Provides that arbitration awards in consumer and employment disputes, where the arbitration is conducted pursuant to a contract, shall include all issues in dispute and the arbitrator's findings of fact and conclusions of law.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8421
SPONSOR: Dinowitz TITLE OF BILL:
An act to amend the civil practice law and rules, in relation to arbi-
tration awards in consumer and employment disputes
PURPOSE:
This bill would require arbitrators who decide consumer or employment-
related disputes to set forth the basis for their awards.
SUMMARY OF PROVISIONS:
Section one of the bill would amend section 7507 of the civil practice
law and rules to require arbitrators who decide consumer or employment-
related disputes to set forth the basis for their awards.
Section two of the bill sets the effective date.
JUSTIFICATION:
It is well-settled that arbitrators are not required to explain or
justify their awards. E.g. Colletti v. Mesh, 23 AD2d 245 (1st Dept),
affd 17 NY2d 460 (1965). In recent years, there has been a proliferation
of arbitration hearings in consumer and employment matters. It is
particularly impbrtant for consumers and employees to know the basis for
awards rendered in hearings in which they have participated. This bill
does not purport to be a burden upon arbitrators. Or otherwise amelio-
rate any of the benefits of arbitration, such as speed and efficiency of
adjudication. Still, it is difficult, if not impossible for a losing
arbitration participant to know whether any grounds exist to vacate the
arbitration award pursuant to CPLR 7511 if the basis for the award
remains unknown. This bill was modeled upon 11 NYCRR 65-4.5(s) which
has worked well for many years in providing automobile insureds and
insurers with the same basic information about arbitration awards in
matters brought pursuant to Article 51 of the Insurance Law (no fault
arbitrations).
PRIOR LEGISLATIVE HISTORY:
2023-24 - A.3450 - Referred to Judiciary/S.4107 - Referred to Judiciary
2021-22 - A.2193 - Passed Assembly/S.4914 - Referred to Judiciary
2019-20 - A.7572 - Passed Assembly/S.2630 - Referred to Judiciary
2017-2018 - A.6372 - Passed Assembly / S.6225 - Referred to Judiciary
2015-2016 - A.10090-A - Referred to Judiciary / S.8040 - Referred to
Judiciary
FISCAL IMPLICATIONS:
None.
EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after it
shall have become law.
