§ 654. — Arbitration.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 28USC654]
TITLE 28--JUDICIARY AND JUDICIAL PROCEDURE
PART III--COURT OFFICERS AND EMPLOYEES
CHAPTER 44--ALTERNATIVE DISPUTE RESOLUTION
Sec. 654. Arbitration
(a) Referral of Actions to Arbitration.--Notwithstanding any
provision of law to the contrary and except as provided in subsections
(a), (b), and (c) of section 652 and subsection (d) of this section, a
district court may allow the referral to arbitration of any civil action
(including any adversary proceeding in bankruptcy) pending before it
when the parties consent, except that referral to arbitration may not be
made where--
(1) the action is based on an alleged violation of a right
secured by the Constitution of the United States;
(2) jurisdiction is based in whole or in part on section 1343 of
this title; or
(3) the relief sought consists of money damages in an amount
greater than $150,000.
(b) Safeguards in Consent Cases.--Until such time as rules are
adopted under chapter 131 of this title relating to procedures described
in this subsection, the district court shall, by local rule adopted
under section 2071(a), establish procedures to ensure that any civil
action in which arbitration by consent is allowed under subsection (a)--
(1) consent to arbitration is freely and knowingly obtained; and
(2) no party or attorney is prejudiced for refusing to
participate in arbitration.
(c) Presumptions.--For purposes of subsection (a)(3), a district
court may presume damages are not in excess of $150,000 unless counsel
certifies that damages exceed such amount.
(d) Existing Programs.--Nothing in this chapter is deemed to affect
any program in which arbitration is conducted pursuant to section \1\
title IX of the Judicial Improvements and Access to Justice Act (Public
Law 100-702), as amended by section 1 of Public Law 105-53.
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\1\ So in original. The word ``section'' probably should not appear.
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(Added Pub. L. 100-702, title IX, Sec. 901(a), Nov. 19, 1988, 102 Stat.
4660; amended Pub. L. 105-315, Sec. 6, Oct. 30, 1998, 112 Stat. 2995.)
References in Text
Title IX of the Judicial Improvements and Access to Justice Act
(Public Law 100-702), as amended by section 1 of Public Law 105-53,
referred to in subsec. (d), is title IX of Pub. L. 100-702, Nov. 19,
1988, 102 Stat. 4659, which enacted this chapter and provisions set out
as notes under sections 651 and 652 of this title. Section 1 of Pub. L.
105-53, Oct. 6, 1997, 111 Stat. 1173, amended section 905 of title IX of
Pub. L. 100-702, which is set out as a note under section 651 of this
title.
Amendments
1998--Pub. L. 105-315 amended section generally, substituting
provisions relating to arbitration for provisions relating to
arbitration award and judgment.
Section Referred to in Other Sections
This section is referred to in sections 651, 652, 655 of this title.
