Alternative Dispute Resolution Act of 1998
PL 105-315 (H.R.3528), enacted 10/30/1998

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 poten-
tial to provide a variety of benefits, including greater satisfac-
tion 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 dis-
pute 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, includ-
ing 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 pro-
gram, 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 pro-
gram. 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 appro-
priate. 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 con-
fidentiality 
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 dis-
pute 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 appro-
priate processes for making neutrals available for use by the parties 
for each category of process offered. Each district court shall promul-
gate 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 proc-
esses, 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 bank-
ruptcy) 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 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.". 
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 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- 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 u s 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 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". 
Approved October 30, 1998. 
L E G I S L A T I V E fflSTORY—H.R. 3528: 
HOUSE REPORTS: No. 105-487 (Comm. on the Judiciary). 
C O N G R E S S I O N A 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.