II

103D CONGRESS

2D SESSION S. 2524

To amend chapter 23 of title 28, United States Code, to authorize voluntary

alternative dispute resolution programs in Federal courts, and for other

purposes.

IN THE SENATE OF THE UNITED STATES

OCTOBER 6 (legislative day, SEPTEMBER 12), 1994

Mr. HEFLIN introduced the following bill; which was read twice and referred

to the Committee on the Judiciary

A BILL

To amend chapter 23 of title 28, United States Code, to

authorize voluntary alternative dispute resolution programs in Federal courts, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Voluntary Alternative

5 Dispute Resolution Act of 1994’’.

6 SEC. 2. FINDINGS AND PURPOSES.

7 (a) FINDINGS.—The Congress finds that—

8 (1) civil litigation in Federal courts has become

9 more complicated, time-consuming, and expensive;
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1 (2) increased costs and delays have made it in2 creasingly difficult for litigants to use the formal

3 processes of civil adjudication to position their cases

4 efficiently for resolution;

5 (3) for a growing number of cases, the cost of

6 formal adjudication has become disproportionate to

7 the amount in controversy and has the practical ef8 fect of barring meaningful access to Federal courts

9 for a growing class of litigants; and

10 (4) where appropriate, voluntary alternative dis11 pute resolution may improve direct communication

12 between parties, speed access to information, develop

13 a reliable and cost-effective basis for resolving dis14 putes, and provide a meaningful alternative to for15 mal adjudication.

16 (b) PURPOSE.—The purpose of this Act is to encour17 age broader use of voluntary alternative dispute resolution

18 in appropriate civil actions by supplementing existing

19 sources of authority for Federal courts to establish a wide

20 range of alternative dispute resolution services and proce21 dures.

22 SEC. 3. VOLUNTARY ALTERNATIVE DISPUTE RESOLUTION

23 PROCEDURES AND RESOLUTION PROGRAMS.

24 (a) IN GENERAL.—Chapter 23 of title 28, United

25 States Code, is amended—
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1 (1) by redesignating section 482 as section 483;

2 and

3 (2) by inserting after section 481 the following

4 new section:

5 ‘‘§ 482. Voluntary alternative dispute resolution pro6 cedures and resolution programs

7 ‘‘(a) Each United States district court may—

8 ‘‘(1) encourage litigants in appropriate cases to

9 use voluntary alternative dispute resolution proce10 dures, whether offered in the private sector or spon11 sored by the court; and

12 ‘‘(2) establish such voluntary alternative dispute

13 resolution programs as the court determines appro14 priate.

15 ‘‘(b) The alternative dispute resolution procedures

16 may include mediation, early neutral evaluation, mini17 trials, summary jury or bench trials, and non-binding judi18 cial arbitration.

19 ‘‘(c) A Federal court may establish appropriate vol20 untary alternative dispute resolution procedures and en21 courage voluntary use of alternative dispute resolution

22 services offered in the private sector.

23 ‘‘(d)(1) This section is intended to supplement and

24 not detract, reduce, or displace other sources of authority
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1 for alternative dispute resolution programs in Federal

2 courts.

3 ‘‘(2) An alternative dispute resolution program under

4 this section shall not infringe on a litigant’s right to trial

5 de novo and shall impose no penalty on participating liti6 gants.

7 ‘‘(3) Nothing in this section is intended to interfere

8 with any alternative dispute resolutions program author9 ized under a provision of law other than this section, in10 cluding court annexed non-binding arbitration.’’.

11 (b) TECHNICAL AND CONFORMING AMENDMENT.—

12 The table of sections for chapter 23 of title 28, United

13 States Code is amended by striking out the item relating

14 to section 482 and inserting in lieu thereof the following:

‘‘482. Voluntary alternative dispute resolution procedures and resolution programs.

‘‘483. Definitions.’’.

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