HF 1692

2nd Engrossment - 86th Legislature (2009 - 2010) Posted on 04/16/2010 10:24am

A bill for an act
relating to dispute resolution; providing for arbitration of disputes; adopting
the Uniform Arbitration Act; amending Minnesota Statutes 2008, sections
80C.146, subdivision 2; 122A.40, subdivision 15; 122A.41, subdivision 13;
179.09; 325E.37, subdivision 5; 325F.665, subdivision 6; 469.1762; 572A.02,
subdivision 1; proposing coding for new law as Minnesota Statutes, chapter
572B; repealing Minnesota Statutes 2008, sections 572.08; 572.09; 572.10;
572.11; 572.12; 572.13; 572.14; 572.15; 572.16; 572.17; 572.18; 572.19; 572.20;
572.21; 572.22; 572.23; 572.24; 572.25; 572.26; 572.27; 572.28; 572.29; 572.30.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

UNIFORM ARBITRATION ACT

Section 1.

new text begin [572B.01] DEFINITIONS.
new text end

new text begin In sections 572B.01 to 572B.31:
new text end

new text begin (1) "Arbitration organization" means a neutral association, agency, board,
commission, or other entity that initiates, sponsors, or administers arbitration proceedings
or is involved in the appointment of arbitrators.
new text end

new text begin (2) "Arbitrator" means an individual appointed to render an award in a controversy
between persons who are parties to an agreement to arbitrate.
new text end

new text begin (3) "Authenticate" means:
new text end

new text begin (A) to sign; or
new text end

new text begin (B) to execute or adopt a record by attaching to or logically associating with the
record, an electronic sound, symbol, or process with the intent to sign the record.
new text end

new text begin (4) "Court" means a court of competent jurisdiction in this state.
new text end

new text begin (5) "Knowledge" means actual knowledge.
new text end

new text begin (6) "Person" means an individual, corporation, business trust, estate, trust,
partnership, limited liability company, association, joint venture, or government;
governmental subdivision, agency, or instrumentality; public corporation; or any other
legal or commercial entity.
new text end

new text begin (7) "Record" means information that is inscribed on a tangible medium or that is
stored in an electronic or other medium and is retrievable in perceivable form.
new text end

Sec. 2.

new text begin [572B.02] NOTICE.
new text end

new text begin Unless the parties to an agreement to arbitrate otherwise agree or except as otherwise
provided in sections 572B.01 to 572B.31, a person gives notice to another person by
taking action that is reasonably necessary to inform the other person in the ordinary course
of business, whether or not the other person acquires knowledge of the notice. A person
has notice if the person has knowledge of the notice or has received notice. A person
receives notice when it comes to the person's attention or the notice is delivered at the
person's place of residence or place of business, or at another location held out by the
person as a place of delivery of such communications.
new text end

Sec. 3.

new text begin [572B.03] WHEN ACT APPLIES.
new text end

new text begin (a) Sections 572B.01 to 572B.31 govern agreements to arbitrate entered into:
new text end

new text begin (1) on or after August 1, 2011; and
new text end

new text begin (2) before August 1, 2011, if all parties to the agreement to arbitrate or to arbitration
proceedings agree in a record to be governed by sections 572B.01 to 572B.31.
new text end

new text begin (b) On or after August 1, 2011, sections 572B.01 to 572B.31 govern agreements to
arbitrate even if the arbitration agreement was entered into prior to August 1, 2011.
new text end

Sec. 4.

new text begin [572B.04] EFFECT OF AGREEMENT TO ARBITRATE;
NONWAIVABLE PROVISIONS.
new text end

new text begin (a) Except as otherwise provided in subsections (b) and (c), the parties to an
agreement to arbitrate or to an arbitration proceeding may waive or vary the requirements
of sections 572B.01 to 572B.31 to the extent permitted by law.
new text end

new text begin (b) Before a controversy arises that is subject to an agreement to arbitrate, the parties
to the agreement may not:
new text end

new text begin (1) waive or vary the requirements of section 572B.05, subsection (a); 572B.06,
subsection (a); 572B.08; 572B.17, subsection (a) or (b); 572B.26; or 572B.27;
new text end

new text begin (2) unreasonably restrict the right under section 572B.09 to notice of the initiation of
an arbitration proceeding;
new text end

new text begin (3) unreasonably restrict the right under section 572B.12 to disclosure of any facts
by a neutral arbitrator; or
new text end

new text begin (4) waive the right under section 572B.16 of a party to an agreement to arbitrate
to be represented by a lawyer at any proceeding or hearing under sections 572B.01
to 572B.31, except that an employer and a labor organization may waive the right to
representation by a lawyer in a labor arbitration.
new text end

new text begin (c) The parties to an agreement to arbitrate may not waive or vary the requirements
of this section or section 572B.03, subsection (a)(1) or (b); 572B.07; 572B.14; 572B.18;
572B.20, subsection (c) or (d); 572B.22; 572B.23; 572B.24; 572B.25, subsection (a) or
(b); 572B.29; 572B.30; 572B.31; or 572B.32.
new text end

Sec. 5.

new text begin [572B.05] APPLICATION TO COURT.
new text end

new text begin (a) Except as otherwise provided in section 572B.28, an application for judicial
relief under sections 572B.01 to 572B.31 must be made by motion to the court and heard
in the manner and upon the notice provided by law or rule of court for making and hearing
motions.
new text end

new text begin (b) Notice of an initial motion to the court under sections 572B.01 to 572B.31 must
be served in the manner provided by law for the service of a summons in a civil action
unless a civil action is already pending involving the agreement to arbitrate.
new text end

Sec. 6.

new text begin [572B.06] VALIDITY OF AGREEMENT TO ARBITRATE.
new text end

new text begin (a) An agreement contained in a record to submit to arbitration any existing or
subsequent controversy arising between the parties to the agreement is valid, enforceable,
and irrevocable except upon a ground that exists at law or in equity for the revocation of
contract.
new text end

new text begin (b) The court shall decide whether an agreement to arbitrate exists or a controversy
is subject to an agreement to arbitrate, except in the case of a grievance arising under a
collective bargaining agreement when an arbitrator shall decide.
new text end

new text begin (c) An arbitrator shall decide whether a condition precedent to arbitrability has been
fulfilled and whether a contract containing a valid agreement to arbitrate is enforceable.
new text end

new text begin (d) If a party to a judicial proceeding challenges the existence of, or claims that a
controversy is not subject to, an agreement to arbitrate, the arbitration proceeding may
continue pending final resolution of the issue by the court, unless the court otherwise
orders.
new text end

Sec. 7.

new text begin [572B.07] MOTION TO COMPEL OR STAY ARBITRATION.
new text end

new text begin (a) On motion of a person showing an agreement to arbitrate and alleging another
person's refusal to arbitrate pursuant to the agreement, the court shall order the parties
to arbitrate if the refusing party does not appear or does not oppose the motion. If the
refusing party opposes the motion, the court shall proceed summarily to decide the issue.
Unless the court finds that there is no enforceable agreement to arbitrate, it shall order
the parties to arbitrate. If the court finds that there is no enforceable agreement, it may
not order the parties to arbitrate.
new text end

new text begin (b) On motion of a person alleging that an arbitration proceeding has been initiated
or threatened but that there is no agreement to arbitrate, the court shall proceed summarily
to decide the issue. If the court finds that there is an enforceable agreement to arbitrate, it
shall order the parties to arbitrate. If the court finds that there is no enforceable agreement,
it may not order the parties to arbitrate.
new text end

new text begin (c) The court may not refuse to order arbitration because the claim subject to
arbitration lacks merit or grounds for the claim have not established.
new text end

new text begin (d) If a proceeding involving a claim referable to arbitration under an alleged
agreement to arbitrate is pending in court, a motion under this section must be filed in
that court. Otherwise, a motion under this section may be filed in any court as required
by section 572B.27.
new text end

new text begin (e) If a party files a motion with the court to order arbitration under this section, the
court shall on just terms stay any judicial proceeding that involves a claim alleged to be
subject to the arbitration until the court renders a final decision under this section.
new text end

new text begin (f) If the court orders arbitration, the court shall on just terms stay any judicial
proceeding that involves a claim subject to the arbitration. If a claim subject to the
arbitration is severable, the court may sever it and limit the stay to that claim.
new text end

Sec. 8.

new text begin [572B.08] PROVISIONAL REMEDIES.
new text end

new text begin (a) Before an arbitrator is appointed and is authorized and able to act, the court, upon
motion of a party to an arbitration proceeding and for good cause shown, may enter an
order for provisional remedies to protect the effectiveness of the arbitration proceeding to
the same extent and under the same conditions as if the controversy were the subject of
a civil action.
new text end

new text begin (b) After an arbitrator is appointed and is authorized and able to act, the arbitrator
may issue such orders for provisional remedies, including interim awards, as the arbitrator
finds necessary to protect the effectiveness of the arbitration proceeding and to promote
the fair and expeditious resolution of the controversy, to the same extent and under the
same conditions as if the controversy were the subject of a civil action. After an arbitrator
is appointed and is authorized and able to act, a party to an arbitration proceeding may
move the court for a provisional remedy only if the matter is urgent and the arbitrator is
not able to act in a timely manner or if the arbitrator cannot provide an adequate remedy.
new text end

new text begin (c) A motion to a court for a provisional remedy under subsection (a) or (b) does
not waive any right of arbitration.
new text end

Sec. 9.

new text begin [572B.09] INITIATION OF ARBITRATION.
new text end

new text begin (a) A person initiates an arbitration proceeding by giving notice in a record to the
other parties to the agreement to arbitrate in the agreed manner between the parties or,
in the absence of agreement, by mail certified or registered, return receipt requested and
obtained, or by service as authorized for the initiation of a civil action. The notice must
describe the nature of the controversy and the remedy sought.
new text end

new text begin (b) Unless a person interposes an objection as to lack or insufficiency of notice
under section 572B.15, subsection (c), not later than the commencement of the arbitration
hearing, the person's appearance at the hearing waives any objection to lack of or
insufficiency of notice.
new text end

Sec. 10.

new text begin [572B.10] CONSOLIDATION OF SEPARATE ARBITRATION
PROCEEDINGS.
new text end

new text begin (a) Except as otherwise provided in subsections (c) and (d), upon motion of a
party to an agreement to arbitrate or to an arbitration proceeding, the court may order
consolidation of separate arbitration proceedings as to all or some of the claims if:
new text end

new text begin (1) there are separate agreements to arbitrate or separate arbitration proceedings
between the same persons or one of them is a party to a separate agreement to arbitrate
or a separate arbitration proceeding with a third person;
new text end

new text begin (2) the claims subject to the agreements to arbitrate arise in substantial part from the
same transaction or series of related transactions;
new text end

new text begin (3) the existence of a common issue of law or fact creates the possibility of
conflicting decisions in the separate arbitration proceedings; and
new text end

new text begin (4) prejudice resulting from a failure to consolidate is not outweighed by the risk of
undue delay or prejudice to the rights of or hardship to parties opposing consolidation.
new text end

new text begin (b) The court may order consolidation of separate arbitration proceedings as to
certain claims and allow other claims to be resolved in separate arbitration proceedings.
new text end

new text begin (c) The court may not order consolidation of the claims of a party to an agreement
to arbitrate which prohibits consolidation.
new text end

new text begin (d) An arbitrator shall decide whether to consolidate one or more grievances arising
under a collective bargaining agreement.
new text end

Sec. 11.

new text begin [572B.11] APPOINTMENT OF ARBITRATOR; SERVICE AS A
NEUTRAL ARBITRATOR.
new text end

new text begin (a) If the parties to an agreement to arbitrate agree on a method for appointing an
arbitrator, that method must be followed, unless the method fails. If the parties have
not agreed on a method, the agreed method fails, or an arbitrator appointed fails or is
unable to act and a successor has not been appointed, the court, on motion of a party
to the arbitration proceeding, shall appoint the arbitrator. The arbitrator so appointed
has all the powers of an arbitrator designated in the agreement to arbitrate or appointed
pursuant to the agreed method.
new text end

new text begin (b) An arbitrator who has a known, direct, and material interest in the outcome of the
arbitration proceeding or a known, existing, and substantial relationship with a party may
not serve as a neutral arbitrator.
new text end

Sec. 12.

new text begin [572B.12] DISCLOSURE BY ARBITRATOR.
new text end

new text begin (a) Before accepting appointment, an individual who is requested to serve as an
arbitrator, after making a reasonable inquiry, shall disclose to all parties to the agreement
to arbitrate and arbitration proceeding and to any other arbitrators any known facts that a
reasonable person would consider likely to affect the impartiality of the arbitrator in the
arbitration proceeding, including:
new text end

new text begin (1) a financial or personal interest in the outcome of the arbitration proceeding; and
new text end

new text begin (2) an existing or past relationship with any of the parties to the agreement to
arbitrate or the arbitration proceeding, their counsel or representatives, witnesses, or
the other arbitrators.
new text end

new text begin (b) An arbitrator has a continuing obligation to disclose to all parties to the
agreement to arbitrate and arbitration proceedings and to any other arbitrators any facts
that the arbitrator learns after accepting appointment which a reasonable person would
consider likely to affect the impartiality of the arbitrator.
new text end

new text begin (c) If an arbitrator discloses a fact required by subsection (a) or (b) to be disclosed
and a party timely objects to the appointment or continued service of the arbitrator based
upon the disclosure, the objection may be a ground to vacate the award under section
572B.23, subsection (a)(2).
new text end

new text begin (d) If the arbitrator did not disclose a fact as required by subsection (a) or (b), upon
timely objection of a party, an award may be vacated under section 572B.23, subsection
(a)(2).
new text end

new text begin (e) An arbitrator appointed as a neutral who does not disclose a known, direct,
and material interest in the outcome of the arbitration proceeding or a known, existing,
and substantial relationship with a party is presumed to act with evident partiality under
section 572B.23, subsection (a)(2).
new text end

new text begin (f) If the parties to an arbitration proceeding agree to the procedures of an arbitration
organization or any other procedures for challenges to arbitrators before an award is made,
substantial compliance with those procedures is a condition precedent to a motion to
vacate an award on that ground under section 572B.23, subsection (a)(2).
new text end

Sec. 13.

new text begin [572B.13] ACTION BY MAJORITY.
new text end

new text begin If there is more than one arbitrator, the powers of the arbitrators must be exercised
by a majority of them.
new text end

Sec. 14.

new text begin [572B.14] IMMUNITY OF ARBITRATOR; COMPETENCY TO
TESTIFY; ATTORNEY FEES AND COSTS.
new text end

new text begin (a) An arbitrator is immune from civil liability to the same extent as a judge of a
court in this state acting in a judicial capacity.
new text end

new text begin (b) The immunity afforded by this section supplements any other immunity.
new text end

new text begin (c) If an arbitrator does not make a disclosure required by section 572B.12, the
nondisclosure does not cause a loss of immunity under this section.
new text end

new text begin (d) In any judicial, administrative, or similar proceeding, an arbitrator is not
competent to testify or required to produce records as to any statement, conduct, decision,
or ruling occurring during the arbitration proceeding to the same extent as a judge of a
court of this state acting in a judicial capacity. This subsection does not apply:
new text end

new text begin (1) to the extent necessary to determine the claim of an arbitrator against a party
to the arbitration proceeding; or
new text end

new text begin (2) if a party to the arbitration proceeding files a motion to vacate an award under
section 572B.23, subsection (a)(1) or (2), and establishes prima facie that a ground for
vacating the award exists.
new text end

new text begin (e) If a person commences a civil action against an arbitrator arising from the
services of the arbitrator or if a person seeks to compel an arbitrator to testify in violation
of subsection (d), and the court decides that the arbitrator is immune from civil liability
or that the arbitrator is incompetent to testify, the court shall award to the arbitrator
reasonable attorney fees and other reasonable expenses of litigation.
new text end

Sec. 15.

new text begin [572B.15] ARBITRATION PROCESS.
new text end

new text begin (a) The arbitrator may conduct the arbitration in such manner as the arbitrator
considers appropriate so as to aid in the fair and expeditious disposition of the proceeding.
The authority conferred upon the arbitrator includes the power to hold conferences
with the parties to the arbitration proceeding before the hearing and to determine the
admissibility, relevance, materiality, and weight of any evidence.
new text end

new text begin (b) The arbitrator may decide a request for summary disposition of a claim or
particular issue by agreement of all interested parties or upon request of one party to
the arbitration proceeding if that party gives notice to all other parties to the arbitration
proceeding and the other parties have a reasonable opportunity to respond.
new text end

new text begin (c) The arbitrator shall set a time and place for a hearing and give notice of the
hearing not less than five days before the hearing. Unless a party to the arbitration
proceeding interposes an objection to lack of or insufficiency of notice not later than the
commencement of the hearing, the party's appearance at the hearing waives the objection.
Upon request of a party to the arbitration proceeding and for good cause shown, or upon
the arbitrator's own initiative, the arbitrator may adjourn the hearing from time to time
as necessary but may not postpone the hearing to a time later than that fixed by the
agreement to arbitrate for making the award unless the parties to the arbitration proceeding
consent to a later date. The arbitrator may hear and decide the controversy upon the
evidence produced although a party who was duly notified of the arbitration proceeding
did not appear. The court, on request, may direct the arbitrator to promptly conduct the
hearing and render a timely decision.
new text end

new text begin (d) If an arbitrator orders a hearing under subsection (c), the parties to the arbitration
proceeding are entitled to be heard, to present evidence material to the controversy, and to
cross-examine witnesses appearing at the hearing.
new text end

new text begin (e) If there is more than one arbitrator, all of them shall conduct the hearing under
subsection (c), however, a majority shall decide any issue and make a final award.
new text end

new text begin (f) If an arbitrator ceases, or is unable, to act during the arbitration proceeding, a
replacement arbitrator must be appointed in accordance with section 572B.11 to continue
the hearing and to decide the controversy.
new text end

Sec. 16.

new text begin [572B.16] REPRESENTATION BY LAWYER.
new text end

new text begin A party to an arbitration proceeding may be represented by a lawyer.
new text end

Sec. 17.

new text begin [572B.17] WITNESSES; SUBPOENAS; DEPOSITIONS; DISCOVERY.
new text end

new text begin (a) An arbitrator may issue a subpoena for the attendance of a witness and for the
production of records and other evidence at any hearing and may administer oaths. A
subpoena must be served in the manner for service of subpoenas in a civil action and, upon
motion to the court by a party to the arbitration proceeding or the arbitrator, enforced in
the manner for enforcement of subpoenas in a civil action.
new text end

new text begin (b) On request of a party to or a witness in an arbitration proceeding, an arbitrator
may permit a deposition of any witness to provide testimony at the arbitration hearing,
including a witness who cannot be subpoenaed for or is unable to attend a hearing, to be
taken under conditions determined by the arbitrator for use as evidence in order to make
the proceeding fair, expeditious, and cost-effective.
new text end

new text begin (c) An arbitrator may permit such discovery as the arbitrator decides is appropriate
in the circumstances, taking into account the needs of the parties to the arbitration
proceeding and other affected persons and the desirability of making the proceeding fair,
expeditious, and cost-effective.
new text end

new text begin (d) If an arbitrator permits discovery under subsection (c), the arbitrator may order a
party to the arbitration proceeding to comply with the arbitrator's discovery-related orders,
including the issuance of a subpoena for the attendance of a witness and for the production
of records and other evidence at a discovery proceeding, and may take action against a
party to the arbitration proceeding who does not comply to the extent permitted by law as
if the controversy were the subject of a civil action in this state.
new text end

new text begin (e) An arbitrator may issue a protective order to prevent the disclosure of privileged
information, confidential information, trade secrets, and other information protected from
disclosure as if the controversy were the subject of a civil action in this state.
new text end

new text begin (f) All laws compelling a person under subpoena to testify and all fees for attending
a judicial proceeding, a deposition, or a discovery proceeding as a witness apply to an
arbitration proceeding as if the controversy were the subject of a civil action under the
laws and rules of civil procedure of this state.
new text end

new text begin (g) The court may enforce a subpoena or discovery-related order for the attendance
of a witness within this state and for the production of records and other evidence
issued by an arbitrator in connection with an arbitration proceeding in another state
upon conditions determined by the court in order to make the arbitration proceeding
fair, expeditious, and cost-effective. A subpoena or discovery-related order issued by
an arbitrator must be served in the manner provided by law for service of subpoenas
in a civil action in this state and, upon motion to the court by a party to the arbitration
proceeding or the arbitrator, enforced in the manner provided by law for enforcement of
subpoenas in a civil action in this state.
new text end

Sec. 18.

new text begin [572B.18] COURT ENFORCEMENT OF PRE-AWARD RULING BY
ARBITRATOR.
new text end

new text begin If an arbitrator makes a pre-award ruling in favor of a party to the arbitration
proceeding, the party may request the arbitrator to incorporate the ruling into an award
under section 572B.19. The successful party may file a motion to the court for an
expedited order to confirm the award under section 572B.22, in which case the court shall
proceed summarily to decide the motion. The court shall issue an order to confirm the
award unless the court vacates, modifies, or corrects the award of the arbitrator pursuant to
sections 572B.23 and 572B.24.
new text end

Sec. 19.

new text begin [572B.19] AWARD.
new text end

new text begin (a) An arbitrator shall make a record of an award. The record must be authenticated
by any arbitrator who concurs with the award. The arbitrator or the arbitration organization
shall give notice of the award, including a copy of the award, to each party to the
arbitration proceeding.
new text end

new text begin (b) An award must be made within the time specified by the agreement to arbitrate
or, if not specified therein, within the time ordered by the court. The court may extend or
the parties to the arbitration proceeding may agree in a record to extend the time. The
court or the parties may do so within or after the time specified or ordered. A party waives
any objection that an award was not timely made unless the party gives notice of the
objection to the arbitrator before receiving notice of the award.
new text end

Sec. 20.

new text begin [572B.20] CHANGE OF AWARD BY ARBITRATOR.
new text end

new text begin (a) On motion to an arbitrator by a party to the arbitration proceeding, the arbitrator
may modify or correct an award:
new text end

new text begin (1) upon the grounds stated in section 572B.24, subsection (a)(1) or (3);
new text end

new text begin (2) because the arbitrator has not made a final and definite award upon a claim
submitted by the parties to the arbitration proceeding; or
new text end

new text begin (3) to clarify the award.
new text end

new text begin (b) A motion under subsection (a) must be made and served on all parties within 20
days after the movant receives notice of the award.
new text end

new text begin (c) A party to the arbitration proceeding must serve any objections to the motion
within ten days after receipt of the notice.
new text end

new text begin (d) If a motion to the court is pending under sections 572B.22, 572B.23, and
572B.24, the court may submit the claim to the arbitrator to consider whether to modify or
correct the award:
new text end

new text begin (1) upon the grounds stated in section 572B.24, subsection (a)(1) or (3);
new text end

new text begin (2) because the arbitrator has not made a final and definite award upon a claim
submitted by the parties to the arbitration proceeding; or
new text end

new text begin (3) to clarify the award.
new text end

new text begin (e) An award modified or corrected pursuant to this section is subject to sections
572B.22, 572B.23, and 572B.24.
new text end

Sec. 21.

new text begin [572B.21] REMEDIES; FEES AND EXPENSES OF ARBITRATION
PROCEEDING.
new text end

new text begin (a) An arbitrator may award punitive damages or other exemplary relief if such an
award is authorized by law in a civil action involving the same claim and the evidence
produced at the hearing justifies the award under the legal standards otherwise applicable
to the claim.
new text end

new text begin (b) An arbitrator may award attorney fees and other reasonable expenses of
arbitration if such an award is authorized by law in a civil action involving the same claim
or by the agreement of the parties to the arbitration proceeding.
new text end

new text begin (c) As to all remedies other than those authorized by subsections (a) and (b), an
arbitrator may order such remedies as the arbitrator considers just and appropriate under
the circumstances of the arbitration proceeding. The fact that such a remedy could not or
would not be granted by the court is not a ground for refusing to confirm an award under
section 572B.22 or for vacating an award under section 572B.23.
new text end

new text begin (d) An arbitrator's expenses and fees, together with other expenses, must be paid
as provided in the award.
new text end

new text begin (e) If an arbitrator awards punitive damages or other exemplary relief under
subsection (a), the arbitrator shall specify in the award the basis in fact justifying and the
basis in law authorizing the award and state separately the amount of the punitive damages
or other exemplary relief.
new text end

Sec. 22.

new text begin [572B.22] CONFIRMATION OF AWARD.
new text end

new text begin After a party to the arbitration proceeding receives notice of an award, the party may
file a motion with the court for an order confirming the award, at which time the court
shall issue such an order unless the award is modified or corrected pursuant to section
572B.20 or 572B.24 or is vacated pursuant to section 572B.23.
new text end

Sec. 23.

new text begin [572B.23] VACATING AWARD.
new text end

new text begin (a) Upon motion of a party to the arbitration proceeding, the court shall vacate an
award if:
new text end

new text begin (1) the award was procured by corruption, fraud, or other undue means;
new text end

new text begin (2) there was:
new text end

new text begin (A) evident partiality by an arbitrator appointed as a neutral;
new text end

new text begin (B) corruption by an arbitrator; or
new text end

new text begin (C) misconduct by an arbitrator prejudicing the rights of a party to the arbitration
proceeding;
new text end

new text begin (3) an arbitrator refused to postpone the hearing upon showing of sufficient cause
for postponement, refused to consider evidence material to the controversy, or otherwise
conducted the hearing contrary to section 572B.15, so as to prejudice substantially the
rights of a party to the arbitration proceeding;
new text end

new text begin (4) an arbitrator exceeded the arbitrator's powers;
new text end

new text begin (5) there was no agreement to arbitrate, unless the person participated in the
arbitration proceeding without raising the objection under section 572B.15, subsection (c),
not later than the commencement of the arbitration hearing; or
new text end

new text begin (6) the arbitration was conducted without proper notice of the initiation of an
arbitration as required in section 572B.09 so as to prejudice substantially the rights of a
party to the arbitration proceeding.
new text end

new text begin (b) A motion under this section must be filed within 90 days after the movant
receives notice of the award in a record pursuant to section 572B.19 or within 90 days
after the movant receives notice of an arbitrator's award in a record on a motion to modify
or correct an award pursuant to section 572B.20, unless the motion is predicated upon the
ground that the award was procured by corruption, fraud, or other undue means, in which
case it must be filed within 90 days after such a ground is known or by the exercise of
reasonable care should have been known by the movant.
new text end

new text begin (c) In vacating an award on a ground other than that set forth in subsection (a)(5),
the court may order a rehearing before a new arbitrator. If the award is vacated on the
ground stated in subsection (a)(3), (4), or (6), the court may order a rehearing before the
arbitrator who made the award or the arbitrator's successor. The arbitrator must render
the decision in the rehearing within the same time as that provided in section 572B.19,
subsection (b), for an award.
new text end

new text begin (d) If a motion to vacate an award is denied and a motion to modify or correct the
award is not pending, the court shall confirm the award.
new text end

Sec. 24.

new text begin [572B.24] MODIFICATION OR CORRECTION OF AWARD.
new text end

new text begin (a) Upon motion filed within 90 days after the movant receives notice of the award
in a record pursuant to section 572B.19 or within 90 days after the movant receives notice
of an arbitrator's award in a record on a motion to modify or correct an award pursuant to
section 572B.20, the court shall modify or correct the award if:
new text end

new text begin (1) there was an evident mathematical miscalculation or an evident mistake in the
description of a person, thing, or property referred to in the award;
new text end

new text begin (2) the arbitrator has made an award on a claim not submitted to the arbitrator and
the award may be corrected without affecting the merits of the decision upon the claims
submitted; or
new text end

new text begin (3) the award is imperfect in a matter of form not affecting the merits of the decision
on the claims submitted.
new text end

new text begin (b) If a motion filed under subsection (a) is granted, the court shall modify or correct
and confirm the award as modified or corrected. Otherwise, the court shall confirm the
award.
new text end

new text begin (c) A motion to modify or correct an award pursuant to this section may be joined
with a motion to vacate the award.
new text end

Sec. 25.

new text begin [572B.25] JUDGMENT ON AWARD; ATTORNEY FEES AND
LITIGATION EXPENSES.
new text end

new text begin (a) Upon granting an order confirming, vacating without directing a rehearing,
modifying, or correcting an award, the court shall enter a judgment in conformity
therewith. The judgment may be recorded, docketed, and enforced as any other judgment
in a civil action.
new text end

new text begin (b) A court may allow reasonable costs of the motion and subsequent judicial
proceedings.
new text end

new text begin (c) On application of a prevailing party to a contested judicial proceeding under
section 572B.22, 572B.23, or 572B.24, the court may add to a judgment confirming,
vacating without directing a rehearing, modifying, or correcting an award, attorney fees
and other reasonable expenses of litigation incurred in a judicial proceeding after the
award is made.
new text end

Sec. 26.

new text begin [572B.26] JURISDICTION.
new text end

new text begin (a) A court of this state having jurisdiction over the dispute and the parties may
enforce an agreement to arbitrate.
new text end

new text begin (b) An agreement to arbitrate providing for arbitration in this state confers exclusive
jurisdiction on the court to enter judgment on an award under sections 572B.01 to 572B.31.
new text end

Sec. 27.

new text begin [572B.27] VENUE.
new text end

new text begin A motion pursuant to section 572B.05 must be filed in the court of the county in
which the agreement to arbitrate specifies the arbitration hearing is to be held or, if the
hearing has been held, in the court of the county in which it was held. Otherwise, the
motion must be filed in any county in which an adverse party resides or has a place of
business or, if no adverse party has a residence or place of business in this state, in the
court of any county in this state. All subsequent motions must be filed in the court hearing
the initial motion unless the court otherwise directs.
new text end

Sec. 28.

new text begin [572B.28] APPEALS.
new text end

new text begin (a) An appeal may be taken from:
new text end

new text begin (1) an order denying a motion to compel arbitration;
new text end

new text begin (2) an order granting a motion to stay arbitration;
new text end

new text begin (3) an order confirming or denying confirmation of an award;
new text end

new text begin (4) an order modifying or correcting an award;
new text end

new text begin (5) an order vacating an award without directing a rehearing; or
new text end

new text begin (6) a final judgment entered pursuant to sections 572B.01 to 572B.31.
new text end

new text begin (b) An appeal under this section must be taken as from an order or a judgment in
a civil action.
new text end

Sec. 29.

new text begin [572B.29] UNIFORMITY OF APPLICATION AND CONSTRUCTION;
NO-FAULT AUTOMOBILE INSURANCE ACT; CONFLICT; PREVAILING LAW.
new text end

new text begin (a) In applying and construing this uniform act, consideration must be given to the
need to promote uniformity of the law with respect to its subject matter among states
that enact it.
new text end

new text begin (b) When provisions of sections 572B.01 to 572B.31 are in conflict with provisions
of sections 65B.41 to 65B.71, the provisions of sections 65B.41 to 65B.71 shall prevail.
new text end

Sec. 30.

new text begin [572B.30] SAVINGS CLAUSE.
new text end

new text begin Sections 572B.01 to 572B.31 do not affect an action or proceeding commenced or
right accrued before sections 572B.01 to 572B.31 take effect.
new text end

Sec. 31.

new text begin [572B.31] RELATIONSHIP TO ELECTRONIC SIGNATURES IN
GLOBAL AND NATIONAL COMMERCE ACT.
new text end

new text begin The provisions of sections 572B.01 to 572B.31 governing the legal effect, validity,
and enforceability of electronic records or electronic signatures, and of contracts
performed with the use of such records or signatures conform to the requirements of
section 102 of the Electronic Signatures in Global and National Commerce Act.
new text end

Sec. 32. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2008, sections 572.08; 572.09; 572.10; 572.11; 572.12; 572.13;
572.14; 572.15; 572.16; 572.17; 572.18; 572.19; 572.20; 572.21; 572.22; 572.23; 572.24;
572.25; 572.26; 572.27; 572.28; 572.29; and 572.30, new text end new text begin are repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2012.
new text end

Sec. 33. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 31 are effective August 1, 2011.
new text end

ARTICLE 2

CONFORMING AMENDMENTS

Section 1.

Minnesota Statutes 2008, section 80C.146, subdivision 2, is amended to read:

Subd. 2.

Building alterations.

(a) A motor fuel franchise agreement entered into or
renewed, extended, or modified, after April 27, 1988, must comply with this subdivision
if it allows the franchisor to modify, remodel, or alter a full-service station operated by
a franchisee by eliminating one or more service bays. The agreement must provide that
if the motor fuel franchisor eliminates one or more service bays during the term of the
agreement, the franchisor must first pay to the franchisee in cash an amount that fairly and
adequately compensates the franchisee for the loss of the service and repair business. The
amount of compensation must be determined without regard to:

(1) the income or loss the franchisee may realize as a result of any subsequent or
replacement business the franchisee may be entitled to operate on the premises leased
from the motor fuel franchisor; or

(2) the income or loss the franchisee may realize by relocating the franchisee service
and repair business or by acquiring another service and repair business.

(b) The commissioner shall require inclusion of the provision specified in paragraph
(a) in the franchise agreement as a condition of registration of the agreement. An
agreement subject to this subdivision that does not contain the provision is deemed
to contain the provision. The provision may not be waived or modified except in a
writing signed by the franchisee that is executed at least 30 days after the execution of
the franchise agreement, is separate and independent from the franchise agreement, and
is based upon adequate consideration. Adequate consideration may include, without
limitation, an agreement to purchase the entire business operated by the franchisee or an
agreement to provide equivalent repair facilities for use by the franchisee.

(c) If the franchisor and the franchisee are unable to agree on the amount of
compensation, and either the franchisor or the franchisee demands arbitration, the matter
must be submitted to binding arbitration in accordance with sections deleted text begin 572.08 to 572.30 deleted text end new text begin
572B.01 to 572B.31 new text end and the rules of the American Arbitration Association. Within 30
days after the demand for arbitration, the franchisor and the franchisee shall each select
an arbitrator. The two arbitrators shall select a third arbitrator within 45 days after the
demand for arbitration. The franchisor and the franchisee shall pay the fees and expenses
of the arbitrator each selects, and the franchisor and franchisee shall share equally the
fees and expenses of the third arbitrator.

(d) Nothing in this subdivision prohibits a motor fuel franchisor from altering,
modifying, or remodeling a full-service station, without payment to the franchisee,
following the expiration of the franchise relationship based upon termination or
nonrenewal of the franchise relationship in accordance with United States Code, title
15, section 2802(b)(3)(D).

Sec. 2.

Minnesota Statutes 2008, section 122A.40, subdivision 15, is amended to read:

Subd. 15.

Hearing and determination by arbitrator.

A teacher whose termination
is proposed under subdivision 7 on grounds specified in subdivision 9, or whose discharge
is proposed under subdivision 13, may elect a hearing before an arbitrator instead of the
school board. The hearing is governed by this subdivision.

(a) The teacher must make a written request for a hearing before an arbitrator
within 14 days after receiving notification of proposed termination on grounds specified
in subdivision 9 or within ten days of receiving notification of proposed discharge under
subdivision 13. If a request for a hearing does not specify that the hearing be before an
arbitrator, it is considered to be a request for a hearing before the school board.

(b) If the teacher and the school board are unable to mutually agree on an arbitrator,
the board must request from the bureau of mediation services a list of five persons to serve
as an arbitrator. If the matter to be heard is a proposed termination on grounds specified
in subdivision 9, arbitrators on the list must be available to hear the matter and make
a decision within a time frame that will allow the board to comply with all statutory
timelines relating to termination. If the teacher and the board are unable to mutually agree
on an arbitrator from the list provided, the parties shall alternately strike names from the
list until the name of one arbitrator remains. The person remaining after the striking
procedure must be the arbitrator. If the parties are unable to agree on who shall strike the
first name, the question must be decided by a flip of a coin. The teacher and the school
board must share equally the costs and fees of the arbitrator.

(c) The arbitrator shall determine, by a preponderance of the evidence, whether the
grounds for termination or discharge specified in subdivision 9 or 13 exist to support the
proposed termination or discharge. A lesser penalty than termination or discharge may be
imposed by the arbitrator only to the extent that either party proposes such lesser penalty
in the proceeding. In making the determination, the arbitration proceeding is governed by
sections deleted text begin 572.11 to 572.17 deleted text end new text begin 572B.15 to 572B.28 new text end and by the collective bargaining agreement
applicable to the teacher.

(d) An arbitration hearing conducted under this subdivision is a meeting for
preliminary consideration of allegations or charges within the meaning of section 13D.05,
subdivision 3, paragraph (a), and must be closed, unless the teacher requests it to be open.

(e) The arbitrator's award is final and binding on the parties, subject to sections
deleted text begin 572.18 to 572.26 deleted text end new text begin 572B.18 to 572B.28 new text end .

Sec. 3.

Minnesota Statutes 2008, section 122A.41, subdivision 13, is amended to read:

Subd. 13.

Hearing and determination by arbitrator.

A teacher against whom
charges have been filed alleging any cause for discharge or demotion specified in
subdivision 6, clause (1), (2), (3), or (4), may elect a hearing before an arbitrator instead of
the school board. The hearing is governed by this subdivision.

(a) The teacher must make a written request for a hearing before an arbitrator within
ten days after receiving a written notice of the filing of charges required by subdivision
7. Failure to request a hearing before an arbitrator during this period is considered
acquiescence to the board's action.

(b) If the teacher and the school board are unable to mutually agree on an arbitrator,
the board must request from the Bureau of Mediation Services a list of five persons to
serve as an arbitrator. If the teacher and the school board are unable to mutually agree on
an arbitrator from the list provided, the parties shall alternately strike names from the list
until the name of one arbitrator remains. The person remaining after the striking procedure
must be the arbitrator. If the parties are unable to agree on who shall strike the first name,
the question must be decided by a flip of a coin. The teacher and the board must share
equally the costs and fees of the arbitrator.

(c) The arbitrator shall determine, by a preponderance of the evidence, whether the
causes specified in subdivision 6, clause (1), (2), (3), or (4), exist to support the proposed
discharge or demotion. A lesser penalty than discharge or demotion may be imposed
by the arbitrator only to the extent that either party proposes such lesser penalty in the
proceeding. In making the determination, the arbitration proceeding is governed by
sections deleted text begin 572.11 to 572.17 deleted text end new text begin 572B.15 to 572B.28 new text end and by the collective bargaining agreement
applicable to the teacher.

(d) An arbitration hearing conducted under this subdivision is a meeting for
preliminary consideration of allegations or charges within the meaning of section 13D.05,
subdivision 3, paragraph (a), and must be closed, unless the teacher requests it to be open.

(e) The arbitrator's decision is final and binding on the parties, subject to sections
deleted text begin 572.18 to 572.26 deleted text end new text begin 572B.18 to 572B.28 new text end .

Sec. 4.

Minnesota Statutes 2008, section 179.09, is amended to read:

179.09 ARBITRATION.

When a labor dispute arises which is not settled by mediation such dispute may,
by written agreement of the parties, be submitted to arbitration on such terms as the
parties may specify, including among other methods the arbitration procedure under
the terms of sections deleted text begin 572.08 to 572.26 deleted text end new text begin 572B.01 to 572B.31 new text end and arbitration under the
Voluntary Industrial Arbitration Tribunal of the American Arbitration Association. If such
agreement so provides, the commissioner of mediation services may act as a member of
any arbitration tribunal created by any such agreement and, if the agreement so provides,
the commissioner may appoint one or more of such arbitrators. Either or both of the
parties to any such agreement or any arbitration tribunal created under any such agreement
may apply to the commissioner to have the tribunal designated as a temporary arbitration
tribunal and, if so designated, the temporary arbitration tribunal shall have power to
administer oaths to witnesses and to issue subpoenas for the attendance of witnesses and
the production of evidence, which subpoenas shall be enforced in the same manner as
subpoenas issued by the commission under section 179.08. Any such temporary arbitration
tribunal shall file with the commissioner a copy of its report, duly certified by its chair.

Sec. 5.

Minnesota Statutes 2008, section 325E.37, subdivision 5, is amended to read:

Subd. 5.

Arbitration.

(a) The sole remedy for a manufacturer, wholesaler,
assembler, or importer who alleges a violation of any provision of this section is to submit
the matter to arbitration. A sales representative may also submit a matter to arbitration,
or in the alternative, at the sales representative's option prior to the arbitration hearing,
the sales representative may bring the sales representative's claims in a court of law, and
in that event the claims of all parties must be resolved in that forum. In the event the
parties do not agree to an arbitrator within 30 days after the sales representative demands
arbitration in writing, either party may request the appointment of an arbitrator from
the American Arbitration Association. Each party to a sales representative agreement
shall be bound by the arbitration. In the event that the American Arbitration Association
declines to appoint an arbitrator, the arbitration shall proceed under chapter deleted text begin 572 deleted text end new text begin 572B new text end . The
cost of an arbitration hearing must be borne equally by both parties unless the arbitrator
determines a more equitable distribution. Except as provided in paragraph (c), the
arbitration proceeding is to be governed by the Uniform Arbitration Act, sections deleted text begin 572.08
to 572.30 deleted text end new text begin 572B.01 to 572B.31 new text end .

(b) The arbitrator may provide any of the following remedies:

(1) sustainment of the termination of the sales representative agreement;

(2) reinstatement of the sales representative agreement, or damages;

(3) payment of commissions due under subdivision 4;

(4) reasonable attorneys' fees and costs to a prevailing sales representative;

(5) reasonable attorneys' fees and costs to a prevailing manufacturer, wholesaler,
assembler, or importer, if the arbitrator finds the complaint was frivolous, unreasonable,
or without foundation; or

(6) the full amount of the arbitrator's fees and expenses if the arbitrator finds that the
sales representative's resort to arbitration or the manufacturer's, wholesaler's, assembler's,
or importer's defense in arbitration was vexatious and lacking in good faith.

(c) The decision of any arbitration hearing under this subdivision is final and binding
on the sales representative and the manufacturer, wholesaler, assembler, or importer. The
district court shall, upon application of a party, issue an order confirming the decision.

Sec. 6.

Minnesota Statutes 2008, section 325F.665, subdivision 6, is amended to read:

Subd. 6.

Alternative dispute settlement mechanism.

(a) Any manufacturer doing
business in this state, entering into franchise agreements for the sale of its motor vehicles
in this state, or offering express warranties on its motor vehicles sold or distributed for
sale in this state shall operate, or participate in, an informal dispute settlement mechanism
located in the state of Minnesota which complies with the provisions of the Code of
Federal Regulations, title 16, part 703, and the requirements of this section. The provisions
of subdivision 3 concerning refunds or replacement do not apply to a consumer who has
not first used this mechanism before commencing a civil action, unless the manufacturer
allows a consumer to commence an action without first using this mechanism.

(b) An informal dispute settlement mechanism provided for by this section shall,
at the time a request for arbitration is made, provide to the consumer and to each person
who will arbitrate the consumer's dispute, information about this section as approved and
directed by the attorney general, in consultation with interested parties. The informal
dispute settlement mechanism shall permit the parties to present or submit any arguments
based on this section and shall not prohibit or discourage the consideration of any such
arguments.

(c) If, in an informal dispute settlement mechanism, it is decided that a consumer
is entitled to a replacement vehicle or refund under subdivision 3, then any refund or
replacement offered by the manufacturer or selected by a consumer shall include and
itemize all amounts authorized by subdivision 3. If the amount of excise tax refunded is
not separately stated, or if the manufacturer does not apply for a refund of the tax within
one year of the return of the motor vehicle, the Department of Public Safety may refund the
excise tax, as determined under subdivision 3, paragraph (h), directly to the consumer and
lienholder, if any, as their interests appear on the records of the registrar of motor vehicles.

(d) No documents shall be received by any informal dispute settlement mechanism
unless those documents have been provided to each of the parties in the dispute at or
prior to the mechanism's meeting, with an opportunity for the parties to comment on
the documents either in writing or orally. If a consumer is present during the informal
dispute settlement mechanism's meeting, the consumer may request postponement of the
mechanism's meeting to allow sufficient time to review any documents presented at the
time of the meeting which had not been presented to the consumer prior to the meeting.

(e) The informal dispute settlement mechanism shall allow each party to appear and
make an oral presentation in the state of Minnesota unless the consumer agrees to submit
the dispute for decision on the basis of documents alone or by telephone, or unless the
party fails to appear for an oral presentation after reasonable prior written notice. If the
consumer agrees to submit the dispute for decision on the basis of documents alone, then
manufacturer or dealer representatives may not participate in the discussion or decision
of the dispute.

(f) Consumers shall be given an adequate opportunity to contest a manufacturer's
assertion that a nonconformity falls within intended specifications for the vehicle by
having the basis of the manufacturer's claim appraised by a technical expert selected and
paid for by the consumer prior to the informal dispute settlement hearing.

(g) Where there has been a recent attempt by the manufacturer to repair a consumer's
vehicle, but no response has yet been received by the informal dispute mechanism from the
consumer as to whether the repairs were successfully completed, the parties must be given
the opportunity to present any additional information regarding the manufacturer's recent
repair attempt before any final decision is rendered by the informal dispute settlement
mechanism. This provision shall not prejudice a consumer's rights under this section.

(h) If the manufacturer knows that a technical service bulletin directly applies to the
specific mechanical problem being disputed by the consumer, then the manufacturer shall
provide the technical service bulletin to the consumer at reasonable cost. The mechanism
shall review any such technical service bulletins submitted by either party.

(i) A consumer may be charged a fee to participate in an informal dispute settlement
mechanism required by this section, but the fee may not exceed the conciliation court
filing fee in the county where the arbitration is conducted.

(j) Any party to the dispute has the right to be represented by an attorney in an
informal dispute settlement mechanism.

(k) The informal dispute settlement mechanism has all the evidence-gathering
powers granted an arbitrator under section .

(l) A decision issued in an informal dispute settlement mechanism required by
this section may be in writing and signed.

Sec. 7.

Minnesota Statutes 2008, section 469.1762, is amended to read:

469.1762 ARBITRATION OF DISPUTES OVER COUNTY COSTS.

If the county and the authority or municipality are unable to agree on either (1)
the need for or cost of road improvements under section 469.175, subdivision 1a, or
(2) the amount of county administrative costs under section 469.176, subdivision 4h,
and the county or municipality demands arbitration, the matter must be submitted to
binding arbitration in accordance with sections deleted text begin 572.08 to 572.30 deleted text end new text begin 572B.01 to 572B.31 new text end and
the rules of the American Arbitration Association. Within 30 days after the demand for
arbitration, the parties shall each select an arbitrator or agree upon a single arbitrator. If
the parties each select an arbitrator, the two arbitrators shall select a third arbitrator within
45 days after the demand for arbitration. Each party shall pay the fees and expenses of the
arbitrator it selected and the parties shall share equally the expenses of the third arbitrator
or an arbitrator agreed upon mutually by the parties.

Sec. 8.

Minnesota Statutes 2008, section 572A.02, subdivision 1, is amended to read:

Subdivision 1.

Submittal to binding arbitration.

If a dispute remains unresolved
after the close of mediation, the dispute shall be submitted to binding arbitration within
60 days of issuance of the mediation report pursuant to the terms of this section and
the Uniform Arbitration Act, sections deleted text begin 572.08 to 572.30 deleted text end new text begin 572B.01 to 572B.31 new text end , except the
period may be extended for an additional 15 days as provided in this section. In the event
of a conflict between the provisions of the Uniform Arbitration Act and this section,
this section controls.

Sec. 9. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 8 are effective August 1, 2011.
new text end