LD 1218
pg. 71
Page 70 of 94 An Act To Enact the Revised Uniform Arbitration Act Page 72 of 94
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LR 468
Item 1

 
clauses. Gilmer v. Interstate/Johnson Lane Corp., 500 U.S. 20
(1991) (age discrimination); Shearson/American Express, Inc. v.
McMahon, 482 U.S. 220 (1987) (civil RICO claims); Mitsubishi
Motors Corp. v. Soler Chrysler-Plymouth, Inc., 473 U.S. 614
(1985) (antitrust claim); Pub. L. No. 102-166, § 118, 105 Stat.
1071, 1081 (1991 Civil Rights Act that states "arbitration * * *
is encouraged to resolve disputes" under the Americans with
Disabilities Act, Title VII of the 1964 Civil Rights Act, the
Civil Rights Act of 1866, and the Age Discrimination in
Employment Act).

 
Although Section 21(b) in regard to attorney's fees is like
Section 21(a) concerning punitive or other exemplary damages
because both sections allow recovery when such an award has a
basis in law, Section 21(b) has no requirement that the
arbitrator apply the appropriate legal standard or have
sufficient evidence to support a claim of attorney's fees
under the applicable statute.

 
2. Because Section 21 is a waivable provision under Section
4(a), the parties can agree to limit or eliminate certain
remedies "to the extent permitted by law." It should be noted
that in arbitration cases where, if the matter had been in
litigation, a person would have been entitled to an award of
attorneys fees or punitive damages or other exemplary relief,
there is doubt whether one of the parties by contract can
eliminate the right to attorney's fees or punitive damages or
other exemplary relief. Some courts have held that they will
defer to an arbitration award involving statutory rights only
if a party has the right to obtain the same relief in
arbitration as is available in a court. See, e.g., Cole v.
Burns Int'l Sec. Serv., 105 F.3d 1465 (D.C. Cir. 1997)
(finding that employee with race discrimination claim under
Title VII is bound by predispute arbitration agreement under
FAA if the employee has the right to the same relief as if he
had proceeded in court); Graham Oil Co. v. ARCO Prods. Co., 43
F.3d 1244 (9th Cir.), cert. denied, 516 U.S. 907 (1995)
(stating that arbitration clause compelling franchisee to
surrender important rights, including right of attorney fees,
guaranteed by the Petroleum Marketing Practices Act,
contravenes this statute); DeGaetano v. Smith Barney, Inc., 75
FEP Cases 579 (S.D.N.Y. 1997) (concluding that award under
arbitration clause requiring each side to pay own attorney's
fees in Title VII claim on which plaintiff prevailed but where
arbitrators refused to award attorney's fees set aside as a
manifest disregard of the law; the arbitration of statutory
claims as a condition of employment are enforceable only to
the extent that the arbitration preserves protections and
remedies afforded by the statute); Armendariz v.
Foundation Health Psychcare Services, Inc., 24 Cal. 4th 83, 6
P.3d 669, 99 Cal. Rptr. 2d 745 (2000) (holding that limitation
in arbitration


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