PRIA, Government Policy, Made Personal

Summary

If someone refuses to follow a written arbitration agreement, the other person can ask a U.S. district court that would otherwise have power over the dispute to order the parties to go to arbitration. The person asking must give five days’ written notice to the party who allegedly refused, served in the way the Federal Rules of Civil Procedure require. The court will hear both sides. If the court finds the existence of the written arbitration agreement and the alleged refusal are not in dispute, it will order arbitration in the same district where the petition was filed. If those facts are disputed, the court will quickly decide them. The accused party may demand a jury on or before the return day of the notice, except in admiralty cases. If the judge or jury finds no written agreement or no refusal, the case is dismissed. If they find a written agreement and a refusal, the court will order arbitration to go ahead.

Title 9, §4

Arbitration, Source: USLM XML via OLRC

A party aggrieved by the alleged failure, neglect, or refusal of another to arbitrate under a written agreement for arbitration may petition any United States district court which, save for such agreement, would have jurisdiction under title 28, in a civil action or in admiralty of the subject matter of a suit arising out of the controversy between the parties, for an order directing that such arbitration proceed in the manner provided for in such agreement. Five days’ notice in writing of such application shall be served upon the party in default. Service thereof shall be made in the manner provided by the Federal Rules of Civil Procedure. The court shall hear the parties, and upon being satisfied that the making of the agreement for arbitration or the failure to comply therewith is not in issue, the court shall make an order directing the parties to proceed to arbitration in accordance with the terms of the agreement. The hearing and proceedings, under such agreement, shall be within the district in which the petition for an order directing such arbitration is filed. If the making of the arbitration agreement or the failure, neglect, or refusal to perform the same be in issue, the court shall proceed summarily to the trial thereof. If no jury trial be demanded by the party alleged to be in default, or if the matter in dispute is within admiralty jurisdiction, the court shall hear and determine such issue. Where such an issue is raised, the party alleged to be in default may, except in cases of admiralty, on or before the return day of the notice of application, demand a jury trial of such issue, and upon such demand the court shall make an order referring the issue or issues to a jury in the manner provided by the Federal Rules of Civil Procedure, or may specially call a jury for that purpose. If the jury find that no agreement in writing for arbitration was made or that there is no default in proceeding thereunder, the proceeding shall be dismissed. If the jury find that an agreement for arbitration was made in writing and that there is a default in proceeding thereunder, the court shall make an order summarily directing the parties to proceed with the arbitration in accordance with the terms thereof.

Notes & Related Subsidiaries

DerivationAct Feb. 12, 1925, ch. 213, § 4, 43 Stat. 883.

Editorial Notes

References in Text

Federal Rules of Civil Procedure, referred to in text, are set out in Appendix to Title 28, Judiciary and Judicial Procedure.

Amendments

1954—Act Sept. 3, 1954, brought section into conformity with present terms and practice.

§4 Failure to Arbitrate Under Agreement; Petition to United States Court Having Jurisdiction for Order to Compel Arbitration; Notice and Service Thereof; Hearing and Determination