Arbitration is usually based upon the parties’ consent. The parties to a written agreement provide for arbitration of future disputes or submit an existing dispute to arbitration. But several New York statutes require that the parties’ contract contain a binding arbitration-type provision, or alternatively allow one party to demand binding arbitration even though the parties never agreed to do so.
Nonconsensual Arbitration
Nonconsensual arbitration is found in several New York state statutes. The Taylor Law (Civil Service Law §209) allows nonconsensual arbitration as a last resort: After engaging with the Public Employment Relations Board, arbitrators can write provisions of a contract between public sector unions and a public body. The Lemon Law (General Business Law §198-a(k)) allows, but does not compel, arbitration between a consumer and an auto manufacturer. The Prompt Payment Act (PPA) (General Business Law §756, et seq.) allows, but does not compel, arbitration concerning certain construction disputes. Arbitration of oil spill clean-up costs occurs per regulation under Navigation Law §185. Regulation requires vehicle insurance policies to contain No Fault arbitration provisions; for certain claims, litigation is still possible. The standard New York Fire Insurance Policy has for over a century provided for insured and insurer appraisal of loss and, when appraisers disagree, appointment of a neutral party to determine the value of damaged property.
Narrowing or Expanding the Scope of the Dispute
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
