senate Bill S6650

2011-2012 Legislative Session

Relates to the notice of intention to arbitrate

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jun 21, 2012 committed to rules
Mar 22, 2012 advanced to third reading
Mar 21, 2012 2nd report cal.
Mar 20, 2012 1st report cal.396
Mar 08, 2012 referred to judiciary

Votes

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Mar 20, 2012 - Judiciary committee Vote

S6650
21
1
committee
21
Aye
1
Nay
0
Aye with Reservations
1
Absent
0
Excused
0
Abstained
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S6650 - Bill Details

Current Committee:
Senate Rules
Law Section:
Civil Practice Law and Rules
Laws Affected:
Amd ยง7503, CPLR

S6650 - Bill Texts

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Relates to the notice of intention to arbitrate.

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BILL NUMBER:S6650

TITLE OF BILL:
An act
to amend the civil practice law and rules, in relation to the notice of
intention to arbitrate

This is one in a series of measures being introduced at the request of
the Chief Administrative Judge upon the recommendation of her
Advisory Committee on Civil Practice.

This measure would amend subdivision (c) of CPLR 7503, which presently
provides for the service of a demand for arbitration or notice of
intention to arbitrate, and the time in which to object to
arbitrability. The notice requirement specifies that unless a party
served with a demand applies to stay the arbitration within twenty
days after service, such party shall thereafter be precluded from
challenging the agreement to arbitrate or from asserting in court the
bar of the statute of limitations. This measure would extend this
twenty-day time period to thirty days.

The service of a demand for arbitration may be done in the manner of a
summons, but also by registered or certified mail, return receipt
requested. The requirement under 7503(c) that the application must be
made "within twenty days after service" has been interpreted to mean
receipt by the respondent in the arbitration. (Knickerbocker
Insurance Co. v. Gilbert, 28 NY2d 57, 66 [1971]; Prudential
Securities Inc. v. Warsh, 214 AD2d [2d Dept 1995]). Nevertheless,
particularly in cases where there may be a genuine dispute regarding
the existence or scope of the agreement to arbitrate, or where
documentary evidence of same must be obtained, the twenty day time
period can be unreasonably short, and raise difficulties for a party
with a legitimate objection to arbitration.

The public policy in favor of arbitration is strong, and the twenty
day period advances the objective of a swift and sure resolution of
the arbitrability question.
However, we believe that, on balance, extending the period of time
from twenty to thirty days will ameliorate some legitimate
difficulties of a party with a valid objection to arbitration, and at
the same time not unreasonably affect the policy in favor of swift
resolution of arbitration disputes.

This measure would have no fiscal impact on the State. It would take
effect on the first of January next succeeding the date on which it
shall become law and shall apply to all actions pending on such
effective date or commenced on or after such effective date.

LEGISLATIVE HISTORY:
None. New proposal.

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                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  6650

                            I N  S E N A T E

                              March 8, 2012
                               ___________

Introduced  by Sen. BONACIC -- (at request of the Office of Court Admin-
  istration) -- read twice and ordered printed, and when printed  to  be
  committed to the Committee on Judiciary

AN  ACT  to  amend  the civil practice law and rules, in relation to the
  notice of intention to arbitrate

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Subdivision (c) of section 7503 of the civil practice law
and rules, as amended by chapter 1028 of the laws of 1973, is amended to
read as follows:
  (c) Notice of intention to arbitrate. A party may serve  upon  another
party  a  demand  for arbitration or a notice of intention to arbitrate,
specifying the agreement pursuant to which arbitration is sought and the
name and address of the party serving the notice, or of  an  officer  or
agent  thereof if such party is an association or corporation, and stat-
ing that unless the party served applies to stay the arbitration  within
[twenty]  THIRTY days after such service [he] THE PARTY shall thereafter
be precluded from objecting that a valid agreement was not made  or  has
not  been complied with and from asserting in court the bar of a limita-
tion of time. Such notice or demand shall be served in the  same  manner
as  a  summons  or  by  registered  or  certified  mail,  return receipt
requested. An application to stay arbitration must be made by the  party
served  within  [twenty] THIRTY days after service upon [him] SUCH PARTY
of the notice or demand, or  [he]  THE  PARTY  shall  be  so  precluded.
Notice  of  such  application  shall  be  served in the same manner as a
summons or by registered or certified mail,  return  receipt  requested.
Service  of  the application may be made upon the adverse party, or upon
[his] SUCH PARTY'S attorney if the attorney's name appears on the demand
for arbitration or the notice of intention to arbitrate. Service of  the
application by mail shall be timely if such application is posted within
the  prescribed  period.  Any  provision  in an arbitration agreement or
arbitration rules which waives the right to apply for a  stay  of  arbi-
tration is hereby declared null and void.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14024-01-2

S. 6650                             2

  S  2. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law and shall apply to  all
actions  pending  on  such  effective date or commenced on or after such
effective date.

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