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

REVISED UNIFORM ARBITRATION ACT RECEIVING WIDESPREAD SUPPORT
Endorsed by American Bar Association

February 22, 2001 - The Uniform Arbitration Act (UAA), as revised in 2000 by the National Conference of Commissioners on Uniform State Laws (NCCUSL), is currently being considered in numerous state legislatures across the nation: Connecticut, Hawaii, Indiana, Minnesota, Missouri, New Mexico, Oklahoma, and West Virginia.

Arbitration is basically a private resolution of a dispute. Many parties choose arbitration because of the relative speed, lower cost, and greater efficiency of the process. The new UAA is a substantial revision of the Uniform Arbitration Act of 1955, the law in 49 states. The 1955 UAA was limited to such basic issues as enforcement of arbitration agreements, appointment of arbitrators, and review of arbitration awards. The new UAA 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 new UAA is also gaining widespread support from numerous groups, including its recent endorsement from the American Bar Association's House of Delegates at its midyear meeting in San Diego, California, February 14-20.

Other than the ABA's endorsement, the new UAA has also been endorsed by seven separate sections of the ABA: Dispute Resolution; Litigation; Business Law; Labor and Employment Law; Torts and Insurance Practice; Real Property, Probate and Trust Law; and Senior Lawyers. It has also been endorsed by: the American Arbitration Association; the National Arbitration Forum; the National Academy of Arbitrators; JamsEndispute; Dispute Resolution Committee of the Association of the Bar of the City of New York; and the American College of Real Estate Lawyers.

The new UAA has a new 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 new UAA gives courts the discretion to consolidate separate arbitration proceedings where common factual or legal issues create the possibility of conflicting rulings.

Under the new UAA, 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 new UAA is limited. Section 14 of the new UAA insulates arbitrators from unwarranted litigation to insure their independence by providing them with immunity.

A copy of the new UAA, along with supporting documents, can be found at NCCUSL's Web site at www.nccusl.org.