National Conference of Commissioners on Uniform State Laws

211 E. Ontario St., Suite 1300, Chicago, IL 60611
tel 312-915-0195, fax 312-915-0187

For Immediate Release

UNIFORM ARBITRATION ACT REVISED

August 3, 2000-A substantial revision to the Uniform Arbitration Act (UAA) of 1955, the law in 49 states, was approved today by the National Conference of Commissioners on Uniform State Laws at its 109th Annual Meeting in St. Augustine, Florida. The primary purpose of the Revised Uniform Arbitration Act (RUAA) is to advance arbitration as a desirable alternative to litigation. A revision is necessary at this time in light of the ever-increasing use of arbitration and the developments of the law in this area.

Arbitration is basically a private resolution of a dispute. It is a voluntary process, in which autonomy of the parties who enter into arbitration agreements should be given prime consideration, so long as their agreements conform to notions of fundamental fairness. Many parties choose arbitration because of the relative speed, lower cost, and greater efficiency of the process. The RUAA advances and preserves these features.

The UAA 1955 was limited to such basic issues as enforcement of arbitration agreements, appointment of arbitrators, and review of arbitration awards. The RUAA is a much more comprehensive statute: in addition to updating the basic coverage of the 1955 UAA, it addresses many issues that the 1955 UAA did not cover.

The RUAA adds a provision that authorizes the consolidation of separate arbitration proceedings. Most state statutes and arbitration agreements do not specifically address the issue of consolidated arbitration proceedings. The RUAA gives courts the discretion to consolidate separate arbitration proceedings where common factual or legal issues create the possibility of conflicting rulings.

Under the RUAA, the arbitrator must disclose to all parties of the arbitration agreement any facts likely to affect the impartiality of the arbitrator, such as financial or personal interest in the outcome of the arbitration, and existing or past relationships with any of the parties to the arbitration agreement. If an arbitrator fails to disclose such facts, an award may be vacated. This should provide reasonable assurance to the parties of the arbitrator's independence and neutrality.

Finally, in most instances, parties intend the awards of arbitrators to be final with minimal court involvement. This contractual nature of arbitration means that the provision to vacate awards under the RUAA is limited. Section 14 of RUAA insulates arbitrators from unwarranted litigation to insure their independence by providing them with immunity.

The drafting committee to Revise the Uniform Arbitration Act was chaired by Francis J. Pavetti of New London, Connecticut. Other committee members include: Francisco L. Acevedo, Hato Rey, Puerto Rico; Richard T. Cassidy, Burlington, Vermont; M. Michael Cramer, Rockville, Maryland; Barry C. Hawkins, Stamford, Connecticut; Jeremiah Marsh, Chicago, Illinois; Rodney W. Satterwhite, Midland, Texas; James A. Wynn, Jr., Raleigh, North Carolina; and Joan Zeldon, Washington, DC. Timothy J. Heinsz, of Columbia, Missouri, served as the committee's reporter.