SUMMARY--Revises provisions governing grounds for vacating arbitration award. (BDR 3-1265)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State or on Industrial Insurance: No.
EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.
AN ACT relating to arbitration; revising the provisions governing the grounds for vacating an arbitration award; and providing other matters properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1 NRS 38.145 is hereby amended to read as follows:
38.1451. Upon application of a party, the court shall vacate an award [where:] if the applicant shows by clear and convincing evidence that:
(a) The award was procured by corruption, fraud or other undue means;
(b) There was evident partiality by an arbitrator appointed as a neutral or corruption in any of the arbitrators or misconduct substantially prejudicing the rights of any party;
(c) The arbitrators exceeded their powers;
(d) 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 NRS 38.075, as to prejudice substantially the rights of a party; or
(e) There was no arbitration agreement and the issue was not adversely determined in proceedings under NRS 38.045 and the party did not participate in the arbitration hearing without raising the objection.
[But]
2. The grounds set forth in subsection 1 are the exclusive grounds for vacating or refusing to confirm an award. A principle of the common law that authorizes review of an award on another ground is inapplicable in proceedings conducted pursuant to NRS 38.015 to 38.205, inclusive. An error of law or fact on the part of the arbitrators, or 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 a ground for vacating or refusing to confirm the award.
[2.] 3. An application under this section [shall] must 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] must be made within 90 days after such grounds are known or should have been known.
[3.] 4. In vacating the award on grounds other than stated in paragraph (e) of subsection 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 NRS 38.055, or, if the award is vacated on grounds set forth in paragraphs (c) and (d) of subsection 1, the court may order a rehearing before the arbitrators who made the award or their successors appointed in accordance with NRS 38.055. 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.
[4.] 5. If the application to vacate is denied and no motion to modify or correct the award is pending, the court shall confirm the award.
Sec. 2 This act becomes effective upon passage and approval.