Louisiana 2010 2010 Regular Session

Louisiana Senate Bill SB457 Engrossed / Bill

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Regular Session, 2010
SENATE BILL NO. 457
BY SENATOR APPEL 
CIVIL PROCEDURE. Provides relative to the Louisiana Binding Arbitration Law.
(8/15/10)
AN ACT1
To amend and reenact R.S. 9:4203 and 4206, relative to the Louisiana Binding Arbitration2
Law; to provide certain procedures, requirements, and conditions regarding3
evidence; to provide relative to payment of deposits, fees, or expenses; and to4
provide for related matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 9:4203 and 4206 are hereby amended and reenacted to read as7
follows: 8
§4203.  Remedy in case of default; petition and notice; hearing and proceedings 9
A. The party aggrieved by the alleged failure or refusal of another to perform10
under a written agreement for arbitration, may petition any court of record having11
jurisdiction of the parties, or of the property, for an order directing that the12
arbitration proceed in the manner provided for in the agreement. Five days' written13
notice of the application shall be served upon the party in default.  Service shall be14
made in the manner provided by law for the service of a summons.15
B. The court shall hear the parties, and upon being satisfied that the making16
of the agreement for arbitration or the failure to comply therewith is not an issue, the17 SB NO. 457
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
court shall issue an order directing the parties to proceed to arbitration in accordance1
with the terms of the agreement. If the making of the arbitration agreement or the2
failure or refusal to perform is an issue, the court shall proceed summarily to the trial3
thereof.4
C. If no jury trial is demanded, the court shall hear and determine the issue.5
Where such an issue is raised, either party may, on or before the return day of the6
notice of application, demand a jury trial of the issue, and upon such demand the7
court shall issue an order referring the issue or issues to a jury called and empanelled8
in the manner provided by law.9
D. If the jury finds that no agreement in writing for arbitration was made or10
that there is no default in proceeding thereunder, the proceeding shall be dismissed.11
If the jury finds that an agreement for arbitration was made in writing and that there12
is a default in proceeding thereunder, the court shall issue an order summarily13
directing the parties to proceed with the arbitration in accordance with the terms14
thereof.15
E. Failure to pay within ten business days any deposit, fee, or expense16
required under the arbitration process shall constitute default in the arbitration17
proceeding.  A party aggrieved by such default shall be entitled to remove the18
matter under arbitration in its entirety to a court of competent jurisdiction and19
shall be entitled to recovery of attorney fees and costs in addition to other20
remedies as provided in this Section.21
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§4206.  Witnesses; summoning; compelling attendance; evidence23
A. When more than one arbitrator is agreed to, all the arbitrators shall sit at24
the hearing of the case unless, by consent in writing, all parties agree to proceed with25
the hearing with a less number. The arbitrators, selected either as prescribed in this26
Chapter or otherwise, or a majority of them, may , at the request of a party or27
independently, summon in writing any person to attend before them or any of them28
as a witness and in a proper case to bring with him or them any book, record,29 SB NO. 457
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document, or paper which may be deemed material as evidence in the case. The fees1
for attendance shall be the same as the fees of witnesses in courts of general2
jurisdiction.3
B. The summons shall issue in the name of the arbitrator or arbitrators, or a4
majority of them, and shall be signed by the arbitrator, arbitrators, or a majority of5
them, and shall be directed to the person and shall be served in the same manner as6
subpoenas to appear and testify before the court. If any person or persons summoned7
to testify refuses or neglects to obey the summons, upon petition, the court in and for8
the parish in which the arbitrators are sitting may compel the attendance or punish9
the person or persons for contempt in the same manner provided by law for securing10
the attendance of witnesses or their punishment for neglect or refusal to attend in the11
courts of this state.12
C. (1) The parties to the arbitration may offer such evidence as is13
relevant and material to the dispute and shall produce such evidence as the14
arbitrator or arbitrators may deem necessary to an understanding and15
determination of the dispute. Strict conformity to legal rules of evidence shall16
not be necessary, except for laws pertaining to testimonial privileges.17
(2) The arbitrator or arbitrators shall determine the admissibility,18
relevance and materiality of the evidence offered, including the admissibility of19
expert evidence, and may exclude evidence deemed by the arbitrator or20
arbitrators to be cumulative or irrelevant.21
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The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Camille Sebastien Perry.
DIGEST
Appel (SB 457)
Present law provides for the procedures to be used under the Louisiana Binding Arbitration
Law.
Proposed law provides that failure to pay within ten business days any required deposit, fee,
or expense shall constitute default in the arbitration proceeding and a party aggrieved by
such default shall be entitled to remove the matter under arbitration to a court and shall be
entitled to recovery of attorney's fees and costs in addition to other remedies. SB NO. 457
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Proposed law provides that the parties may offer such evidence as is relevant and material
to the dispute and shall produce such evidence as the arbitrators may deem necessary to an
understanding and determination of the dispute, and strict conformity to legal rules of
evidence shall not be necessary, except for laws pertaining to testimonial privileges.
Proposed law requires the arbitrators to determine the admissibility, relevance and
materiality of the evidence offered, including the admissibility of expert evidence, and
authorizes the exclusion of evidence deemed by the arbitrator or arbitrators to be cumulative
or irrelevant.
Proposed law provides that an arbitrator or other person authorized by law to summon
witnesses or documents may do so upon the request of any party or independently.
Effective August 15, 2010.
(Amends R.S. 9:4203 and 4206)
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Judiciary A to the
original bill.
1. Provides that failure to pay within ten days any required deposit, fee, or
expense in an arbitration process shall constitute a default which entitles the
aggrieved party to remove the matter to the court and further entitles the
party to attorney's fees and costs in addition to other remedies.