A new law, entitled the "Uniform Arbitration Act," will govern arbitration agreements & proceedings in Michigan starting on July 1, 2013. Rationale cited for the change was the fact that, "Michigan's current arbitration law, as reflected in Chapter 50 (Arbitrations) of the Revised Judicature Act, was adopted in 1961 and was patterned after the Federal Arbitration Act adopted by the U.S. Congress in 1925. Chapter 50 has not been substantially modified since its enactment."
The old law (Chapter 50) is very short (less than 2 pages long) and has been characterized as a "bare bones" statute with case law filling in the "gaps". Supporting argument for the new Uniform Arbitration Act noted that it:
The old law (Chapter 50) is very short (less than 2 pages long) and has been characterized as a "bare bones" statute with case law filling in the "gaps". Supporting argument for the new Uniform Arbitration Act noted that it:
". . . would not depart from the foundational provisions of Chapter 50, but it contains procedural provisions not present in Michigan's current arbitration statute. These include notice requirements for initiating arbitration, validating the use of electronic records and contracts consistent with Federal law, bifurcating the role of courts and arbitrators in determining eligibility for arbitration, enabling courts to direct consolidation of proceedings in the interest of justice, strengthening arbitrator impartiality by requiring arbitrators to disclose known financial interests or personal relationships, authorizing arbitrators to limit or permit discovery, and specifying requirements for awards of punitive damages when and if appropriate."
The new Uniform Arbitration Act takes effect and repeals the old law (Chapter 50) on July 1, 2013. Arbitration proceedings held prior to July 1st will therefore be governed by the old law (Chapter 50). Parties can agree in a
record to have the new Uniform Arbitration Act govern an arbitration agreement that is made and/or an arbitration proceeding that occurs prior to July 1st. However, as of July 1, 2013, the new Uniform Arbitration Act will govern an agreement to arbitrate, regardless of when it was made.
Disclaimer
record to have the new Uniform Arbitration Act govern an arbitration agreement that is made and/or an arbitration proceeding that occurs prior to July 1st. However, as of July 1, 2013, the new Uniform Arbitration Act will govern an agreement to arbitrate, regardless of when it was made.
Disclaimer
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