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Bill > A1573
NJ A1573
NJ A1573Prohibits person appointed as arbitrator who subsequently serves as mediator from resuming the role of arbitrator unless the parties agree.
summary
Introduced
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 Regular Session
Bill Summary
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.
AI Summary
This bill clarifies that an arbitrator appointed under New Jersey's arbitration law (P.L.2003, c.95, which governs arbitration proceedings) who then takes on the role of a mediator in the same matter cannot return to being an arbitrator unless all parties involved in the arbitration explicitly agree to this arrangement. This change addresses a situation where an arbitrator, by acting as a mediator, might become privy to confidential information from the parties, which could compromise their perceived neutrality as a fact-finder in a subsequent arbitration. The bill also specifies that any arbitration award made by an arbitrator who resumed their role after serving as a mediator, without party agreement, will be overturned (vacated) by a court, though any awards made before the arbitrator became a mediator remain valid. This legislation essentially codifies a previous court decision on this matter, ensuring that the integrity and appearance of neutrality in arbitration are maintained.
Committee Categories
Justice
Sponsors (1)
Last Action
Introduced, Referred to Assembly Judiciary Committee (on 01/13/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2026/A1573 |
| BillText | https://pub.njleg.gov/Bills/2026/A2000/1573_I1.HTM |
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