28 U.S.C. § 654 — Arbitration

Page 318 TITLE 28—JUDICIARY AND JUDICIAL PROCEDURE § 654 1 So in original. The word ‘‘section’’ probably should not ap- pear. serve as neutrals in alternative dispute resolu- tion processes, professional neutrals from the private sector, and persons who have been trained to serve as neutrals in alternative dis- pute resolution processes. Until such time as rules are adopted under chapter 131 of this title relating to the disqualification of neutrals, each district court shall issue rules under section 2071(a) relating to the disqualification of neutrals (including, where appropriate, disquali- fication under section 455 of this title, other ap- plicable law, and professional responsibility standards). (Added Pub. L. 100–702, title IX, § 901(a), Nov. 19, 1988, 102 Stat. 4660; amended Pub. L. 105–315, § 5, Oct. 30, 1998, 112 Stat. 2995.) Editorial Notes AMENDMENTS 1998—Pub. L. 105–315 amended section generally, sub- stituting provisions relating to neutrals in alternative dispute resolution process for provisions relating to powers of arbitrator and arbitration hearing. § 654. Arbitration (a) REFERRAL OF ACTIONS TO ARBITRATION.— Notwithstanding any provision of law to the contrary and except as provided in subsections (a), (b), and (c) of section 652 and subsection (d) of this section, a district court may allow the referral to arbitration of any civil action (in- cluding any adversary proceeding in bank- ruptcy) pending before it when the parties con- sent, except that referral to arbitration may not be made where— (1) the action is based on an alleged viola- tion of a right secured by the Constitution of the United States; (2) jurisdiction is based in whole or in part on section 1343 of this title; or (3) the relief sought consists of money dam- ages in an amount greater than $150,000. (b) SAFEGUARDS IN CONSENT CASES.—Until such time as rules are adopted under chapter 131 of this title relating to procedures described in this subsection, the district court shall, by local rule adopted under section 2071(a), establish proce- dures to ensure that any civil action in which arbitration by consent is allowed under sub- section (a)— (1) consent to arbitration is freely and know- ingly obtained; and (2) no party or attorney is prejudiced for re- fusing to participate in arbitration. (c) PRESUMPTIONS.—For purposes of subsection (a)(3), a district court may presume damages are not in excess of $150,000 unless counsel certifies that damages exceed such amount. (d) EXISTING PROGRAMS.—Nothing in this chap- ter is deemed to affect any program in which ar- bitration is conducted pursuant to section 1 title IX of the Judicial Improvements and Access to Justice Act (Public Law 100–702), as amended by section 1 of Public Law 105–53. (Added Pub. L. 100–702, title IX, § 901(a), Nov. 19, 1988, 102 Stat. 4660; amended Pub. L. 105–315, § 6, Oct. 30, 1998, 112 Stat. 2995.) Editorial Notes REFERENCES IN TEXT Title IX of the Judicial Improvements and Access to Justice Act (Public Law 100–702), as amended by section 1 of Public Law 105–53, referred to in subsec. (d), is title IX of Pub. L. 100–702, Nov. 19, 1988, 102 Stat. 4659, which enacted this chapter and provisions set out as notes under sections 651 and 652 of this title. Section 1 of Pub. L. 105–53, Oct. 6, 1997, 111 Stat. 1173, amended section 905 of title IX of Pub. L. 100–702, which is set out as a note under section 651 of this title. AMENDMENTS 1998—Pub. L. 105–315 amended section generally, sub- stituting provisions relating to arbitration for provi- sions relating to arbitration award and judgment. § 655. Arbitrators (a) POWERS OF ARBITRATORS.—An arbitrator to whom an action is referred under section 654 shall have the power, within the judicial district of the district court which referred the action to arbitration— (1) to conduct arbitration hearings; (2) to administer oaths and affirmations; and (3) to make awards. (b) STANDARDS FOR CERTIFICATION.—Each dis- trict court that authorizes arbitration shall es- tablish standards for the certification of arbitra- tors and shall certify arbitrators to perform services in accordance with such standards and this chapter. The standards shall include provi- sions requiring that any arbitrator— (1) shall take the oath or affirmation de- scribed in section 453; and (2) shall be subject to the disqualification rules under section 455. (c) IMMUNITY.—All individuals serving as arbi- trators in an alternative dispute resolution pro- gram under this chapter are performing quasi- judicial functions and are entitled to the immu- nities and protections that the law accords to persons serving in such capacity. (Added Pub. L. 100–702, title IX, § 901(a), Nov. 19, 1988, 102 Stat. 4661; amended Pub. L. 105–315, § 7, Oct. 30, 1998, 112 Stat. 2996.) Editorial Notes AMENDMENTS 1998—Pub. L. 105–315 amended section generally, sub- stituting provisions relating to arbitrators for provi- sions relating to trial de novo. § 656. Subpoenas Rule 45 of the Federal Rules of Civil Procedure (relating to subpoenas) applies to subpoenas for the attendance of witnesses and the production of documentary evidence at an arbitration hear- ing under this chapter. (Added Pub. L. 100–702, title IX, § 901(a), Nov. 19, 1988, 102 Stat. 4662; amended Pub. L. 105–315, § 8, Oct. 30, 1998, 112 Stat. 2996.) Editorial Notes REFERENCES IN TEXT The Federal Rules of Civil Procedure, referred to in text, are set out in the Appendix to this title.