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U.S. Code as of:
01/19/04
Section 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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