What's happening
This bill requires arbitrators in consumer and employment disputes to provide detailed written decisions with findings of fact and law.
Why it matters
Increases transparency and accountability in private arbitration. by requiring arbitrators to explain their reasoning and cite relevant facts and legal principles, making it easier for parties to understand the basis for decisions.
Helps consumers and employees assess the fairness and correctness of outcomes. written findings of fact and law can support challenges to arbitration awards if a party believes the arbitrator misapplied the law or ignored important evidence.
Excludes union-negotiated collective bargaining agreements. , so the rule targets only individual consumer and employment contracts, not disputes governed by union grievance procedures.
May deter biased or arbitrary decision-making. by requiring arbitrators to justify their rulings in writing, potentially leading to higher quality and more consistent arbitration awards.
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Who cares
Headline styles
Require Detailed Arbitration Decisions
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to judiciary
- Referred to judiciary
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Require Arbitration Findings Explained
In Senate Committee · Judiciary · Sponsor Matthew Titone
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6225
2017-2018 Regular Sessions
IN SENATE
May 11, 2017
Introduced by Sen. LANZA -- read twice and ordered printed, and when printed to be committed to the Committee on Judiciary
AN ACT to amend the civil practice law and rules, in relation to arbitration awards in consumer and employment disputes
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 7507 of the civil practice law and rules, as amended by chapter 952 of the laws of 1981, is amended to read as follows:
§ 7507. Award; form; time; delivery. (a) Except as provided in section 7508, the award shall be in writing, signed and affirmed by the arbitrator making it within the time fixed by the agreement, or, if the time is not fixed, within such time as the court orders.
(b) In a matter involving a consumer dispute, pursuant to section three hundred ninety-nine-c of the general business law, or an employment dispute between an employer and employee, as defined in section three of the Fair Labor Standards Act of 1938 (29 U.S.C. § 203), where arbitration was held pursuant to a contract, the award shall state the issues in dispute and shall contain the arbitrator's findings of fact and conclusions of law. Such award shall contain a decision on all issues submitted to the arbitrator. The provisions of this subdivision shall not apply to agreements negotiated with any labor union through collective bargaining.
(c) The parties may in writing extend the time either before or after its expiration. A party waives the objection that an award was not made within the time required unless he or she notifies the arbitrator in writing of his or her objection prior to the delivery of the award to him or her.
(d) The arbitrator shall deliver a copy of the award to each party in the manner provided in the agreement, or, if no provision is so made, personally or by registered or certified mail, return receipt requested.
§ 2. This act shall take effect on the one hundred eightieth day after it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09162-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
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-re- lated 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 submit- ted
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 prolifer- ation 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 amelio- rate 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
2017: S.6225 - Referred to Judiciary / A.6372 - Passed Assembly 2016: S.8040 - Referred to Rules / A.10090A - Passed Assembly
Fiscal implications
None.
Effective date
This bill shall take effect on the one hundred eightieth day after it shall become law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.