S2441

An Act concerning summary applications seeking judicial review of certain awards resulting from alternative resolution proceedings and amending P.L.1987, c.54.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. Section 13 of P.L.1987, c.54 (C.2A:23A-13) is amended to read as follows:

13. a. A party to an alternative resolution proceeding shall commence a summary application in the Superior Court for its vacation, modification or correction within 45 days after the award is delivered to the applicant [, or] . However, if a party made a request to the umpire of the proceeding, either pursuant to subsection d. of section 12 of P.L.1987, c.54 (C.2A:23A-12) or pursuant to any applicable rules of a dispute resolution organization, seeking to modify the award, then the summary application shall be filed within 30 days after receipt of [an] a modified award [modified pursuant to subsection d. of section 12 of this act, unless the] or a denial of the modification request. The parties [shall] may extend the time, in writing, within which a party may commence a summary application. The award of the umpire shall become final unless the [action] summary application is commenced as required by this subsection.

b. In considering an application for vacation, modification or correction, a decision of the umpire on the facts shall be final if there is substantial evidence to support that decision; provided, however, that when the application to the court is to vacate the award pursuant to paragraph (1), (2), (3), or (4) of subsection c. of this section, the court shall make an independent determination of any facts relevant thereto de novo, upon such record as may exist or as it may determine in a summary expedited proceeding as provided for by rules adopted by the Supreme Court for the purpose of acting on such applications.

c. The award shall be vacated on the application of a party who either participated in the alternative resolution proceeding or was served with a notice of intention to have alternative resolution if the court finds that the rights of that party were prejudiced by:

(1) Corruption, fraud or misconduct in procuring the award;

(2) Partiality of an umpire appointed as a neutral;

(3) In making the award, the umpire's exceeding [their] his power or so imperfectly executing that power that a final and definite award was not made;

(4) Failure to follow the procedures set forth in this act, unless the party applying to vacate the award continued with the proceeding with notice of the defect and without objection; or

(5) The umpire's committing prejudicial error by erroneously applying law to the issues and facts presented for alternative resolution.

d. The award shall be vacated on the application of a party who neither participated in the proceeding nor was served with a notice of intention to have alternative resolution if the court finds that:

(1) The rights of that party were prejudiced by one of the grounds specified in subsection c. of this section; or

(2) A valid agreement to have alternative resolution was not made; or

(3) The agreement to have alternative resolution had not been complied with; or

(4) The claim was barred by any provision of this act.

e. The court shall modify the award if:

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

(2) The umpire has made an award based on a matter not submitted to them and the award may be corrected without affecting the merits of the decision upon the issues submitted;

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

(4) The rights of the party applying for the modification were prejudiced by the umpire erroneously applying law to the issues and facts presented for alternative resolution.

f. Whenever it appears to the court to which application is made, pursuant to this section, either to vacate or modify the award because the umpire committed prejudicial error in applying applicable law to the issues and facts presented for alternative resolution, the court shall, after vacating or modifying the erroneous determination of the umpire, appropriately set forth the applicable law and arrive at an appropriate determination under the applicable facts determined by the umpire. The court shall then confirm the award as modified.

(cf: P.L.1987, c.54, s.13)

2. This act shall take effect immediately, and apply to any alternative resolution proceedings subject to “The New Jersey Alternative Procedure for Dispute Resolution Act,” P.L.1987, c.54 (C.2A:23A-1 et seq.), which commence on or after that effective date.

STATEMENT

This bill would clarify, under “The New Jersey Alternative Procedure for Dispute Resolution Act,” P.L.1987, c.54 (C.2A:23A-1 et seq.), the timeframe within which a party to an alternative dispute resolution proceeding can seek a judicial review of the award resulting from that proceeding following any attempt to have the umpire of the proceeding modify the award. Specifically, if a party made a modification request to the umpire, either pursuant to subsection d. of section 12 of P.L.1987, c.54 (C.2A:23A-12) or pursuant to any applicable rules of a dispute resolution organization, then the timeframe for making a summary application for judicial review of the award would be within 30 days of receipt of a modified award or a denial of the modification request. This timeframe could be extended by the parties, pursuant to existing law, if agreed to in writing.