LD 1218
pg. 37
Page 36 of 94 An Act To Enact the Revised Uniform Arbitration Act Page 38 of 94
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LR 468
Item 1

 
consolidated arbitrations involving all affected parties. See
Dean B. Thomson, Arbitration Theory and Practice: A Survey of
Construction Arbitrators, 23 Hofstra L. Rev. 137, 165-67 (1994).
A similar survey of members of the ABA Forum on the Construction
Industry found that 83% of nearly 1,000 responding practitioners
also favored consolidation of arbitrations involving multiparty
disputes. See Dean B. Thomson, The Forum's Survey on the Current
and Proposed AIA A201 Dispute Resolution Provisions, 16 Constr.
Law. 3, 5 (No. 3, 1996).

 
3. A provision in the RUAA specifically empowering courts to
order consolidation in appropriate cases makes sense for
several reasons. As in the judicial forum, consolidation
effectuates efficiency in conflict resolution and avoidance of
conflicting results. By agreeing to include an arbitration
clause, parties have indicated that they wish their disputes
to be resolved in such a manner. In many cases, moreover, a
court may be the only practical forum within which to effect
consolidation. See Schenectady v. Schenectady Patrolmen's
Benev. Ass'n, 138 A. D.2d 882, 883, 526 N.Y.S.2d 259, 260
(1988). Furthermore, it is likely that in many cases one or
more parties, often non-drafting parties, will not have
considered the impact of the arbitration clause on multiparty
disputes. By establishing a default provision which permits
consolidation (subject to various limitations) in the absence
of a specific contractual provision, Section 10 encourages
drafters to address the issue expressly and enhances the
possibility that all parties will be on notice regarding the
issue.

 
Section 10 is an adaptation of consolidation provisions in the
California and Georgia statutes. Cal. Civ. Proc. Code § 1281.3
(West 1997); Ga. Code Ann. § 9-9-6 (1996). It gives courts
discretion to consolidate separate arbitration proceedings in
the presence of multiparty disputes involving common issues of
fact or law.

 
Like other sections of the RUAA, however, the provision also
embodies the fundamental principle of judicial respect for the
preservation and enforcement of the terms of agreements to
arbitrate. Thus, Section 10(c) recognizes that consolidation
of a party's claims should not be ordered in contravention of
provisions of arbitration agreements prohibiting
consolidation. See also Section 4(a). However, Section 10 is
not intended to address the issue as to the validity of
arbitration clauses in the context of class-wide disputes. For
cases concerning this issue, see, e.g., Lozada v. Dale Baker
Oldsmobile, Inc., 91 F.Supp. 2d 1087 (W.D.Mich. 2000) (finding
an arbitration provision is unconscionable in part because it
waives class
remedies allowable under Truth in Lending Act ("TILA"), as
well as certain declaratory and injunctive relief under
federal and


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