Provides that arbitration awards in consumer and employment disputes, where the arbitration is conducted pursuant to a contract, shall include all issues in dispute and findings thereon

Title of bill

An act to amend the civil practice law and rules, in relation to arbitration awards in consumer and employment disputes

Purpose or general idea of bill

This bill would require arbitrators who decide consumer or employment-related disputes to set forth the basis for their awards.

Summary of specific provisions

This bill would require arbitrators deciding consumer or employment-related matters pursuant to contract to state the issues in dispute, as well as the arbitrator's findings of fact and conclusion of law. Further, this bill requires the arbitrator to decide all issues submitted

Justification

It is well-settled that arbitrators are not required to explain or justify their awards. E.g. Colletti v. Mesh, 23 AD2d 245 (1st Dept), aff'd 17 NY2d 460 (1965). In recent years, there has been a proliferation of arbitration hearings in consumer and employment matters. It is particularly important for consumers and employees to know the basis for awards rendered in hearings in which they have participated. This bill does not purport to be a burden upon arbitrators. Or otherwise ameliorate any of the benefits of arbitration, such as speed and efficiency of adjudication.

Still, it is difficult, if not impossible for a losing arbitration participant to know whether any grounds exist to vacate the arbitration award pursuant to CPLR 7511 if the basis for the award remains unknown. This bill was modeled upon 11 NYCRR 65-4.5(s) which has worked well for many years in providing automobile insureds and insurers with the same basic information about arbitration awards in matters brought pursuant to Article 51 of the Insurance Law (no fault arbitrations).

Prior legislative history

New Bill

Fiscal implications

None.

Effective date

This bill shall take effect on the one hundred eightieth day after it shall become law.