Amended in Senate April 13, 2016

Senate BillNo. 1007


Introduced by Senator Wieckowski

February 10, 2016


An act to amend Section 1286.2begin delete ofend deletebegin insert of, and to add Section 1282.5 to,end insert the Code of Civil Procedure, relating to arbitration.

LEGISLATIVE COUNSEL’S DIGEST

SB 1007, as amended, Wieckowski. Arbitrationbegin delete awards.end deletebegin insert: transcription by certified shorthand reporter.end insert

Existing law establishes standards for arbitration, and requires a court to vacate an arbitration award if it makes certain findings.

This billbegin delete would, in addition,end deletebegin insert end insertbegin insertwould provide that a party to an arbitration has the right to have a certified shorthand reporter transcribe any deposition, proceeding, or hearing as the official record. The bill would require the party requesting the transcript to incur the expense of the certified shorthand reporter, except as specified in a consumer arbitration. The bill would alsoend insert require a court tobegin delete dismissend deletebegin insert vacateend insert an arbitration award if the court determines thatbegin delete the rights of a party were substantially prejudiced by the refusal of the arbitrators to allow the party, at the party’s expense,end deletebegin insert an arbitrator refused a party’s requestend insert to have a certified shorthand reporter transcribe any deposition, proceeding, orbegin delete hearing as the official record.end deletebegin insert hearing.end insert

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 1282.5 is added to the end insertbegin insertCode of Civil
2Procedure
end insert
begin insert, to read:end insert

begin insert
3

begin insert1282.5.end insert  

(a) A party to an arbitration has the right to have a
4certified shorthand reporter transcribe any deposition, proceeding,
5or hearing. The transcript shall be the official record of the
6deposition, proceeding, or hearing.

7
(b) If an arbitration agreement does not provide for a certified
8shorthand reporter, the party requesting the transcript shall incur
9the expense of the certified shorthand reporter. However, in a
10consumer arbitration, a certified shorthand reporter shall be
11provided upon request of an indigent consumer, as defined in
12Section 1284.3, at the expense of the nonconsumer party.

13
(c) If an arbitrator refuses to allow a party to have a certified
14shorthand reporter transcribe any deposition, proceeding, or
15hearing pursuant to this section and an award is made, the court
16shall vacate the award under paragraph (7) of subdivision (a) of
17Section 1286.2.

end insert
18

begin deleteSECTION 1.end delete
19
begin insertSEC. 2.end insert  

Section 1286.2 of the Code of Civil Procedure is
20amended to read:

21

1286.2.  

(a) Subject to Section 1286.4, the court shall vacate
22the award if the court determines any of the following:

23(1) The award was procured by corruption, fraud, or other undue
24means.

25(2) There was corruption in any of the arbitrators.

26(3) The rights of the party were substantially prejudiced by
27misconduct of a neutral arbitrator.

28(4) The arbitrators exceeded their powers and the award cannot
29be corrected without affecting the merits of the decision upon the
30controversy submitted.

31(5) The rights of the party were substantially prejudiced by the
32refusal of the arbitrators to postpone the hearing upon sufficient
33cause beingbegin delete shown;end deletebegin insert shown,end insert by the refusal of the arbitrators to hear
34evidence material to thebegin delete controversy; by the refusal of the
35arbitrators to allow a party, at the party’s expense, to have a
36certified shorthand reporter transcribe any deposition, proceeding,
37or hearing as the official record;end delete
begin insert controversy,end insert or by other conduct
38of the arbitrators contrary to the provisions of this title.

P3    1(6) An arbitrator making the award either: (A) failed to disclose
2within the time required for disclosure a ground for disqualification
3of which the arbitrator was then aware; or (B) was subject to
4disqualification upon grounds specified in Section 1281.91 but
5failed, upon receipt of timely demand, to disqualify himself or
6herself as required by that provision. However, this subdivision
7does not apply to arbitration proceedings conducted under a
8collective bargaining agreement between employers and employees
9or between their respective representatives.

begin insert

10
(7) An arbitrator refused a party’s request under Section 1282.5
11for a shorthand reporter.

end insert

12(b) Petitions to vacate an arbitration award pursuant to Section
131285 are subject to the provisions of Section 128.7.



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