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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). |
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| | | 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. |
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| | | 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. |
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| | | 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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