senate Bill S7772

2019-2020 Legislative Session

Relates to the validity of mandatory arbitration clauses printed on tickets by common carriers

download bill text pdf

Sponsored By

Archive: Last Bill Status - In Senate Committee Judiciary 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
Feb 18, 2020 referred to judiciary

S7772 (ACTIVE) - Details

Current Committee:
Senate Judiciary
Law Section:
General Obligations Law
Laws Affected:
Add §5-338, Gen Ob L
Versions Introduced in 2021-2022 Legislative Session:
S144

S7772 (ACTIVE) - Summary

Provides that mandatory arbitration clauses printed on tickets issued by a common carrier which limits the purchaser's ability to sue for damages caused by negligence are void and unenforceable.

S7772 (ACTIVE) - Sponsor Memo

S7772 (ACTIVE) - Bill Text download pdf


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

                                  7772

                            I N  S E N A T E

                            February 18, 2020
                               ___________

Introduced  by  Sen.  THOMAS -- read twice and ordered printed, and when
  printed to be committed to the Committee on Judiciary

AN ACT to amend the general obligations law, in relation to the validity
  of mandatory arbitration clauses on tickets issued by a common carrier

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

  Section  1.  The  general  obligations  law is amended by adding a new
section 5-338 to read as follows:
  § 5-338. VALIDITY OF CERTAIN CONTRACTS PRINTED  ON  TICKETS.    1.  NO
COVENANT, AGREEMENT OR UNDERSTANDING IN OR IN CONNECTION WITH, OR COLLA-
TERAL  TO, ANY CONTRACT, TICKET OR SIMILAR WRITING, ENTERED INTO BETWEEN
THE OWNER OR OPERATOR OF A COMMON CARRIER OR A COMMON CARRIER OF PASSEN-
GERS BY MOTOR VEHICLE IN THIS STATE, AND  A  PASSENGER  OF  SUCH  COMMON
CARRIER,  SHALL  CONTAIN  A  MANDATORY  ARBITRATION CLAUSE FOR CLAIMS OR
DISPUTES ALLEGING NEGLIGENCE OF THE OWNER, OPERATOR OR PERSON IN  CHARGE
OF  SUCH  COMMON  CARRIER,  OR THEIR AGENTS, SERVANTS OR EMPLOYEES.  ANY
SUCH MANDATORY ARBITRATION CLAUSE SHALL BE DEEMED TO BE VOID AS  AGAINST
PUBLIC  POLICY  AND  WHOLLY  UNENFORCEABLE; PROVIDED THAT ANY SUCH ARBI-
TRATION CLAUSE SHALL BE CONSIDERED SEVERABLE, AND ALL  OTHER  PROVISIONS
OF THE CONTRACT SHALL REMAIN IN EFFECT AND GIVEN FULL FORCE.
  2.  THE  TERM  "MANDATORY  ARBITRATION  CLAUSE"  SHALL  MEAN A TERM OR
PROVISION WHICH REQUIRES THE PARTIES TO  SUCH  CONTRACT  TO  SUBMIT  ANY
CONTROVERSY  THEREAFTER ARISING UNDER SUCH CONTRACT TO ARBITRATION PRIOR
TO THE COMMENCEMENT OF ANY LEGAL ACTION TO  ENFORCE  THE  PROVISIONS  OF
SUCH  CONTRACT  AND  WHICH  ALSO FURTHER PROVIDES LANGUAGE TO THE EFFECT
THAT THE DECISION OF THE ARBITRATOR  OR  PANEL  OF  ARBITRATORS  IN  ITS
APPLICATION  TO  THE  CONSUMER  PARTY  SHALL BE FINAL AND NOT SUBJECT TO
COURT REVIEW.
  § 2. This act shall take effect immediately.


 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14792-02-0

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