone
9 or with others, in a controversy that is subject to an agreement to arbitrate.
10 (3) "Court" means a court of competent jurisdiction in this state.
11 (4) "Knowledge" means actual knowledge.
12 (5) "Person" means an individual, corporation, business trust, estate,
13 trust, partnership, limited liability company, association, joint venture,
14 government, public corporation, governmental subdivision, agency or instrumen-
15 tality, or any other legal or commercial entity.
16 (6) "Record" means information that is inscribed on a tangible medium or
17 that is stored in an electronic or other medium and is retrievable in
18 perceivable form.
19 7-902. NOTICE. (a) Except as otherwise provided in this act, a person
20 gives notice to another person by taking action that is reasonably necessary
21 to inform the other person in ordinary course, whether or not the other person
22 acquires knowledge of the notice.
23 (b) A person has notice if the person has knowledge of the notice or has
24 received notice.
25 (c) A person receives notice when it comes to the person's attention or
26 the notice is delivered at the person's place of residence or place of busi-
27 ness, or at another location held out by the person as a place of delivery of
28 such communications.
29 7-903. WHEN ACT APPLIES. (a) This act governs an agreement to arbitrate
30 made on or after the effective date of this act.
31 (b) This act governs an agreement to arbitrate made before the effective
32 date of this act if all the parties to the agreement or to the arbitration
33 proceeding so agree in a record.
34 (c) On or after January 1, 2003, this act governs an agreement to arbi-
35 trate whenever made.
36 7-904. EFFECT OF AGREEMENT TO ARBITRATE -- NONWAIVABLE PROVISIONS. (a)
37 Except as otherwise provided in subsections (b) and (c) of this section, a
38 party to an agreement to arbitrate or to an arbitration proceeding may waive,
39 or the parties may vary the effect of, the requirements of this act to the
40 extent permitted by law.
41 (b) Before a controversy arises that is subject to an agreement to arbi-
42 trate, a party to the agreement may not:
43 (1) Waive or agree to vary the effect of the requirements of section
44 7-905(a), 7-906(a), 7-908, 7-917(a), 7-917(b), 7-926 or 7-928, Idaho Code;
45 (2) Agree to unreasonably restrict the right under section 7-909, Idaho
46 Code, to notice of the initiation of an arbitration proceeding;
47 (3) Agree to unreasonably restrict the right under section 7-912, Idaho
48 Code, to disclosure of any facts by a neutral arbitrator; or
49 (4) Waive the right under section 7-916, Idaho Code, of a party to an
50 agreement to arbitrate to be represented by a lawyer at any proceeding or
51 hearing under this act, but an employer and a labor organization may waive
3
1 the right to representation by a lawyer in a labor arbitration.
2 (c) A party to an agreement to arbitrate or arbitration proceeding may
3 not waive, or the parties may not vary the effect of, the requirements of this
4 section or section 7-903(a) or (c), 7-907, 7-914, 7-918, 7-920(d) or (e),
5 7-922, 7-923, 7-924, 7-925(a) or (b), 7-929, 7-930 or 7-931, Idaho Code.
6 7-905. APPLICATION FOR JUDICIAL RELIEF. (a) Except as otherwise provided
7 in section 7-928, Idaho Code, an application for judicial relief under this
8 act must be made by motion to the court and heard in the manner provided by
9 law or rule of court for making and hearing motions.
10 (b) Unless a civil action involving the agreement to arbitrate is pend-
11 ing, notice of an initial motion to the court under this act must be served in
12 the manner provided by law for the service of a summons in a civil action.
13 Otherwise, notice of the motion must be given in the manner provided by law or
14 rule of court for serving motions in pending cases.
15 7-906. VALIDITY OF AGREEMENT TO ARBITRATE. (a) An agreement contained in
16 a record to submit to arbitration any existing or subsequent controversy aris-
17 ing between the parties to the agreement is valid, enforceable, and irrevoca-
18 ble except upon a ground that exists at law or in equity for the revocation of
19 a contract.
20 (b) The court shall decide whether an agreement to arbitrate exists or a
21 controversy is subject to an agreement to arbitrate.
22 (c) An arbitrator shall decide whether a condition precedent to
23 arbitrability has been fulfilled and whether a contract containing a valid
24 agreement to arbitrate is enforceable.
25 (d) If a party to a judicial proceeding challenges the existence of, or
26 claims that a controversy is not subject to, an agreement to arbitrate, the
27 arbitration proceeding may continue pending final resolution of the issue by
28 the court, unless the court otherwise orders.
29 7-907. MOTION TO COMPEL OR STAY ARBITRATION. (a) On motion of a person
30 showing an agreement to arbitrate and alleging another person's refusal to
31 arbitrate pursuant to the agreement:
32 (1) If the refusing party does not appear or does not oppose the motion,
33 the court shall order the parties to arbitrate; and
34 (2) If the refusing party opposes the motion, the court shall proceed
35 summarily to decide the issue and order the parties to arbitrate unless it
36 finds that there is no enforceable agreement to arbitrate.
37 (b) On motion of a person alleging that an arbitration proceeding has
38 been initiated or threatened but that there is no agreement to arbitrate, the
39 court shall proceed summarily to decide the issue. If the court finds that
40 there is an enforceable agreement to arbitrate, it shall order the parties to
41 arbitrate.
42 (c) If the court finds that there is no enforceable agreement, it may
43 not, pursuant to subsection (a) or (b) of this section, order the parties to
44 arbitrate.
45 (d) The court may not refuse to order arbitration because the claim sub-
46 ject to arbitration lacks merit or grounds for the claim have not been estab-
47 lished.
48 (e) If a proceeding involving a claim referable to arbitration under an
49 alleged agreement to arbitrate is pending in court, a motion under this sec-
50 tion must be made in that court. Otherwise a motion under this section may be
51 made in any court as provided in section 7-927, Idaho Code.
52 (f) If a party makes a motion to the court to order arbitration, the
4
1 court on just terms shall stay any judicial proceeding that involves a claim
2 alleged to be subject to the arbitration until the court renders a final deci-
3 sion under this section.
4 (g) If the court orders arbitration, the court on just terms shall stay
5 any judicial proceeding that involves a claim subject to the arbitration. If a
6 claim subject to the arbitration is severable, the court may limit the stay to
7 that claim.
8 7-908. PROVISIONAL REMEDIES. (a) Before an arbitrator is appointed and is
9 authorized and able to act, the court, upon motion of a party to an arbitra-
10 tion proceeding and for good cause shown, may enter an order for provisional
11 remedies to protect the effectiveness of the arbitration proceeding to the
12 same extent and under the same conditions as if the controversy were the sub-
13 ject of a civil action.
14 (b) After an arbitrator is appointed and is authorized and able to act:
15 (1) The arbitrator may issue such orders for provisional remedies,
16 including interim awards, as the arbitrator finds necessary to protect the
17 effectiveness of the arbitration proceeding and to promote the fair and
18 expeditious resolution of the controversy, to the same extent and under
19 the same conditions as if the controversy were the subject of a civil
20 action; and
21 (2) A party to an arbitration proceeding may move the court for a provi-
22 sional remedy only if the matter is urgent and the arbitrator is not able
23 to act timely or the arbitrator cannot provide an adequate remedy.
24 (c) A party does not waive a right of arbitration by making a motion
25 under subsection (a) or (b) of this section.
26 7-909. INITIATION OF ARBITRATION. (a) A person initiates an arbitration
27 proceeding by giving notice in a record to the other parties to the agreement
28 to arbitrate in the agreed manner between the parties or, in the absence of
29 agreement, by certified or registered mail, return receipt requested and
30 obtained, or by service as authorized for the commencement of a civil action.
31 The notice must describe the nature of the controversy and the remedy sought.
32 (b) Unless a person objects for lack or insufficiency of notice under
33 section 7-915(c), Idaho Code, not later than the beginning of the arbitration
34 hearing, the person by appearing at the hearing waives any objection to lack
35 of or insufficiency of notice.
36 7-910. CONSOLIDATION OF SEPARATE ARBITRATION PROCEEDINGS. (a) Except as
37 otherwise provided in subsection (c) of this section, upon motion of a party
38 to an agreement to arbitrate or to an arbitration proceeding, the court may
39 order consolidation of separate arbitration proceedings as to all or some of
40 the claims if:
41 (1) There are separate agreements to arbitrate or separate arbitration
42 proceedings between the same persons or one of them is a party to a sepa-
43 rate agreement to arbitrate or a separate arbitration proceeding with a
44 third person;
45 (2) The claims subject to the agreements to arbitrate arise in substan-
46 tial part from the same transaction or series of related transactions;
47 (3) The existence of a common issue of law or fact creates the possibil-
48 ity of conflicting decisions in the separate arbitration proceedings; and
49 (4) Prejudice resulting from a failure to consolidate is not outweighed
50 by the risk of undue delay or prejudice to the rights of or hardship to
51 parties opposing consolidation.
52 (b) The court may order consolidation of separate arbitration proceedings
5
1 as to some claims and allow other claims to be resolved in separate arbitra-
2 tion proceedings.
3 (c) The court may not order consolidation of the claims of a party to an
4 agreement to arbitrate if the agreement prohibits consolidation.
5 7-911. APPOINTMENT OF ARBITRATOR -- SERVICE AS A NEUTRAL ARBITRATOR. (a)
6 If the parties to an agreement to arbitrate agree on a method for appointing
7 an arbitrator, that method must be followed, unless the method fails. If the
8 parties have not agreed on a method, the agreed method fails, or an arbitrator
9 appointed fails or is unable to act and a successor has not been appointed,
10 the court, on motion of a party to the arbitration proceeding, shall appoint
11 the arbitrator. An arbitrator so appointed has all the powers of an arbitrator
12 designated in the agreement to arbitrate or appointed pursuant to the agreed
13 method.
14 (b) An individual who has a known, direct, and material interest in the
15 outcome of the arbitration proceeding or a known, existing, and substantial
16 relationship with a party may not serve as an arbitrator required by an agree-
17 ment to be neutral.
18 7-912. DISCLOSURE BY ARBITRATOR. (a) Before accepting appointment, an
19 individual who is requested to serve as an arbitrator, after making a reason-
20 able inquiry, shall disclose to all parties to the agreement to arbitrate and
21 the arbitration proceeding and to any other arbitrators any known facts that a
22 reasonable person would consider likely to affect the impartiality of the
23 arbitrator in the arbitration proceeding, including:
24 (1) A financial or personal interest in the outcome of the arbitration
25 proceeding; and
26 (2) An existing or past relationship with any of the parties to the
27 agreement to arbitrate or the arbitration proceeding, their counsel or
28 representatives, a witness, or another arbitrator.
29 (b) An arbitrator has a continuing obligation to disclose to all parties
30 to the agreement to arbitrate and the arbitration proceeding and to any other
31 arbitrators any facts that the arbitrator learns after accepting appointment
32 which a reasonable person would consider likely to affect the impartiality of
33 the arbitrator.
34 (c) If an arbitrator discloses a fact required by subsection (a) or (b)
35 of this section to be disclosed and a party timely objects to the appointment
36 or continued service of the arbitrator based upon the fact disclosed, the
37 objection may be a ground under section 7-923(a)(2), Idaho Code, for vacating
38 an award made by the arbitrator.
39 (d) If the arbitrator did not disclose a fact as required by subsection
40 (a) or (b) of this section, upon timely objection by a party, the court under
41 section 7-923(a)(2), Idaho Code, may vacate an award.
42 (e) An arbitrator appointed as a neutral arbitrator who does not disclose
43 a known, direct, and material interest in the outcome of the arbitration pro-
44 ceeding or a known, existing, and substantial relationship with a party is
45 presumed to act with evident partiality under section 7-923(a)(2), Idaho Code.
46 (f) If the parties to an arbitration proceeding agree to the procedures
47 of an arbitration organization or any other procedures for challenges to arbi-
48 trators before an award is made, substantial compliance with those procedures
49 is a condition precedent to a motion to vacate an award on that ground under
50 section 7-923(a)(2), Idaho Code.
51 7-913. ACTION BY MAJORITY. If there is more than one (1) arbitrator, the
52 powers of an arbitrator must be exercised by a majority of the arbitrators,
6
1 but all of them shall conduct the hearing under section 7-915(c), Idaho Code.
2 7-914. IMMUNITY OF ARBITRATOR -- COMPETENCY TO TESTIFY -- ATTORNEY'S
3 FEES AND COSTS. (a) An arbitrator or an arbitration organization acting in
4 that capacity is immune from civil liability to the same extent as a judge of
5 a court of this state acting in a judicial capacity.
6 (b) The immunity afforded by this section supplements any immunity under
7 other law.
8 (c) The failure of an arbitrator to make a disclosure required by section
9 7-912, Idaho Code, does not cause any loss of immunity under this section.
10 (d) In a judicial, administrative, or similar proceeding, an arbitrator
11 or representative of an arbitration organization is not competent to testify,
12 and may not be required to produce records as to any statement, conduct, deci-
13 sion, or ruling occurring during the arbitration proceeding, to the same
14 extent as a judge of a court of this state acting in a judicial capacity. This
15 subsection does not apply:
16 (1) To the extent necessary to determine the claim of an arbitrator,
17 arbitration organization, or representative of the arbitration organiza-
18 tion against a party to the arbitration proceeding; or
19 (2) To a hearing on a motion to vacate an award under section 7-923(a)(1)
20 or (2), Idaho Code, if the movant establishes prima facie that a ground
21 for vacating the award exists.
22 (e) If a person commences a civil action against an arbitrator, arbitra-
23 tion organization, or representative of an arbitration organization arising
24 from the services of the arbitrator, organization, or representative or if a
25 person seeks to compel an arbitrator or a representative of an arbitration
26 organization to testify or produce records in violation of subsection (d) of
27 this section, and the court decides that the arbitrator, arbitration organiza-
28 tion, or representative of an arbitration organization is immune from civil
29 liability or that the arbitrator or representative of the organization is not
30 competent to testify, the court shall award to the arbitrator, organization,
31 or representative reasonable attorney's fees and other reasonable expenses of
32 litigation.
33 7-915. ARBITRATION PROCESS. (a) An arbitrator may conduct an arbitration
34 in such manner as the arbitrator considers appropriate for a fair and expedi-
35 tious disposition of the proceeding. The authority conferred upon the arbitra-
36 tor includes the power to hold conferences with the parties to the arbitration
37 proceeding before the hearing and, among other matters, determine the admissi-
38 bility, relevance, materiality and weight of any evidence.
39 (b) An arbitrator may decide a request for summary disposition of a claim
40 or particular issue:
41 (1) If all interested parties agree; or
42 (2) Upon request of one (1) party to the arbitration proceeding if that
43 party gives notice to all other parties to the proceeding, and the other
44 parties have a reasonable opportunity to respond.
45 (c) If an arbitrator orders a hearing, the arbitrator shall set a time
46 and place and give notice of the hearing not less than five (5) days before
47 the hearing begins. Unless a party to the arbitration proceeding makes an
48 objection to lack or insufficiency of notice not later than the beginning of
49 the hearing, the party's appearance at the hearing waives the objection. Upon
50 request of a party to the arbitration proceeding and for good cause shown, or
51 upon the arbitrator's own initiative, the arbitrator may adjourn the hearing
52 from time to time as necessary but may not postpone the hearing to a time
53 later than that fixed by the agreement to arbitrate for making the award
7
1 unless the parties to the arbitration proceeding consent to a later date. The
2 arbitrator may hear and decide the controversy upon the evidence produced
3 although a party who was duly notified of the arbitration proceeding did not
4 appear. The court, on request, may direct the arbitrator to conduct the hear-
5 ing promptly and render a timely decision.
6 (d) At a hearing under subsection (c) of this section, a party to the
7 arbitration proceeding has a right to be heard, to present evidence material
8 to the controversy, and to cross-examine witnesses appearing at the hearing.
9 (e) If an arbitrator ceases or is unable to act during the arbitration
10 proceeding, a replacement arbitrator must be appointed in accordance with sec-
11 tion 7-911, Idaho Code, to continue the proceeding and to resolve the contro-
12 versy.
13 7-916. REPRESENTATION BY LAWYER. A party to an arbitration proceeding may
14 be represented by a lawyer.
15 7-917. WITNESSES -- SUBPOENAS -- DEPOSITIONS -- DISCOVERY. (a) An arbi-
16 trator may issue a subpoena for the attendance of a witness and for the pro-
17 duction of records and other evidence at any hearing and may administer oaths.
18 A subpoena must be served in the manner for service of subpoenas in a civil
19 action and, upon motion to the court by a party to the arbitration proceeding
20 or the arbitrator, enforced in the manner for enforcement of subpoenas in a
21 civil action.
22 (b) In order to make the proceedings fair, expeditious, and cost effec-
23 tive, upon request of a party to or a witness in an arbitration proceeding, an
24 arbitrator may permit a deposition of any witness to be taken for use as evi-
25 dence at the hearing, including a witness who cannot be subpoenaed for or is
26 unable to attend a hearing. The arbitrator shall determine the conditions
27 under which the deposition is taken.
28 (c) An arbitrator may permit such discovery as the arbitrator decides is
29 appropriate in the circumstances, taking into account the needs of the parties
30 to the arbitration proceeding and other affected persons and the desirability
31 of making the proceeding fair, expeditious, and cost effective.
32 (d) If an arbitrator permits discovery under subsection (c) of this sec-
33 tion, the arbitrator may order a party to the arbitration proceeding to comply
34 with the arbitrator's discovery-related orders, issue subpoenas for the atten-
35 dance of a witness and for the production of records and other evidence at a
36 discovery proceeding, and take action against a noncomplying party to the
37 extent a court could if the controversy were the subject of a civil action in
38 this state.
39 (e) An arbitrator may issue a protective order to prevent the disclosure
40 of privileged information, confidential information, trade secrets, and other
41 information protected from disclosure to the extent a court could if the con-
42 troversy were the subject of a civil action in this state.
43 (f) All laws compelling a person under subpoena to testify and all fees
44 for attending a judicial proceeding, a deposition, or a discovery proceeding
45 as a witness apply to an arbitration proceeding as if the controversy were the
46 subject of a civil action in this state.
47 (g) The court may enforce a subpoena or discovery-related order for the
48 attendance of a witness within this state and for the production of records
49 and other evidence issued by an arbitrator in connection with an arbitration
50 proceeding in another state upon conditions determined by the court so as to
51 make the arbitration proceeding fair, expeditious, and cost effective. A sub-
52 poena or discovery-related order issued by an arbitrator in another state must
53 be served in the manner provided by law for service of subpoenas in a civil
8
1 action in this state and, upon motion to the court by a party to the arbitra-
2 tion proceeding or the arbitrator, enforced in the manner provided by law for
3 enforcement of subpoenas in a civil action in this state.
4 7-918. JUDICIAL ENFORCEMENT OF PREAWARD RULING BY ARBITRATOR. If an arbi-
5 trator makes a preaward ruling in favor of a party to the arbitration proceed-
6 ing, the party may request the arbitrator to incorporate the ruling into an
7 award under section 7-919, Idaho Code. A prevailing party may make a motion to
8 the court for an expedited order to confirm the award under section 7-922,
9 Idaho Code, in which case the court shall summarily decide the motion. The
10 court shall issue an order to confirm the award unless the court vacates, mod-
11 ifies, or corrects the award under section 7-923 or 7-924, Idaho Code.
12 7-919. AWARD. (a) An arbitrator shall make a record of an award. The
13 record must be signed or otherwise authenticated by any arbitrator who concurs
14 with the award. The arbitrator or the arbitration organization shall give
15 notice of the award, including a copy of the award, to each party to the arbi-
16 tration proceeding.
17 (b) An award must be made within the time specified by the agreement to
18 arbitrate or, if not specified therein, within the time ordered by the court.
19 The court may extend or the parties to the arbitration proceeding may agree in
20 a record to extend the time. The court or the parties may do so within or
21 after the time specified or ordered. A party waives any objection that an
22 award was not timely made unless the party gives notice of the objection to
23 the arbitrator before receiving notice of the award.
24 7-920. CHANGE OF AWARD BY ARBITRATOR. (a) On motion to an arbitrator by a
25 party to an arbitration proceeding, the arbitrator may modify or correct an
26 award:
27 (1) Upon a ground stated in section 7-924(a)(1) or (3), Idaho Code;
28 (2) Because the arbitrator has not made a final and definite award upon a
29 claim submitted by the parties to the arbitration proceeding; or
30 (3) To clarify the award.
31 (b) A motion under subsection (a) of this section must be made and notice
32 given to all parties within twenty (20) days after the movant receives notice
33 of the award.
34 (c) A party to the arbitration proceeding must give notice of any objec-
35 tion to the motion within ten (10) days after receipt of the notice.
36 (d) If a motion to the court is pending under section 7-922, 7-923 or
37 7-924, Idaho Code, the court may submit the claim to the arbitrator to con-
38 sider whether to modify or correct the award:
39 (1) Upon a ground stated in section 7-924(a)(1) or (3), Idaho Code;
40 (2) Because the arbitrator has not made a final and definite award upon a
41 claim submitted by the parties to the arbitration proceeding; or
42 (3) To clarify the award.
43 (e) An award modified or corrected pursuant to this section is subject to
44 sections 7-919(a), 7-922, 7-923 and 7-924, Idaho Code.
45 7-921. REMEDIES -- FEES AND EXPENSES OF ARBITRATION PROCEEDING. (a) An
46 arbitrator may award punitive damages or other exemplary relief if such an
47 award is authorized by law in a civil action involving the same claim and the
48 evidence produced at the hearing justifies the award under the legal standards
49 otherwise applicable to the claim.
50 (b) An arbitrator may award reasonable attorney's fees and other reason-
51 able expenses of arbitration if such an award is authorized by law in a civil
9
1 action involving the same claim or by the agreement of the parties to the
2 arbitration proceeding.
3 (c) As to all remedies other than those authorized by subsections (a) and
4 (b) of this section, an arbitrator may order such remedies as the arbitrator
5 considers just and appropriate under the circumstances of the arbitration pro-
6 ceeding. The fact that such a remedy could not or would not be granted by the
7 court is not a ground for refusing to confirm an award under section 7-922,
8 Idaho Code, or for vacating an award under section 7-923, Idaho Code.
9 (d) An arbitrator's expenses and fees, together with other expenses, must
10 be paid as provided in the award.
11 (e) If an arbitrator awards punitive damages or other exemplary relief
12 under subsection (a) of this section, the arbitrator shall specify in the
13 award the basis in fact justifying and the basis in law authorizing the award
14 and state separately the amount of the punitive damages or other exemplary
15 relief.
16 7-922. CONFIRMATION OF AWARD. After a party to an arbitration proceeding
17 receives notice of an award, the party may make a motion to the court for an
18 order confirming the award at which time the court shall issue a confirming
19 order unless the award is modified or corrected pursuant to section 7-920 or
20 7-924, Idaho Code, or is vacated pursuant to section 7-923, Idaho Code.
21 7-923. VACATING AWARD. (a) Upon motion to the court by a party to an
22 arbitration proceeding, the court shall vacate an award made in the arbitra-
23 tion proceeding if:
24 (1) The award was procured by corruption, fraud, or other undue means;
25 (2) There was:
26 (A) Evident partiality by an arbitrator appointed as a neutral arbi-
27 trator;
28 (B) Corruption by an arbitrator; or
29 (C) Misconduct by an arbitrator prejudicing the rights of a party to
30 the arbitration proceeding;
31 (3) An arbitrator refused to postpone the hearing upon showing of suffi-
32 cient cause for postponement, refused to consider evidence material to the
33 controversy, or otherwise conducted the hearing contrary to section 7-915,
34 Idaho Code, so as to prejudice substantially the rights of a party to the
35 arbitration proceeding;
36 (4) An arbitrator exceeded the arbitrator's powers;
37 (5) There was no agreement to arbitrate, unless the person participated
38 in the arbitration proceeding without raising the objection under section
39 7-915(c), Idaho Code, not later than the beginning of the arbitration
40 hearing; or
41 (6) The arbitration was conducted without proper notice of the initiation
42 of an arbitration as required in section 7-909, Idaho Code, so as to prej-
43 udice substantially the rights of a party to the arbitration proceeding.
44 (b) A motion under this section must be filed within ninety (90) days
45 after the movant receives notice of the award pursuant to section 7-919, Idaho
46 Code, or within ninety (90) days after the movant receives notice of a modi-
47 fied or corrected award pursuant to section 7-920, Idaho Code, unless the
48 movant alleges that the award was procured by corruption, fraud, or other
49 undue means, in which case the motion must be made within ninety (90) days
50 after the ground is known or by the exercise of reasonable care would have
51 been known by the movant.
52 (c) If the court vacates an award on a ground other than that set forth
53 in subsection (a)(5) of this section, it may order a rehearing. If the award
10
1 is vacated on a ground stated in subsection (a)(1) or (2) of this section, the
2 rehearing must be before a new arbitrator. If the award is vacated on a ground
3 stated in subsection (a)(3), (4) or (6) of this subsection, the rehearing may
4 be before the arbitrator who made the award or the arbitrator's successor. The
5 arbitrator must render the decision in the rehearing within the same time as
6 that provided in section 7-919(b), Idaho Code, for an award.
7 (d) If the court denies a motion to vacate an award, it shall confirm the
8 award unless a motion to modify or correct the award is pending.
9 7-924. MODIFICATION OR CORRECTION OF AWARD. (a) Upon motion made within
10 ninety (90) days after the movant receives notice of the award pursuant to
11 section 7-919, Idaho Code, or within ninety (90) days after the movant
12 receives notice of a modified or corrected award pursuant to section 7-920,
13 Idaho Code, the court shall modify or correct the award if:
14 (1) There was an evident mathematical miscalculation or an evident mis-
15 take in the description of a person, thing, or property referred to in the
16 award;
17 (2) The arbitrator has made an award on a claim not submitted to the
18 arbitrator and the award may be corrected without affecting the merits of
19 the decision upon the claims submitted; or
20 (3) The award is imperfect in a matter of form not affecting the merits
21 of the decision on the claims submitted.
22 (b) If a motion made under subsection (a) of this section is granted, the
23 court shall modify or correct and confirm the award as modified or corrected.
24 Otherwise, unless a motion to vacate is pending, the court shall confirm the
25 award.
26 (c) A motion to modify or correct an award pursuant to this section may
27 be joined with a motion to vacate the award.
28 7-925. JUDGMENT ON AWARD -- ATTORNEY'S FEES AND LITIGATION EXPENSES. (a)
29 Upon granting an order confirming, vacating without directing a rehearing,
30 modifying, or correcting an award, the court shall enter a judgment in confor-
31 mity therewith. The judgment may be recorded, docketed, and enforced as any
32 other judgment in a civil action.
33 (b) A court may allow reasonable costs of the motion and subsequent judi-
34 cial proceedings.
35 (c) On application of a prevailing party to a contested judicial proceed-
36 ing under section 7-922, 7-923 or 7-924, Idaho Code, the court may add reason-
37 able attorney's fees and other reasonable expenses of litigation incurred in a
38 judicial proceeding after the award is made to a judgment confirming, vacating
39 without directing a rehearing, modifying, or correcting an award.
40 7-926. JURISDICTION. (a) A court of this state having jurisdiction over
41 the controversy and the parties may enforce an agreement to arbitrate.
42 (b) An agreement to arbitrate providing for arbitration in this state
43 confers exclusive jurisdiction on the court to enter judgment on an award
44 under this act.
45 7-927. VENUE. A motion pursuant to section 7-905, Idaho Code, must be
46 made in the court of the county in which the agreement to arbitrate specifies
47 the arbitration hearing is to be held or, if the hearing has been held, in the
48 court of the county in which it was held. Otherwise, the motion may be made in
49 the court of any county in which an adverse party resides or has a place of
50 business or, if no adverse party has a residence or place of business in this
51 state, in the court of any county in this state. All subsequent motions must
11
1 be made in the court hearing the initial motion unless the court otherwise
2 directs.
3 7-928. APPEALS. (a) An appeal may be taken from:
4 (1) An order denying a motion to compel arbitration;
5 (2) An order granting a motion to stay arbitration;
6 (3) An order confirming or denying confirmation of an award;
7 (4) An order modifying or correcting an award;
8 (5) An order vacating an award without directing a rehearing; or
9 (6) A final judgment entered pursuant to this act.
10 (b) An appeal under this section must be taken as from an order or a
11 judgment in a civil action.
12 7-929. UNIFORMITY OF APPLICATION AND CONSTRUCTION. In applying and con-
13 struing this uniform act, consideration must be given to the need to promote
14 uniformity of the law with respect to its subject matter among states that
15 enact it.
16 7-930. RELATIONSHIP TO ELECTRONIC SIGNATURES IN GLOBAL AND NATIONAL COM-
17 MERCE ACT. The provisions of this act governing the legal effect, validity and
18 enforceability of electronic records or electronic signatures, and of con-
19 tracts performed with the use of such records or signatures, conform to the
20 requirements of section 102 of the electronic signatures in global and
21 national commerce act.
22 7-931. SAVINGS CLAUSE. This act does not affect an action or proceeding
23 commenced or right accrued before this act takes effect. Subject to section
24 7-903, Idaho Code, an arbitration agreement made before the effective date of
25 this act is governed by the provisions of the uniform arbitration act, chapter
26 9, title 7, Idaho Code, as those provisions existed prior to their repeal.
STATEMENT OF PURPOSE
RS 11588
This legislation repeals Chapter 9, Title VII, Idaho Code, Uniform
Arbitration Act and amends Title VII by enacting a new Chapter 9
entitled "Revised Uniform Arbitration Act" ("RUAA"). Except for
minor revisions to accommodate existing Idaho law, RUAA was drafted
and approved by the National Conference of Commissioners on Uniform
State Laws at its 2000 annual meeting, and is recommended by the
Idaho Uniform Law Commission for adoption in Idaho. The RUAA has
been endorsed by the American Arbitration Association and the
National Academy of Arbitrators.
The RUAA continues the central policy of the predecessor 1955 Uniform
Arbitration Act of authorizing agreements to arbitrate disputes before
there is an actual dispute. The RUAA goes further by augmenting
procedural aspects of arbitration to meet modern needs and attempts
to adjust the provisions of the earlier Act to avoid preemption by the
Federal Arbitration Act. The RUAA provides more complete arbitration
procedures and provisions, including: provisional remedies are permitted
before and after selection of an arbitrator; an arbitrator is empowered
to consolidate separate, but related, proceedings; the RUAA requires
that an arbitrator disclose known facts that could affect his or her
impartiality, such as financial or personal interests in the outcome;
arbitrators are granted express immunity from civil liability to the
same extent a judge acting in a judicial capacity would be immune;
and arbitrators are granted discretion to make summary disposition of
claims, and to use discovery processes as necessary.
FISCAL IMPACT
This Act will have no fiscal impact on the General Fund.
CONTACT PERSON: Rex Blackburn, Uniform Law Commissioner
Blackburn & Jones LLP
1101 West River Street, Suite 220
Boise, ID 83707
Tel: (208) 489-8989
STATEMENT OF PURPOSE/FISCAL NOTE S 128