LD 1218
pg. 35
Page 34 of 94 An Act To Enact the Revised Uniform Arbitration Act Page 36 of 94
Download Bill Text
LR 468
Item 1

 
them is a party to a separate agreement to arbitrate or a
separate arbitration proceeding with a 3rd 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.__Consolidation of some claims.__The court may order
consolidation of separate arbitration proceedings as to some
claims and allow other claims to be resolved in separate
arbitration proceedings.

 
3.__No consolidation if agreement prohibits.__The court may
not order consolidation of the claims of a party to an
agreement to arbitrate if the agreement prohibits
consolidation.

 
Uniform Comment

 
1. Multiparty disputes have long been a source of
controversy in the enforcement of agreements to arbitrate.
When conflict erupts in complex transactions involving
multiple contracts, it is rare for all parties to be
signatories to a single arbitration agreement. In such cases,
some parties may be bound to arbitrate while others are not;
in other situations, there may be multiple arbitration
agreements. Such realities raise the possibility that common
issues of law or fact will be resolved in multiple fora,
enhancing the overall expense of conflict resolution and
leading to potentially inconsistent results. See III Macneil
Treatise § 33.3.2. Such scenarios are particularly common in
construction, insurance, maritime and sales transactions, but
are not limited to those settings. See Thomas J. Stipanowich,
Arbitration and the Multiparty Dispute: The Search for
Workable Solutions, 72 Iowa L. Rev. 473, 481-82 (1987).

 
Most state arbitration statutes, the FAA, and most arbitration
agreements do not specifically address consolidated
arbitration proceedings. In the common case where the parties
have failed to address the issue in their arbitration
agreements, some courts have ordered consolidated hearings
while others have denied consolidation. In the interest of
adjudicative efficiency and the


Page 34 of 94 Top of Page Page 36 of 94