2004 Minnesota Statutes

CHAPTER 572. Arbitration and award

  572.01-572.07 Repealed, 1957 c 633 s 24 

UNIFORM ARBITRATION ACT

     572.08 Validity of arbitration agreements, application 
  to specific agreements.  

    A written agreement to submit any existing controversy to 
 arbitration or a provision in a written contract to submit to 
 arbitration any controversy thereafter arising between the 
 parties is valid, enforceable, and irrevocable, save upon such 
 grounds as exist at law or in equity for the revocation of any 
 contract.  The provisions of sections 572.08 to 572.30 shall 
 apply to controversies arising out of any contract for the 
 construction or repair of state trunk highways when such 
 contract specifically provides for arbitration or when the 
 parties agree to submit an existing controversy to arbitration.  
 Sections 572.08 to 572.30 also apply to arbitration agreements 
 between employers and employees or between their respective 
 representatives unless otherwise provided in the agreement.  

    HIST: 1957 c 633 s 1; 1963 c 656 s 1 

     572.09 Procedure to compel or stay arbitration.  

    (a) On application of a party showing an agreement 
 described in section 572.08, and the opposing party's refusal to 
 arbitrate, the court shall order the parties to proceed with 
 arbitration, but if the opposing party denies the existence of 
 the agreement to arbitrate, the court shall proceed summarily to 
 the determination of the issue so raised and shall order 
 arbitration if found for the moving party, otherwise, the 
 application shall be denied.  

    (b) On application, the court may stay an arbitration 
 proceeding commenced or threatened on a showing that there is no 
 agreement to arbitrate.  Such an issue, when in substantial and 
 bona fide dispute, shall be forthwith and summarily tried and 
 the stay ordered if found for the moving party.  If found for 
 the opposing party, the court shall order the parties to proceed 
 to arbitration.  

    (c) If an issue referable to arbitration under the alleged 
 agreement is in an action or proceeding pending in a court 
 having jurisdiction to hear applications under clause (a), the 
 application shall be made therein.  Otherwise and subject to 
 section 572.25, the application may be made in any court of 
 competent jurisdiction.  

    (d) Any action or proceeding involving an issue subject to 
 arbitration shall be stayed if an order for arbitration or an 
 application therefor has been made under this section or, if the 
 issue is severable, the stay may be with respect thereto only.  
 When the application is made in such action or proceeding, the 
 order for arbitration shall include such stay.  

    (e) An order for arbitration shall not be refused on the 
 ground that the claim in issue lacks merit or bona fides or 
 because any fault or grounds for the claim sought to be 
 arbitrated have not been shown.  

    HIST: 1957 c 633 s 2 

     572.10 Appointment of arbitrators; disclosure required. 

    Subdivision 1.    Appointment by the court.  If the 
 arbitration agreement provides a method of appointment of 
 arbitrators, this method shall be followed.  In the absence 
 thereof, or if the agreed method fails or for any reason cannot 
 be followed, or when an arbitrator appointed fails or is unable 
 to act and a successor has not been duly appointed, the court on 
 application of a party shall appoint one or more arbitrators.  
 An arbitrator so appointed has all the powers of one 
 specifically named in the agreement. 

    Subd. 2.    Disclosure by a neutral arbitrator.  (a) A 
 "neutral arbitrator" is the only arbitrator in a case or is one 
 appointed by the court, by the other arbitrators, or by all 
 parties together in agreement.  A neutral arbitrator does not 
 include one selected by fewer than all parties even though no 
 other party objects.  

    (b) Except for arbitrations under the American Arbitration 
 Association, prior to selection, a neutral arbitrator shall 
 disclose any relationships the person has with any of the 
 parties, their counsel, insurers, or representatives and any 
 conflict of interest, or potential conflict of interest, the 
 person may have.  

    (c) In all arbitrations: 

    (1) after a neutral arbitrator has been selected, any 
 relationship, conflict of interest, or potential conflict of 
 interest that arises must be immediately disclosed by the 
 arbitrator in writing to all parties, and a party may move the 
 district court or the arbitration tribunal for removal of the 
 neutral arbitrator; 

    (2) the disclosure required under this section is in 
 addition to that which may be required by applicable rules of 
 law, ethics, or procedure; and 

    (3) if the neutral arbitrator fails to disclose a conflict 
 of interest or material relationship, it is grounds for vacating 
 an award for fraud as provided in section 572.19. 

    HIST: 1957 c 633 s 3; 1986 c 444; 1991 c 321 s 8 

     572.11 Majority action by arbitrators.  

    The powers of the arbitrators may be exercised by a 
 majority unless otherwise provided by the agreement or by 
 sections 572.08 to 572.30.  

    HIST: 1957 c 633 s 4 

     572.12 Hearing. 

    Unless otherwise provided by the agreement: 

    (a) The arbitrators shall appoint a time and place for the 
 hearing and cause notification to the parties to be served 
 personally or by certified mail not less than five days before 
 the hearing.  Appearance at the hearing waives such notice.  The 
 arbitrators may adjourn the hearing from time to time as 
 necessary and, on a request of a party and for good cause, or 
 upon their own motion may postpone the hearing to a time not 
 later than the date fixed by the agreement for making the award 
 unless the parties consent to a later date.  The arbitrators may 
 hear and determine the controversy upon the evidence produced 
 notwithstanding the failure of a party duly notified to appear.  
 The court on application may direct the arbitrators to proceed 
 promptly with the hearing and determination of the controversy. 

    (b) The parties are entitled to be heard, to present 
 evidence material to the controversy and to cross-examine 
 witnesses appearing at the hearing. 

    (c) The hearing shall be conducted by all the arbitrators 
 but a majority may determine any question and render a final 
 award.  If, during the course of the hearing, an arbitrator for 
 any reason ceases to act, the remaining arbitrator or 
 arbitrators appointed to act as neutrals may continue with the 
 hearing and determination of the controversy. 

    HIST: 1957 c 633 s 5; 1978 c 674 s 60 

     572.13 Representation by attorney.  

    A party has the right to be represented by an attorney at 
 any proceeding or hearing under sections 572.08 to 572.30.  A 
 waiver thereof prior to the proceeding or hearing is ineffective.

    HIST: 1957 c 633 s 6 

     572.14 Witnesses, subpoenas, depositions.  

    (a) The arbitrators may issue subpoenas for the attendance 
 of witnesses and for the production of books, records, documents 
 and other evidence, and shall have the power to administer 
 oaths.  Subpoenas so issued shall be served, and upon 
 application to the court by a party or the arbitrators, 
 enforced, in the manner provided by law for the service and 
 enforcement of subpoenas in a civil action.  

    (b) On application of a party and for use as evidence, the 
 arbitrators may permit a deposition to be taken, in the manner 
 and upon the terms designated by the arbitrators, of a witness 
 who cannot be subpoenaed or is unable to attend the hearing.  

    (c) All provisions of law compelling a person under 
 subpoena to testify are applicable.  

    (d) Fees for attendance as a witness shall be the same as 
 for a witness in the district court.  

    HIST: 1957 c 633 s 7 

     572.15 Award. 

    (a) The award shall be in writing and signed by the 
 arbitrators joining in the award.  The award must include 
 interest, except this does not apply to arbitrations between 
 employers and employees under chapter 179 or 179A.  An 
 arbitrator is neither required to nor prohibited from awarding 
 interest under chapter 179 or under section 179A.16 for 
 essential employees.  The arbitrators shall deliver a copy to 
 each party personally or by certified mail, or as provided in 
 the agreement. 

    (b) An award shall be made within the time fixed therefor 
 by the agreement or, if not so fixed, within such time as the 
 court orders on application of a party.  The parties may extend 
 the time in writing either before or after the expiration 
 thereof.  A party waives the objection that an award was not 
 made within the time required unless the party notifies the 
 arbitrators of an objection prior to the delivery of the award 
 to the party. 

    HIST: 1957 c 633 s 8; 1978 c 674 s 60; 1986 c 444; 1991 c 321 
 s 9 

     572.16 Change of award by arbitrators. 

    Subdivision 1.    Application of party.  On application 
 of a party, the arbitrator may modify or correct the award: 

    (1) upon the grounds stated in section 572.20, subdivision 
 1; 

    (2) for the purpose of clarifying the award; or 

    (3) where the award is based on an error of law.  

    Subd. 2.    Submission by court.  If an application to 
 the court is pending under section 572.18, 572.19, or 572.20, on 
 submission to the arbitrators by the court under such conditions 
 as the court may order, the arbitrators may modify or correct 
 the award upon the grounds stated in section 572.20, subdivision 
 1, or for the purpose of clarifying the award.  

    Subd. 3.    Procedure.  For purposes of subdivision 1 or 
 2, the application shall be made within 20 days after delivery 
 of the award to the applicant.  Written notice thereof shall be 
 given forthwith to the opposing party, stating that the opposing 
 party must serve objections thereto, if any, within ten days 
 from the notice.  The award so modified or corrected is subject 
 to the provisions of sections 572.18, 572.19 and 572.20. 

    HIST: 1957 c 633 s 9; 1986 c 444; 1991 c 321 s 10 

     572.17 Fees and expenses of arbitration.  

    Unless otherwise provided in the agreement to arbitrate, 
 the arbitrators' expenses and fees, together with other 
 expenses, not including counsel fees, incurred in the conduct of 
 the arbitration, shall be paid as provided in the award.  

    HIST: 1957 c 633 s 10 

     572.18 Confirmation of an award.  

    Upon application of a party, the court shall confirm an 
 award, unless within the time limits hereinafter imposed grounds 
 are urged for vacating or modifying or correcting the award, in 
 which case the court shall proceed as provided in sections 
 572.19 and 572.20.  

    HIST: 1957 c 633 s 11 

     572.19 Vacating an award.  

    Subdivision 1.    Application.  Upon application of a party, the 
 court 
 shall vacate an award where: 

    (1) The award was procured by corruption, fraud or other 
 undue means; 

    (2) There was evident partiality by an arbitrator appointed 
 as a neutral or corruption in any of the arbitrators or 
 misconduct prejudicing the rights of any party; 

    (3) The arbitrators exceeded their powers; 

    (4) The arbitrators refused to postpone the hearing upon 
 sufficient cause being shown therefor or refused to hear 
 evidence material to the controversy or otherwise so conducted 
 the hearing, contrary to the provisions of section 572.12, as to 
 prejudice substantially the rights of a party; or 

    (5) There was no arbitration agreement and the issue was 
 not adversely determined in proceedings under section 572.09 and 
 the party did not participate in the arbitration hearing without 
 raising the objection; 

    But the fact that the relief was such that it could not or 
 would not be granted by a court of law or equity is not ground 
 for vacating or refusing to confirm the award.  

    Subd. 2.    Time limit for application.  An application under 
 this section shall be made 
 within 90 days after delivery of a copy of the award to the 
 applicant, except that, if predicated upon corruption, fraud or 
 other undue means, it shall be made within 90 days after such 
 grounds are known or should have been known.  

    Subd. 3.    Rehearings.  In vacating the award on grounds other 
 than 
 stated in clause (5) of subdivision 1, the court may order a 
 rehearing before new arbitrators chosen as provided in the 
 agreement, or in the absence thereof, by the court in accordance 
 with section 572.10, or, if the award is vacated on grounds set 
 forth in clauses (3) and (4) of subdivision 1, the court may 
 order a rehearing before the arbitrators who made the award or 
 their successors appointed in accordance with section 572.10.  
 The time within which the agreement requires the award to be 
 made is applicable to the rehearing and commences from the date 
 of the order.  

    Subd. 4.    Confirm award.  If the application to vacate is 
 denied and no 
 motion to modify or correct the award is pending, the court 
 shall confirm the award.  

    HIST: 1957 c 633 s 12 

     572.20 Modification or correction of award.  

    Subdivision 1.    Modification of award.  Upon application made 
 within 90 days after 
 delivery of a copy of the award to the applicant, the court 
 shall modify or correct the award where: 

    (1) There was an evident miscalculation of figures or an 
 evident mistake in the description of any person, thing or 
 property referred to in the award; 

    (2) The arbitrators have awarded upon a matter not 
 submitted to them and the award may be corrected without 
 affecting the merits of the decision upon the issues submitted; 
 or 

    (3) The award is imperfect in a matter of form, not 
 affecting the merits of the controversy.  

    Subd. 2.    Court disposition.  If the application is granted, 
 the court shall 
 modify and correct the award so as to effect its intent and 
 shall confirm the award as so modified and corrected.  
 Otherwise, the court shall confirm the award as made.  

    Subd. 3.    Joinder in alternative.  An application to modify or 
 correct an award may 
 be joined in the alternative with an application to vacate the 
 award.  

    HIST: 1957 c 633 s 13 

     572.21 Judgment or decree on award.  

    Upon the granting of an order confirming, modifying or 
 correcting an award, judgment or decree shall be entered in 
 conformity therewith and be enforced as any other judgment or 
 decree.  Costs of the application and of the proceedings 
 subsequent thereto, and disbursements may be awarded by the 
 court.  

    HIST: 1957 c 633 s 14 

     572.22 Judgment roll, docketing. 

    Subdivision 1.    Judgment roll.  On entry of judgment 
 or decree, the court administrator shall prepare the judgment 
 roll consisting, to the extent filed, of the following: 

    (1) the agreement and each written extension of the time 
 within which to make the award; 

    (2) the award; 

    (3) a copy of the order confirming, modifying or correcting 
 the award; and 

    (4) the judgment or decree. 

    Subd. 2.    Docketed; action.  The judgment or decree may be 
 docketed as if 
 rendered in an action.  

    HIST: 1957 c 633 s 15; 1981 c 121 s 6; 1Sp1986 c 3 art 1 s 82 

     572.23 Applications to court.  

    Except as otherwise provided, an application to the court 
 under this chapter shall be by motion and shall be heard in the 
 manner and upon the notice provided by law or rule of court for 
 the making and hearing of motions.  Unless the parties have 
 agreed otherwise, notice of an initial application for an order 
 shall be served in the manner provided by law for the service of 
 a summons in an action.  

    HIST: 1957 c 633 s 16 

     572.24 Court, jurisdiction.  

    The term "court" means any court of competent jurisdiction 
 of this state.  The making of an agreement described in section 
 572.08 providing for arbitration in this state confers 
 jurisdiction on the court to enforce the agreement under 
 sections 572.08 to 572.30 and to enter judgment on an award 
 thereunder.  

    HIST: 1957 c 633 s 17 

     572.25 Venue.  

    An initial application shall be made to the court of the 
 county in which the agreement provides the arbitration hearing 
 shall be held or, if the hearing has been held, in the county in 
 which it was held.  Otherwise the application shall be made in 
 the county where the adverse party resides or has a place of 
 business if there is one or the other in this state; if not, 
 then to the court of any county.  All subsequent applications 
 shall be made to the court hearing the initial application 
 unless the court otherwise directs.  

    HIST: 1957 c 633 s 18; 1986 c 444 

     572.26 Appeals.  

    Subdivision 1.    Authorization of appeal.  An appeal may be 
 taken from: 

    (1) an order denying an application to compel arbitration 
 made under section 572.09; 

    (2) an order granting an application to stay arbitration 
 made under section 572.09(b); 

    (3) an order confirming or denying confirmation of an 
 award; 

    (4) an order modifying or correcting an award; 

    (5) an order vacating an award without directing a 
 rehearing; or 

    (6) a judgment or decree entered pursuant to the provisions 
 of this chapter.  

    Subd. 2.    Manner.  The appeal shall be taken in the manner and 
 to 
 the same extent as from orders or judgments in a civil action.  

    HIST: 1957 c 633 s 19 

     572.27 Act not retroactive.  

    This chapter applies only to agreements made subsequent to 
 the taking effect of this chapter.  

    HIST: 1957 c 633 s 20 

     572.28 Uniformity of interpretation.  

    This chapter shall be so construed as to effectuate its 
 general purpose to make uniform the law of those states which 
 enact it.  

    HIST: 1957 c 633 s 21 

     572.29 Severability.  

    If any provision of sections 572.08 to 572.30 or the 
 application thereof to any person or circumstances is held 
 invalid, the invalidity shall not affect other provisions or 
 applications of the chapter which can be given without the 
 invalid provision or application, and to this end the provisions 
 of this chapter are severable.  

    HIST: 1957 c 633 s 22 

     572.30 Citation, Uniform Arbitration Act.  

    Subdivision 1.    Citation.  Sections 572.08 to 572.30 may be 
 cited as 
 the Uniform Arbitration Act.  

    Subd. 2.    Nonapplication.  Section 358.06 does not apply to an 
 arbitration 
 proceeding coming within the provisions of this chapter. 

    Subd. 3.    Superseding court rule.  Rule 26.07, Rules of Civil 
 Procedure for district 
 courts, is superseded by the provisions of this chapter, insofar 
 as inconsistent therewith. 

    HIST: 1957 c 633 s 23,24 

MINNESOTA CIVIL MEDIATION ACT

     572.31 Minnesota Civil Mediation Act, citation. 

    Sections 572.31 to 572.40 may be cited as the "Minnesota 
 Civil Mediation Act."  

    HIST: 1984 c 646 s 1 

     572.33 Definitions. 

    Subdivision 1.    Scope.  When used in sections 572.31 
 to 572.40 the terms defined in this section have the meanings 
 given them.  

    Subd. 2.    Mediator.  "Mediator" means a third party 
 with no formal coercive power whose function is to promote and 
 facilitate a voluntary settlement of a controversy identified in 
 an agreement to mediate.  

    Subd. 3.    Agreement to mediate.  "Agreement to mediate"
 means a written agreement which identifies a controversy between 
 the parties to the agreement, states that the parties will seek 
 to resolve the controversy through mediation, provides for 
 termination of mediation upon written notice from either party 
 or the mediator delivered by certified mail or personally to the 
 other people who signed the agreement, is signed by the parties 
 and mediator and is dated.  

    Subd. 4.    Mediated settlement agreement.  "Mediated 
 settlement agreement" means a written agreement setting out the 
 terms of a partial or complete settlement of a controversy 
 identified in an agreement to mediate, signed by the parties, 
 and dated.  

    Subd. 5.    Nonprofit regional alternative dispute 
 resolution corporation.  "Nonprofit regional alternative 
 dispute resolution corporation" has the meaning given in section 
 480.24, subdivision 5. 

    HIST: 1984 c 646 s 2; 1986 c 398 art 17 s 3,4 

     572.35 Effect of mediated settlement agreement. 

    Subdivision 1.    General.  The effect of a mediated 
 settlement agreement shall be determined under principles of law 
 applicable to contract.  A mediated settlement agreement is not 
 binding unless: 

    (1) it contains a provision stating that it is binding and 
 a provision stating substantially that the parties were advised 
 in writing that (a) the mediator has no duty to protect their 
 interests or provide them with information about their legal 
 rights; (b) signing a mediated settlement agreement may 
 adversely affect their legal rights; and (c) they should consult 
 an attorney before signing a mediated settlement agreement if 
 they are uncertain of their rights; or 

    (2) the parties were otherwise advised of the conditions in 
 clause (1). 

    Subd. 2.    Debtor and creditor mediation.  In addition 
 to the requirements of subdivision 1, a mediated settlement 
 agreement between a debtor and creditor is not binding until 72 
 hours after it is signed by the debtor and creditor, during 
 which time either party may withdraw consent to the binding 
 character of the agreement. 

    HIST: 1984 c 646 s 3; 1986 c 398 art 17 s 5; 1999 c 190 s 1 

     572.36 Setting aside or reforming a mediated settlement 
  agreement. 

    In any action, a court of competent jurisdiction shall set 
 aside or reform a mediated settlement agreement if appropriate 
 under the principles of law applicable to contracts, or if there 
 was evident partiality, corruption, or misconduct by a mediator 
 prejudicing the rights of a party.  That the relief could not or 
 would not be granted by a court of law or equity is not ground 
 for setting aside or reforming the mediated settlement agreement 
 unless it violates public policy.  

    HIST: 1984 c 646 s 4 

     572.37 Presentation of mediator to public. 

    No individual may act as a mediator pursuant to the 
 Minnesota Civil Mediation Act for compensation without providing 
 the individuals to the conflict with a written statement of 
 qualifications prior to beginning mediation.  The statement 
 shall describe educational background and relevant training and 
 experience in the field.  

    Nothing in this section shall limit the pursuits of 
 professionals consistent with their training and code of ethics; 
 nor shall this section apply to service provided through a 
 governmental agency.  The requirement of this section may be 
 satisfied by a nonprofit corporation on behalf of its service 
 providers by providing a statement of the education, training, 
 and experience requirements for eligibility on its mediation 
 panel.  

    A person who violates this section is guilty of a petty 
 misdemeanor.  

    HIST: 1984 c 646 s 5; 1986 c 444 

     572.39 Statutes of limitation. 

    The running of the limitation of time within which an 
 action may be brought is suspended from the date of the 
 agreement to mediate until 20 days after notice of termination 
 of mediation is delivered by certified mail or personally 
 delivered as provided in the agreement to mediate.  

    HIST: 1984 c 646 s 6 

     572.40 Scope. 

    Sections 572.31 to 572.36 do not apply to proceedings 
 relating to the determination of criminal liability or 
 proceedings brought under chapters 518, 518A, 518B, and 518C, or 
 proceedings relating to guardianship, conservatorship, or civil 
 commitment.  

    HIST: 1984 c 646 s 7 

DEBTOR AND CREDITOR MEDIATION

     572.41 Debtor and creditor mediation. 

    Subdivision 1.    General.  The debtor and creditor in 
 any transaction may request the other party to the transaction 
 to enter mediation concerning possible adjustment, refinancing, 
 or payment under this section and sections 572.31 to 572.40. 

    Subd. 2.    Mediators.  An individual who meets the 
 qualifications established under subdivision 5 and who is 
 willing to mediate in matters involving debtors and creditors 
 may register with a nonprofit regional alternative dispute 
 resolution corporation or, in a county where one does not exist, 
 with the court administrator.  The court administrator shall 
 develop a list of mediators available in the county.  It is 
 desirable but not necessary that mediators under this section 
 have knowledge of debtor and creditor law and relevant areas of 
 finance.  A mediator must not mediate a matter involving a 
 debtor or creditor with whom the mediator has or has had a 
 credit relationship. 

    Subd. 3.    Request for mediator.  A debtor and creditor 
 who agree to mediate may submit a written request for referral 
 to a mediator to the court administrator in the county where 
 either party resides or has a place of business.  The court 
 administrator shall assign a mediator from the list developed 
 under subdivision 2.  The court administrator may charge a fee 
 for the referral not to exceed the conciliation court fee in 
 that county. 

    Subd. 4.    Compensation.  Prior to commencing mediation 
 the debtor and creditor shall agree with each other and the 
 mediator on the amount and allocation between them of any fee 
 for the mediator's services. 

    Subd. 5.    Rules.  The state court administrator, in 
 consultation with the Bureau of Mediation Services, shall adopt 
 rules to implement this section and may use portions of existing 
 rules on certification of alternative dispute resolution 
 programs that satisfy the purposes of this section.  The rules 
 must include qualifications of mediators under this section and 
 grounds for challenging and removing mediators.  

    HIST: 1986 c 398 art 17 s 6