H. R. 3528—4
‘‘(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 OF 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 immuni-
ties 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. Subpoenas
‘‘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 hear-
ing under this chapter.’’.
H. R. 3528—5
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 arbitra-
tion 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 provi-
sions 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 con-
tents 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 sub-
section (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 regula-
tions 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-
scribed by the Director of the Administrative Office of the United
States Courts, a district court may reimburse arbitrators and other
neutrals for actual transportation expenses necessarily incurred
in the performance of duties under this chapter.’’.
H. R. 3528—6
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 head-
ing 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’’.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.