Legislative developments in New Jersey

Dispute Resolution Journal, Feb-Apr 2003

N.J. Assembly OKs Revised Uniform Arbitration Act

The Revised Uniform Arbitration Act cleared the New Jersey General Assembly in a 68-1 vote on Jan. 23, paving the way for signature of the measure by Gov. James E. McGreevey.

The bill in large part tracks the Revised Uniform Arbitration Act (RUAA) adopted by the National Conference of Commissioners on Uniform State Laws in August 2000, which among other things allows consolidation of separate arbitration proceedings, provides arbitrators with immunity from civil liability to the same extent as a judge acting in a judicial capacity, and requires disclosure of any interest by the arbitrator that may give rise to questions of neutrality.

However, the New Jersey bill modifies NCCUSL's RUAA in order to meet certain requirements of state law and practice. It would allow parties to expand the scope of judicial review of awards, require party-appointed arbitrators make the same disclosures of possible conflicts of interest as neutral arbitrators, and prohibit service as a party arbitrator if the potential arbitrator's interest in the result of the arbitration is not properly disclosed. The bill also would require courts to vacate arbitration awards in cases where there is evident partiality of either a party or neutral arbitrator. It also would establish that procedural matters be governed by the New Jersey court rules. Arbitrations that involve personal injury claims of $20,000 or less, and automobile injury claims of $15,000 or less, would not be covered by the bill's provisions, as they are already covered under separate New Jersey law.