Senate Bill S461

2023-2024 Legislative Session

Relates to providing for vacation of an arbitration award on the ground that the arbitrator was affiliated with a party, or has a financial interest in a party or the outcome

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Current Bill Status - In Senate Committee Judiciary Committee


  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Delivered to Governor
  • Signed By Governor

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2023-S461 (ACTIVE) - Details

See Assembly Version of this Bill:
A925
Current Committee:
Senate Judiciary
Law Section:
Civil Practice Law and Rules
Laws Affected:
Add §§7500 & 7505-a, amd §7501, CPLR
Versions Introduced in Other Legislative Sessions:
2011-2012: A7002
2013-2014: A4789
2015-2016: A2742
2017-2018: S8710, A6637
2019-2020: S5669, A3337
2021-2022: S2100, A1605

2023-S461 (ACTIVE) - Summary

Requires disclosure of possible conflicts; provides for the vacating of an arbitration award on the ground that the arbitrator was affiliated in any way with any party, or has a financial interest directly or indirectly in any party or in the outcome of the arbitration.

2023-S461 (ACTIVE) - Sponsor Memo

2023-S461 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    461
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              January 4, 2023
                                ___________
 
 Introduced by Sen. SEPULVEDA -- 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 grounds
   for  vacating  an  arbitration award on the basis of partiality of the
   arbitrator

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Article 75 of the civil practice law and rules is amended
 by adding a new section 7500 to read as follows:
   § 7500. DEFINITIONS. AS USED IN THIS ARTICLE:
   (A) "ARBITRATION" MEANS A FORM OF DISPUTE RESOLUTION THAT IS AN ALTER-
 NATIVE TO LITIGATION, IN WHICH THE PARTIES AGREE  TO  BE  BOUND  BY  THE
 DETERMINATION OF A NEUTRAL THIRD PARTY ARBITRATOR.
   (B)  "NEUTRAL  THIRD PARTY ARBITRATOR" MEANS AN ARBITRATOR OR PANEL OF
 ARBITRATORS EACH OF WHOM DOES NOT HAVE AN UNDISCLOSED KNOWN, DIRECT, AND
 MATERIAL INTEREST IN THE OUTCOME OF  THE  ARBITRATION  PROCEEDING  OR  A
 KNOWN,  EXISTING, AND SUBSTANTIAL RELATIONSHIP WITH A PARTY, COUNSEL, OR
 REPRESENTATIVE OF A PARTY.
   § 2. Section 7501 of the civil practice law and rules, as  amended  by
 chapter 532 of the laws of 1963, is amended to read as follows:
   §  7501.  Effect  of  arbitration  agreement.   A written agreement to
 submit any controversy thereafter arising or any existing controversy to
 arbitration is enforceable without regard to the  justiciable  character
 of  the  controversy and confers jurisdiction on the courts of the state
 to enforce it and to enter judgment on an award; PROVIDED, HOWEVER, THAT
 ANY LANGUAGE REQUIRING THE CONTROVERSY BE SUBMITTED TO AN ARBITRATOR  OR
 ARBITRATION  ORGANIZATION  THAT IS NOT A NEUTRAL THIRD PARTY ARBITRATOR,
 AS THAT TERM IS DEFINED  IN  SUBDIVISION  (B)  OF  SECTION  SEVENTY-FIVE
 HUNDRED OF THIS ARTICLE, SHALL BE DEEMED VOID; PROVIDED THAT IT SHALL BE
 VALID  WITH  RESPECT  TO  THE  REQUIREMENT THAT THE CONTROVERSY BE ARBI-
 TRATED. THE REQUIREMENT THAT THE CONTROVERSY BE HEARD BY A NEUTRAL THIRD
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00715-01-3
              

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