LD 1218
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LR 468
Item 1

 
discovery and in Section 17(g) regarding the enforcement of
subpoenas or discovery orders by out-of-state arbitrators.

 
Section 17(a) and (b) are not waivable under Section 4(b)
because they go to the inherent power of an arbitrator to
provide a fair hearing by insuring that witnesses and records
will be available at an arbitration proceeding. The other
subsections of Section 17, including whether to allow
prehearing discovery, can be waived or varied by agreement of
the parties under Section 4(a).

 
2. The authority in UAA Section 7 which is limited only to
subpoenas and depositions for an arbitration hearing has
caused some courts to conclude that "pretrial discovery is not
available under our present statutes for arbitration." Rippe
v. West Am. Ins. Co., 1993 WL 512547 (Conn. Super. Ct., Dec.
2, 1993); see also Burton v. Bush, 614 F.2d 389 (4th Cir.
1980) (stating that party to arbitration contract had no right
to prehearing discovery). Others require a showing of
extraordinary circumstances before allowing discovery. See,
e.g., In re Deiulemar di Navigazione, 153 F.R.D. 592 (E.D. La.
1994); Oriental Commercial & Shipping Co. v. Rosseel, 125
F.R.D. 398 (S.D.N.Y. 1989). Most courts have allowed discovery
only at the discretion of the arbitrator. See, e.g., Stanton
v. PaineWebber Jackson & Curtis, Inc., 685 F. Supp 1241 (S.D.
Fla. 1988); Transwestern Pipeline Co. v. J.E. Blackburn, 831
S.W.2d 72 (Tex. Ct. App. 1992). The few state arbitration
statutes that have addressed the matter of discovery also
leave these issues to the discretion of the arbitrator.
Massachusetts - Mass. Gen. Laws. Ann. ch.251, § 7(e)
(providing that only the arbitrators can enforce a request for
production of documents and entry upon land for inspection and
other purposes); Texas - Tex. Civ. Prac. & Rem. Code Ann. §
171.007(b) (stating that arbitrator may allow deposition of
adverse witness for discovery purposes); Utah - Utah Code Ann.
§ 78-31a-8 (providing that arbitrators may order discovery in
their discretion). Most commentators and courts conclude that
extensive discovery, as allowed in civil litigation,
eliminates the main advantages of arbitration in terms of
cost, speed and efficiency.

 
3. The approach to discovery in Section 17(c) is modeled
after the Center for Public Resources (CPR) Rules for Non-
Administered Arbitration of Business Disputes, R. 10 and
United Nations Commission on International Trade Law
(UNCIRTAL) Arbitration Rules, Arts. 24(2), 26. The language
follows the majority approach under the case law of the UAA
and FAA which provides that, unless the contract specifies to
the contrary, discretion rests with the arbitrators whether to
allow discovery. The
discovery procedure in Section 17(c) is intended to aid the
arbitration process and ensure an expeditious, efficient and
informed arbitration, while adequately protecting the rights
of


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