Laws: Cases and Codes : U.S. Code : Title 28 : Section 654


   
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.




Previous [Notes] Next

Related Resources

Judiciary Legal Guide

Litigation Legal Guide

U.S. Legal System Summary

Judiciary Discussion

Ads by FindLaw