To follow up on our earlier post, here is an article by Automotive News: Neil Roland Automotive News December 17, 2009 WASHINGTON — President Barack Obama signed legislation that would give rejected General Motors Co. and Chrysler Group dealers access to neutral arbitration if they want to be reinstated, kicking off a a six-and-a-half months arbitration process. GM and Chrysler now have 30 days to send letters to the owners of about 2,150 rejected dealerships informing them of their rights under the new law and spelling out the reasons that their franchise agreements were terminated. With Obama’s signature, the eliminated dealerships have 40 days to give notice that they intend to seek arbitration. Arbitration must be completed within six months, and dealerships that win must receive a letter of intent from the automakers within another 14 business days. The legislation that Obama signed was a $446 billion spending bill that contained the dealer-arbitration provisions spearheaded by Rep. Steny Hoyer, D-Md., the House majority leader, and Sen. Dick Durbin, D-Ill., the assistant Senate majority leader. Hoyer and Durbin acted this month after GM and Chrysler broke off settlement talks and announced plans to create neutral arbitration applying the original criteria they used to mark dealerships for termination. The new law contains criteria more favorable to dealers than those envisioned by GM and Chrysler.
Continue reading...In 2009, the 81st Regular Session of the Texas Legislation adjourned on June 1. Following is a summary of some bills related to alternative dispute resolution filed during the session. Bills that passed: H.B. 2256. The bill relates to mediation of out-of-network health benefit claim disputes concerning enrollees, facility-based physicians, and certain health benefit plans. Here are the bill’s history and analysis. Posts by Holly Hayes discussing this bill are here and here (with commentary by Victoria Pynchon and Michael Curry). S.B. 1650, authored by Senator Duncan (R-Lubbock), would grant Texas appellate courts jurisdiction over certain interlocutory appeals arising under the FAA. Here are the bill’s history and analysis. Find a post by Don Cruse here. H.B. 1083. The bill, authored by Rep. Gary Elkins, states that “Except as provided by agreement of the parties, a court may not order mediation in an action that is subject to the Federal Arbitration Act (9 U.S.C. Sections 1-16).” Here are the bill’s history and analysis. Also, a guest-post by Audrey L. Maness from Weil, Gotshal & Manges is here. Bills that did not pass: S.B. 222, authored by Senator Royce West, would amend the Texas Arbitration Act to ban pre-dispute arbitration in employment, consumer, and franchise contracts. In addition, it would prohibit arbitration of civil right claims. The bill’s history is here. H.B. 2139. Authored by Rep. McClendon, the bill establishes a victim-offender pretrial mediation program for first-time offenders. The bill’s history is here. H.B. 2095. Filed by Rep. Farrar, relating to the regulation of claims against residential home builders. This bill would prohibit charging homeowners with fees in connection with a state-sponsored inspection or dispute resolution process and arbitration required under the same title. The bills’ history is here. H.B. 2896. Filed by Rep. Leibowitz, relating to forms to be used by builders in contracts for the sale or construction of a new home. This bill provides that a contract form requiring the parties to agree to binding arbitration can not be adopted. The bill’s history is here. H.B. 3426. Filed by Rep. Hernandez, relating to the notice required by certain mortgage servicers before foreclosing on real property. This bill provides mediation rules for foreclosure disputes. The bill’s history is here. H.B. 3482. Filed by Rep. Coleman, relating to the notice required by mortgage servicers before foreclosing on real property. This bill is similar to H.B. 3426. The bill’s history is here. S.B. 1475. Filed by Senators Ellis, Van de Putte, and Watson, relating to the notice required by mortgage servicers before foreclosing on real property. This bill is identical to H.B. 3426 and similar to H.B. 3482. The bill’s history is here. H.B. 2696 would prohibit one contracting party from requiring the other party to agree to arbitration as a condition of the contract. It also provides that an agreement is unconscionable if its enforceability would violate a right protected by either the U.S. or Texas Constitutions. In addition, an agreement to arbitrate must be displayed prominently in 12-point bold type. The bill’s history is here. S.B. 556 would amend the Insurance Code by adding a clause to provide for binding arbitration agreements within the context of health care contracts with physicians and health care providers. The bill’s history is here. H.B. 1635 would abolish the Texas Residential Construction Commission and provides for the phasing out of arbitration claims. The bill’s history is here. H.B. 2539 relates to a disaster recovery insurance claims mediation program. The bill’s history is here. Technorati Tags: law, ADR, arbitration
Continue reading...During 2009, the following bills relating to alternative dispute resolution were introduced and are currently being considered by the 111st Congress. Click on the bill number for its text and on the status link to find the bill’s most recent legislative action. Stay tuned to Disputing for more legislative updates! The Arbitration Fairness Act of 2009 would ban mandatory pre-dispute arbitration in employment, consumer, and franchise contracts. Senate version: S. 931 and Status. House version: H.R. 1020 and Status. The Employee Free Choice Act of 2009 would amend the National Labor Relations Act to require first mediation and then binding arbitration if both parties are unable to reach an agreement within a certain time frame. Senate version: S. 560 and Status. House version: H.R. 1409 and Status. The Payday Loan Reform Act of 2009 would amend the Truth in Lending Act to establish additional payday loan requirements to protect consumers. This bill prohibits a mandatory arbitration clause that is “oppressive, unfair, unconscionable, or substantially in derogation of the rights of consumers.” H.R. 1214 and Status. The Fairness in Nursing Home Arbitration Act of 2009 would render pre-dispute arbitration clauses in nursing home contracts unenforceable. S. 512 and Status. House version: H.R. 1237 and Status. The Mortgage Reform and Anti-Predatory Lending Act of 2009 would amend the Truth in Lending Act of 1968. The bill provides that “[n]o residential mortgage loan and no extension of credit under an open end consumer credit plan secured by the principal dwelling of the consumer, other than a reverse mortgage may include terms which require arbitration of any other nonjudicial procedure as the method for resolving any controversy.” H.R. 1728 and Status. The Labor Relations First Contract Negotiations Act of 2009 would amend the National Labor Relations Act to require the arbitration of initial contract negotiation disputes. H.R. 243 and Status. The Consumer Fairness Act of 2009 would treat arbitration clauses which are unilaterally imposed on consumers as an unfair and deceptive trade practice and prohibit their use in consumer transactions. H.R. 991 and Status. An Act Making Appropriations for the Department of Defense for the Fiscal Year Ending September 30, 2010, and for Other Purposes contains an amendment that bans funds to defense contractors who require workers (employees and independent contractors) to arbitrate “any claim under Title VII of the Civil Rights Act of 1964 or any tort related to or arising out of sexual assault or harassment, including assault and battery, intentional infliction of emotional distress, false imprisonment, or negligent hiring, supervision, or retention.” H.R. 3326 ; Amendment; and Status. The Preserving Homes and Communities Act of 2009 would require certain mortgagees to make loan modifications, establish a grant program for state and local government mediation programs, and create databases on foreclosures. S. 1731 and Status. The Conflict Resolution and Mediation Act of 2009 would provide assistance to local educational agencies for the prevention and reduction of conflict and violence. H.R. 4000 and Status. The Agricultural Credit Act of 2009 would reauthorize state agricultural mediation programs under title V of the Agricultural Credit Act of 1987. H.R. 3509 and Status. The Department of Peace Act of 2009 would establish a Department of Peace that would take a proactive, strategic approach in the development of policies that promote national and international conflict prevention, nonviolent intervention, mediation, peaceful resolution of conflict, and structured mediation of conflict. H.R.808 and Status. The Automobile Dealer Economic Rights Restoration Act of 2009. Several bills were introduced relating to the economic rights of automobile dealers in which the federal government has ownership interest. Reportedly, there is a compromise that includes binding arbitration as a way to appeal the termination of the dealer franchise agreements. H.R.2750 and Status; H.R.2796 and Status; H.R.2743 and Status; S.1304 and Status. [UPDATE- introduced 12/18/2009] The Rape Victims Act of 2009 provides that employment-related arbitration agreements shall not be enforceable with respect to any claim related to a tort arising out of rape. S. 2915 and Status. The Foreclosure Mandatory Mediation Act of 2009 would require lenders of loans with Federal guarantees or Federal insurance to consent to mandatory mediation. S. 2912 and Status. Technorati Tags: arbitration, ADR, law
Continue reading...As readers may know, General Motors and Chrysler are planning to close nearly 2,000 dealerships as part of their reorganization plan. The New York Times reports on a House bill that would provide for binding arbitration as a way for car dealers to appeal the termination of their franchise agreements. The House has approved a compromise plan to give General Motors and Chrysler dealers an appeals process to keep their showrooms open. GM and Chrysler have attempted to shed dealerships as part of their government-led bankruptcies. But the moves have riled up members of Congress, who have received numerous complaints from dealers being shut down. A $1.1 trillion spending bill approved Thursday includes provisions to give 789 Chrysler dealers closed in June and more than 1,350 GM dealers expected to be shut down next year an opportunity to challenge the automakers’ decisions. Read more here.
Continue reading...Disputing is published by Karl Bayer, a dispute resolution expert based in Austin, Texas. Articles published on Disputing aim to provide original insight and commentary around issues related to arbitration, mediation and the alternative dispute resolution industry.
To learn more about Karl and his team, or to schedule a mediation or arbitration with Karl’s live scheduling calendar, visit www.karlbayer.com.
Disputing is published by Karl Bayer, a dispute resolution expert based in Austin, Texas. Articles published on Disputing aim to provide original insight and commentary around issues related to arbitration, mediation and the alternative dispute resolution industry.
To learn more about Karl and his team, or to schedule a mediation or arbitration with Karl’s live scheduling calendar, visit www.karlbayer.com.