I
105TH CONGRESS
1ST SESSION
H. R. 2603
To amend title 28, United States Code, with respect to arbitration in United
States district courts, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 2, 1997
Mr. COBLE (for himself and Mr. GOODLATTE) introduced the following bill;
which was referred to the Committee on the Judiciary
A BILL
To amend title 28, United States Code, with respect to
arbitration in United States district courts, and for other
purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Alternative Dispute
Resolution and Settlement Encouragement Act’’.
SEC. 2. ARBITRATION IN DISTRICT COURTS.
(a) AUTHORIZATION OF APPROPRIATIONS.—Section
905 of the Judicial Improvements and Access to Justice
Act (28 U.S.C. 651 note) is amended in the first sentence
by striking ‘‘for each of the fiscal years 1994 through
1997’’.
(b) ARBITRATION TO BE ORDERED IN ALL DISTRICT
COURTS.—
(1) AUTHORIZATION OF ARBITRATION.—Section
651(a) of title 28, United States Code, is amended
to read as follows:
‘‘(a) AUTHORITY.—Each United States district court
shall authorize by local rule the use of arbitration in civil
actions, including adversary proceedings in bankruptcy, in
accordance with this chapter.’’.
(2) ACTIONS
REFERRED
TO
ARBITRATION.—
Section 652(a) of title 28, United States Code, is
amended—
(A) in paragraph (1)—
(i) in the matter preceding subpara-
graph (A) by striking ‘‘and section 901(c)’’
and all that follows through ‘‘651’’ and in-
serting ‘‘a district court’’; and
(ii) in subparagraph (B) by striking
‘‘$100,000’’ and inserting ‘‘$150,000’’;
and
(B) 
in 
paragraph 
(2) 
by 
striking
‘‘$100,000’’ and inserting ‘‘$150,000’’.
(3) CERTIFICATION OF ARBITRATORS.—Section
656(a) of title 28, United States Code, is amended
by striking ‘‘listed in section 658’’.
(4) REMOVAL OF LIMITATION.—Section 658 of
title 28, United States Code, and the item relating
to such section in the table of sections at the begin-
ning of chapter 44 of title 28, United States Code,
are repealed.
(c) CONFORMING AMENDMENT.—Section 901 of the
Judicial Improvements and Access to Justice Act (28
U.S.C. 652 note) is amended by striking subsection (c).
SEC. 3. AWARD OF REASONABLE COSTS AND ATTORNEY’S
FEES IN FEDERAL CIVIL DIVERSITY LITIGA-
TION AFTER AN OFFER OF SETTLEMENT.
Section 1332 of title 28, United States Code, is
amended by adding at the end the following:
‘‘(e)(1) In any action over which the court has juris-
diction under this section, any party may, at any time not
less than 10 days before trial, serve upon any adverse
party a written offer to settle a claim or claims for money
or property or to the effect specified in the offer, including
a motion to dismiss all claims, and to enter into a stipula-
tion dismissing the claim or claims or allowing judgment
to be entered according to the terms of the offer. Any such
offer, together with proof of service thereof, shall be filed
with the clerk of the court.
‘‘(2) If the party receiving an offer under paragraph
(1) serves written notice on the offeror that the offer is
accepted, either party may then file with the clerk of the
court the notice of acceptance, together with proof of serv-
ice thereof.
‘‘(3) The fact that an offer under paragraph (1) is
made but not accepted does not preclude a subsequent
offer under paragraph (1). Evidence of an offer is not ad-
missible for any purpose except in proceedings to enforce
a settlement, or to determine costs and expenses under
this subsection.
‘‘(4) At any time before judgment is entered, the
court, upon its own motion or upon the motion of any
party, may exempt from this subsection any claim that
the court finds presents a question of law or fact that is
novel and important and that substantially affects nonpar-
ties. If a claim is exempted from this subsection, all offers
made by any party under paragraph (1) with respect to
that claim shall be void and have no effect.
‘‘(5) If all offers made by a party under paragraph
(1) with respect to a claim or claims, including any motion
to dismiss all claims, are not accepted and the judgment,
verdict, or order finally issued (exclusive of costs, ex-