LD 1218
pg. 62
Page 61 of 94 An Act To Enact the Revised Uniform Arbitration Act Page 63 of 94
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LR 468
Item 1

 
arbitrators to enforce subpoenas for discovery purposes the same
as in a civil proceeding which can be interpreted to include
third parties. Kan. Stat. Ann. § 5-407; Cal. Civ. Proc. Code §
1283.05(d); Tex. Civ. Prac. & Rem. Code Ann. § 171.007(b); Utah
Code Ann. § 78-31a-8.

 
Presently under the UAA and the FAA the courts have allowed
non-parties to challenge the propriety of such subpoenas or
other discovery-related orders of arbitrators. See, e.g.,
Integrity Ins. Co. v. American Centennial Ins. Co., supra. It
must be remembered that such orders by arbitrators, like those
issued by administrative agencies and unlike those issued by
courts, are not self-enforcing. Thus, a nonparty who disagrees
with a subpoena or other order issued by an arbitrator simply
need not comply. At that point the party to the arbitration
proceeding who wants the nonparty to testify or produce
information must proceed in court to enforce the arbitral
order. Furthermore either the nonparty against whom the order
has been issued or the other party on behalf of the nonparty
can file a motion to quash the subpoena or arbitral order.

 
In determining whether to enforce an arbitral subpoena, the
courts have been very solicitous of the nonparty status of a
person challenging such an order. For example, in Reuters Ltd.
v. Dow Jones Telerate, Inc., 231 A.D.2d 337, 662 N.Y.S.2d 450
(N.Y. App. Div. 1997), an arbitrator attempted to subpoena
documents from a nonparty competitor. The court held that,
although arbitrators do have authority to issue subpoenas,
this subpoena was inappropriate because it required the
nonparty to divulge certain information which may put it at a
competitive disadvantage and was not sufficiently relevant to
the arbitration case.

 
The intent of Section 17 is to follow the present approach of
courts to safeguard the rights of third parties while insuring
that there is sufficient disclosure of information to provide
for a full and fair hearing. Further development in this area
should be left to case law because (1) it would be very
difficult to draft a provision to include all the competing
interests when an arbitrator issues a subpoena or discovery
order against a nonparty [e.g., courts seem to give lesser
weight to nonparty's claims that an issue lacks relevancy as
opposed to nonparty's claims a matter is protected by
privilege]; (2) state and federal administrative laws allowing
subpoenas or discovery orders do not make special provisions
for nonparties; and (3) the courts have protected well the
interests of nonparties in arbitration cases.

 
9. Section 17(g) is intended to allow a court in State A
(the State adopting the RUAA) to give effect to a subpoena or
any discovery-related order issued by an arbitrator in an
arbitration


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