Senate Bill No. 390--Committee on Judiciary (Requested by Committee for Binding Arbitration) CHAPTER........ AN ACT relating to the arbitration of civil cases; expanding the class of cases subject to mandatory, nonbinding arbitration; eliminating the right to trial after arbitration under the Uniform Arbitration Act; and providing other matters properly relating thereto. THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. NRS 38.250 is hereby amended to read as follows: 38.250 1. All civil actions filed in district court for damages, if the cause of action arises in the State of Nevada and the amount in issue does not exceed [$25,000] \$40,000\\ must be submitted to nonbinding arbitration in accordance with the provisions of NRS 38.253, 38.255 and 38.258. 2. A civil action for damages filed in justice's court may be submitted to arbitration if the parties agree, orally or in writing, to the submission. Sec. 2. NRS 38.255 is hereby amended to read as follows: 38.255 1. The rules adopted by the supreme court pursuant to NRS 38.253 to provide guidelines for the establishment by a district court of a program must include provisions for a: (a) Mandatory program for the arbitration of civil actions pursuant to NRS 38.250. (b) Voluntary program for the arbitration of civil actions if the cause of action arises in the State of Nevada and the amount in issue exceeds [$25,000.] \$40,000.\\ (c) Voluntary program for the use of binding arbitration in all civil actions. 2. The rules must provide that the district court of any judicial district whose population is 100,000 or more: (a) Shall establish programs pursuant to paragraphs (a), (b) and (c) of subsection 1. (b) May set fees and charge parties for arbitration if the amount in issue exceeds [$25,000.] \$40,000.\\ The rules may provide for similar programs for the other judicial districts. 3. The rules must exclude the following from any program of mandatory arbitration: (a) Actions in which the amount in issue, excluding attorney's fees, interest and court costs, is more than [$25,000] \$40,000\\ or less than the maximum jurisdictional amounts specified in NRS 4.370 and 73.010; (b) Class actions; (c) Actions in equity; (d) Actions concerning the title to real estate; (e) Probate actions; (f) Appeals from courts of limited jurisdiction; (g) Actions for declaratory relief; (h) Actions involving divorce or problems of domestic relations; (i) Actions brought for relief based on any extraordinary writs; (j) Actions for the judicial review of an administrative decision; and (k) Actions in which the parties, pursuant to a written agreement executed before the accrual of the cause of action, have submitted the controversy to arbitration or any other alternative method for resolving a dispute. 4. The rules must include: (a) Guidelines for the award of attorney's fees and maximum limitations on the costs to the parties of the arbitration; (b) Disincentives to appeal; and (c) Provisions for trial upon the exercise by either party of his right to a trial anew after the arbitration. 5. The supreme court shall, on or before February 1 of each odd-numbered year, submit a report to the director of the legislative counsel bureau for transmittal to the chairmen of the assembly and senate standing committees on the judiciary. The report must include, for the period since the previous such report, if any: (a) A listing of the number of actions which were submitted to arbitration or other alternative methods of resolving disputes pursuant to NRS 38.250 or 38.258 and their manner of disposition; (b) A statement of the amount of money collected in each judicial district pursuant to NRS 19.0315 and a summary of the manner in which the fees were expended; and (c) Any recommendations for legislation or other information regarding the programs on arbitration deemed relevant by the supreme court. Sec. 3. Sections 9 and 11 of Assembly Bill No. 152 of this session are hereby amended to read as follows: Sec. 9. NRS 38.250 is hereby amended to read as follows: 38.250 \Except as otherwise provided in section 3 of this act:\\ 1. All civil actions filed in district court for damages, if the cause of action arises in the State of Nevada and the amount in issue does not exceed $40,000 must be submitted to nonbinding arbitration in accordance with the provisions of NRS 38.253, 38.255 and 38.258. 2. A civil action for damages filed in justice's court may be submitted to arbitration if the parties agree, orally or in writing, to the submission. Sec. 11. 1. This section, sections 1 to 8, inclusive, and 10 of this act become effective on January 1, 1996. 2. Section 9 of this act becomes effective at 12:01 a.m. on January 1, 1996. Sec. 4. NRS 38.109 is hereby repealed. Sec. 5. The amendatory provisions of sections 1 and 2 of this act do not apply to any civil actions filed in a district court before January 1, 1996. Sec. 6. On the effective date of this section, the provisions of section 3 of this act eliminate any previously existing right to trial pursuant to NRS 38.109 for all actions: 1. Commenced pursuant to the Uniform Arbitration Act for which an award pursuant to NRS 38.105 has not been made; or 2. In which an award has been made pursuant to NRS 38.105 and a party to the action has not made a request for a trial, before the effective date of this section. Sec. 7. The provisions of subsection 1 of NRS 354.599 do not apply to any additional expenses of a local government which are related to the provisions of this act. Sec. 8. 1. This section and sections 3 to 6, inclusive, of this act become effective upon passage and approval. 2. Sections 1 and 2 of this act become effective: (a) Upon passage and approval for the purpose of adopting any rules necessary to carry out the amendatory provisions of those sections; and (b) On January 1, 1996, for all other purposes. -30-