TITLE 28--JUDICIARY AND JUDICIAL PROCEDURE
PART III--COURT OFFICERS AND EMPLOYEES
CHAPTER 44--ALTERNATIVE DISPUTE RESOLUTION
Sec. 651. Authorization of alternative dispute resolution
(a) Definition.--For purposes of this chapter, an alternative
dispute resolution process includes any process or procedure, other than
an adjudication by a presiding judge, in which a neutral third party
participates to assist in the resolution of issues in controversy,
through processes such as early neutral evaluation, mediation,
minitrial, and arbitration as provided in sections 654 through 658.
(b) Authority.--Each United States district court shall authorize,
by local rule adopted under section 2071(a), the use of alternative
dispute resolution processes in all civil actions, including adversary
proceedings in bankruptcy, in accordance with this chapter, except that
the use of arbitration may be authorized only as provided in section
654. Each United States district court shall devise and implement its
own alternative dispute resolution program, by local rule adopted under
section 2071(a), to encourage and promote the use of alternative dispute
resolution in its district.
(c) Existing Alternative Dispute Resolution Programs.--In those
courts where an alternative dispute resolution program is in place on
the date of the enactment of the Alternative Dispute Resolution Act of
1998, the court shall examine the effectiveness of that program and
adopt such improvements to the program as are consistent with the
provisions and purposes of this chapter.
(d) Administration of Alternative Dispute Resolution Programs.--Each
United States district court shall designate an employee, or a judicial
officer, who is knowledgeable in alternative dispute resolution
practices and processes to implement, administer, oversee, and evaluate
the court's alternative dispute resolution program. Such person may also
be responsible for recruiting, screening, and training attorneys to
serve as neutrals and arbitrators in the court's alternative dispute
resolution program.
(e) Title 9 Not Affected.--This chapter shall not affect title 9,
United States Code.
(f) Program Support.--The Federal Judicial Center and the
Administrative Office of the United States Courts are authorized to
assist the district courts in the establishment and improvement of
alternative dispute resolution programs by identifying particular
practices employed in successful programs and providing additional
assistance as needed and appropriate.
Sec. 652. Jurisdiction
(a) Consideration of Alternative Dispute Resolution in Appropriate
Cases.--Notwithstanding any provision of law to the contrary and except
as provided in subsections (b) and (c), each district court shall, by
local rule adopted under section 2071(a), require that litigants in all
civil cases consider the use of an alternative dispute resolution
process at an appropriate stage in the litigation. Each district court
shall provide litigants in all civil cases with at least one alternative
dispute resolution process, including, but not limited to, mediation,
early neutral evaluation, minitrial, and arbitration as authorized in
sections 654 through 658. Any district court that elects to require the
use of alternative dispute resolution in certain cases may do so only
with respect to mediation, early neutral evaluation, and, if the parties
consent, arbitration.
(b) Actions Exempted From Consideration of Alternative Dispute
Resolution.--Each district court may exempt from the requirements of
this section specific cases or categories of cases in which use of
alternative dispute resolution would not be appropriate. In defining
these exemptions, each district court shall consult with members of the
bar, including the United States Attorney for that district.
(c) Authority of the Attorney General.--Nothing in this section
shall alter or conflict with the authority of the Attorney General to
conduct litigation on behalf of the United States, with the authority of
any Federal agency authorized to conduct litigation in the United States
courts, or with any delegation of litigation authority by the Attorney
General.
(d) Confidentiality Provisions.--Until such time as rules are
adopted under chapter 131 of this title providing for the
confidentiality of alternative dispute resolution processes under this
chapter, each district court shall, by local rule adopted under section
2071(a), provide for the confidentiality of the alternative dispute
resolution processes and to prohibit disclosure of confidential dispute
resolution communications.
Sec. 653. Neutrals
(a) Panel of Neutrals.--Each district court that authorizes the use
of alternative dispute resolution processes shall adopt appropriate
processes for making neutrals available for use by the parties for each
category of process offered. Each district court shall promulgate its
own procedures and criteria for the selection of neutrals on its panels.
(b) Qualifications and Training.--Each person serving as a neutral
in an alternative dispute resolution process should be qualified and
trained to serve as a neutral in the appropriate alternative dispute
resolution process. For this purpose, the district court may use, among
others, magistrate judges who have been trained to serve as neutrals in
alternative dispute resolution processes, professional neutrals from the
private sector, and persons who have been trained to serve as neutrals
in alternative dispute 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, disqualification under section 455 of
this title, other applicable law, and professional responsibility
standards).
Sec. 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
(including any adversary proceeding in bankruptcy) pending before it
when the parties consent, except that referral to arbitration may not be
made where--
(1) the action is based on an alleged violation 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 damages 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 procedures to ensure that any civil
action in which arbitration by consent is allowed under subsection (a)--
(1) consent to arbitration is freely and knowingly obtained; and
(2) no party or attorney is prejudiced for refusing 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 chapter is deemed to affect
any program in which arbitration 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.
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\1\ So in original. The word ``section'' probably should not appear.
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Sec. 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 district court that
authorizes arbitration shall establish standards for the certification
of arbitrators and shall certify arbitrators to perform services in
accordance with such standards and this chapter. The standards shall
include provisions requiring that any arbitrator--
(1) shall take the oath or affirmation described in section 453;
and
(2) shall be subject to the disqualification rules under section
455.
(c) Immunity.--All individuals serving as arbitrators in an
alternative dispute resolution program under this chapter are performing
quasi-judicial functions and are entitled to the immunities and
protections that the law accords to persons serving in such capacity.
Sec. 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 hearing under this
chapter.
Sec. 657. Arbitration award and judgment
(a) Filing and Effect of Arbitration Award.--An arbitration award
made by an arbitrator under this chapter, along with proof of service of
such award on the other party by the prevailing party or by the
plaintiff, shall be filed promptly after the arbitration hearing is
concluded with the clerk of the district court that referred the case to
arbitration. Such award shall be entered as the judgment of the court
after the time has expired for requesting a trial de novo. The judgment
so entered shall be subject to the same provisions of law and shall have
the same force and effect as a judgment of the court in a civil action,
except that the judgment shall not be subject to review in any other
court by appeal or otherwise.
(b) Sealing of Arbitration Award.--The district court shall provide,
by local rule adopted under section 2071(a), that the contents of any
arbitration award made under this chapter shall not be made known to any
judge who might be assigned to the case until the district court has
entered final judgment in the action or the action has otherwise
terminated.
(c) Trial de Novo of Arbitration Awards.--
(1) Time for filing demand.--Within 30 days after the filing of
an arbitration award with a district court under subsection (a), any
party may file a written demand for a trial de novo in the district
court.
(2) Action restored to court docket.--Upon a demand for a trial
de novo, the action shall be restored to the docket of the court and
treated for all purposes as if it had not been referred to
arbitration.
(3) Exclusion of evidence of arbitration.--The court shall not
admit at the trial de novo any evidence that there has been an
arbitration proceeding, the nature or amount of any award, or any
other matter concerning the conduct of the arbitration proceeding,
unless--
(A) the evidence would otherwise be admissible in the court
under the Federal Rules of Evidence; or
(B) the parties have otherwise stipulated.
Sec. 658. Compensation of arbitrators and neutrals
(a) Compensation.--The district court shall, subject to regulations
approved by the Judicial Conference of the United States, establish the
amount of compensation, if any, that each arbitrator or neutral shall
receive for services rendered in each case under this chapter.
(b) Transportation Allowances.--Under regulations prescribed by the
Director of the Administrative Office of the United States Courts, a
district court may reimburse arbitrators and other neutrals for actual
transportation expenses necessarily incurred in the performance of
duties under this chapter.