REVISED UNIFORM ARBITRATION ACT
REPORT TO THE PENNSYLVANIA SENATE JUDICIARY COMMITTEE REGARDING
HOUSE BILL 1159, PRINTER’S NO. 1261
Raymond P. Pepe, Uniform Law Commission 1
Stephen G. Yusem, Pennsylvania Bar Association 2
April 24, 2012
Introduction
House Bill 1159, Printer’s No. 1261 recommends the enactment of the Revised Uniform
Arbitration Act (“RUAA”) as drafted and approved by the Uniform Law Commission (“ULC”)
and approved by the American Bar Association House of Delegates, the American Arbitration
Association, the National Academy of Arbitrators and the National Arbitration Forum.
The principal objective of the RUAA is to update and modernize the Uniform Arbitration
Act (“UAA”) as promulgated by the ULC in 1955 and adopted in whole or in part by every state
except New York. The RUAA adds procedural provisions absent from the UAA, conforms the
UAA more closely to the requirements of the Federal Arbitration Act, and includes provisions to
facilitate the use of electronic records in arbitration proceedings.
The Role of the ULC
The ULC, also known as the National Conference of Commissioners on Uniform State
Laws (“NCCUSL”), is an unincorporated nonprofit association representing state uniform law
commissions created by every state, the District of Columbia, the Virgin Islands and Puerto
Rico. The work of the ULC is primarily supported by small dues payments made annually be
each state and by donations received by the Uniform Law Foundation. Voting power is
exercised on the basis of “one state, one vote.” All Commissioners are members of the Bar and
serve without compensation. The work of the ULC is also supported by a small administrative
office located in Chicago.
1
Mr. Pepe is a partner in K&L Gates, LLP, 18th Floor, 17 N. Second Street, Harrisburg, PA 17101-1507,
(717) 231-5988, raymond.pepe@KLGates.com. He serves on the ULC as an appointee of the Senate
President Pro Tempore. He has been a member of the ULC since 1983 and previously was appointed to
the Commission by Governor’s Thornburgh, Casey and Ridge. He is former member of the Executive
Committee of the ULC, currently chairs the ULC's Federalism Committee, and serves as the Legislative
Liaison Member of Pennsylvania Delegation of the ULC.
2
Mr. Yusem, 600 W. Germantown Pike, Ste 400, Plymouth Meeting, PA 19462, (610) 940-1750,
syusem@syusem.com, chairs the Pennsylvania Bar Association’s Alternative Dispute Resolution
Committee. A fellow of both the College of Commercial Arbitrators and the Chartered Institute of
Arbitrators, he is an adjunct professor of law (dispute resolution) at the Cornell University Law School.
He chairs the Commercial Subcommittee of the Pennsylvania Joint State Government Commission
Advisory Commission on Alternative Dispute Resolution and is the former chair of the American Bar
Association Section of Dispute Resolution Arbitration Committee.
1
The purpose of the ULC is to promote uniformity in state law on all subjects where
uniformity is desirable and practical. Organized in 1892, the ULC drafts acts on various subjects
and endeavors to secure enactment of proposed acts in every state. Many ULC acts, such as the
Uniform Commercial Code, have been universally enacted, or nearly so. Pennsylvania has long
played an important role in the work of the ULC and was the first state to adopt the Uniform
Commercial Code. Other acts promulgated by the ULC and adopted by Pennsylvania in recent
years include the Uniform Athletic Agents Act, the Uniform Child Custody Jurisdiction and
Enforcement Act, the Condominium Code, the Uniform Conservation Easements Act, the
Uniform Determination of Death Act, the Uniform Electronic Transactions Act, the Uniform
Environmental Covenants Act, the Fraudulent Transfers Act , the Transfer on Death Securities
Registration Act, the Uniform Trade Secrets Act, and the Trust Code.
The members of the Pennsylvania Delegation to the ULC are appointed by the Governor,
the President Pro Tempore of the Senate, the Speaker of the House and the Senate and House
Minority Leaders. A designee of the Attorney General is also a member of the Pennsylvania
Delegation. Representatives of the Legislative Reference Bureau and the Joint State
Government Commission also serve as Pennsylvania delegates to the ULC. 3
Drafting, Promulgation and Adoption of the Revised Uniform Arbitration Act
The RUAA was developed over a nearly three year period beginning in October 1997 by
a Drafting Committee appointed by the ULC assisted by a diverse group of stakeholders and
advisors. 4 To assist it in its deliberations, the Drafting Committee invited directly affected
stakeholder groups to participate in its meetings as observers and advisors. These observers and
advisors included representatives of the American Bar Association (including the ABA’s Dispute
Resolution Section, Labor and Employment Section, Litigation Section, Senior Lawyers Section
and Trust Estates and Probate Section), the American Arbitration Association, the American
Civil Liberties Union, the American College of Real Estate Lawyers, the Center for Public
Resources, the International Chamber of Commerce, the Matrimonial Lawyers Association, the
National Association of Securities Dealers, and several other organizations.
Prior to each Drafting Committee meeting, the text of proposed revisions to the 1955
version of the Uniform Arbitration Act was circulated for review and comment. Each meeting
was open to public and was well-attended by the Committee’s observers and advisors.
3
The current members of the Pennsylvania Delegation to the ULC are Christopher D. Carusone (designee
of the Governor’s General Counsel); William H. Clark, Jr. (designee of the Joint State Government
Commission), Anthony Alliano (appointed by the Speaker of the House); Vincent C. Deliberato, Jr.
(designee of the Legislative Reference Bureau); John L. Gedid (appointed by the Senate Minority
Leader), Robert T. Mulle (designee of the Attorney General), Raymond P. Pepe (appointed by the
President Pro Tempore of the Senate), Curtis R. Reitz (appointed by the Governor), Nora Winkelman
(appointed by the Governor), and Michael Schwoyer (appointed by the House Minority Leader).
4
The members of the Drafting Committee were Francis J. Pavetti (Char, Connecticut), Francisco L.
Acevedo (Puerto Rico), Richard T. Cassidy (Vermont), M. Michael Cramer (Maryland), Barry C.
Hawkings (Connecticut), Timothy J. Heinsz (Reporter, Missouri), Roger C. Henderson (Arizona),
Jeremiah H. Marsh (Illinois), Rodney W. Satterwhite (Texas), James A. Wynn, Jr. (North Carolina) and
Joan Zendon (District of Columbia).
2
Following the Drafting Committee Meetings, the draft RUAA was presented for section-bysection debate by the full membership of the ULC at its 1999 and 2000 Annual Meetings. On
August 3, 2000, following the second-reading of the act, the ULC approved the RUAA by a
unanimous vote of the States. The RUAA was formally endorsed by the ABA House of
Delegates at the ABA’s 2001 Mid-Year Meeting. Thereafter, the RUAA was endorsed and
recommended for adoption by the American Arbitration Association, the National Academy of
Arbitrators, the National Arbitration Forum, and the Alternative Disputes Resolution Committee
of the Pennsylvania Bar Association.
Currently, the RUAA has been enacted in 16 jurisdictions, i.e., Alaska, Arizona,
Arkansas, Colorado, the District of Columbia, Hawaii, Minnesota, Nevada, New Jersey, New
Mexico, North Carolina, North Dakota, Oklahoma, Oregon, Utah and Washington. The RUAA
is also currently under consideration in Massachusetts, Michigan and New York.
Summary of the RUAA and House Bill 1159
The original UAA was adopted by the ULC in 1955, and closely tracked the provisions of
the Federal Arbitration Act (“FAA”) which was enacted by Congress in 1925. Both Acts are
essentially “bare bones acts,” and neither Act has ever been amended. Therefore, for all practical
purposes, there has not been any revision of American statutory arbitration law for over 85 years.
As could be expected, during that period of time a plethora of arbitration case has been
developed. The RUAA seeks to incorporate into law the most significant procedural
developments which have occurred since adoption of the FAA and the UAA so as to provide
greater guidance and assistance to parties engaging in arbitration.
The most important changes proposed by the RUAA to the 1955 Act occur in the
following areas

Notice. Section 7321.3 is a new section not found in the UAA establishing standards for
giving and receiving notice regarding actions taken with respect to arbitration agreements
and proceedings.

Freedom of Contract. Section 7321.5 is a new section not found in the UAA which
clearly identifies which provisions of the Act are subject to modification by agreement by
parties to an arbitration agreement or proceeding. The objective of this section is to
preserve the ability of parties to craft an arbitration agreement best suited to meet their
needs and objectives, subject only to a few minimum requirements that may not be
modified by agreement.

Validity of Arbitration Agreements. Subsections (b), (c) and (d) of section 7321.7
provide new rules not found in the UAA to resolve arbitrabilty disputes. These rules
clarify that it is the responsibility of a court to decide whether an agreement to arbitrate
exists or a controversy is subject to an agreement to arbitrate, however it is the
responsibility of an arbitrator to determine whether a condition precedent to arbitration
has been satisfied and whether a contract containing a valid agreement to arbitrate is
enforceable.
3

Provisional Remedies. Section 7321.9 provides new requirements that allow courts,
before an arbitrator is appointed, to issue provisional orders to protect the effectiveness of
arbitration proceedings, and after an arbitrator is appointed, allow the arbitrator to issue
provisional remedies to the same extent and under the same conditions as if the
controversy were the subject of a civil action before a court.

Initiation of Arbitration. Section 7321.10 provides new procedures to describe how
arbitration proceedings are initiated by giving notice to opposing parties.

Consolidation. Section 7321.11 supplies new procedures to allow the consolidation of
arbitration proceedings if no one is prejudiced by conducting procedures jointly so that
unnecessary time and expense are reduced.

Disclosure of Conflicts. Section 7321.13 establishes new requirements to strengthen the
fairness of arbitration proceedings by requiring arbitrators to disclose known financial
interests or personal relationships that could affect their impartiality. This section
requires that before accepting an appointment, an arbitrator must disclose any known
facts that a reasonable person would consider likely to affect the impartiality of the
arbitrator, including financial or personal interests and existing and past relationships
with any of the parties or their counsel. The failure to disclose a known material interest
or relationship may be used to establish “evident partiality,” which is a ground for
vacatur.

Arbitrator Immunity. Section 7321.15 adds new provisions to the UAA which
immunizes arbitrators from civil liability and discovery requirements to the same extent
as a judge acting in a judicial capacity.

Arbitration Process and Summary Disposition. Subsections (a) and (b) of section
7321.16 contain new provisions that give arbitrators broad discretion to take all action
necessary for fair and expeditious disposition of proceedings, including conducting prehearing conferences and making determinations regarding the admissibility, relevance,
materiality and weight of any evidence, and issuing dispositive orders.

Discovery. Subsections (c), (d), (e) and (g) of section 7321.18 provide new rules that
allow arbitrators to permit discovery, issue orders to compel discovery or issue protective
orders, or impose sanctions for failure to comply with discovery orders.

Modification of Awards. Subsections (a)(2) and (d)(2) of section 7321.25 make
changes to the UAA allowing for the modification of arbitration awards to further clarify
that interim awards made by an arbitrator are subjection to modification.

Remedies, Fees and Expenses. Section 7321.26 adds new provisions codifying
common law interpretations of the UAA and the FAA, clarifying that arbitrators may
award punitive damages, attorneys fees, costs and other remedies to the same extent as
4

Compelling Compliance with or Vacating Arbitration Awards. Section 7321.26(c)
contains new provisions that allow a court, when ordering compliance with an arbitration
award or vacating an improper arbitration award, to require the payment of attorneys fees
and litigation costs to a prevailing party.

Electronic Records. HB 1159 is drafted to allow for the validation and use of electronic
records, contracts and signatures consistent with the computer age and federal law.
Section 7301.1 expands the definitions of terms to provide for the use of electronic
records and signatures, and Section 7321.31 makes the Pennsylvania Uniform Electronic
Commerce Act applicable to arbitration proceedings by certifying that HB 1159 complies
with the federal Electronic Signatures in Global and National Commerce Act.
With the exception of the additions made to the UAA described above, HB 1159 carries
forward, without substantial modification, all of the other provisions of current Pennsylvania
law, with one important exception. Current Pennsylvania law applies the UAA to arbitration
proceedings only to the extent the parties to an arbitration agreement elect to the governed by the
UAA. If the parties do not elect to be governed by the UAA, proceedings are governed by a set
of so-called “common law arbitration” rules codified at 42 Pa.C.S. Ch. 73, Subch. B. Common
law arbitration is similar to arbitration under the UAA, except that it is not subject to a number of
the procedural requirements specified in the UAA and is subject to a different standard of
judicial review which has generally been interpreted to provide fewer options for parties to seek
to modify or vacate arbitration awards. HB 1159 allows parties to continue to elect to be
governed by common-law arbitration rules, but otherwise applies the requirements of the RUAA.
All of the new HB 1159 requirements are subject to modification by the parties to an
arbitration agreement or proceeding, except for the requirements of sections 7321.9 (allowing the
award provisional remedies), 7321.10 (clarifying how arbitration proceedings are initiated),
7321.13 (mandating the disclosure of conflicts of interest by arbitrators), 7321.21 (allowing the
modification of interim arbitration awards) and 7321.31 (facilitating electronic commerce).
HB 1159 conforms without material modifications to the provisions of the RUAA as
adopted by the Uniform Law Commission, except that section 7321.4 allows parties to elect to
be governed by Pennsylvania’s common law arbitration rules, and sections 7321.25 and 7321.29
make minor changes to the deadlines for seeking modifications to arbitration awards and for
filing appeals to court.
If enacted, HB 1159 will take effect on January 1, 2013.
Detailed Comments
The ULC published an extensive Prefatory Note and section-by-section Comments
concerning the Revised Uniform Arbitration Act that have been separately provided to the
Judiciary Committee. Because the Pennsylvania Statutory Construction Act provides that
“statutes uniform with those of other states shall be interpreted and construed to effect their
5
general purpose to make uniform the laws of those states which enact them,” these materials
provide supplemental information that will assist the courts following adoption of the HB 1159
in the interpretation and application of the law.
The following comments summarize, on a section-by-section basis, how adoption of the
Revised Uniform Arbitration Act will change current law and explain the extent to which the
various provisions of the act may be modified by parties entering into an arbitration agreement or
engaged in the resolution of disputes subject to an arbitration agreement.
§ 7321.2. Definitions.
This section adopts RUAA § 1 which replaces UAA § 7318. Except for the term “court,” the
definitions of terms provided by this section are new.
The definitions provided by this act may be waived or modified by the parties to an arbitration
agreement or proceeding and do not apply to common law arbitration proceedings.
§ 7321.3. Notice.
This section adopts RUAA § 2 and has no UAA corresponding provisions. By allowing notice to
be given by any form “reasonably necessary to inform the other person in ordinary course,” this section
facilitates electronic commerce and recognizes the greater degree of informality appropriate for
arbitration proceedings. Parties wishing to receive written notice or notice in a record may continue to do
so by including such requirements in an arbitration agreement. Nothing in this section modifies otherwise
applicable requirements for the giving of notice in judicial proceedings.
The parties to an arbitration agreement may waive or modify the requirements of this section, and
the requirements of § 7321.3 do not apply to common law arbitration.
§ 7321.4. When Subchapter Applies.
This section is derived from RUAA § 3 and replaces UAA § 7301.
In determining the extent to which the UAA applied to the arbitration of controversies, the 1980
UAA differed in several respects from the 1955 Uniform Act. The 1980 Act did not include the
provisions of § 20 of the 1955 UAA that applied the law to all agreements to arbitrate executed after the
effective date of the act. Instead, § 7302(a) of the 1980 Act generally provided that an agreement to
arbitrate would be governed by a modified version of Pennsylvania’s 1927 arbitration law (the act of
April 25, 1927 (P.L.381, No.248)), which was re-codified at 42 Pa.C.S. Ch. 73, Subch. B and described as
“common law arbitration,” unless an agreement to arbitrate expressly provided for arbitration pursuant to
the UAA “or a similar act.” Where a contract to which the Commonwealth is a party, however, provided
for arbitration, but did not provide for arbitration pursuant to any specified statute, the 1980 Act required
arbitration pursuant to the UAA. The 1980 Act also differed from the 1955 UAA by providing that where
either (1) the Commonwealth submits a controversy to arbitration; (2) a political subdivision submits a
controversy with an employee or a representative of an employee to arbitration; or (3) arbitration is
required by law, a court in reviewing an arbitration award pursuant to UAA was required to “modify or
correct the award where the award is contrary to law and is such that had it been a verdict of a jury the
court would have entered a different judgment or a judgment notwithstanding the verdict.” Finally, the
6
1980 Act provided that the UAA applied to collective bargaining agreements only to the extent consistent
with statutes governing labor management relations.
This act continues Pennsylvania’s historic practice of granting parties the option to elect so-called
common law arbitration. Unlike the 1980 Act, however, this act provides that arbitration will be
governed by the requirements of the RUAA unless the parties otherwise expressly agree otherwise. For
arbitration agreements executed prior to the effective date of this act, § 7321.4(c) allows parties to opt-out
of coverage by the this act by express agreement adopted anytime prior to January 1, 2014. Prior to that
time, arbitration agreements executed prior to the effective date of this act will be governed by this act
only if the parties agree to its application.
As provided by § 7321.5(c), the parties to an agreement to arbitrate or an arbitration proceeding
may not waive or vary the effect of the requirements of § 7321.4(a) or (c).
This act deletes special provisions of the 1980 Act dealing with disputes involving state and local
agencies and arbitration required by law, but retains provisions of the 1980 Act confirming that the law
applies only to the extent consistent with other laws governing labor management relations.
With respect to a written arbitration agreement entered into by “a government unit of this
Commonwealth,” § 7302(c) of the 1980 Act provided that the law applied “to the same extent as if the
government unit were a private person,” except that the provisions of the 1980 Act applied rather than
common-law arbitration rules “where a contract … provides for arbitration of controversies but does not
provide for arbitration pursuant to any specified statutory provision.” This rule is not contained in this act
because the term “person” in § 7321.2 is defined to include “a government, a governmental subdivision,
agency or instrumentality.” The expanded definition of term “person” in § 7321.2 is intended to have the
same effect as the former provisions of § 7302(c) of the 1980 Act and will allow any state and local
agency or instrumentality to enter into voluntary arbitration agreements to the same extent as a private
person.
With respect to arbitration agreements entered into by “the Commonwealth government,” and
with respect to arbitration agreements executed by political subdivisions relating to agreements with
unions and employees, § 7302(d)(1)(i) & (ii) of the 1980 Act provides that an arbitration award may be
modified or corrected where an award is contrary to law and is such that had it been a verdict of a jury a
court would have entered a different judgment notwithstanding the verdict. This rule is repealed as
outmoded and inconsistent with the objective of encouraging the use of arbitration to effectuate the timely
and definitive resolution of controversies. The repeal of this rule will not affect arbitration proceedings
pursuant to statutory procedures established for the resolution of controversies involving state and local
agencies, such as the arbitration of disputes by the Board of Claims and arbitration involving local
government police officers and fire fighters, because the RUAA applies only to voluntarily executed
arbitration agreements and not to adjudicative and arbitral proceedings governed by other laws.
This section does not include the provisions of § 7302(d)(1)(iii) of the 1980 UAA which provided
that where “[a]ny person has been required by law to submit or to agree to submit a controversy to
arbitration pursuant to this subchapter,” an arbitration award may be modified or corrected where an
award is contrary to law and is such that had it been a verdict of a jury a court would have entered a
different judgment notwithstanding the verdict. The repeal of § 7302(d)(1)(iii) has no substantive impact
because none of the provisions of the 1980 Act required the submission of any controversies to
arbitration. Instead, the 1980 Act applied only to voluntary arbitration agreements. The scope of judicial
7
review where arbitration is mandated by law will continue to be governed by other law. See e.g., 42
Pa.C.S. § 7361.
§ 7321.5. Effect of agreement to arbitrate; nonwaivable.
This section adopts RUAA § 4 and has no corresponding provisions in the 1980 UAA. While the
1980 UAA expressly allowed various provisions of the law to be waived or modified by the agreement of
the parties in a manner consistent with the RUAA, the 1980 Act did not identify core provisions not
subject to waiver or modification
The requirements of this section do not apply to common law arbitration.
§ 7321.6. Application for judicial relief.
This section adopts RUAA § 5 and replaces § 7317 of the 1980 UAA. This section is consistent
with § 7317 of the 1980 Act, except that unlike § 7317 of the 1980 Act, subsection (b) of § 7321.6 does
not allow procedures for service of process to be varied by agreement. Instead, the question of whether
alternative forms of service of process may be used is deferred to applicable court rules.
The requirements of this section do not apply to common law arbitration.
§ 7321.7. Validity of agreement to arbitrate.
This section is derived from RUAA § 6 and replaces § 7303 of the 1980 UAA.
The provisions of § 7321.7(a) are substantially a reenactment of § 7303 of the 1980 UAA.
Unlike the 1980 Act, however, after a controversy arises that is subject to an agreement to arbitrate, §
7321.5(b)(1) of this act expressly allows a party to an arbitration proceeding to waive or vary the effect of
the requirements of § 7321.7(a). Rather than reflecting a change in existing law, however, the provisions
of § 7321.7(b)(1) allowing a party to an arbitration proceeding to waive the right to arbitrate conforms to
existing interpretations of the 1980 Act. See e.g., Highmark Inc. v. Hospital Service Ass'n of
Northeastern Pennsylvania, 785 A.2d 93 (Pa..Super.2001), reargument denied , appeal denied 568 Pa.
720, 797 A.2d 914 (2002).
The provisions of subsection (a) and (b) requiring courts to make determinations about
arbitrability and arbitrators to make determinations about the satisfaction of conditions precedent to
arbitration are consistent with existing Pennsylvania case law. See e.g., InterDigital Communications
Corp. v. Federal Ins. Co., 392 F.Supp.2d 707 (E.D. Pa. 2005), reconsideration denied 403 F.Supp.2d 391
(2005); Ross Development Co. v. Advanced Bldg. Development, Inc., 803 A.2d 194 (Pa.Super. 2002).
Likewise, the provisions of subsection (c) granting courts the discretion regarding whether or not to stay
arbitration proceedings pending the resolution of disputes regarding arbitrability are also consistent with
current Pennsylvania law. See e.g., Sew Clean Drycleaners and Launders, Inc. v. Dress for Success
Cleaners, Inc., 903 A.2d 1254 (Pa.Super. 2006); Vertical Resources, Inc. v. Bramlett, 837 A.2d 1193
(Pa.Super. 2003); Sanitary Sewer Authority of Borough of Shickshinny v. Dial Associates Const. Group,
Inc., 532 A.2d 862 (Pa.Super. 1987). The provisions of § 7321.5(a) allowing the parties to waive the
requirements of subsections (b), (c) and (d) are also consistent with prior law. See e.g., Grocery & Food
Warehousemen Local Union No. 635 of the Intern. Broth. of Teamsters, Chauf-feurs, Warehousemen &
Helpers of America, A. F. of L. v. Kroger Co., 364 Pa. 195, 70 A.2d 218 (1950).
8
The requirements of § 7321.7(a) apply to common law arbitration, but in common law arbitration
may not be waived or varied by the parties to an arbitration agreement or proceeding because § 7321.5
does not apply to common law arbitration.
§ 7321.8. Motion to compel or stay arbitration.
This section adopts RUAA § 7 and replaces § 7304 of the 1980 UAA.
The requirements of § 7321.8 apply to common law arbitration and may not be waived or varied
in common law arbitration.
§ 7321.9. Provisional remedies.
This section adopts RUAA § 8 and has no corresponding provisions in the 1980 UAA.
The requirements of this section do not apply to common law arbitration.
§ 7321.10. Initiation of arbitration.
This section adopts RUAA § 9 and has no corresponding provisions in the 1980 UAA.
The requirements of this section do not apply to common law arbitration.
§ 7321.11. Consolidation of separate arbitration proceedings.
This section adopts RUAA § 10 and has no corresponding provisions in the 1980 UAA.
The requirements of this section do not apply to common law arbitration.
§ 7321.12. Appointment of arbitrator; service as a neutral arbitrator.
This section adopts RUAA § 11 and replaces § 7305 of the 1980 UAA.
The requirements of this section apply to common law arbitration unless waived or varied by the
parties to an arbitration agreement or proceeding, but subsection (b) does not apply to common law
arbitration.
§ 7321.13. Disclosure by arbitrator.
This section is derived from RUAA § 12 and has no corresponding provisions in the 1980 UAA.
The requirements of § 7321.13 do not apply to common law arbitration.
§ 7321.14. Action by majority.
This section is derived from RUAA § 13 and replaces § 7306 of the 1980 UAA.
The provisions of § 7321.14 are equivalent to § 7306 of the 1980 UAA. While § 7321.14 differs
from § 7306 of the 1980 Act by not containing language stating that its provisions apply unless otherwise
prescribed by agreement, the provisions of § 7321.5(a) of this act allow the provisions of § 7321.14 to be
waived or varied by the parties to an arbitration agreement or proceeding.
9
The provisions of § 7321.14 do not apply to common law arbitration.
§ 7321.15. Immunity of arbitrator; competency to testify; attorney fees and costs.
This section is derived from RUAA § 14 and has no corresponding provisions in the 1980 UAA.
The provisions of § 7321.15 are similar to § 11 of the Board of Vehicles Act which provides that,
“A mediator or arbitrator is immune from civil liability for any good faith act or omission within the
scope of the mediator's or arbitrator's performance of his powers and duties under this section” and that
“[e]very act or omission of a mediator or arbitrator is presumed to be a good faith act or omission” unless
such a presumption is overcome by “clear and convincing evidence.” See 63 P.S. § 818.11. Similarly,
Pa.R.C.P. 1311(b) provides for immunity in compulsory arbitration by providing that an arbitrator may
not be called to testify as to what transpired in arbitration proceedings. See also Dressel Assocs. v. John
A. Welsch Real Estate Appraisers, 632 A.2d 906 (Pa. Super. 1993).
The provisions of § 7321.15 do not apply to common law arbitration, but the lack of application
of § 7321.15 to common law arbitration is not intended to give rise to a presumption that any comparable
common law immunities are not available to arbitrators conducting proceedings pursuant to Ch. 73,
Subch. B when acting in a quasi-judicial capacity.
§ 7321.16. Arbitration process.
The provisions of § 7321.16(a) and (b) of this act are new. This section is derived from RUAA §
15 and replace §§ 7305 and 7307 of the 1980 UAA.
The provisions of § 7321.16(c) are similar to § 7307(a) of the 1980 Act but make a variety of
minor modifications to the prior law. While § 7307(a)(1) of the 1980 Act provides that an arbitrator
“shall appoint a time and place” for a hearing, § 7321.16(c) clarifies that “[i]f an arbitrator orders a
hearing” the arbitrator shall set a time and place for the hearing, thereby recognizing that in a variety of
circumstances factual matters may not be in dispute and an evidentiary hearing may be unnecessary. To
facilitate electronic commerce, § 7321.16(c) eliminates requirements for a “written notice” of a hearing,
and instead allows notice to given in any reasonable manner as provided by § 7321.3. The period of time
a notice must be given before a hearing is also reduced from ten days as provided § 7307(a)(1) of the
1980 Act, to five days by § 7321.16(c).
The provisions of § 7321.16(d) are substantially equivalent to § 7307(a)(4) of the 1980 Act, and
the provisions of § 7321.16(e) are closely parallel provisions of the second sentence of § 7305 of the 1980
Act.
The requirements of this section do not apply to common law arbitration.
§ 7321.17. Representation by lawyer.
This section is derived from RUAA § 16 and replaces § 7308 of the 1980 UAA.
When read together with the restrictions on waiver of the right to be represented by counsel
provided by § 7321.5(b)(4), the provisions of § 7321.17 of this act are substantially equivalent to § 7308
of the 1980 UAA. Unlike § 7308 of the 1980 Act, however, § 7321.5(b)(4) allows the right to legal
representation to be waived by the parties to a collective bargaining agreement prior to the initiation of
arbitration proceedings.
10
The provisions of § 7321.17 do not apply to common law arbitration.
§ 7321.18. Witnesses; subpoenas; depositions; discovery.
This section is derived from RUAA § 17 and replaces § 7309 of the 1980 UAA.
Subsections (a) and (f) of § 7321.18 are substantially equivalent to subsections (a), (c) and (d) of
§ 7309 of the 1980 UAA. Subsection (b) modifies § 7309(b) of the 1980 Act to allow testimony to be
presented by deposition whenever an arbitrator determines that the use of such testimony contributes to
fair, expeditious and cost effective proceedings; and subsections (c), (d), (e) and (g) are new. Because §
7309(d) of the 1980 Act adopted the provisions of 42 Pa.C.S. § 5903 with respect to witness fees and
expenses, which provide in subsection (g) for the payment of fees and expenses to witnesses not called to
testify at a hearing, contrary to Official Comment No. 7 to § 17 of the RUAA, § 7321.18(f) does not
represent a broadening of coverage for witness fees and expenses to include witness fees for attending
non-hearing depositions or discovery proceedings.
With the exception of subsections (a) and (b), all of the other provisions of § 7321.18 may be
waived or varied by the parties to an arbitration agreement or proceeding, including subsections (c), (d),
(e) and (g) which are new provisions not contained in § 7309 of the 1980 Act. As provided by §
7321.5(b)(1), before a controversy arises that is subject to an agreement to arbitrate, a party to the
arbitration agreement may not waive or agree to vary the effect of § 7321.18(a) or (b), but parties to an
arbitration agreement or proceeding may do so thereafter. As a result, § 7321.18 provides greater
flexibility to the parties than is currently provided by the 1980 UAA which does not authorize to waiver
of modification of § 7309.
The provisions of subsections (a), (b) and (f) of § 7321.18, which are substantially equivalent to §
7309 of the 1980 Act apply to common law arbitration. In common law arbitration, these subsections are
not subject to waiver or modification.
§ 7321.19. Judicial enforcement of preaward ruling by arbitrator.
This section is derived from RUAA § 18 and replaces § 7313 of the 1980 UAA.
The provisions of § 7321.19 constitute an application in the context of preliminary rulings of the
general principles enunciated in § 7313 of the 1980 Act. The provisions of § 7321.19 do not apply to
common law arbitration.
§ 7321.20. Award
This section is derived from RUAA § 19 and replaces § 7310 of the 1980 UAA
The provisions of § 7321.20 are substantially equivalent to § 7310 of the 1980 UAA. Minor
changes were made to § 7310 of the 1980 Act to facilitate electronic commerce and to clarify that either
the court or the parties to an arbitration proceeding may extend the time in which an arbitration award
must be made after the time otherwise specified or ordered. Unlike § 7310 of the 1980 Act, § 7321.20
does not state that the procedures and deadlines may be modified by agreement of the parties because §
7321.5(a) allows the parties to do so.
The provisions of § 7321.20 do not apply to common law arbitration.
11
§ 7321.21. Change of Award by Arbitrator.
This section is derived from RUAA § 20 and replaces § 7307 of the 1980 UAA.
The provisions of § 7321.21(a)(1), (a)(3), (c), (d)(1), (d)(3) and (e) of this act are substantially
equivalent to § 7311 of the 1980 UAA. The provisions of § 7321.21(a)(2) and (d)(2) are new.
Pursuant to § 7321.21(c), parties to arbitration agreements or proceedings may not waive or
vary the effect of § 7320(d) and (e). In contrast, none of the provisions of § 7311 of the 1980 Act were
subject to waiver or variation. As a result, while § 7321.21 generally provides parties greater flexibility
than § 7311 of the 1980 Act, § 7321.21(d)(2) provides a new provision of law not subject to waiver of
variation which allows a court to direct an arbitrator to consider changing an award when the arbitrator
has not made a final and definite award.
The provisions of § 7321.21 do not apply to common law arbitration.
§ 7321.21. Remedies; fees and expenses of arbitration proceeding.
This section is derived from RUAA § 21 and replaces § 7308 of the 1980 UAA.
The provisions of this section do not apply to common law arbitration.
§ 7321.23. Confirmation of award.
This section is derived from RUAA § 22 and replaces § 7313 of the 1980 UAA.
The provisions of this section do not apply to common law arbitration.
§ 7321.24. Vacating award.
This section is derived from RUAA § 23 and replaces § 7314 of the 1980 UAA.
Except for subsection (a)(6), the provisions of this section do not materially differ from § 7314 of
the 1980 UAA. The new provisions contained in § 7321.24(a)(6) are described by Official Comments to
A.3 to the Uniform Act.
The 1980 Act contained a non-uniform provision in subsection § 7314(a)(1)(i) which instead of
providing that an arbitration award may be vacated if procured by “corruption, fraud or other undue
means” as provided by § 12(a) of the 1955 UAA, instead provided that court shall vacate an award
pursuant to the standards set forth under 42 Pa. C.S. § 7341 for common law arbitration, i.e., an award
may be vacated if is “clearly shown that a party was denied a hearing or that fraud, misconduct,
corruption or other irregularity caused the rendition of an unjust, inequitable or unconscionable award.”
This act deletes these non-uniform provisions because section 7321.24 does not apply to common law
arbitration.
The differences between § 7321.24(a)(1) and § 7314(a)(1)(i) of the 1980 Act are stylistic. As a
result, notwithstanding the change in language between § 7321.24(a)(1) of this act and § 7314(a)(1)(i) of
the 1980 Act, the two provisions have substantially the same effect.
The provisions of § 7314(a)(2) of the 1980 UAA which provided that a award may not be set
aside because the relief provided “could not or would not be provided by a court of law or equity” were
12
deleted as unnecessary because § 73221.24 provides the exclusive grounds for vacating an arbitration
award.
The provisions of § 7321.24 do not apply to common law arbitration.
§ 7321.25. Modification or correction of award.
This section is derived from RUAA § 24 and replaces § 7315 of the 1980 UAA.
The provisions of this section are substantially equivalent to § 7315 of the 1980 UAA, except that
the time limit to seek modification of an award is increased from 30 days to 90 days.
The provisions of this section do not apply to common law arbitration.
§ 7321.26. Judgment on award; attorney fees and litigation expenses.
This section is derived from RUAA § 25 and replaces § 7316 of the 1980 UAA.
The provisions of § 7321.26(a) of this act are similar to the first two sentences of § 7316 of the
1980 UAA except that § 7321.26(a) also applies to a court order vacating an arbitration award without
directing a rehearing. As noted in Official Comment No. 1 to § 25 of the Revised Uniform Act, the
omission of vacatur orders from § 16 of the 1955 UAA (which is identical to § 7316 of the 1980 Act)
appears to have been an oversight and has had no practical significance because vacatur orders have been
treated as judgments.
The provisions of § 7321.26(b) are similar to the third and last sentence of § 7316 of the 1980
Act, except that § 7321.26(b) deletes as unnecessary language in § 7316 of the 1980 Act making the
award of costs “subject to general rules;” clarifies that costs awarded are to be “reasonable;” and deletes
unnecessary references to “disbursements.”
The provisions of § 7321.26(c) authorizing a court to award attorney fees and litigation expenses
are new and are not contained in the 1980 Act.
The provisions of this section do not apply to common law arbitration.
§ 7321.27. Jurisdiction.
This section is derived from RUAA § 26 and replace §§ 7304 and 7318of the 1980 UAA.
Except for editorial revisions, subsection (a) of this section contains provisions equivalent to §
7304(c) of the 1980 UAA and subsection (b) is equivalent to § 7318 of the 1980 Act. The only material
difference is that unlike the 1980 Act which does not allow modification of these requirements, §
7321.5(b)(1) of this act provides that parties may waive the requirements of this section after a dispute
arises.
This section applies to common law arbitration.
§ 7321.28. Venue.
This section is derived from RUAA § 27 and replaces § 7319 of the 1980 UAA.
13
Except for minor stylistic differences, this section is identical to § 7319 of the 1980 UAA. The
section does not apply to common law arbitration.
§ 7321.29. Appeals.
This section is derived from RUAA § 28 and replaces § 7320 of the 1980 UAA.
Except for editorial revisions (such as the substitution of references to appeals being taken by
“application” rather than “motion”), this section is equivalent to § 7320 of the 1980 UAA.
Subsection (b) of this section differs from RUAA § 28 which provides that appeals “must be
taken within 30 days of the order or judgment.” Instead, § 7321.29(b) is based upon the provisions of §
7320(b) of the 1980 Act which (in conformity with § 19 of the 1955 UAA) provided that appeals “shall
be taken in the manner, within the time, and to the same extent as an appeal from a final order of a court
in a civil action.” Language comparable to § 7320(b) of the 1980 Act is retained so as to not interfere
with rules relating to cross-appeals provided by Pa.R.A.P. 903(b) (providing that when an appeal is filed
by a party, any other party may file a cross appeal within 14 days of the date on which the first appeal was
filed) and to preserve the ability of courts by general rules to address other procedural matters pertaining
to the time when appeals may be taken. See e.g., Pa.R.A.P. 342 (defining what constitutes a “final order”)
and Pa.R.C.P. 1326 establishing procedural requirements for arbitration proceedings affecting consumer
credit transactions.
The requirements of § 7321.29 apply to common law arbitration, except for § 7321.29(a)(4),
dealing with proceedings to correct or modify an arbitration award, which are not permitted in common
law arbitration.
§ 7321.30. Uniformity of application and construction.
This section is derived from RUAA § 29. There are no comparable provisions in the 1980 UAA.
The 1980 UAA differed from the 1955 UAA in that it did not contain include a requirement that
the law to be construed to promote uniformity of law among the states. While this act contains such a
requirement, this does not represent a substantive change in current law because an equivalent rule is
provided by the Pennsylvania Statutory Construction Act. See 1 Pa.C.S. § 1927 (relating to the
construction of uniform laws).
The provisions of this section do not apply to common law arbitration
§ 7321.31. Relationship to Electronic Signatures in Global and National Commerce Act.
This section is derived from RUAA § 30 and has no corresponding provisions in the 1980 UAA.
The provisions of this section are required to avoid preemption of this act by 15 U.S.C. § 7002.
As a result, the provision of this section may not be waived or varied by the parties to an arbitration
agreement and apply to common law arbitration.
Subchapter B. Common Law Arbitration
The provisions of 41 Pa.C.S. Ch. 73. Subchapter B, relating common law arbitration are not
substantively revised by this act, but the various cross-references to the provisions of the UAA applicable
to common law arbitration are revised to conform to the provisions of the RUAA.
14
Derivation Table
The following table provides a cross reference between the provisions of HB 1159 (referred to in
the table as the “PaRUAA); the version of the RUAA published by the ULC; Pennsylvania’s version of
the 1955 UAA as adopted by the act of Oct. 5, 1980 (P.L. 693, No. 142) (the “PaUAA); and the original
1955 ULC version of the UAA.
Pa.
RUAA
ULC
RUAA
1980
PaUAA
1955
UAA
Changes Made to Existing Law
Comments
§ 7321.1
-
§ 7301
§ 23
Short Title: No changes
§ 7321.2
§1
§ 7318
§ 17
Definitions: The RUAA defines a number of terms not
defined in the PaUAA. The new definitions are consistent
with provisions of the PaUAA and may be waived or
modified by the parties to an arbitration agreement or
proceeding. The section is not applicable to common law
arbitration.
§ 7321.3
§2
-
-
Notice: The section provides a new provision not found in
the PaUAA. The section may be waived or modified by the
parties to an arbitration agreement or proceeding and is not
applicable to common law arbitration.
§ 7321.4
§3
§ 7302
§3
Scope: The section modifies the RUAA by allowing parties
to elect common law arbitration procedures. The section
also eliminates as unnecessary provisions of the Pa. UAA
which applied other laws to collective bargaining agreements
and provided an expanded scope of judicial review for
awards involving state and local governments.
§ 7321.5
§4
-
-
Waiver or Modification of Law: The section provides a new
provision not found in the PaUAA or the UAA. The section
is not applicable to common law arbitration and is not
subject to waiver or modification by parties to an arbitration
agreement or proceeding.
§ 7321.6
§5
§ 7317
§ 16
Application for Judicial Relief: The section is substantially
equivalent to PaUAA, except subsection (b) allows service
requirements to be modified by agreement.
§ 7321.7
§6
§ 7303
§1
Validity of Agreement to Arbitrate: Subsection (a) is
substantially equivalent to PaUAA, but unlike the PaUAA is
subject to waiver or modification after a dispute arises.
Subsections (b),(c) and (d) are new and are subject to waiver
or modification at any time. Subsection (a) applies to
common law arbitration and may not be waived or modified.
Subsections (b), (c) and (d) do not apply to common law
arbitration.
15
Pa.
RUAA
ULC
RUAA
1980
PaUAA
1955
UAA
Changes Made to Existing Law
Comments
§ 7321.8
§7
§ 7304
§2
Motion to Compel or Stay Arbitration: The section makes
no significant substantive changes from the PaUAA. The
section is subject to waiver or modification by the parties to
an arbitration agreement or proceeding and is applicable to
common law arbitration.
§ 7321.9
§8
-
-
Provisional Remedies. The section is new and not contained
in the PaUAA. The section may not be waived or modified
before a controversy arises that is subject to arbitration. The
section is not applicable to common law arbitration.
§ 7321.10
§9
-
-
Initiation of Arbitration. The section is new and not
contained in the PaUAA. The right to notice provided by
this section may not be unreasonably restricted before a
controversy arises subject to arbitration and is not applicable
to common law arbitration.
§ 7321.11
§ 10
-
-
Consolidation of Arbitration Proceedings. The section is
new and not contained in the PaUAA. The section may be
waived or modified by the parties to an arbitration agreement
or proceeding and is not applicable to common law
arbitration.
§ 7321.12
§ 11
§ 7305
§3
Appointment of Arbitrator; Service As a Neutral Arbitrator.
§ 7311(a) is substantially equivalent to § 7305 of the
Pa.UAA. § 7311(b) is new but is consistent with §
7314(a)(1)(ii) of the PaUAA. The section may be waived or
modified by the parties to an arbitration agreement or
proceeding. § 7311(a) applies to common law arbitration,
but not § 7311(b).
§ 7321.13
§ 12
-
-
§ 7321.14
§ 13
§ 7306
§4
Action by Majority. The section makes no substantive
change from the PaUAA. The section may be waived or
modified by the parties to an arbitration agreement or
proceeding and is not applicable to common law arbitration.
§ 7321.15
§ 14
-
-
Immunity of Arbitrator; Competency to Testify; Attorney
Fees and Costs. The section is new and not contained in the
PaUAA, but is comparable with other provisions of current
PA law. The section may not be waived or modified by the
parties to an arbitration agreement or proceeding and is not
applicable to common law arbitration.
Disclosure by Arbitrator. The section is new and not
contained in the PaUAA. The right to disclosure of
information by a neutral arbitrator provided by the section
may not be waived before a controversy arises subject to
arbitration. The section is not applicable to common law
arbitration.
16
Pa.
RUAA
ULC
RUAA
1980
PaUAA
1955
UAA
Changes Made to Existing Law
Comments
§ 7321.16
§ 15
§§ 7305
& 7307
§§ 3 & 5
Arbitration Process. Subsections (a) and (b) are new and are
not contained in the PaUAA. Subsections (c) and (d) are
similar to or equivalent to existing law. The section may be
waived of modified by the parties to an arbitration agreement
or proceeding and is not applicable to common law
arbitration.
§ 7321.17
§ 16
§ 7308
§6
Representation by Lawyer. As modified by § 7304(b)(4),
this section is substantially equivalent to the PaUAA, but
allows the right to counsel to be waived in advance of a
controversy by the parties to a labor/management agreement.
The section does not apply to common law arbitration.
§ 7321.18
§ 17
§ 7309
§7
Witnesses; Subpoenas; Depositions; Discovery. Subsections
(a), (b) and (f) are substantially equivalent to the PaUAA.
Subsections (c), (d), (e) and (g) are new and not contained in
the PaUAA or the UAA. Except for subsections (a) and (b),
the parties to an arbitration agreement or proceeding may
waive or modify § 7317. Subsections (a), (b) and (f) apply to
common law arbitration.
§ 7321.19
§ 18
§ 7313
§ 11
Judicial Enforcement of Pre-Award Ruling by Arbitrator.
The provisions of the section are new, but constitute a
application in the context of preliminary rulings of the
general principles enunciated in § 7313 of the PaUAA. The
section may not be waived or varied by the parties to an
arbitration agreement or proceeding, and does not apply to
common law arbitration.
§ 7321.20
§ 19
§ 7310
§8
Award. The section is substantially equivalent to PaUAA.
The section may be waived or varied by the parties to an
arbitration agreement or proceeding and does not apply to
common law arbitration.
§ 7321.21
§ 20
§ 7307
§5
Change of Award. Subsection (a)(1), (a)(3), (c), (d)(1),
(d)(3) and (e) are substantially equivalent to the PaUAA.
Subsections (a)(2) and (d)(2) are new. The parties to an
arbitration agreement or proceeding may not waive or vary
the effect of subsections (d) and (e). The section does not
apply to common law arbitration.
§ 7321.22
§ 21
§ 7308
§6
Remedies; Fees and Expenses of Arbitration Proceeding.
The section provides a new provision not found in the
PaUAA. The section may be waived or modified by the
parties to an arbitration agreement or proceeding and is not
applicable to common law arbitration.
17
Pa.
RUAA
ULC
RUAA
1980
PaUAA
1955
UAA
Changes Made to Existing Law
Comments
§ 7321.23
§ 22
§ 7313
§ 11
Confirmation of Award. The section is similar to the
PaUAA, but confirms that a court has jurisdiction to consider
an application to confirm an arbitration award prior to the
exhaustion of the deadline in which to a motion to vacate an
award may be filed. The section is not subject to waiver or
variation by the parties to an arbitration agreement or
proceeding and does not apply to common law arbitration.
§ 7321.24
§ 23
§ 7314
§ 12
Vacating Award. The section is substantially equivalent to
PaUAA. The section may not be waived or varied by the
parties to an arbitration agreement or proceeding and does
not apply to common law arbitration.
§ 7321.25
§ 24
§ 7315
§ 13
Modification or Correction of Award. The section is
substantially equivalent to the PaUAA, except that the time
limit to seek modification of an award is increased from 30
days to 90 days. The section may not be waived or varied by
the parties to an arbitration agreement or proceeding and
does not apply to common law arbitration.
§ 7321.26
§ 25
§ 7316
§14
Judgment on Award; Attorney Fees and Expenses. Except
for subsection (c), this section is substantially equivalent to
the PaUAA. Subsection (c) is a new provision not contained
in the PaUAA which allows the award of attorneys fees to a
prevailing party to a contested judicial proceeding regarding
the confirmation of an award, vacating an award, or
modifying or correcting an award. Except for the new
subsection (c), the section may not be waived or varied by
the parties to an arbitration agreement or proceeding. The
section does not apply to common law arbitration.
§ 7321.27
§ 26
§§
7304(c),
7318
§§ 2, 16
Jurisdiction. The section is substantially equivalent to the
PaUAA, except unlike the PaUAA, after a controversy
arises, the section may be waived or varied by the parties to
an arbitration agreement or proceeding. The section applies
to common law arbitration.
§ 7321.28
§ 27
§ 7319
§ 17
Venue. The section is substantially equivalent to PaUAA.
The section may be waived or varied by the parties to an
arbitration agreement or proceeding and does not apply to
common law arbitration.
18
Pa.
RUAA
ULC
RUAA
1980
PaUAA
1955
UAA
Changes Made to Existing Law
Comments
§ 7321.29
§ 28
§ 7320
§ 18
Appeals. The section is substantially equivalent to the
PaUAA, except that rather than allowing appeals to be taken
within 30 days or an order or judgment, provides that appeals
shall be taken in the manner, within the time, and to the same
extent as an appeal from a final order of a court in a civil
action. Unlike the PaUAA, after a controversy arises, the
section may be waived or varied by the parties to an
arbitration agreement or proceeding. The section applies to
common law arbitration, except for subsection (a)(4) which
is involves proceedings to modify or correct awards not
permitted in common law arbitration.
§ 7321.30
§ 29
n.a.
§ 21
Uniformity of Application and Construction. This section is
new and not contained in the PaUAA, but has substantially
the same effect as 1 Pa.C.S. § 1927. The section may not be
waived or varied by the parties to an arbitration agreement or
proceeding and does not apply to common law arbitration.
§ 7321.31
§ 30
n.a.
n.a.
Relationship to Electronic Signatures in Global and National
Commerce Act. This section is new and not contained in the
PaUAA. The section may not be waived or varied by the
parties to an arbitration agreement or proceeding and applied
to common law arbitration.
Additional Information
Additional information regarding the RUAA is available at the ULC website,
www.nccusl.org, or from the authors of this report The website contains a link to the official
archives of the ULC maintained by the University of Pennsylvania which provides access to the
text of all of prior drafts of the RUAA considered by the Drafting Committee. The ULC office is
located at 111 N. Wabash Street, Suite 1010, Chicago, Illinois, 60602, 312 450-6600. Inquires
regarding the RUAA may also be directed to the Legislative Counsel for the ULC, Nicole Julal,
at nicole.julal@uniformlaws.org or (312) 450-6618 or by contacting the Chairman of the
Drafting Committee, Francis J. Pavetti, at fpavetti@sbcglobal.net or 860 442-9408.
19