SHB 1054 -
By Committee on Judiciary
ADOPTED 04/05/2005
Strike everything after the enacting clause and insert the following:
"NEW SECTION. Sec. 1
(1) "Arbitration organization" means a neutral association, agency,
board, commission, or other entity that initiates, sponsors, or
administers arbitration proceedings or is involved in the appointment
of arbitrators.
(2) "Arbitrator" means an individual appointed to render an award
in a controversy between persons who are parties to an agreement to
arbitrate.
(3) "Authenticate" means:
(a) To sign; or
(b) To execute or adopt a record by attaching to or logically
associating with the record, an electronic sound, symbol, or process
with the intent to sign the record.
(4) "Court" means a court of competent jurisdiction in this state.
(5) "Knowledge" means actual knowledge.
(6) "Person" means an individual, corporation, business trust,
estate, trust, partnership, limited liability company, association,
joint venture, or government; governmental subdivision, agency, or
instrumentality; public corporation; or any other legal or commercial
entity.
(7) "Record" means information that is inscribed on a tangible
medium or that is stored in an electronic or other medium and is
retrievable in perceivable form.
NEW SECTION. Sec. 2
NEW SECTION. Sec. 3
(a) On or after the effective date of this act; and
(b) Before the effective date of this act, if all parties to the
agreement to arbitrate or to arbitration proceedings agree in a record
to be governed by this chapter.
(2) On or after July 1, 2006, this chapter governs agreements to
arbitrate even if the arbitration agreement was entered into before the
effective date of this act.
(3) This chapter does not apply to any arbitration governed by
chapter 7.06 RCW.
(4) This chapter does not apply to any arbitration agreement
between employers and employees or between employers and associations
of employees.
NEW SECTION. Sec. 4
(2) Before a controversy arises that is subject to an agreement to
arbitrate, the parties to the agreement may not:
(a) Waive or vary the requirements of section 5(1), 6(1), 8, 17 (1)
or (2), 26, or 28 of this act;
(b) Unreasonably restrict the right under section 9 of this act to
notice of the initiation of an arbitration proceeding;
(c) Unreasonably restrict the right under section 12 of this act to
disclosure of any facts by a neutral arbitrator; or
(d) Waive the right under section 16 of this act of a party to an
agreement to arbitrate to be represented by a lawyer at any proceeding
or hearing under this chapter.
(3) The parties to an agreement to arbitrate may not waive or vary
the requirements of this section or section 3 (1)(a) or (2), 7, 14, 18,
20 (3) or (4), 22, 23, 24, 25 (1) or (2), 29, 31, 50, or 51 of this
act.
NEW SECTION. Sec. 5
(2) Notice of an initial motion to the court under this chapter
must be served in the manner provided by law for the service of a
summons in a civil action unless a civil action is already pending
involving the agreement to arbitrate.
NEW SECTION. Sec. 6
(2) The court shall decide whether an agreement to arbitrate exists
or a controversy is subject to an agreement to arbitrate.
(3) An arbitrator shall decide whether a condition precedent to
arbitrability has been fulfilled and whether a contract containing a
valid agreement to arbitrate is enforceable.
(4) If a party to a judicial proceeding challenges the existence
of, or claims that a controversy is not subject to, an agreement to
arbitrate, the arbitration proceeding may continue pending final
resolution of the issue by the court, unless the court otherwise
orders.
NEW SECTION. Sec. 7
(2) On motion of a person alleging that an arbitration proceeding
has been initiated or threatened but that there is no agreement to
arbitrate, the court shall proceed summarily to decide the issue. If
the court finds that there is an enforceable agreement to arbitrate, it
shall order the parties to arbitrate. If the court finds that there is
no enforceable agreement, it may not order the parties to arbitrate.
(3) The court may not refuse to order arbitration because the claim
subject to arbitration lacks merit or grounds for the claim have not
been established.
(4) If a proceeding involving a claim referable to arbitration
under an alleged agreement to arbitrate is pending in court, a motion
under this section must be filed in that court. Otherwise a motion
under this section may be filed in any court as required by section 27
of this act.
(5) If a party files a motion with the court to order arbitration
under this section, the court shall on just terms stay any judicial
proceeding that involves a claim alleged to be subject to the
arbitration until the court renders a final decision under this
section.
(6) If the court orders arbitration, the court shall on just terms
stay any judicial proceeding that involves a claim subject to the
arbitration. If a claim subject to the arbitration is severable, the
court may sever it and limit the stay to that claim.
NEW SECTION. Sec. 8
(2) After an arbitrator is appointed and is authorized and able to
act, the arbitrator may issue such orders for provisional remedies,
including interim awards, as the arbitrator finds necessary to protect
the effectiveness of the arbitration proceeding and to promote the fair
and expeditious resolution of the controversy, to the same extent and
under the same conditions as if the controversy were the subject of a
civil action. After an arbitrator is appointed and is authorized and
able to act, a party to an arbitration proceeding may move the court
for a provisional remedy only if the matter is urgent and the
arbitrator is not able to act timely or if the arbitrator cannot
provide an adequate remedy.
(3) A motion to a court for a provisional remedy under subsection
(1) or (2) of this section does not waive any right of arbitration.
NEW SECTION. Sec. 9
(2) Unless a person interposes an objection as to lack or
insufficiency of notice under section 15(3) of this act not later than
the commencement of the arbitration hearing, the person's appearance at
the hearing waives any objection to lack of or insufficiency of notice.
NEW SECTION. Sec. 10
(a) There are separate agreements to arbitrate or separate
arbitration proceedings between the same persons or one of them is a
party to a separate agreement to arbitrate or a separate arbitration
proceeding with a third person;
(b) The claims subject to the agreements to arbitrate arise in
substantial part from the same transaction or series of related
transactions;
(c) The existence of a common issue of law or fact creates the
possibility of conflicting decisions in the separate arbitration
proceedings; and
(d) Prejudice resulting from a failure to consolidate is not
outweighed by the risk of undue delay or prejudice to the rights of or
hardship to parties opposing consolidation.
(2) The court may order consolidation of separate arbitration
proceedings as to certain claims and allow other claims to be resolved
in separate arbitration proceedings.
(3) The court may not order consolidation of the claims of a party
to an agreement to arbitrate that prohibits consolidation.
NEW SECTION. Sec. 11
(2) An arbitrator who has a known, direct, and material interest in
the outcome of the arbitration proceeding or a known, existing, and
substantial relationship with a party may not serve as a neutral
arbitrator.
NEW SECTION. Sec. 12
(a) A financial or personal interest in the outcome of the
arbitration proceeding; and
(b) An existing or past relationship with any of the parties to the
agreement to arbitrate or the arbitration proceeding, their counsel or
representatives, witnesses, or the other arbitrators.
(2) An arbitrator has a continuing obligation to disclose to all
parties to the agreement to arbitrate and arbitration proceedings and
to any other arbitrators any facts that the arbitrator learns after
accepting appointment that a reasonable person would consider likely to
affect the impartiality of the arbitrator.
(3) If an arbitrator discloses a fact required by subsection (1) or
(2) of this section to be disclosed and a party timely objects to the
appointment or continued service of the arbitrator based upon the
disclosure, the objection may be a ground to vacate the award under
section 23(1)(b) of this act.
(4) If the arbitrator did not disclose a fact as required by
subsection (1) or (2) of this section, upon timely objection of a
party, an award may be vacated under section 23(1)(b) of this act.
(5) An arbitrator appointed as a neutral who does not disclose a
known, direct, and material interest in the outcome of the arbitration
proceeding or a known, existing, and substantial relationship with a
party is presumed to act with evident partiality under section 23(1)(b)
of this act.
(6) If the parties to an arbitration proceeding agree to the
procedures of an arbitration organization or any other procedures for
challenges to arbitrators before an award is made, substantial
compliance with those procedures is a condition precedent to a motion
to vacate an award on that ground under section 23(1)(b) of this act.
NEW SECTION. Sec. 13
NEW SECTION. Sec. 14
(2) The immunity afforded by this section supplements any other
immunity.
(3) If an arbitrator does not make a disclosure required by section
12 of this act, the nondisclosure does not cause a loss of immunity
under this section.
(4) In any judicial, administrative, or similar proceeding, an
arbitrator or representative of an arbitration organization is not
competent to testify or required to produce records as to any
statement, conduct, decision, or ruling occurring during the
arbitration proceeding to the same extent as a judge of a court of this
state acting in a judicial capacity. This subsection does not apply:
(a) To the extent necessary to determine the claim of an arbitrator
or an arbitration organization or a representative of the arbitration
organization against a party to the arbitration proceeding; or
(b) If a party to the arbitration proceeding files a motion to
vacate an award under section 23(1) (a) or (b) of this act and
establishes prima facie that a ground for vacating the award exists.
(5) If a person commences a civil action against an arbitrator, an
arbitration organization, or a representative of an arbitration
organization arising from the services of the arbitrator, organization,
or representative or if a person seeks to compel an arbitrator or a
representative of an arbitration organization to testify in violation
of subsection (4) of this section, and the court decides that the
arbitrator, arbitration organization, or representative of an
arbitration organization is immune from civil liability or that the
arbitrator or representative of the organization is incompetent to
testify, the court shall award to the arbitrator, organization, or
representative reasonable attorneys' fees and other reasonable expenses
of litigation.
NEW SECTION. Sec. 15
(2) The arbitrator may decide a request for summary disposition of
a claim or particular issue by agreement of all interested parties or
upon request of one party to the arbitration proceeding if that party
gives notice to all other parties to the arbitration proceeding and the
other parties have a reasonable opportunity to respond.
(3) The arbitrator shall set a time and place for a hearing and
give notice of the hearing not less than five days before the hearing.
Unless a party to the arbitration proceeding interposes an objection to
lack of or insufficiency of notice not later than the commencement of
the hearing, the party's appearance at the hearing waives the
objection. Upon request of a party to the arbitration proceeding and
for good cause shown, or upon the arbitrator's own initiative, the
arbitrator may adjourn the hearing from time to time as necessary but
may not postpone the hearing to a time later than that fixed by the
agreement to arbitrate for making the award unless the parties to the
arbitration proceeding consent to a later date. The arbitrator may
hear and decide the controversy upon the evidence produced although a
party who was duly notified of the arbitration proceeding did not
appear. The court, on request, may direct the arbitrator to promptly
conduct the hearing and render a timely decision.
(4) If an arbitrator orders a hearing under subsection (3) of this
section, the parties to the arbitration proceeding are entitled to be
heard, to present evidence material to the controversy, and to cross-examine witnesses appearing at the hearing.
(5) If there is more than one arbitrator, all of them shall conduct
the hearing under subsection (3) of this section; however, a majority
shall decide any issue and make a final award.
(6) If an arbitrator ceases, or is unable, to act during the
arbitration proceeding, a replacement arbitrator must be appointed in
accordance with section 11 of this act to continue the hearing and to
decide the controversy.
NEW SECTION. Sec. 16
NEW SECTION. Sec. 17
(2) On request of a party to or a witness in an arbitration
proceeding, an arbitrator may permit a deposition of any witness,
including a witness who cannot be subpoenaed for or is unable to attend
a hearing, to be taken under conditions determined by the arbitrator
for use as evidence in order to make the proceeding fair, expeditious,
and cost-effective.
(3) An arbitrator may permit such discovery as the arbitrator
decides is appropriate in the circumstances, taking into account the
needs of the parties to the arbitration proceeding and other affected
persons and the desirability of making the proceeding fair,
expeditious, and cost-effective.
(4) If an arbitrator permits discovery under subsection (3) of this
section, the arbitrator may order a party to the arbitration proceeding
to comply with the arbitrator's discovery-related orders, including the
issuance of a subpoena for the attendance of a witness and for the
production of records and other evidence at a discovery proceeding, and
may take action against a party to the arbitration proceeding who does
not comply to the extent permitted by law as if the controversy were
the subject of a civil action in this state.
(5) An arbitrator may issue a protective order to prevent the
disclosure of privileged information, confidential information, trade
secrets, and other information protected from disclosure as if the
controversy were the subject of a civil action in this state.
(6) All laws compelling a person under subpoena to testify and all
fees for attending a judicial proceeding, a deposition, or a discovery
proceeding as a witness apply to an arbitration proceeding as if the
controversy were the subject of a civil action in this state.
(7) The court may enforce a subpoena or discovery-related order for
the attendance of a witness within this state and for the production of
records and other evidence issued by an arbitrator in connection with
an arbitration proceeding in another state upon conditions determined
by the court in order to make the arbitration proceeding fair,
expeditious, and cost-effective. A subpoena or discovery-related order
issued by an arbitrator must be served in the manner provided by law
for service of subpoenas in a civil action in this state and, upon
motion to the court by a party to the arbitration proceeding or the
arbitrator, enforced in the manner provided by law for enforcement of
subpoenas in a civil action in this state.
NEW SECTION. Sec. 18
NEW SECTION. Sec. 19
(2) An award must be made within the time specified by the
agreement to arbitrate or, if not specified therein, within the time
ordered by the court. The court may extend or the parties to the
arbitration proceeding may agree in a record to extend the time. The
court or the parties may do so within or after the time specified or
ordered. A party waives any objection that an award was not timely
made unless the party gives notice of the objection to the arbitrator
before receiving notice of the award.
NEW SECTION. Sec. 20
(a) Upon the grounds stated in section 24(1) (a) or (c) of this
act;
(b) Because the arbitrator has not made a final and definite award
upon a claim submitted by the parties to the arbitration proceeding; or
(c) To clarify the award.
(2) A motion under subsection (1) of this section must be made and
served on all parties within twenty days after the movant receives
notice of the award.
(3) A party to the arbitration proceeding must serve any objections
to the motion within ten days after receipt of the notice.
(4) If a motion to the court is pending under section 22, 23, or 24
of this act, the court may submit the claim to the arbitrator to
consider whether to modify or correct the award:
(a) Upon the grounds stated in section 24(1) (a) or (c) of this
act;
(b) Because the arbitrator has not made a final and definite award
upon a claim submitted by the parties to the arbitration proceeding; or
(c) To clarify the award.
(5) An award modified or corrected under this section is subject to
sections 22, 23, and 24 of this act.
NEW SECTION. Sec. 21
(2) An arbitrator may award attorneys' fees and other reasonable
expenses of arbitration if such an award is authorized by law in a
civil action involving the same claim or by the agreement of the
parties to the arbitration proceeding.
(3) As to all remedies other than those authorized by subsections
(1) and (2) of this section, an arbitrator may order such remedies as
the arbitrator considers just and appropriate under the circumstances
of the arbitration proceeding. The fact that such a remedy could not
or would not be granted by the court is not a ground for refusing to
confirm an award under section 22 of this act or for vacating an award
under section 23 of this act.
(4) An arbitrator's expenses and fees, together with other
expenses, must be paid as provided in the award.
(5) If an arbitrator awards punitive damages or other exemplary
relief under subsection (1) of this section, the arbitrator shall
specify in the award the basis in fact justifying and the basis in law
authorizing the award and state separately the amount of the punitive
damages or other exemplary relief.
NEW SECTION. Sec. 22
NEW SECTION. Sec. 23
(a) The award was procured by corruption, fraud, or other undue
means;
(b) There was:
(i) Evident partiality by an arbitrator appointed as a neutral;
(ii) Corruption by an arbitrator; or
(iii) Misconduct by an arbitrator prejudicing the rights of a party
to the arbitration proceeding;
(c) An arbitrator refused to postpone the hearing upon showing of
sufficient cause for postponement, refused to consider evidence
material to the controversy, or otherwise conducted the hearing
contrary to section 15 of this act, so as to prejudice substantially
the rights of a party to the arbitration proceeding;
(d) An arbitrator exceeded the arbitrator's powers;
(e) There was no agreement to arbitrate, unless the person
participated in the arbitration proceeding without raising the
objection under section 15(3) of this act not later than the
commencement of the arbitration hearing; or
(f) The arbitration was conducted without proper notice of the
initiation of an arbitration as required in section 9 of this act so as
to prejudice substantially the rights of a party to the arbitration
proceeding.
(2) A motion under this section must be filed within ninety days
after the movant receives notice of the award in a record under section
19 of this act or within ninety days after the movant receives notice
of an arbitrator's award in a record on a motion to modify or correct
an award under section 20 of this act, unless the motion is predicated
upon the ground that the award was procured by corruption, fraud, or
other undue means, in which case it must be filed within ninety days
after such a ground is known or by the exercise of reasonable care
should have been known by the movant.
(3) In vacating an award on a ground other than that set forth in
subsection (1)(e) of this section, the court may order a rehearing
before a new arbitrator. If the award is vacated on a ground stated in
subsection (1)(c), (d), or (f) of this section, the court may order a
rehearing before the arbitrator who made the award or the arbitrator's
successor. The arbitrator must render the decision in the rehearing
within the same time as that provided in section 19(2) of this act for
an award.
(4) If a motion to vacate an award is denied and a motion to modify
or correct the award is not pending, the court shall confirm the award.
NEW SECTION. Sec. 24
(a) There was an evident mathematical miscalculation or an evident
mistake in the description of a person, thing, or property referred to
in the award;
(b) The arbitrator has made an award on a claim not submitted to
the arbitrator and the award may be corrected without affecting the
merits of the decision upon the claims submitted; or
(c) The award is imperfect in a matter of form not affecting the
merits of the decision on the claims submitted.
(2) If a motion filed under subsection (1) of this section is
granted, the court shall modify or correct and confirm the award as
modified or corrected. Otherwise, the court shall confirm the award.
(3) A motion to modify or correct an award under this section may
be joined with a motion to vacate the award.
NEW SECTION. Sec. 25
(2) A court may allow reasonable costs of the motion and subsequent
judicial proceedings.
(3) On application of a prevailing party to a contested judicial
proceeding under section 22, 23, or 24 of this act, the court may add
to a judgment confirming, vacating without directing a rehearing,
modifying, or correcting an award, attorneys' fees and other reasonable
expenses of litigation incurred in a judicial proceeding after the
award is made.
NEW SECTION. Sec. 26
(2) An agreement to arbitrate providing for arbitration in this
state confers exclusive jurisdiction on the court to enter judgment on
an award under this chapter.
NEW SECTION. Sec. 27
NEW SECTION. Sec. 28
(a) An order denying a motion to compel arbitration;
(b) An order granting a motion to stay arbitration;
(c) An order confirming or denying confirmation of an award;
(d) An order modifying or correcting an award;
(e) An order vacating an award without directing a rehearing; or
(f) A final judgment entered under this chapter.
(2) An appeal under this section must be taken as from an order or
a judgment in a civil action.
NEW SECTION. Sec. 29
NEW SECTION. Sec. 30
NEW SECTION. Sec. 31
NEW SECTION. Sec. 32
Sec. 33 RCW 3.46.150 and 2001 c 68 s 2 are each amended to read
as follows:
(1) Any city, having established a municipal department as provided
in this chapter may, by written notice to the county legislative
authority not less than one year prior to February 1st of the year in
which all district court judges are subject to election, require the
termination of the municipal department created pursuant to this
chapter. A city may terminate a municipal department only at the end
of a four-year judicial term. However, the city may not give the
written notice required by this section unless the city has reached an
agreement with the county under chapter 39.34 RCW under which the
county is to be paid a reasonable amount for costs associated with
prosecution, adjudication, and sentencing in criminal cases filed in
district court as a result of the termination. The agreement shall
provide for periodic review and renewal of the terms of the agreement.
If the municipality and the county are unable to agree on the terms for
renewal of the agreement, they shall be deemed to have entered into an
agreement to submit the issue to arbitration under chapter ((7.04))
7.-- RCW (sections 1 through 32 of this act). Pending conclusion of
the arbitration proceeding, the terms of the agreement shall remain in
effect. The municipality and the county have the same rights and are
subject to the same duties as other parties who have agreed to submit
to arbitration under chapter ((7.04)) 7.-- RCW (sections 1 through 32
of this act).
(2) A county that wishes to terminate a municipal department of the
district court must provide written notice to the city legislative
authority at least one year prior to the date of the intended
termination.
Sec. 34 RCW 3.50.800 and 1984 c 258 s 202 are each amended to
read as follows:
(1) If a municipality has, prior to July 1, 1984, repealed in its
entirety that portion of its municipal code defining crimes but
continues to hear and determine traffic infraction cases under chapter
46.63 RCW in a municipal court, the municipality and the appropriate
county shall, prior to January 1, 1985, enter into an agreement under
chapter 39.34 RCW under which the county is to be paid a reasonable
amount for costs incurred after January 1, 1985, associated with
prosecution, adjudication, and sentencing in criminal cases filed in
district court as a result of the repeal. If the municipality and the
county cannot come to an agreement within the time prescribed by this
section, they shall be deemed to have entered into an agreement to
submit the issue to arbitration pursuant to chapter ((7.04)) 7.-- RCW
(sections 1 through 32 of this act). The municipality and the county
have the same rights and are subject to the same duties as other
parties who have agreed to submit to arbitration under chapter ((7.04))
7.-- RCW (sections 1 through 32 of this act).
(2) The agreement between the municipality and the county shall
include provisions for periodic review and renewal of the terms of the
agreement. If the municipality and the county are unable to agree on
the terms for renewal of the agreement, they shall be deemed to have
entered into an agreement to submit the issue to arbitration under
chapter ((7.04)) 7.-- RCW (sections 1 through 32 of this act). Pending
conclusion of the arbitration proceeding, the terms of the agreement
shall remain in effect. The municipality and the county have the same
rights as other parties who have agreed to submit to arbitration under
chapter ((7.04)) 7.-- RCW (sections 1 through 32 of this act).
Sec. 35 RCW 3.50.805 and 1984 c 258 s 203 are each amended to
read as follows:
(1) A municipality operating a municipal court under this chapter
shall not terminate that court unless the municipality has reached an
agreement with the appropriate county or another municipality under
chapter 39.34 RCW under which the county or municipality is to be paid
a reasonable amount for costs associated with prosecution,
adjudication, and sentencing in criminal cases filed in district or
municipal court as a result of the termination. The agreement shall
provide for periodic review and renewal of the terms of the agreement.
If the municipality and the county or municipality are unable to agree
on the terms for renewal of the agreement, they shall be deemed to have
entered into an agreement to submit the issue to arbitration under
chapter ((7.04)) 7.-- RCW (sections 1 through 32 of this act). Pending
conclusion of the arbitration proceeding, the terms of the agreement
shall remain in effect. The municipality and the county or
municipality have the same rights and are subject to the same duties as
other parties who have agreed to submit to arbitration under chapter
((7.04)) 7.-- RCW (sections 1 through 32 of this act). A municipality
that has entered into agreements with other municipalities that have
terminated their municipal courts may not thereafter terminate its
court unless each municipality has reached an agreement with the
appropriate county in accordance with this section.
(2) A municipality operating a municipal court under this chapter
may not repeal in its entirety that portion of its municipal code
defining crimes while retaining the court's authority to hear and
determine traffic infractions under chapter 46.63 RCW unless the
municipality has reached an agreement with the county under chapter
39.34 RCW under which the county is to be paid a reasonable amount for
costs associated with prosecution, adjudication, and sentencing in
criminal cases filed in district court as a result of the repeal. The
agreement shall provide for periodic review and renewal of the terms of
the agreement. If the municipality and the county are unable to agree
on the terms for renewal of the agreement, they shall be deemed to have
entered into an agreement to submit the issue to arbitration under
chapter ((7.04)) 7.-- RCW (sections 1 through 32 of this act). Pending
conclusion of the arbitration proceeding, the terms of the agreement
shall remain in effect. The municipality and the county have the same
rights and are subject to the same duties as other parties who have
agreed to submit to arbitration under chapter ((7.04)) 7.-- RCW
(sections 1 through 32 of this act).
(3) A municipality operating a municipal court under this chapter
may not repeal a provision of its municipal code which defines a crime
equivalent to an offense listed in RCW 46.63.020 unless the
municipality has reached an agreement with the county under chapter
39.34 RCW under which the county is to be paid a reasonable amount for
costs associated with prosecution, adjudication, and sentencing in
criminal cases filed in district court as a result of the repeal. The
agreement shall provide for periodic review and renewal of the terms of
the agreement. If the municipality and the county are unable to agree
on the terms for renewal of the agreement, they shall be deemed to have
entered into an agreement to submit the issue to arbitration under
chapter ((7.04)) 7.-- RCW (sections 1 through 32 of this act). Pending
conclusion of the arbitration proceeding, the terms of the agreement
shall remain in effect. The municipality and the county have the same
rights and are subject to the same duties as other parties who have
agreed to submit to arbitration under chapter ((7.04)) 7.-- RCW
(sections 1 through 32 of this act).
Sec. 36 RCW 15.49.071 and 1989 c 354 s 77 are each amended to
read as follows:
(1) When a buyer is damaged by the failure of any seed covered by
this chapter to produce or perform as represented by the required
label, by warranty, or as a result of negligence, the buyer, as a
prerequisite to maintaining a legal action against the dealer of such
seed, shall have first provided for the arbitration of the claim. Any
statutory period of limitations with respect to such claim shall be
tolled from the date arbitration proceedings are instituted until ten
days after the date on which the arbitration award becomes final.
(2) Similarly, no such claim may be asserted as a counterclaim or
defense in any action brought by a dealer against a buyer until the
buyer has first provided for arbitration of the claim. Upon the
buyer's filing of a written notice of intention to assert such a claim
as a counterclaim or defense in the action accompanied by a copy of the
buyer's complaint in arbitration filed as provided in this chapter, the
action shall be stayed, and any applicable statute of limitations shall
be tolled with respect to such claim from the date arbitration
proceedings are instituted until ten days after the arbitration award
becomes final.
(3) Conspicuous language calling attention to the requirement for
arbitration under this section shall be referenced or included on the
analysis label required under RCW 15.49.011 through 15.49.101.
(4) If the parties agree to submit the claim to arbitration and to
be bound by the arbitration award, then the arbitration shall be
subject to chapter ((7.04)) 7.-- RCW (sections 1 through 32 of this
act), and RCW 15.49.081 through 15.49.111 will not apply to the
arbitration. If the parties do not so agree, then the buyer may
provide for mandatory arbitration by the arbitration committee under
RCW 15.49.081 through 15.49.111. An award rendered in such mandatory
arbitration shall not be binding upon the parties and any trial on any
claim so arbitrated shall be de novo.
(5) This section applies only to claims, or counterclaims, where
the relief sought is, or includes, a monetary amount in excess of two
thousand dollars. All claims for two thousand dollars or less shall be
commenced in either district court or small claims court.
Sec. 37 RCW 35.20.010 and 2001 c 68 s 3 are each amended to read
as follows:
(1) There is hereby created and established in each incorporated
city of this state having a population of more than four hundred
thousand inhabitants, as shown by the federal or state census,
whichever is the later, a municipal court, which shall be styled "The
Municipal Court of . . . . . . (name of city)," hereinafter designated
and referred to as the municipal court, which court shall have
jurisdiction and shall exercise all the powers by this chapter declared
to be vested in such municipal court, together with such powers and
jurisdiction as is generally conferred in this state either by common
law or statute.
(2) A municipality operating a municipal court under this section
may terminate that court if the municipality has reached an agreement
with the county under chapter 39.34 RCW under which the county is to be
paid a reasonable amount for costs associated with prosecution,
adjudication, and sentencing in criminal cases filed in district court
as a result of the termination. The agreement shall provide for
periodic review and renewal of the terms of the agreement. If the
municipality and the county are unable to agree on the terms for
renewal of the agreement, they shall be deemed to have entered into an
agreement to submit the issue to arbitration under chapter ((7.04))
7.-- RCW (sections 1 through 32 of this act). Pending conclusion of
the arbitration proceeding, the terms of the agreement shall remain in
effect. The municipality and the county have the same rights and are
subject to the same duties as other parties who have agreed to submit
to arbitration under chapter ((7.04)) 7.-- RCW (sections 1 through 32
of this act).
(3) A city that has entered into an agreement for court services
with the county must provide written notice of the intent to terminate
the agreement to the county legislative authority not less than one
year prior to February 1st of the year in which all district court
judges are subject to election. A city that terminates an agreement
for court services to be provided by a district court may terminate the
agreement only at the end of a four-year district court judicial term.
(4) A county that wishes to terminate an agreement with a city for
the provision of court services must provide written notice of the
intent to terminate the agreement to the city legislative authority not
less than one year prior to the expiration of the agreement.
Sec. 38 RCW 35.22.425 and 1984 c 258 s 204 are each amended to
read as follows:
A city of the first class operating a municipal court may not
repeal in its entirety that portion of its municipal code defining
crimes or repeal a provision of its municipal code which defines a
crime equivalent to an offense listed in RCW 46.63.020 unless the
municipality has reached an agreement with the appropriate county under
chapter 39.34 RCW under which the county is to be paid a reasonable
amount for costs associated with prosecution, adjudication, and
sentencing in criminal cases filed in district court as a result of the
repeal. The agreement shall include provisions for periodic review and
renewal of the terms of the agreement. If the municipality and the
county are unable to agree on the terms for renewal of the agreement,
they shall be deemed to have entered into an agreement to submit the
issue to arbitration under chapter ((7.04)) 7.-- RCW (sections 1
through 32 of this act). Pending conclusion of the arbitration
proceeding, the terms of the agreement shall remain in effect. The
municipality and the county have the same rights and are subject to the
same duties as other parties who have agreed to submit to arbitration
under chapter ((7.04)) 7.-- RCW (sections 1 through 32 of this act).
Sec. 39 RCW 35.23.555 and 1994 c 81 s 52 are each amended to read
as follows:
A city of the second class operating a municipal court may not
repeal in its entirety that portion of its municipal code defining
crimes or repeal a provision of its municipal code which defines a
crime equivalent to an offense listed in RCW 46.63.020 unless the
municipality has reached an agreement with the appropriate county under
chapter 39.34 RCW under which the county is to be paid a reasonable
amount for costs associated with prosecution, adjudication, and
sentencing in criminal cases filed in district court as a result of the
repeal. The agreement shall include provisions for periodic review and
renewal of the terms of the agreement. If the municipality and the
county are unable to agree on the terms for renewal of the agreement,
they shall be deemed to have entered into an agreement to submit the
issue to arbitration under chapter ((7.04)) 7.-- RCW (sections 1
through 32 of this act). Pending conclusion of the arbitration
proceeding, the terms of the agreement shall remain in effect. The
municipality and the county have the same rights and are subject to the
same duties as other parties who have agreed to submit to arbitration
under chapter ((7.04)) 7.-- RCW (sections 1 through 32 of this act).
Sec. 40 RCW 35.27.515 and 1984 c 258 s 207 are each amended to
read as follows:
A town operating a municipal court may not repeal in its entirety
that portion of its municipal code defining crimes or repeal a
provision of its municipal code which defines a crime equivalent to an
offense listed in RCW 46.63.020 unless the municipality has reached an
agreement with the appropriate county under chapter 39.34 RCW under
which the county is to be paid a reasonable amount for costs associated
with prosecution, adjudication, and sentencing in criminal cases filed
in district court as a result of the repeal. The agreement shall
include provisions for periodic review and renewal of the terms of the
agreement. If the municipality and the county are unable to agree on
the terms for renewal of the agreement, they shall be deemed to have
entered into an agreement to submit the issue to arbitration under
chapter ((7.04)) 7.-- RCW (sections 1 through 32 of this act). Pending
conclusion of the arbitration proceeding, the terms of the agreement
shall remain in effect. The municipality and the county have the same
rights and are subject to the same duties as other parties who have
agreed to submit to arbitration under chapter ((7.04)) 7.-- RCW
(sections 1 through 32 of this act).
Sec. 41 RCW 35.30.100 and 1984 c 258 s 208 are each amended to
read as follows:
A city operating a municipal court may not repeal in its entirety
that portion of its municipal code defining crimes unless the
municipality has reached an agreement with the appropriate county under
chapter 39.34 RCW under which the county is to be paid a reasonable
amount for costs associated with prosecution, adjudication, and
sentencing in criminal cases filed in district court as a result of the
repeal. The agreement shall include provisions for periodic review and
renewal of the terms of the agreement. If the municipality and the
county are unable to agree on the terms for renewal of the agreement,
they shall be deemed to have entered into an agreement to submit the
issue to arbitration under chapter ((7.04)) 7.-- RCW (sections 1
through 32 of this act). Pending conclusion of the arbitration
proceeding, the terms of the agreement shall remain in effect. The
municipality and the county have the same rights and are subject to the
same duties as other parties who have agreed to submit to arbitration
under chapter ((7.04)) 7.-- RCW (sections 1 through 32 of this act).
Sec. 42 RCW 35A.11.200 and 1984 c 258 s 209 are each amended to
read as follows:
A code city operating a municipal court may not repeal in its
entirety that portion of its municipal code defining crimes unless the
municipality has reached an agreement with the appropriate county under
chapter 39.34 RCW under which the county is to be paid a reasonable
amount for costs associated with prosecution, adjudication, and
sentencing in criminal cases filed in district court as a result of the
repeal. The agreement shall include provisions for periodic review and
renewal of the terms of the agreement. If the municipality and the
county are unable to agree on the terms for renewal of the agreement,
they shall be deemed to have entered into an agreement to submit the
issue to arbitration under chapter ((7.04)) 7.-- RCW (sections 1
through 32 of this act). Pending conclusion of the arbitration
proceeding, the terms of the agreement shall remain in effect. The
municipality and the county have the same rights and are subject to the
same duties as other parties who have agreed to submit to arbitration
under chapter ((7.04)) 7.-- RCW (sections 1 through 32 of this act).
Sec. 43 RCW 46.96.150 and 1994 c 274 s 2 are each amended to read
as follows:
(1) Within thirty days after receipt of the notice under RCW
46.96.140, or within thirty days after the end of an appeal procedure
provided by the manufacturer, whichever is greater, a new motor vehicle
dealer so notified or entitled to notice may file a petition with the
department protesting the proposed establishment or relocation. The
petition shall contain a short statement setting forth the reasons for
the dealer's objection to the proposed establishment or relocation.
Upon the filing of a protest and the receipt of the filing fee, the
department shall promptly notify the manufacturer that a timely protest
has been filed and shall request the appointment of an administrative
law judge under chapter 34.12 RCW to conduct a hearing. The
manufacturer shall not establish or relocate the new motor vehicle
dealer until the administrative law judge has held a hearing and has
determined that there is good cause for permitting the proposed
establishment or relocation. When more than one protest is filed
against the establishment or relocation of the same dealer, the
administrative law judge shall consolidate the hearings to expedite
disposition of the matter.
(2) If a manufacturer provides in the franchise agreement or by
written statement distributed and provided to its dealers for
arbitration under the ((Washington)) Uniform Arbitration Act, chapter
((7.04)) 7.-- RCW (sections 1 through 32 of this act), as a mechanism
for resolving disputes relating to the establishment of an additional
new motor vehicle dealer or the relocation of a new motor vehicle
dealer, then the provisions of this section and RCW 46.96.170 relating
to hearings by an administrative law judge do not apply, and a dispute
regarding the establishment of an additional new motor vehicle dealer
or the relocation of an existing new motor vehicle dealer shall be
determined in an arbitration proceeding conducted in accordance with
the ((Washington)) Uniform Arbitration Act, chapter ((7.04)) 7.-- RCW
(sections 1 through 32 of this act). The thirty-day period for filing
a protest under this section still applies except that the protesting
dealer shall file his protest with the manufacturer within thirty days
after receipt of the notice under RCW 46.96.140.
(3) The dispute shall be referred for arbitration to such
arbitrator as may be agreed upon by the parties to the dispute. If the
parties cannot agree upon a single arbitrator within thirty days from
the date the protest is filed, the protesting dealer will select an
arbitrator, the manufacturer will select an arbitrator, and the two
arbitrators will then select a third. If a third arbitrator is not
agreed upon within thirty days, any party may apply to the superior
court, and the judge of the superior court having jurisdiction will
appoint the third arbitrator. The protesting dealer will pay the
arbitrator selected by him, and the manufacturer will pay the
arbitrator it selected. The expense of the third arbitrator and all
other expenses of arbitration will be shared equally by the parties.
Attorneys' fees and fees paid to expert witnesses are not expenses of
arbitration and will be paid by the person incurring them.
(4) Notwithstanding the terms of a franchise or written statement
of the manufacturer and notwithstanding the terms of a waiver, the
arbitration will take place in the state of Washington in the county
where the protesting dealer has his principal place of business. RCW
46.96.160 applies to a determination made by the arbitrator or
arbitrators in determining whether good cause exists for permitting the
proposed establishment or relocation of a new motor vehicle dealer, and
the manufacturer has the burden of proof to establish that good cause
exists for permitting the proposed establishment or relocation. After
a hearing has been held, the arbitrator or arbitrators shall render a
decision as expeditiously as possible, but in any event not later than
one hundred twenty days from the date the arbitrator or arbitrators are
selected or appointed. The manufacturer shall not establish or
relocate the new motor vehicle dealer until the arbitration hearing has
been held and the arbitrator or arbitrators have determined that there
is good cause for permitting the proposed establishment or relocation.
The written decision of the arbitrator is binding upon the parties
unless modified, corrected, or vacated under the Washington Arbitration
Act. Any party may appeal the decision of the arbitrator under the
((Washington)) Uniform Arbitration Act, chapter ((7.04)) 7.-- RCW
(sections 1 through 32 of this act).
(5) If the franchise agreement or the manufacturer's written
statement distributed and provided to its dealers does not provide for
arbitration under the ((Washington)) Uniform Arbitration Act as a
mechanism for resolving disputes relating to the establishment of an
additional new motor vehicle dealer or the relocation of a new motor
vehicle dealer, then the hearing provisions of this section and RCW
46.96.170 apply. Nothing in this section is intended to preclude a new
motor vehicle dealer from electing to use any other dispute resolution
mechanism offered by a manufacturer.
Sec. 44 RCW 49.66.090 and 1973 2nd ex.s. c 3 s 7 are each amended
to read as follows:
In the event that a health care activity and an employees'
bargaining unit shall reach an impasse, the matters in dispute shall be
submitted to a board of arbitration composed of three arbitrators for
final and binding resolution. The board shall be selected in the
following manner: Within ten days, the employer shall appoint one
arbitrator and the employees shall appoint one arbitrator. The two
arbitrators so selected and named shall within ten days agree upon and
select the name of a third arbitrator who shall act as chairman. If,
upon the expiration of the period allowed therefor the arbitrators are
unable to agree on the selection of a third arbitrator, such arbitrator
shall be appointed at the request of either party in accordance with
((the provisions of RCW 7.04.050)) section 11 of this act, and ((he))
that person shall act as ((chairman)) chair of the arbitration board.
Sec. 45 RCW 59.18.320 and 1973 1st ex.s. c 207 s 32 are each
amended to read as follows:
(1) The landlord and tenant may agree, in writing, except as
provided in RCW 59.18.230(2)(e), to submit to arbitration, in
conformity with the provisions of this section, any controversy arising
under the provisions of this chapter, except the following:
(a) Controversies regarding the existence of defects covered in
subsections (1) and (2) of RCW 59.18.070: PROVIDED, That this
exception shall apply only before the implementation of any remedy by
the tenant;
(b) Any situation where court action has been started by either
landlord or tenant to enforce rights under this chapter; when the court
action substantially affects the controversy, including but not limited
to:
(i) Court action pursuant to subsections (2) and (3) of RCW
59.18.090 and subsections (1) and (2) of RCW 59.18.160; and
(ii) Any unlawful detainer action filed by the landlord pursuant to
chapter 59.12 RCW.
(2) The party initiating arbitration under subsection (1) of this
section shall give reasonable notice to the other party or parties.
(3) Except as otherwise provided in this section, the arbitration
process shall be administered by any arbitrator agreed upon by the
parties at the time the dispute arises: PROVIDED, That the procedures
shall comply with the requirements of chapter ((7.04)) 7.-- RCW
(sections 1 through 32 of this act) (relating to arbitration) and of
this chapter.
Sec. 46 RCW 59.18.330 and 1973 1st ex.s. c 207 s 33 are each
amended to read as follows:
(1) Unless otherwise mutually agreed to, in the event a controversy
arises under RCW 59.18.320 the landlord or tenant, or both, shall
complete an application for arbitration and deliver it to the selected
arbitrator.
(2) The arbitrator so designated shall schedule a hearing to be
held no later than ten days following receipt of notice of the
controversy, except as provided in RCW 59.18.350.
(3) The arbitrator shall conduct public or private hearings.
Reasonable notice of such hearings shall be given to the parties, who
shall appear and be heard either in person or by counsel or other
representative. Hearings shall be informal and the rules of evidence
prevailing in judicial proceedings shall not be binding. A recording
of the proceedings may be taken. Any oral or documentary evidence and
other data deemed relevant by the arbitrator may be received in
evidence. The arbitrator shall have the power to administer oaths, to
issue subpoenas, to require the attendance of witnesses and the
production of such books, papers, contracts, agreements, and documents
as may be deemed by the arbitrator material to a just determination of
the issues in dispute. If any person refuses to obey such subpoena or
refuses to be sworn to testify, or any witness, party, or attorney is
guilty of any contempt while in attendance at any hearing held
hereunder, the arbitrator may invoke the jurisdiction of any superior
court, and such court shall have jurisdiction to issue an appropriate
order. A failure to obey such order may be punished by the court as a
contempt thereof.
(4) Within five days after conclusion of the hearing, the
arbitrator shall make a written decision upon the issues presented, a
copy of which shall be mailed by certified mail or otherwise delivered
to the parties or their designated representatives. The determination
of the dispute made by the arbitrator shall be final and binding upon
both parties.
(5) If a defective condition exists which affects more than one
dwelling unit in a similar manner, the arbitrator may consolidate the
issues of fact common to those dwelling units in a single proceeding.
(6) Decisions of the arbitrator shall be enforced or appealed
according to the provisions of chapter ((7.04)) 7.-- RCW (sections 1
through 32 of this act).
Sec. 47 RCW 59.20.260 and 1984 c 58 s 13 are each amended to read
as follows:
(1) The landlord and tenant may agree in writing to submit a
controversy arising under this chapter to arbitration. The agreement
shall contain the name of the arbitrator agreed upon by the parties or
the process for selecting the arbitrator.
(2) The arbitration shall be administered under this chapter and
chapter ((7.04)) 7.-- RCW (sections 1 through 32 of this act).
Sec. 48 RCW 59.20.270 and 1984 c 58 s 14 are each amended to read
as follows:
(1) If the landlord and tenant agree to submit the matter to
arbitration, the parties shall complete an application for arbitration
and deliver it to the selected arbitrator.
(2) The arbitrator shall schedule a hearing to be held no later
than ten days following receipt of the application.
(3) Reasonable notice of the hearings shall be given to the
parties, who shall appear and be heard either in person, by counsel, or
by other representative. Hearings shall be informal and the rules of
evidence prevailing in judicial proceedings shall not be binding.
Hearings may be public or private. The proceedings may be recorded.
Any oral or documentary evidence and other data deemed relevant by the
arbitrator may be received in evidence. The arbitrator may administer
oaths, issue subpoenas, and require the attendance of witnesses and the
production of books, papers, contracts, agreements, and documents
deemed by the arbitrator to be material to a just determination of the
issues in dispute. If a person refuses to obey a subpoena or refuses
to be sworn to testify, or any witness, party, or attorney is guilty of
any contempt while in attendance at any hearing held under this
section, the arbitrator may invoke the jurisdiction of any district or
superior court, and the court shall have jurisdiction to issue an
appropriate order. Failure to obey the order may be punished by the
court as contempt.
(4) Within five days after the hearing, the arbitrator shall make
a written decision upon the issues presented. A copy of the decision
shall be mailed by certified mail or otherwise delivered to the parties
or their designated representatives. The decision of the arbitrator
shall be final and binding upon all parties.
(5) If a dispute exists affecting more than one tenant in a similar
manner, the arbitrator may with the consent of the parties consolidate
the cases into a single proceeding.
(6) Decisions of the arbitrator shall be enforced or appealed under
chapter ((7.04)) 7.-- RCW (sections 1 through 32 of this act).
Sec. 49 RCW 70.87.205 and 1983 c 123 s 23 are each amended to
read as follows:
(1) Disputes arising under RCW 70.87.200(2) shall be resolved by
arbitration. The request shall be sent by certified mail.
(2) The department shall appoint one arbitrator; the municipality
shall appoint one arbitrator; and the arbitrators chosen by the
department and the municipality shall appoint the third arbitrator. If
the two arbitrators cannot agree on the third arbitrator, the presiding
judge of the Thurston county superior court, or his or her designee,
shall appoint the third arbitrator.
(3) The arbitration shall be held pursuant to the procedures in
chapter ((7.04)) 7.-- RCW (sections 1 through 32 of this act), except
that ((RCW 7.04.220)) section 28(1)(f) of this act shall not apply.
The decision of the arbitrators is final and binding on the parties.
Neither party may appeal a decision to any court.
(4) A party may petition the Thurston county superior court to
enforce a decision of the arbitrators.
NEW SECTION. Sec. 50
(1) RCW 7.04.010 (Arbitration authorized) and 1947 c 209 s 1 & 1943
c 138 s 1;
(2) RCW 7.04.020 (Applications in writing--How heard--Jurisdiction)
and 1982 c 122 s 1 & 1943 c 138 s 2;
(3) RCW 7.04.030 (Stay of action pending arbitration) and 1943 c
138 s 3;
(4) RCW 7.04.040 (Motion to compel arbitration--Notice and
hearing--Motion for stay) and 1943 c 138 s 4;
(5) RCW 7.04.050 (Appointment of arbitrators by court) and 1943 c
138 s 5;
(6) RCW 7.04.060 (Notice of intention to arbitrate--Contents) and
1943 c 138 s 6;
(7) RCW 7.04.070 (Hearing by arbitrators) and 1943 c 138 s 7;
(8) RCW 7.04.080 (Failure of party to appear no bar to hearing and
determination) and 1943 c 138 s 8;
(9) RCW 7.04.090 (Time of making award--Extension--Failure to make
award when required) and 1985 c 265 s 1 & 1943 c 138 s 9;
(10) RCW 7.04.100 (Representation by attorney) and 1943 c 138 s 10;
(11) RCW 7.04.110 (Witnesses--Compelling attendance) and 1943 c 138
s 11;
(12) RCW 7.04.120 (Depositions) and 1943 c 138 s 12;
(13) RCW 7.04.130 (Order to preserve property or secure
satisfaction of award) and 1943 c 138 s 13;
(14) RCW 7.04.140 (Form of award--Copies to parties) and 1943 c 138
s 14;
(15) RCW 7.04.150 (Confirmation of award by court) and 1982 c 122
s 2 & 1943 c 138 s 15;
(16) RCW 7.04.160 (Vacation of award--Rehearing) and 1943 c 138 s
16;
(17) RCW 7.04.170 (Modification or correction of award by court)
and 1943 c 138 s 17;
(18) RCW 7.04.175 (Modification or correction of award by
arbitrators) and 1985 c 265 s 2;
(19) RCW 7.04.180 (Notice of motion to vacate, modify, or correct
award--Stay) and 1943 c 138 s 18;
(20) RCW 7.04.190 (Judgment--Costs) and 1943 c 138 s 19;
(21) RCW 7.04.200 (Judgment roll--Docketing) and 1943 c 138 s 20;
(22) RCW 7.04.210 (Effect of judgment) and 1943 c 138 s 21; and
(23) RCW 7.04.220 (Appeal) and 1943 c 138 s 22.
NEW SECTION. Sec. 51 This act takes effect January 1, 2006.
NEW SECTION. Sec. 52 Sections 1 through 32 of this act
constitute a new chapter in Title 7 RCW."
SHB 1054 -
By Committee on Judiciary
ADOPTED 04/05/2005
On page 1, line 1 of the title, after "arbitration act;" strike the remainder of the title and insert "amending RCW 3.46.150, 3.50.800, 3.50.805, 15.49.071, 35.20.010, 35.22.425, 35.23.555, 35.27.515, 35.30.100, 35A.11.200, 46.96.150, 49.66.090, 59.18.320, 59.18.330, 59.20.260, 59.20.270, and 70.87.205; adding a new chapter to Title 7 RCW; repealing RCW 7.04.010, 7.04.020, 7.04.030, 7.04.040, 7.04.050, 7.04.060, 7.04.070, 7.04.080, 7.04.090, 7.04.100, 7.04.110, 7.04.120, 7.04.130, 7.04.140, 7.04.150, 7.04.160, 7.04.170, 7.04.175, 7.04.180, 7.04.190, 7.04.200, 7.04.210, and 7.04.220; and providing an effective date."