New York S 3879: Relates to arbitration proceedings

Bill Text

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S03879 Summary:

BILL NOS03879A

&nbsp

SAME ASSAME AS A03461-A

&nbsp

SPONSORHOYLMAN-SIGAL

&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 S03879 Actions:

BILL NOS03879A

&nbsp

01/30/2025REFERRED TO JUDICIARY

06/03/2025AMEND AND RECOMMIT TO JUDICIARY

06/03/2025PRINT NUMBER 3879A

06/12/2025COMMITTEE DISCHARGED AND COMMITTED TO RULES

06/12/2025ORDERED TO THIRD READING CAL.1969

06/13/2025PASSED SENATE

06/13/2025DELIVERED TO ASSEMBLY

06/13/2025referred to judiciary

Go to topS03879 Committee&nbspVotes:

Go to topS03879 Floor&nbspVotes:

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

Go to topS03879 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 3879--A

 2025-2026 Regular Sessions

 IN SENATE

 January 30, 2025
 ___________

 Introduced by Sen. HOYLMAN-SIGAL -- read twice and ordered printed, and
 when printed to be committed to the Committee on Judiciary -- commit-
 tee discharged, bill amended, ordered reprinted as amended and recom-
 mitted to said committee

 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

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD05048-02-5

 S. 3879--A 2

 1 amount owed and the date that payment is due, and shall be sent to all
 2 parties by the same means on the same day. To avoid delay, absent an
 3 express provision in the arbitration agreement stating the number of
 4 days in which the parties to the arbitration must pay any required fees
 5 or costs, the arbitration provider shall issue all invoices to the
 6 parties as due upon receipt.
 7 (b) If the drafting party materially breaches the arbitration agree-
 8 ment and is in default under subdivision (a) of this section, the
 9 employee or consumer may do either of the following:
 10 (i) withdraw the claim from arbitration and proceed in a court of
 11 appropriate jurisdiction; or
 12 (ii) compel arbitration in which the drafting party shall pay reason-
 13 able attorneys' fees and costs related to the arbitration.
 14 (c) If the employee or consumer withdraws the claim from arbitration
 15 and proceeds with an action in a court of competent jurisdiction under
 16 paragraph (i)