Bill > A638

Introduced Session

This bill clarifies that an arbitrator appointed under P.L.2003, c.95 (C.2A:23B-1 et seq.) who then assumes the role of mediator may not then resume the role of arbitrator unless the parties agree. The current statute is silent as to whether an arbitrator who is appointed pursuant to the arbitration law may assume the role of mediator and then subsequently resume the role of arbitrator. The Appellate Division of the Superior Court specified in Minkowitz v. Israeli, 433 N.J. Super. 111 (App. Div. 2013) that parties could voluntarily enter into an agreement which permits a person who is appointed as arbitrator to assume a role of mediator, and then subsequently assume the role of arbitrator, but in the absence of such an agreement, an arbitrator appointed under the act may not assume the role of mediator and, thereafter, resume the role of arbitrator. The court noted that a mediator, whose role is to guide parties toward a mediated resolution, may become privy to party confidences and therefore cannot subsequently retain the appearance of a neutral factfinder, which is necessary to conduct a binding arbitration proceeding. The Appellate Division further specified that an award entered by an arbitrator who has resumed the role of arbitrator after assuming the role of mediator must be vacated unless the parties enter into an agreement permitting the arbitrator to resume the role of arbitrator after serving as mediator. The court further specified that any awards entered by the arbitrator prior to serving as mediator should not be vacated. The bill codifies this provision of the court's decision as well.

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Sean Kean (R)*, 

Introduced, Referred to Assembly Judiciary Committee (on 01/09/2024)

Official Document