28 U.S.C. § 654 — Arbitration

submitted 38 years ago by Pub. L. 100-702 to r/title-28-JUDICIARY-AND-JUDICIAL-PROCEDURE · 276 words · no verdicts yet

in plain englishAI-generated · not legal advice

A district court may refer a consenting civil action to arbitration, including a bankruptcy adversary proceeding, subject to listed exceptions. The court must protect voluntary consent and parties who decline arbitration, and may presume damages are $150,000 or less unless counsel certifies otherwise.

(a) Referral of Actions to Arbitration. Despite other law, and subject to the stated provisions of sections 652 and subsection (d), a district court may refer any pending civil action, including a bankruptcy adversary proceeding, to arbitration when all parties consent. It may not do so if (1) the action alleges a violation of a constitutional right; (2) jurisdiction is based wholly or partly on section 1343; or (3) the requested relief is money damages greater than $150,000. (b) Safeguards in Consent Cases. Until chapter 131 rules cover these procedures, the court must adopt a local rule under section 2071(a) ensuring that (1) consent is freely and knowingly given and (2) no party or lawyer is disadvantaged for refusing arbitration. (c) Presumptions. For the $150,000 limit in subsection (a)(3), the court may presume damages do not exceed $150,000 unless counsel certifies that they do. (d) Existing Programs. Nothing in this chapter is treated as changing an arbitration program conducted under section 1 of title IX of the Judicial Improvements and Access to Justice Act, Public Law 100–702, as amended by section 1 of Public Law 105–53.

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

(a)Referral of Actions to Arbitration.—

Notwithstanding any provision of law to the contrary and except as provided in subsections (a), (b), and (c) of section 652 and subsection (d) of this section, a district court may allow the referral to arbitration of any civil action (including any adversary proceeding in bankruptcy) pending before it when the parties consent, except that referral to arbitration may not be made where—

(1)

the action is based on an alleged violation of a right secured by the Constitution of the United States;

(2)

jurisdiction is based in whole or in part on section 1343 of this title; or

(3)

the relief sought consists of money damages in an amount greater than $150,000.

(b)Safeguards in Consent Cases.—

Until such time as rules are adopted under chapter 131 of this title relating to procedures described in this subsection, the district court shall, by local rule adopted under section 2071(a), establish procedures to ensure that any civil action in which arbitration by consent is allowed under subsection (a)—

(1)

consent to arbitration is freely and knowingly obtained; and

(2)

no party or attorney is prejudiced for refusing to participate in arbitration.

(c)Presumptions.—

For purposes of subsection (a)(3), a district court may presume damages are not in excess of $150,000 unless counsel certifies that damages exceed such amount.

(d)Existing Programs.—

Nothing in this chapter is deemed to affect any program in which arbitration is conducted pursuant to section 1 title IX of the Judicial Improvements and Access to Justice Act (Public Law 100–702), as amended by section 1 of Public Law 105–53.

Source credit: (Added Pub. L. 100–702, title IX, § 901(a), Nov. 19, 1988, 102 Stat. 4660; amended Pub. L. 105–315, § 6, Oct. 30, 1998, 112 Stat. 2995.)

history & why it existsrecord from the source credit

1988Enacted · Pub. L. 100-702 · 102 Stat. 4660
1998Amended · Pub. L. 105-315 · 112 Stat. 2995

A history note hasn’t been published yet. The record shows enactment by Pub. L. 100-702 on 1988-11-19.

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