LD 1218
pg. 6
Page 5 of 94 An Act To Enact the Revised Uniform Arbitration Act Page 7 of 94
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LR 468
Item 1

 
The decision not to statutorily sanction either form of the
"opt-in" device in the RUAA leaves the issue of the legal
propriety of this means for securing review of awards to the
developing case law under the FAA and state arbitration
statutes. Parties remain free, within the constraints imposed by
the existing and developing law, to agree to contractual
provisions for arbitral or judicial review of challenged awards.

 
It is likely that matters not addressed in the FAA are also
open to regulation by the States. State law provisions
regulating purely procedural dimensions of the arbitration
process (e.g., discovery [RUAA Section 17], consolidation of
claims [RUAA Section 10], and arbitrator immunity [RUAA
Section 14]) likely will not be subject to preemption. Less
certain is the effect of FAA preemption with regard to
substantive issues like the authority of arbitrators to award
punitive damages (RUAA Section 21) and the standards for
arbitrator disclosure of potential conflicts of interest (RUAA
Section 12) that have a significant impact on the integrity
and/or the adequacy of the arbitration process. These
"borderline" issues are not purely procedural in nature but
unlike the "front end" and "back end" issues they do not go to
the essence of the agreement to arbitrate or effectuation of
the arbitral result. Although there is no concrete guidance in
the case law, preemption of state law dealing with such
matters seems unlikely as long as it cannot be characterized
as anti-arbitration or as intended to limit the enforceability
or viability of agreements to arbitrate.

 
The subject of international arbitration is not specifically
addressed in the RUAA. Twelve States have passed arbitration
statutes directed to international arbitration. Seven States
have based their statutes on the Model Arbitration Law
proposed in 1985 by the United Nations Commission on
International Trade Law (UNCITRAL). Other States have
approached international arbitration in a variety of ways,
such as adopting parts of the UNCITRAL Model Law together with
provisions taken directly from the 1958 United Nations
Convention on Recognition and Enforcement of Foreign Arbitral
Awards (commonly referred to as the New York Convention) or by
devising their own international arbitration provisions.

 
Any provisions of these state international arbitration
statutes that are inconsistent with the New York Convention,
to which the United States adhered in 1970 (terms of the New
York Convention can be found at 9 U.S.C. § 201), or with the
federal legislation in Chapter 2 of Title 9 of the United
States Code are preempted. Chapter 2 creates federal-question
jurisdiction in the federal district courts for any case
"falling under the [New York] Convention" and permits removal
of any such case from a


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