-CITE-

28 USC CHAPTER 44 - ALTERNATIVE DISPUTE RESOLUTION 01/06/03

-EXPCITE-

TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE

PART III - COURT OFFICERS AND EMPLOYEES

CHAPTER 44 - ALTERNATIVE DISPUTE RESOLUTION

-HEAD-

CHAPTER 44 - ALTERNATIVE DISPUTE RESOLUTION

-MISC1-

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.

AMENDMENTS

1998 - Pub. L. 105-315, Sec. 12(b)(1), (2), Oct. 30, 1998, 112

Stat. 2998, substituted "ALTERNATIVE DISPUTE RESOLUTION" for

"ARBITRATION" in chapter heading and amended analysis generally,

substituting items 651 to 658 for former items 651 "Authorization

of arbitration", 652 "Jurisdiction", 653 "Powers of arbitrator;

arbitration hearing", 654 "Arbitration award and judgment", 655

"Trial de novo", 656 "Certification of arbitrators", 657

"Compensation of arbitrators", and 658 "District courts that may

authorize arbitration".

-End-

-CITE-

28 USC Sec. 651 01/06/03

-EXPCITE-

TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE

PART III - COURT OFFICERS AND EMPLOYEES

CHAPTER 44 - ALTERNATIVE DISPUTE RESOLUTION

-HEAD-

Sec. 651. Authorization of alternative dispute resolution

-STATUTE-

(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.

(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,

including adversary proceedings in bankruptcy, in accordance with

this chapter, except that the use of arbitration may be authorized

only as provided in section 654. Each United States district court

shall devise and implement its own alternative dispute resolution

program, 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

program. 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.

-SOURCE-

(Added Pub. L. 100-702, title IX, Sec. 901(a), Nov. 19, 1988, 102

Stat. 4659; amended Pub. L. 105-315, Sec. 3, Oct. 30, 1998, 112

Stat. 2993.)

-REFTEXT-

REFERENCES IN TEXT

The date of the enactment of the Alternative Dispute Resolution

Act of 1998, referred to in subsec. (c), is the date of enactment

of Pub. L. 105-315, which was approved Oct. 30, 1998.

-MISC1-

AMENDMENTS

1998 - Pub. L. 105-315 amended section generally, substituting

provisions relating to authorization of alternative dispute

resolution for provisions relating to authorization of arbitration.

EFFECTIVE DATE

Section 907 of title IX of Pub. L. 100-702 provided that: "This

title and the amendments made by this title [enacting this chapter

and provisions set out as notes under this section and section 652

of this title] shall take effect 180 days after the date of

enactment of this Act [Nov. 19, 1988]."

Section 906 of Pub. L. 100-702, as amended by Pub. L. 103-192,

Sec. 1(a), Dec. 14, 1993, 107 Stat. 2292, provided that, effective

Dec. 31, 1994, this chapter and the item relating to this chapter

in the table of chapters at the beginning of part III of this title

were repealed, prior to repeal by Pub. L. 103-420, Sec. 3(b), Oct.

25, 1994, 108 Stat. 4345.

Section 2 of Pub. L. 103-192 provided that this chapter and the

item relating to this chapter in the table of chapters at the

beginning of part III of this title continued on or after Dec. 14,

1993, as if they had not been repealed by section 906 of Pub. L.

100-702, formerly set out above, as such section was in effect on

the day before Dec. 14, 1993.

CONGRESSIONAL FINDINGS AND DECLARATION OF POLICY

Pub. L. 105-315, Sec. 2, Oct. 30, 1998, 112 Stat. 2993, provided

that: "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 potential

to provide a variety of benefits, including greater satisfaction

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 of Federal appellate court-annexed

mediation programs suggests that this form of alternative dispute

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."

MODEL PROCEDURES

Section 902 of title IX of Pub. L. 100-702 provided that: "The

Judicial Conference of the United States may develop model rules

relating to procedures for arbitration under chapter 44, as added

by section 901 of this Act. No model rule may supersede any

provision of such chapter 44, this title [enacting this chapter and

provisions set out as notes under this section and section 652 of

this title], or any law of the United States."

REPORTS BY DIRECTOR OF ADMINISTRATIVE OFFICE OF UNITED STATES

COURTS AND BY FEDERAL JUDICIAL CENTER

Section 903 of Pub. L. 100-702 provided that:

"(a) Annual Report by Director of Administrative Office of the

United States Courts. - The Director of the Administrative Office

of the United States Courts shall include in the annual report of

the activities of the Administrative Office required under section

604(a)(3) [28 U.S.C. 604(a)(3)], statistical information about the

implementation of chapter 44, as added by section 901 of this Act.

"(b) Report by Federal Judicial Center. - Not later than 5 years

after the date of enactment of this Act [Nov. 19, 1988], the

Federal Judicial Center, in consultation with the Director of the

Administrative Office of the United States Courts, shall submit to

the Congress a report on the implementation of chapter 44, as added

by section 901 of this Act, which shall include the following:

"(1) A description of the arbitration programs authorized by

such chapter, as conceived and as implemented in the judicial

districts in which such programs are authorized.

"(2) A determination of the level of satisfaction with the

arbitration programs in those judicial districts by a sampling of

court personnel, attorneys, and litigants whose cases have been

referred to arbitration.

"(3) A summary of those program features that can be identified

as being related to program acceptance both within and across

judicial districts.

"(4) A description of the levels of satisfaction relative to

the cost per hearing of each program.

"(5) Recommendations to the Congress on whether to terminate or

continue chapter 44, or, alternatively, to enact an arbitration

provision in title 28, United States Code, authorizing

arbitration in all Federal district courts."

EFFECT ON JUDICIAL RULEMAKING POWERS

Section 904 of title IX of Pub. L. 100-702 provided that:

"Nothing in this title [enacting this chapter and provisions set

out as notes under this section and section 652 of this title], or

in chapter 44, as added by section 901 of this Act, is intended to

abridge, modify, or enlarge the rule making powers of the Federal

judiciary."

AUTHORIZATION OF APPROPRIATIONS

Pub. L. 105-315, Sec. 11, Oct. 30, 1998, 112 Stat. 2998, provided

that: "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."

Section 905 of Pub. L. 100-702, as amended by Pub. L. 103-192,

Sec. 1(b), Dec. 14, 1993, 107 Stat. 2292; Pub. L. 103-420, Sec.

3(a), Oct. 25, 1994, 108 Stat. 4345; Pub. L. 105-53, Sec. 1, Oct.

6, 1997, 111 Stat. 1173, provided that: "There are authorized to be

appropriated for each fiscal year to the judicial branch such sums

as may be necessary to carry out the purposes of chapter 44, as

added by section 901 of this Act. Funds appropriated under this

section shall be allocated by the Administrative Office of the

United States Courts to Federal judicial districts and the Federal

Judicial Center. The funds so appropriated are authorized to remain

available until expended."

-End-

-CITE-

28 USC Sec. 652 01/06/03

-EXPCITE-

TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE

PART III - COURT OFFICERS AND EMPLOYEES

CHAPTER 44 - ALTERNATIVE DISPUTE RESOLUTION

-HEAD-

Sec. 652. Jurisdiction

-STATUTE-

(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 appropriate. In

defining these exemptions, each district court shall consult 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

confidentiality 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 dispute resolution communications.

-SOURCE-

(Added Pub. L. 100-702, title IX, Sec. 901(a), Nov. 19, 1988, 102

Stat. 4659; amended Pub. L. 105-315, Sec. 4, Oct. 30, 1998, 112

Stat. 2994.)

-MISC1-

AMENDMENTS

1998 - Pub. L. 105-315 amended section generally, substituting

provisions relating to alternative dispute resolution jurisdiction

for provisions relating to arbitration jurisdiction.

EXCEPTION TO LIMITATION ON MONEY DAMAGES

Pub. L. 100-702, title IX, Sec. 901(c), Nov. 19, 1988, 102 Stat.

4663, provided that notwithstanding establishment by former section

652 of this title of a $100,000 limitation on money damages with

respect to cases referred to arbitration, a district court listed

in former section 658 of this title whose local rule on Nov. 19,

1988, provided for a limitation on money damages of not more than

$150,000, could continue to apply the higher limitation, prior to

repeal by Pub. L. 105-315, Sec. 12(a), Oct. 30, 1998, 112 Stat.

2998.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 654 of this title.

-End-

-CITE-

28 USC Sec. 653 01/06/03

-EXPCITE-

TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE

PART III - COURT OFFICERS AND EMPLOYEES

CHAPTER 44 - ALTERNATIVE DISPUTE RESOLUTION

-HEAD-

Sec. 653. Neutrals

-STATUTE-

(a) Panel of Neutrals. - Each district court that authorizes the

use of alternative dispute resolution processes shall adopt

appropriate processes for making neutrals available for use by the

parties for each category of process offered. Each district court

shall promulgate 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, the

district court may use, among others, magistrate judges who have

been trained to serve as neutrals in alternative dispute resolution

processes, 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).

-SOURCE-

(Added Pub. L. 100-702, title IX, Sec. 901(a), Nov. 19, 1988, 102

Stat. 4660; amended Pub. L. 105-315, Sec. 5, Oct. 30, 1998, 112

Stat. 2995.)

-MISC1-

AMENDMENTS

1998 - Pub. L. 105-315 amended section generally, substituting

provisions relating to neutrals in alternative dispute resolution

process for provisions relating to powers of arbitrator and

arbitration hearing.

-End-

-CITE-

28 USC Sec. 654 01/06/03

-EXPCITE-

TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE

PART III - COURT OFFICERS AND EMPLOYEES

CHAPTER 44 - ALTERNATIVE DISPUTE RESOLUTION

-HEAD-

Sec. 654. Arbitration

-STATUTE-

(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

arbitration of any civil action (including any adversary proceeding

in bankruptcy) 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

of this title; or

(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 (!1) 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.

-SOURCE-

(Added Pub. L. 100-702, title IX, Sec. 901(a), Nov. 19, 1988, 102

Stat. 4660; amended Pub. L. 105-315, Sec. 6, Oct. 30, 1998, 112

Stat. 2995.)

-REFTEXT-

REFERENCES IN TEXT

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,

referred to in subsec. (d), is title IX of Pub. L. 100-702, Nov.

19, 1988, 102 Stat. 4659, which enacted this chapter and provisions

set out as notes under sections 651 and 652 of this title. Section

1 of Pub. L. 105-53, Oct. 6, 1997, 111 Stat. 1173, amended section

905 of title IX of Pub. L. 100-702, which is set out as a note

under section 651 of this title.

-MISC1-

AMENDMENTS

1998 - Pub. L. 105-315 amended section generally, substituting

provisions relating to arbitration for provisions relating to

arbitration award and judgment.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 651, 652, 655 of this

title.

-FOOTNOTE-

(!1) So in original. The word "section" probably should not appear.

-End-

-CITE-

28 USC Sec. 655 01/06/03

-EXPCITE-

TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE

PART III - COURT OFFICERS AND EMPLOYEES

CHAPTER 44 - ALTERNATIVE DISPUTE RESOLUTION

-HEAD-

Sec. 655. Arbitrators

-STATUTE-

(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

immunities and protections that the law accords to persons serving

in such capacity.

-SOURCE-

(Added Pub. L. 100-702, title IX, Sec. 901(a), Nov. 19, 1988, 102

Stat. 4661; amended Pub. L. 105-315, Sec. 7, Oct. 30, 1998, 112

Stat. 2996.)

-MISC1-

AMENDMENTS

1998 - Pub. L. 105-315 amended section generally, substituting

provisions relating to arbitrators for provisions relating to trial

de novo.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 651, 652 of this title.

-End-

-CITE-

28 USC Sec. 656 01/06/03

-EXPCITE-

TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE

PART III - COURT OFFICERS AND EMPLOYEES

CHAPTER 44 - ALTERNATIVE DISPUTE RESOLUTION

-HEAD-

Sec. 656. Subpoenas

-STATUTE-

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 hearing

under this chapter.

-SOURCE-

(Added Pub. L. 100-702, title IX, Sec. 901(a), Nov. 19, 1988, 102

Stat. 4662; amended Pub. L. 105-315, Sec. 8, Oct. 30, 1998, 112

Stat. 2996.)

-REFTEXT-

REFERENCES IN TEXT

The Federal Rules of Civil Procedure, referred to in text, are

set out in the Appendix to this title.

-MISC1-

AMENDMENTS

1998 - Pub. L. 105-315 amended section generally, substituting

provisions relating to subpoenas for provisions relating to

certification of arbitrators.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 651, 652 of this title.

-End-

-CITE-

28 USC Sec. 657 01/06/03

-EXPCITE-

TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE

PART III - COURT OFFICERS AND EMPLOYEES

CHAPTER 44 - ALTERNATIVE DISPUTE RESOLUTION

-HEAD-

Sec. 657. Arbitration award and judgment

-STATUTE-

(a) Filing and Effect of Arbitration Award. - An arbitration

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 provisions 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

contents 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 subsection

(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.

-SOURCE-

(Added Pub. L. 100-702, title IX, Sec. 901(a), Nov. 19, 1988, 102

Stat. 4662; amended Pub. L. 105-315, Sec. 9, Oct. 30, 1998, 112

Stat. 2997.)

-REFTEXT-

REFERENCES IN TEXT

The Federal Rules of Evidence, referred to in subsec. (c)(3)(A),

are set out in the Appendix to this title.

-MISC1-

AMENDMENTS

1998 - Pub. L. 105-315 amended section generally, substituting

provisions relating to arbitration award and judgment for

provisions relating to compensation of arbitrators.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 651, 652 of this title.

-End-

-CITE-

28 USC Sec. 658 01/06/03

-EXPCITE-

TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE

PART III - COURT OFFICERS AND EMPLOYEES

CHAPTER 44 - ALTERNATIVE DISPUTE RESOLUTION

-HEAD-

Sec. 658. Compensation of arbitrators and neutrals

-STATUTE-

(a) Compensation. - The district court shall, subject to

regulations 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 prescribed 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.

-SOURCE-

(Added Pub. L. 100-702, title IX, Sec. 901(a), Nov. 19, 1988, 102

Stat. 4662; amended Pub. L. 105-315, Sec. 10, Oct. 30, 1998, 112

Stat. 2997.)

-MISC1-

AMENDMENTS

1998 - Pub. L. 105-315 amended section generally, substituting

provisions relating to compensation of arbitrators and neutrals for

provisions relating to district courts that may authorize

arbitration.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 651, 652 of this title.

-End-