Washington State House of Representatives Office of Program Research | BILL ANALYSIS |
Judiciary Committee |
HB 2449
This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent. |
Title: An act relating to the applicability of statutes of limitation in arbitration proceedings.
Brief Description: Addressing the applicability of statutes of limitation in arbitration proceedings.
Sponsors: Representatives Goodman and Pedersen.
Brief Summary of Bill |
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Hearing Date: 1/26/12
Staff: Valerie Rickman (786-7119).
Background:
Arbitration is a form of non-judicial, "alternative" dispute resolution. Contracting parties may explicitly agree to settle claims arising from a contract through arbitration, rather than judicial proceedings. In Washington, arbitration proceedings are governed by the Washington Uniform Arbitration Act (UAA), which prescribes procedures for initiating and conducting arbitration and for enforcing and appealing arbitration awards and rulings. In order to be enforceable, an arbitration proceeding must comply with the provisions of the UAA.
In 2010 the Supreme Court of Washington ruled that existing statutes of limitations do not apply to arbitration proceedings where the parties had not explicitly agreed that the state statute of limitations would apply. The court based its conclusion on the text of Washington's statutes of limitations and the Washington UAA. The court noted that the state's statutes of limitations mention only court actions, not arbitrations; that the UAA consistently distinguishes between arbitration proceedings and civil actions or judicial proceedings; and that the UAA does not make state statutes of limitations applicable to arbitrations.
Summary of Bill:
The Uniform Arbitration Act is amended to specify that the time limitations applicable to claims initiated in court will also apply to claims subject to arbitration.
Appropriation: None.
Fiscal Note: Not requested.
Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.