What's happening
This bill requires arbitration awards in consumer and employment disputes to include findings of fact and conclusions of law.
Why it matters
Increases transparency in arbitration. By requiring arbitrators to provide findings of fact and conclusions of law in consumer and employment disputes, parties can better understand the reasoning behind the decision, helping to reveal whether the outcome was fair and justified.
Facilitates potential appeals and judicial review. Detailed written awards make it easier for parties to identify errors or legal misinterpretations, which could strengthen the case for challenging an unfair or unlawful arbitration outcome in court.
Empowers consumers and employees. This change addresses concerns that arbitration can sometimes be a “black box,” empowering individuals who typically have less bargaining power than corporations or employers by arming them with more information about how their cases were decided.
Excludes union-negotiated collective bargaining agreements. The bill specifically does not apply these requirements to labor disputes covered by collective bargaining, recognizing that such agreements often include their own arbitration procedures and standards.
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Who cares
Headline styles
Require Full Arbitration Findings
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
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 Jeffrey Dinowitz
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2630
2019-2020 Regular Sessions
IN SENATE
January 28, 2019
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.
LBD07417-01-9
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 arbi- tration 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
2018: S.6225 - Referred to Judiciary / A.6372 - Passed Assembly 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.