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California Statute - AB 3030
Provides that a private arbitration company 
is not immune from liability in a civil action 
with respect to a consumer arbitration.
BILL NUMBER: AB 3030	ENROLLED
	BILL TEXT

	PASSED THE ASSEMBLY  JUNE 30, 2002
	PASSED THE SENATE  JUNE 28, 2002
	AMENDED IN SENATE  JUNE 19, 2002
	AMENDED IN ASSEMBLY  MAY 14, 2002
	AMENDED IN ASSEMBLY  APRIL 17, 2002

INTRODUCED BY   Assembly Member Corbett
                        MARCH 12, 2002

   An act to add Sections 1280.1 and 1286.5 to the Code of Civil
Procedure, relating to arbitration.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 3030, Corbett.  Arbitration.
   (1) Existing law permits consumers to contract to arbitrate and
regulates the conduct of arbitrations.  Existing law requires a
person who is to serve as a neutral arbitrator to disclose all
matters that could cause a person aware of the facts to reasonably
doubt the person's impartiality, and provides a method for
disqualifying a proposed neutral arbitrator.
   This bill would provide that a private arbitration company is not
immune from liability in a civil action with respect to a consumer
arbitration, and would provide that a private arbitration company may
be immune for the acts and omissions of an arbitrator it provides in
a consumer arbitration to the same extent that an arbitrator may
have immunity.  The bill would void, as contrary to public policy, a
contract provision, rule of procedure, or policy that  purports to
immunize or limit the liability of a private arbitration company in a
consumer arbitration contrary to its provisions.  The bill would
state that its provisions are not intended to change the law
regarding the immunity of an arbitrator from civil liability.  The
bill would specify its application to certain arbitration
proceedings.
   (2) Existing law requires a court to vacate an arbitration award
under specified circumstances.
   This bill would prohibit an arbitrator or private arbitration
company involved in a consumer arbitration from conducting or
administering further arbitration of the dispute if a court vacates
the award.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 1280.1 is added to the Code of Civil Procedure,
to read:
   1280.1.  (a) Except as provided in this section, a private
arbitration company is not immune from liability in a civil action
with respect to a consumer arbitration.
   (b) A private arbitration company may be immune from civil
liability for the acts and omissions of an arbitrator it provides in
a consumer arbitration to the same extent that an arbitrator may have
immunity.
   (c) A contract provision, rule of procedure, or policy that
purports to immunize or limit the liability of a private arbitration
company in a consumer arbitration contrary to this section violates
public policy and is void.
   (d) This section is not intended to change the law whether, or in
what circumstances, an arbitrator may be immune from civil liability.

   (e) This section applies to:
   (1) All consumer arbitration agreements subject to this article.
   (2) Consumer arbitration proceedings conducted in California.
  SEC. 2.  Section 1286.5 is added to the Code of Civil Procedure, to
read:
   1286.5.  If a court vacates an award in a consumer arbitration, an
arbitrator or private arbitration company involved in the
arbitration may not conduct or administer any further arbitration of
the dispute.
    

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