New York S 9788: Relates to arbitration proceedings

Bill Text

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S09788 Summary:

BILL NOS09788 

&nbsp

SAME ASSAME AS A03461-A

&nbsp

SPONSORSEPULVEDA

&nbsp

COSPNSR

&nbsp

MLTSPNSR

&nbsp

Amd §7502, add §§7513-a, 7513-b & 7517, CPLR

&nbsp

Amends provisions of law governing arbitration proceedings; specifies fees and expenses with regard to employment or consumer arbitration proceedings; directs certain sanctions on a party which breaches an arbitration agreement.

Go to top S09788 Actions:

BILL NOS09788 

&nbsp

04/06/2026REFERRED TO JUDICIARY

05/05/20261ST REPORT CAL.915

05/06/20262ND REPORT CAL.

05/07/2026ADVANCED TO THIRD READING 

05/18/2026PASSED SENATE

05/18/2026DELIVERED TO ASSEMBLY

05/18/2026referred to ways and means

05/29/2026substituted for a3461a

05/29/2026ordered to third reading rules cal.259

Go to topS09788 Committee&nbspVotes:

Go to topS09788 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topS09788 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 9788

 IN SENATE

 April 6, 2026
 ___________

 Introduced by Sen. SEPULVEDA -- read twice and ordered printed, and when
 printed to be committed to the Committee on Judiciary

 AN ACT to amend the civil practice law and rules, in relation to arbi-
 tration

 The People of the State of New York, represented in Senate and Assem-
 bly, do enact as follows:

 1 Section 1. Subdivision (a) of section 7502 of the civil practice law
 2 and rules is amended by adding a new paragraph (v) to read as follows:
 3 (v) If there are multiple parties seeking arbitration against the same
 4 party or parties, the proceeding may be brought in any court and county
 5 where any of the parties seeking arbitration resides or is doing busi-
 6 ness or where the arbitration was held or is pending.
 7 § 2. The civil practice law and rules is amended by adding three new
 8 sections 7513-a, 7513-b and 7517 to read as follows:
 9 § 7513-a. Fees and expenses of arbitration initiation. (a) (i) In an
 10 employment or consumer arbitration, except an arbitration agreement
 11 included in the terms of a collective bargaining agreement, that
 12 requires, either expressly or through application of state or federal
 13 law or the rules of the arbitration provider, that the drafting party
 14 shall pay certain fees and costs before the arbitration can proceed, if
 15 the fees or costs to initiate an arbitration proceeding are not paid
 16 within thirty days after the due date, the drafting party is in material
 17 breach of the arbitration agreement, is in default of the arbitration,
 18 and waives its right to compel arbitration.
 19 (ii) After an employee or consumer meets the filing requirements
 20 necessary to initiate an arbitration, the arbitration provider shall
 21 immediately provide an invoice for any fees and costs required before
 22 the arbitration can proceed to all of the parties to the arbitration.
 23 The invoice shall be provided in its entirety, shall state the full
 24 amount owed and the date that payment is due, and shall be sent to all
 25 parties by the same means on the same day. To avoid delay, absent an
 26 express provision in the arbitration agreement stating the number of
 27 days in which the parties to the arbitration must pay any required fees

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD05048-04-6

 S. 9788 2

 1 or costs, the arbitration provider shall issue all invoices to the
 2 parties as due upon receipt.
 3 (b) If the drafting party materially breaches the arbitration agree-
 4 ment and is in default under subdivision (a) of this section, the
 5 employee or consumer may do either of the following:
 6 (i) withdraw the claim from arbitration and proceed in a court of
 7 appropriate jurisdiction; or
 8 (ii) compel arbitration in which the drafting party shall pay reason-
 9 able attorneys' fees and costs related to the arbitration.
 10 (c) If the employee or consumer withdraws the claim from arbitration
 11 and proceeds with an action in a court of competent jurisdiction under
 12 paragraph (i) of subdivision (b) of this section, the statute of limita-
 13 tions with regard to all claims brought or that relate back to any claim
 14 brought in arbitration shall be tolled as of th