Pennsylvania Uniform Arbitration Act

Table of Contents

Pennsylvania Uniform Arbitration Act
Subchapter A.  Statutory Arbitration
     § 7301.  Short title of subchapter.
     § 7302.  Scope of subchapter.
     § 7303.  Validity of agreement to arbitrate.
     § 7304.  Court proceedings to compel or stay arbitration.
     § 7305.  Appointment of arbitrators by court.
     § 7306.  Action by arbitrators.
     § 7307.  Hearing before arbitrators.
     § 7308.  Representation by attorney.
     § 7309.  Witnesses, subpoenas, oaths and depositions.
     § 7310.  Award of arbitrators.
     § 7311.  Change of award by arbitrators.
     § 7312.  Fees and expenses of arbitration.
     § 7313.  Confirmation of award by court.
     § 7314.  Vacating award by court.
     § 7315.  Modification or correction of award by court.
     § 7316.  Judgment or decree on award.
     § 7317.  Form and service of applications to court.
     § 7318.  Court and jurisdiction.
     § 7319.  Venue of court proceedings.
     § 7320.  Appeals from court orders.

Subchapter B.  Common Law Arbitration
     § 7341.  Common law arbitration.
     § 7342.  Procedure.

Subchapter C.  Judicial Arbitration
     § 7361.  Compulsory arbitration.
     § 7362.  Voluntary arbitration of pending judicial matters.

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Pennsylvania Uniform Arbitration Act

Title 42,  Chapter 73 Arbitration
     Subchapter
        A.  Statutory Arbitration
        B.  Common Law Arbitration
        C.  Judicial Arbitration

SUBCHAPTER A.  STATUTORY ARBITRATION

§ 7301.  Short title of subchapter.
This subchapter shall be known and may be cited as the "Uniform Arbitration Act."

§ 7302.  Scope of subchapter.
        (a)  General rule.--An agreement to arbitrate a controversy on a nonjudicial basis shall be conclusively presumed to be an agreement to arbitrate pursuant to Subchapter B (relating to common law arbitration) unless the agreement to arbitrate is in writing and expressly provides for arbitration pursuant to this subchapter or any other similar statute, in which case the arbitration shall be governed by this subchapter.
        (b)  Collective bargaining agreements.--This subchapter shall apply to a collective bargaining agreement to arbitrate controversies between employers and employees or their     respective representatives only where the arbitration pursuant to this subchapter is consistent with any statute regulating labor and management relations.
        (c)  Government contracts.--This subchapter shall apply to any written contract to which a government unit of this Commonwealth is a party to the same extent as if the government
     unit were a private person, except that where a contract to which the Commonwealth government is a party provides for arbitration of controversies but does not provide for
     arbitration pursuant to any specified statutory provision, the arbitration shall be governed by this subchapter.
        (d)  Special application.--
            (1)  Paragraph (2) shall be applicable where:
                (i)  The Commonwealth government submits a controversy to arbitration.
                (ii)  A political subdivision submits a controversy with an employee or a representative of employees to arbitration.
                (iii)  Any person has been required by law to submit or to agree to submit a controversy to arbitration pursuant to this subchapter.
            (2)  Where this paragraph is applicable a court in reviewing an arbitration award pursuant to this subchapter shall, notwithstanding any other provision of this subchapter, modify or correct the award where the award is contrary to law and is such that had it been a verdict of a jury the court would have entered a different judgment or a judgment notwithstanding the verdict.

Applicability.  Section 501(b) of Act 142 of 1980 provided that the provisions of 42 Pa.C.S. § 7302(d)(2) shall be applicable to any nonjudicial arbitration pursuant to:
        (1)  An agreement made prior to the effective date of this act which expressly provides that it shall be interpreted pursuant to the law of this Commonwealth and which expressly
     provides for statutory arbitration.
        (2)  An agreement heretofore or hereafter made which expressly provides for arbitration pursuant to the former provisions of the act of April 25, 1927 (P.L.381, No.248), relating to statutory arbitration.

§ 7303.  Validity of agreement to arbitrate.
A written agreement to subject any existing controversy to arbitration or a provision in a written agreement 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 relating to the validity, enforceability or revocation of any contract.

     § 7304.  Court proceedings to compel or stay arbitration.
        (a)  Compelling arbitration.--On application to a court to compel arbitration made by a party showing an agreement described in section 7303 (relating to validity of agreement to
     arbitrate) and a showing that an opposing party refused to arbitrate, the court shall order the parties to proceed with arbitration. If the opposing party denies the existence of an
     agreement to arbitrate, the court shall proceed summarily to determine the issue so raised and shall order the parties to proceed with arbitration if it finds for the moving party.     Otherwise, the application shall be denied.
        (b)  Stay of arbitration.--On application of a party to a court to stay an arbitration proceeding threatened or commenced the court may stay an arbitration on a showing that there is no agreement to arbitrate. When in substantial and bona fide dispute, such an issue shall be forthwith and summarily tried and determined and a stay of the arbitration proceedings shall be ordered if the court finds for the moving party. If the court finds for the opposing party, the court shall order the parties to proceed with arbitration.
        (c)  Venue.--If a controversy alleged to be or not to be referable to arbitration under the agreement is also involved in an action or proceeding pending in a court having jurisdiction
     to hear applications to compel or stay arbitration, the application shall be made to that court. Otherwise, subject to section 7319 (relating to venue of court proceedings), the    application may be made in any court of competent jurisdiction.
        (d)  Stay of judicial proceedings.--An action or proceeding, allegedly involving an issue subject to arbitration, shall be stayed if a court order to proceed with arbitration has been     made or an application for such an order has been made under this section. If the issue allegedly subject to arbitration is severable, the stay of the court action or proceeding may be made with respect to the severable issue only. If the application for an order to proceed with arbitration is made in such action or proceeding and is granted, the court order to     proceed with arbitration shall include a stay of the action or proceeding.
        (e)  No examination of merits.--An application for a court order to proceed with arbitration shall not be refused, nor shall an application to stay arbitration be granted, by the     court on the ground that the controversy lacks merit or bona fides or on the ground that no fault or basis for the controversy sought to be arbitrated has been shown.

§ 7305.  Appointment of arbitrators by court.
If the agreement to arbitrate prescribes a method of appointment of arbitrators, the prescribed method shall be followed. In the absence of a prescribed method or if the prescribed method fails or for any reason cannot be followed, or when an arbitrator appointed fails to act or is unable to act and his successor has not been appointed, the court on application of a party shall appoint one or more arbitrators. An arbitrator so appointed has all the powers of an arbitrator specifically named in the agreement.

§ 7306.  Action by arbitrators.
The powers of the arbitrators shall be exercised by a majority unless otherwise prescribed by the agreement or provided by this subchapter.

§ 7307.  Hearing before arbitrators.
        (a)  General rule.--Unless otherwise prescribed by the agreement:
            (1)  The arbitrators shall appoint a time and place for the arbitration hearing and cause written notice thereof to be served personally or by registered or certified mail on        all parties not less than ten days before the hearing.  Appearance at the hearing constitutes a waiver of such notice.
            (2)  The arbitrators may adjourn the hearing from time to time as necessary and, on 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.
            (3)  The arbitrators may hear and determine the controversy upon the evidence produced at the arbitration hearing notwithstanding the failure of a duly notified party to appear. On application by a party the court may direct the arbitrators to proceed promptly with the hearing and determination of the controversy.
            (4)  The parties and their attorneys have the right to be heard, to present evidence material to the controversy and to cross-examine witnesses appearing at the hearing.
            (5)  The hearing shall be conducted by all the arbitrators but a majority may determine any issue 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 determine the controversy.
        (b)  Record.--On request of a party who shall pay the fees therefor all testimony shall be taken stenographically and a transcript thereof made a part of the record.

§ 7308.  Representation by attorney.
A party has the right to be represented by an attorney at any proceeding or hearing under this subchapter. A waiver thereof prior to the proceeding or hearing is ineffective.

§ 7309.  Witnesses, subpoenas, oaths and depositions.
        (a)  General rule.--The arbitrators may issue subpoenas in the form prescribed by general rules for the attendance of witnesses and for the production of books, records, documents and other evidence. Subpoenas so issued shall be served and, upon application to the court by a party or by the arbitrators, shall be enforced in the manner provided or prescribed by law for the service and enforcement of subpoenas in a civil action.
        (b)  Depositions.--On application of a party and for use as evidence the arbitrators, in the manner and upon the terms designated by them, may permit a deposition to be taken of a witness who cannot be served with a subpoena or who is unable to attend the hearing.
        (c)  Compulsory testimony.--The arbitrators shall have power to administer oaths. All provisions of law compelling a person under subpoena to testify are applicable.
        (d)  Fees.--Fees and expenses for attendance as a witness shall be governed by the provisions of section 5903 (relating to compensation and expenses of witnesses).

§ 7310.  Award of arbitrators.
        (a)  General rule.--The award of the arbitrators shall be in writing and signed by the arbitrators joining in the award. The arbitrators shall deliver a copy of the award to each party personally or by registered or certified mail, or as prescribed in the agreement to arbitrate.
        (b)  Time limitation.--The award shall be made within the time fixed by the agreement or, if not fixed by the agreement, within such time as is ordered by the court on application of a
     party. The parties by written stipulation may extend the time either before or after the expiration thereof. A party waives the objection that an award was not made within the time
     required unless he notifies the arbitrators of his objection prior to delivery of the award to him.

§ 7311.  Change of award by arbitrators.
        (a)  General rule.--On application of a party to the arbitrators, or on submission to the arbitrators by the court under such conditions as the court may order if an application to the court is pending under section 7313 (relating to confirmation of award by court), section 7314 (relating to vacating award by court) or section 7315 (relating to modification or correction of award by court), the arbitrators may modify or correct the award upon the grounds stated in section 7315(a)(1) and (2), or for the purpose of clarifying the award.
        (b)  Time limitation.--An application to the arbitrators under subsection (a) shall be made within ten days after delivery of the award to the applicant. Written notice of presentation of the application shall be given forthwith by the applicant to all other parties stating that they must serve objections thereto within ten days from the date of the notice.     The award as modified or corrected is subject to the provisions of sections 7313, 7314 and 7315.

§ 7312.  Fees and expenses of arbitration.
Unless otherwise prescribed in the agreement to arbitrate, the expenses and fees of the arbitrators and other expenses (but not including counsel fees) incurred in the conduct of the arbitration shall be paid as prescribed in the award.

§ 7313.  Confirmation of award by court.
On application of a party, the court shall confirm an award, unless within the time limits imposed by this subchapter, grounds are urged for vacating or modifying or correcting the     award, in which case the court shall proceed as provided in section 7314 (relating to vacating award by court) or section 7315 (relating to modification or correction of award by court).

§ 7314.  Vacating award by court.
        (a)  General rule.--
            (1)  On application of a party, the court shall vacate an award where:
                (i)  the court would vacate the award under section 7341 (relating to common law arbitration) if this subchapter were not applicable;
                (ii)  there was evident partiality by an arbitrator appointed as a neutral or corruption or misconduct in any of the arbitrators prejudicing the rights of any party;
                (iii)  the arbitrators exceeded their powers;
                (iv)  the arbitrators refused to postpone the hearing upon good 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 7307 (relating to hearing before arbitrators), as to prejudice substantially the rights of a party; or
                (v)  there was no agreement to arbitrate and the issue of the existence of an agreement to arbitrate was not adversely determined in proceedings under section 7304 (relating to court proceedings to compel or stay arbitration) and the applicant-party raised the issue of the existence of an agreement to arbitrate at the  hearing.
            (2)  The fact that the relief awarded by the arbitrators was such that it could not or would not be granted by a court of law or equity is not a ground for vacating or refusing to confirm the award.
        (b)  Time limitation.--An application under this section shall be made within 30 days after delivery of a copy of the award to the applicant, except that, if predicated upon corruption, fraud, misconduct or other improper means, it shall be made within 30 days after such grounds are known or should have been known to the applicant.
        (c)  Further hearing.--If the court vacates the award on grounds other than stated in subsection (a)(1)(v), the court may order a rehearing before new arbitrators chosen as prescribed in the agreement to arbitrate. Absent a method prescribed in the agreement to arbitrate, the court shall choose new arbitrators in accordance with section 7305 (relating to appointment of arbitrators by court). If the award is vacated on grounds not affecting the competency of the arbitrators under subsection (a)(1)(i) through (iv), the court may order a rehearing before the arbitrators who made the award or their successors appointed in accordance with section 7305. The time period within which the agreement requires the original award to be made is applicable to the rehearing and commences from the date of the court order directing a rehearing.
        (d)  Confirmation of award.--If an application to vacate the award is denied and no application to modify or correct the award is pending, the court shall confirm the award.

§ 7315.  Modification or correction of award by court.
        (a)  General rule.--On application to the court made within 30 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 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 deficient in a matter of form, not affecting the merits of the controversy.
        (b)  Confirmation of award.--If an application to modify or correct the award 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 by the arbitrators.
        (c)  Alternative applications.--An application to modify or correct an award may be joined in the alternative with an application to vacate the award.

§ 7316.  Judgment or decree on award.
Upon the granting of an order of court confirming, modifying or correcting an award, a judgment or decree shall be entered in conformity with the order. The judgment or decree may be enforced as any other judgment or decree. Subject to general rules, costs of any application to the court and of the proceedings subsequent thereto, and disbursements may be imposed by the court.

§ 7317.  Form and service of applications to court.
Except as otherwise prescribed by general rules, an application to the court under this subchapter shall be by petition and shall be heard in the manner and upon the notice     provided or prescribed by law for the making and hearing of petitions in civil matters. Unless the parties otherwise agree, notice of an initial application for an order of court shall be served in the manner provided or prescribed by law for the service of a writ of summons in a civil action.

§ 7318.  Court and jurisdiction.
The following words and phrases when used in this subchapter shall have, unless the context clearly indicates otherwise, the meanings given to them in this section:
        "Court."  As used in this subchapter means any court of competent jurisdiction of this Commonwealth.
        "Jurisdiction."  The making of an agreement described in section 7303 (relating to validity of agreement to arbitrate) providing for arbitration in this Commonwealth confers   jurisdiction on the courts of this Commonwealth to enforce the agreement under this subchapter and to enter judgment on an award made thereunder.

§ 7319.  Venue of court proceedings.
Except as otherwise prescribed by general rules:
            (1)  An initial application to a court under this subchapter shall be made to the court of the county in which the agreement prescribes that the arbitration hearing shall be held or, if the hearing has been held, in the county in which the hearing was held.
            (2)  If an application to a court cannot be made under paragraph (1) the application shall be made to the court in the county where the adverse party resides or has a place of business or, if he has no residence or place of business in this Commonwealth, to the court of any county.
            (3)  All subsequent applications to a court shall be made to the court hearing the initial application unless that court otherwise directs.

§ 7320.  Appeals from court orders.
        (a)  General rule.--An appeal may be taken from:
            (1)  A court order denying an application to compel arbitration made under section 7304 (relating to proceedings to compel or stay arbitration).
            (2)  A court order granting an application to stay arbitration made under section 7304(b).
            (3)  A court order confirming or denying confirmation of an award.
            (4)  A court order modifying or correcting an award.
            (5)  A court order vacating an award without directing a rehearing.
            (6)  A final judgment or decree of a court entered pursuant to the provisions of this subchapter.
        (b)  Procedure.--The appeal shall be taken in the manner, within the time and to the same extent as an appeal from a final order of court in a civil action.

SUBCHAPTER B COMMON LAW ARBITRATION

§ 7341.  Common law arbitration.
The award of an arbitrator in a nonjudicial arbitration which is not subject to Subchapter A (relating to statutory arbitration) or a similar statute regulating nonjudicial arbitration proceedings is binding and may not be vacated or modified unless it is clearly shown that a party was denied a hearing or that fraud, misconduct, corruption or other irregularity caused the rendition of an unjust, inequitable or unconscionable award.

§ 7342.  Procedure.
        (a)  General rule.--The following provisions of Subchapter A (relating to statutory arbitration) shall be applicable to arbitration conducted pursuant to this subchapter:
            Section 7303 (relating to validity of agreement to  arbitrate).
            Section 7304 (relating to court proceedings to compel or stay arbitration).
            Section 7305 (relating to appointment of arbitrators by court).
            Section 7309 (relating to witnesses, subpoenas, oaths and depositions).
            Section 7317 (relating to form and service of applications to court).
            Section 7318 (relating to court and jurisdiction).
            Section 7319 (relating to venue of court proceedings).
            Section 7320 (relating to appeals from court orders), except subsection (a)(4).
        (b)  Confirmation and judgment.--On application of a party made more than 30 days after an award is made by an arbitrator under section 7341 (relating to common law arbitration), the court shall enter an order confirming the award and shall enter a judgment or decree in conformity with the order. Section 7302(d)(2) (relating to special application) shall not be applicable to proceedings under this subchapter.

SUBCHAPTER C JUDICIAL ARBITRATION

§ 7361.  Compulsory arbitration.
        (a)  General rule.--Except as provided in subsection (b), when prescribed by general rule or rule of court such civil matters or issues therein as shall be specified by rule shall    first be submitted to and heard by a board of three members of the bar of the court.
        (b)  Limitations.--No matter shall be referred under subsection (a):
            (1)  which involves title to real property; or
            (2)  where the amount in controversy, exclusive of interest and costs, exceeds $50,000.
        (c)  Procedure.--The arbitrators appointed pursuant to this section shall have such powers and shall proceed in such manner as shall be prescribed by general rules.
        (d)  Appeal for trial de novo.--Any party to a matter shall have the right to appeal for trial de novo in the court. The party who takes the appeal shall pay such amount or proportion of fees and costs and shall comply with such other procedures as shall be prescribed by general rules. In the absence of appeal the judgment entered on the award of the arbitrators shall be enforced as any other judgment of the court. For the purposes of this section and section 5571 (relating to appeals generally) an award of arbitrators constitutes an order of a tribunal.

§ 7362.  Voluntary arbitration of pending judicial matters.
        (a)  General rule.--A civil matter or issue therein may be referred by consent of the parties to one or more appointive judicial officers or other persons for hearing or hearing and disposition.
        (b)  Government units.--Any government unit of this Commonwealth, with the consent of the solicitor or other official counsel of the unit, may agree to the reference of a civil matter pursuant to this section.
        (c)  Procedure.--The appointive judicial officers or other persons appointed or designated pursuant to this section shall have such powers and shall proceed in such manner as shall be prescribed by general rules.
        (d)  Appeal.--Any party to a matter referred under this section shall have such rights of appeal, if any, as shall be prescribed by general rules. Where no right to appeal is prescribed by general rule, all parties shall be deemed to have waived any right to appeal which they might otherwise enjoy under the Constitution of Pennsylvania or otherwise in mutual consideration of an expeditious final disposition of the matter, but no such waiver shall apply if it is clearly shown that a party was denied a hearing or that fraud, misconduct, corruption or other irregularity caused the rendition of an unjust, inequitable or conscionable award.