PUBLIC LAW 105-315—OCT. 30, 1998 112 STAT. 2993 

Public Law 105-315 

105th Congress 

An Act 

To amend title 28, United States Code, with respect to the use of alternative Oct. 30, 1998 

dispute resolution processes in United States district courts, and for other purposes [H.R. 3528] 

Be it enacted by the Senate and House of Representatives of 

the United States of America in Congress assembled, Alternative 

Dispute 

SECTION 1. SHORT TITLE. Resolution Act of 

1998. 

This Act may be cited as the "Alternative Dispute Resolution 28 USC l note. 

Act of 1998". 

SEC. 2. FINDINGS AND DECLARATION OF POLICY. 28 USC 651 note. 

Congress finds that— 

(1) alternative dispute resolution, when supported by the 

bench and bar, and utilizing properly trained neutrals in a 

program adequately administered by the court, has the potential to provide a variety of benefits, including greater satisfaction of the parties, innovative methods of resolving disputes, 

and greater efficiency in achieving settlements; 

(2) certain forms of alternative dispute resolution, including 

mediation, early neutral evaluation, minitrials, and voluntary 

arbitration, may have potential to reduce the large backlog 

of cases now pending in some Federal courts throughout the 

United States, thereby allowing the courts to process their 

remaining cases more efficiently; and 

(3) the continued growth oi Federal appellate court-annexed 

mediation programs suggests that this form of alternative dispute resolution can be equally effective in resolving disputes 

in the Federal trial courts; therefore, the district courts should 

consider including mediation in their local alternative dispute 

resolution programs. 

SEC. 3. ALTERNATIVE DISPUTE RESOLUTION PROCESSES TO BE 

AUTHORIZED IN ALL DISTRICT COURTS. 

Section 651 of title 28, United States Code, is amended to 

read as follows: 

"§ 651. Authorization of alternative dispute resolution 

"(a) DEFINITION.—For purposes of this chapter, an alternative 

dispute resolution process includes any process or procedure, other 

than an adjudication by a presiding judge, in which a neutral 

third party participates to assist in the resolution of issues in 

controversy, through processes such as early neutral evaluation, 

mediation, minitrial, and arbitration as provided in sections 654 

through 658. 
112 STAT. 2994 PUBLIC LAW 105-315—OCT. 30, 1998 

"(b) AUTHORITY.—Each United States district court shall 

authorize, by local rule adopted under section 2071(a), the use 

of alternative dispute resolution processes in all civil actions, including adversary proceedings in bankruptcy, in accordance with this 

chapter, except that the use of airbitration may be authorized only 

as provided in section 654. Each United States district court shall 

devise and implement its own alternative dispute resolution program, by local rule adopted under section 2071(a), to encourage 

and promote the use of alternative dispute resolution in its district. 

"(c) EXISTING ALTERNATIVE DISPUTE RESOLUTION PROGRAMS.— 

In those courts where an alternative dispute resolution program 

is in place on the date of the enactment of the Alternative Dispute 

Resolution Act of 1998, the court shall examine the effectiveness 

of that program and adopt such improvements to the program 

as are consistent with the provisions and purposes of this chapter. 

"(d) ADMINISTRATION OF ALTERNATIVE DISPUTE RESOLUTION 

PROGRAMS.—Each United States district court shall designate an 

employee, or a judicial officer, who is knowledgeable in alternative 

dispute resolution practices and processes to implement, administer, 

oversee, and evaluate the court's alternative dispute resolution program. Such person may also be responsible for recruiting, screening, 

and training attorneys to serve as neutrals and arbitrators in 

the court's alternative dispute resolution program. 

"(e) TITLE 9 NOT AFFECTED.—This chapter shall not affect 

title 9, United States Code. 

"(f) PROGRAM SUPPORT.—^The Federal Judicial Center and the 

Administrative Office of the United States Courts are authorized 

to assist the district courts in the establishment and improvement 

of alternative dispute resolution programs by identifying particular 

practices employed in successful programs and providing additional 

assistance as needed and appropriate.". 

SEC. 4. JURISDICTION. 

Section 652 of title 28, United States Code, is amended to 

read as follows: 

"§652. Jurisdiction 

"(a) CONSIDERATION OF ALTERNATIVE DISPUTE RESOLUTION IN 

APPROPRIATE CASES.—Notwithstanding any provision of law to the 

contrary and except as provided in subsections (b) and (c), each 

district court shall, by local rule adopted under section 2071(a), 

require that litigants in all civil cases consider the use of an 

alternative dispute resolution process at an appropriate stage in 

the litigation. Each district court shall provide litigants in all civil 

cases with at least one alternative dispute resolution process, 

including, but not limited to, mediation, early neutral evaluation, 

minitrial, and arbitration as authorized in sections 654 through 

658. Any district court that elects to require the use of alternative 

dispute resolution in certain cases may do so only with respect 

to mediation, early neutral evaluation, and, if the parties consent, 

arbitration. 

"(b) ACTIONS EXEMPTED FROM CONSIDERATION OF ALTERNATIVE 

DISPUTE RESOLUTION.—Each district court may exempt from the 

requirements of this section specific cases or categories of cases 

in which use of alternative dispute resolution would not be appropriate. In defining these exemptions, each district court shall consult 
PUBLIC LAW 105-315—OCT. 30, 1998 112 STAT. 2995 

with members of the bar, including the United States Attorney 

for that district. 

"(c) AUTHORITY OF THE ATTORNEY GENERAL.—Nothing in this 

section shall alter or conflict with the authority of the Attorney 

General to conduct litigation on behalf of the United States, with 

the authority of any Federal agency authorized to conduct litigation 

in the United States courts, or with any delegation of litigation 

authority by the Attorney General. 

"(d) CONFIDENTIALITY PROVISIONS.—Until such time as rules 

are adopted under chapter 131 of this title providing for the confidentiality of alternative dispute resolution processes under this 

chapter, each district court shall, by local rule adopted under section 

2071(a), provide for the confidentiality of the alternative dispute 

resolution processes and to prohibit disclosure of confidential dispute resolution communications.". 

SEC. 5. MEDIATORS AND NEUTRAL EVALUATORS. 

Section 653 of title 28, United States Code, is amended to 

read as follows: 

"§653. Neutrals 

"(a) PANEL OF NEUTRALS.—Each district court that authorizes 

the use of alternative dispute resolution processes shall adopt appropriate processes for making neutrals available for use by the parties 

for each category of process offered. Each district court shall promulgate its own procedures and criteria for the selection of neutrals 

on its panels. 

"(b) QUALIFICATIONS AND TRAINING.—Each person serving as 

a neutral in an alternative dispute resolution process should be 

qualified and trained to serve as a neutral in the appropriate 

alternative dispute resolution process. For this purpose, tne district 

court may use, among others, magistrate judges who have been 

trained to serve as neutrals in alternative dispute resolution processes, professional neutrals from the private sector, and persons 

who have been trained to serve as neutrals in alternative dispute 

resolution processes. Until such time as rules are adopted under 

chapter 131 of this title relating to the disqualification of neutrals, 

each district court shall issue rules under section 2071(a) relating 

to the disqualification of neutrals (including, where appropriate, 

disqualification under section 455 of this title, other applicable 

law, and professional responsibility standards).". 

SEC. 6. ACTIONS REFERRED TO ARBITRATION. 

Section 654 of title 28, United States Code, is amended to 

read as follows: 

"§654. Arbitration 

"(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 Eirbitration 

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 ofthis title; or 
112 STAT. 2996 PUBLIC LAW 105-315—OCT. 30, 1998 

"(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 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.". 

SEC. 7. ARBITRATORS. 

Section 655 of title 28, United States Code, is amended to 

read as follows: 

"§655. Arbitrators 

"(a) POWERS OP ARBITRATORS.—^An arbitrator to whom an action 

is referred under section 654 shall have the power, within the 

judicial district of the district court which referred the action to 

arbitration— 

"(1) to conduct arbitration hearings; 

"(2) to administer oaths and affirmations; and 

"(3) to make awards. 

"(b) STANDARDS FOR CERTIFICATION.—Each district court that 

authorizes arbitration shall establish standards for the certification 

of arbitrators and shall certify arbitrators to perform services in 

accordance with such standards and this chapter. The standards 

shall include provisions requiring that any arbitrator— 

"(1) shall take the oath or affirmation described in section 

453; and 

"(2) shall be subject to the disqualification rules under 

section 455. 

"(c) IMMUNITY.—^All individuals serving as arbitrators in an 

alternative dispute resolution program under this chapter are 

performing quasi-judicial functions and are entitled to the immunities and protections that the law accords to persons serving in 

such capacity.". 

SEC. 8. SUBPOENAS. 

Section 656 of title 28, United States Code, is amended to 

read as follows: 

"§656. Subpoena s 

"Rule 45 of the Federal Rules of Civil Procedure (relating 

to subpoenas) applies to subpoenas for the attendance of witnesses 

and the production of documentary evidence at an arbitration hearing under this chapter.". 
PUBLIC LAW 105-315—OCT. 30, 1998 112 STAT. 2997 

SEC. 9. ARBITRATION AWARD AND JUDGMENT. 

Section 657 of title 28, United States Code, is amended to 

read as follows: 

"§ 657. Arbitration award and judgment 

"(a) FILING AND EFFECT OF ARBITRATION AWARD.—^An arbitration award made by an arbitrator under this chapter, along with 

proof of service of such award on the other party by the prevailing 

party or by the plaintiff, shall be filed promptly after the arbitration 

hearing is concluded with the clerk of the district court that referred 

the case to arbitration. Such award shall be entered as the judgment 

of the court after the time has expired for requesting a trial de 

novo. The judgment so entered shall be subject to the same provisions of law and shall have the same force and effect as a judgment 

of the court in a civil action, except that the judgment shall not 

be subject to review in any other court by appeal or otherwise. 

"(b) SEALING OF ARBITRATION AWARD.—The district court shall 

provide, by local rule adopted under section 2071(a), that the contents of any arbitration award made under this chapter shall not 

be made known to any judge who might be assigned to the case 

until the district court has entered final judgment in the action 

or the action has otherwise terminated. 

"(c) TRIAL DE NOVO OF ARBITRATION AWARDS.— 

"(1) TIME FOR FILING DEMAND.—Within 30 days after the 

filing of an arbitration award with a district court under subsection (a), any party may file a written demand for a trial 

de novo in the district court. 

"(2) ACTION RESTORED TO COURT DOCKET.—Upon a demand 

for a trial de novo, the action shall be restored to the docket 

of the court and treated for all purposes as if it had not 

been referred to arbitration. 

"(3) EXCLUSION OF EVIDENCE OF ARBITRATION.—The court 

shall not admit at the trial de novo any evidence that there 

has been an arbitration proceeding, the nature or amount of 

any award, or any other matter concerning the conduct of 

the arbitration proceeding, unless— 

"(A) the evidence would otherwise be admissible in 

the court under the Federal Rules of Evidence; or 

"(B) the parties have otherwise stipulated.". 

SEC. 10. COMPENSATION OF ARBITRATORS AND NEUTRALS. 

Section 658 of title 28, United States Code, is amended to 

read as follows: 

^^§ 658. Compensation of arbitrators and neutrals 

"(a) COMPENSATION.—^The district court shall, subject to regulations approved by the Judicial Conference of the United States, 

establish the amount of compensation, if any, that each arbitrator 

or neutral shall receive for services rendered in each case under 

this chapter. 

"(b) TRANSPORTATION ALLOWANCES.—Under regulations pre- Regulations, 

scribed by the Director of the Administrative Office of the United 

States Courts, a district couLrt may reimburse arbitrators and other 

neutrals for actual transportation expenses necessarily incurred 

in the performance of duties under this chapter.". 
112 STAT. 2998 PUBLIC LAW 105-315—OCT. 30, 1998 

28 us e 651 note. SEC. 11. AUTHORIZATION OF APPROPRIATIONS. 

There are authorized to be appropriated for each fiscal year 

such sums as may be necessary to carry out chapter 44 of title 

28, United States Code, as amended by this Act. 

SEC. 12. CONFORMING AMENDMENTS. 

(a) LIMITATION ON MONEY DAMAGES.—Section 901 of the 

Judicial Improvements and Access to Justice Act (28 U.S.C. 652 

note), is amended by striking subsection (c). 

(b) OTHER CONFORMING AMENDMENTS.—(1) The chapter heading for chapter 44 of title 28, United States Code, is amended 

to read as follows: 

"CHAPTER 44—ALTERNATIVE DISPUTE RESOLUTION*'. 

(2) The table of contents for chapter 44 of title 28, United 

States Code, is amended to read as follows: 

"Sec. 

"651. Authorization of alternative dispute resolution. 

"652. Jurisdiction. 

"653. Neutrals. 

"654. Arbitration. 

"655. Arbitrators. 

"656. Subpoenas. 

"657. Arbitration award and judgment. 

"658. Compensation of arbitrators and neutrals.". 

(3) The item relating to chapter 44 in the table of chapters 

for Part III of title 28, United States Code, is amended to read 

as follows: 

"44. Alternative Dispute Resolution 651". 

Approved October 30, 1998. 

LEGISLATIV E fflSTORY—H.R. 3528: 

HOUSE REPORTS: No. 105-487 (Comm. on the Judiciary). 

CONGRESSIONA L RECORD, Vol. 144 (1998): 

Apr. 21, considered and passed House. 

Oct. 7, considered and passed Senate, amended. 

Oct. 10, House concurred in Senate amendments.