9 U.S.C. § 4 — Failure to arbitrate under agreement; petition to United States court having jurisdiction for order to compel arbitration; notice and service thereof; hearing and determination

submitted 79 years ago by ch. 392 to r/title-9-ARBITRATION · 387 words · no verdicts yet

in plain englishAI-generated · not legal advice

If someone refuses to arbitrate under a written arbitration agreement, the other party can ask a federal district court to order arbitration to proceed. After notice and a hearing, the court decides whether the agreement is valid and being ignored — using a jury if one is demanded — and then orders arbitration or dismisses the case.

If a party feels wronged because another party has failed, neglected, or refused to arbitrate under a written arbitration agreement, that party may petition any United States district court that would otherwise have jurisdiction over the underlying dispute (in a regular civil case or an admiralty case) for an order directing the parties to arbitrate the way their agreement says. The petitioner must give the defaulting party five days' written notice of the petition, served the way the Federal Rules of Civil Procedure require. The hearing on the petition takes place in the district where the petition is filed. If the parties agree that the arbitration agreement exists and that one side failed to honor it, the court simply orders the parties to proceed with arbitration under the agreement's terms. If instead it is disputed whether the arbitration agreement was actually made, or whether one side failed, neglected, or refused to honor it, the court must promptly hold a trial on that dispute. If no jury trial is demanded by the party accused of being in default, or if the dispute is an admiralty matter, the court itself decides the issue. Otherwise, that party may — except in admiralty cases — demand a jury trial on or before the petition's return day; the court then either sends the issue to a jury under the Federal Rules of Civil Procedure or specially calls a jury for the purpose. If the jury finds that no written arbitration agreement was made, or that there was no default, the court dismisses the case. If the jury finds that a written arbitration agreement was made and that one side defaulted on it, the court orders the parties to proceed with arbitration under the agreement.

the actual law source: uscode.house.gov ↗public domain

A party aggrieved by the alleged failure, neglect, or refusal of another to arbitrate under a written agreement for arbitration may petition any United States district court which, save for such agreement, would have jurisdiction under title 28, in a civil action or in admiralty of the subject matter of a suit arising out of the controversy between the parties, for an order directing that such arbitration proceed in the manner provided for in such agreement. Five days’ notice in writing of such application shall be served upon the party in default. Service thereof shall be made in the manner provided by the Federal Rules of Civil Procedure. The court shall hear the parties, and upon being satisfied that the making of the agreement for arbitration or the failure to comply therewith is not in issue, the court shall make an order directing the parties to proceed to arbitration in accordance with the terms of the agreement. The hearing and proceedings, under such agreement, shall be within the district in which the petition for an order directing such arbitration is filed. If the making of the arbitration agreement or the failure, neglect, or refusal to perform the same be in issue, the court shall proceed summarily to the trial thereof. If no jury trial be demanded by the party alleged to be in default, or if the matter in dispute is within admiralty jurisdiction, the court shall hear and determine such issue. Where such an issue is raised, the party alleged to be in default may, except in cases of admiralty, on or before the return day of the notice of application, demand a jury trial of such issue, and upon such demand the court shall make an order referring the issue or issues to a jury in the manner provided by the Federal Rules of Civil Procedure, or may specially call a jury for that purpose. If the jury find that no agreement in writing for arbitration was made or that there is no default in proceeding thereunder, the proceeding shall be dismissed. If the jury find that an agreement for arbitration was made in writing and that there is a default in proceeding thereunder, the court shall make an order summarily directing the parties to proceed with the arbitration in accordance with the terms thereof.

Source credit: (July 30, 1947, ch. 392, 61 Stat. 671; Sept. 3, 1954, ch. 1263, § 19, 68 Stat. 1233.)

history & why it existsrecord from the source credit

1947Enacted · Act of July 30, 1947, ch. 392 · 61 Stat. 671
1954Amended · Act of Sept. 3, 1954, ch. 1263 · 68 Stat. 1233

A history note hasn’t been published yet. The record shows enactment by ch. 392 on 1947-07-30.

all 0 arguments · sorted by: best

no arguments yet — make the first case