UNITED STATES FEDERAL ARBITRATION ACT
Title 9, US Code, Section
1-14, was first enacted February 12, 1925 (43 Stat.
883), codified July 30, 1947 (61 Stat. 669), and amended
September 3, 1954 (68 Stat. 1233). Chapter 2 was added
July 31, 1970 (84 Stat. 692), two new Sections were
passed by the Congress in October of 1988 and renumbered
on December 1, 1990 (PLs669 and 702); Chapter 3 was
added on August 15, 1990 (PL 101-369); and Section 10
was amended on November 15.
ARBITRATION
Chapter 1. General Provisions
Section 1. "Maritime
transactions" and "commerce" defined;
exceptions to operation of title
Section 2. Validity, irrevocability,
and enforcement of agreements to arbitrate
Section 3. Stay of proceedings
where issue therein referable to arbitration
Section 4. Failure to arbitrate
under agreement; petition to United States court having
jurisdiction for order to compel arbitration; notice
and service thereof; hearing and determination
Section 5. Appointment
of arbitrators or umpire
Section 6. Application
heard as motion
Section 7. Witnesses before
arbitrators; fees; compelling attendance
Section 8. Proceedings
begun by libel in admiralty and seizure of vessel or
property
Section 9. Award of arbitrators;
confirmation; jurisdiction; procedure
Section 10. Same; vacation;
grounds; rehearing.
Section 11. Same; modification
or correction; grounds; order
Section 12. Notice of motions
to vacate or modify; service; stay of proceedings
Section 13. Papers filed
with order on motions; judgment; docketing; force and
effect; enforcement
Section 14. Contracts not
affected
Section 15. Inapplicability
of the Act of State doctrine
Section 16. Appeals
Chapter 2. Convention
on the Recognition and Enforcement of Foreign Arbitral
Awards
Section 201. Enforcement
of Convention
Section 202. Agreement
or award falling under the Convention
Section 203. Jurisdiction;
amount in controversy
Section 204. Venue
Section 205. Removal of
cases from State courts
Section 206. Order to compel
arbitration; appointment of arbitrators
Section 207. Award of arbitrators;
confirmation; jurisdiction; proceeding
Section 208. Chapter 1;
residual application
Chapter 3. Inter-American
Convention ON International Commercial Arbitration
Section 301. Enforcement
of Convention
Section 302. Incorporation
by reference
Section 303. Order to compel
arbitration; appointment of arbitrators; locale
Section 304. Recognition
and enforcement of foreign arbitral decisions and awards;
reciprocity
Section 305. Relationship
between the Inter-American Convention and the Convention
on the Recognition and Enforcement of Foreign Arbitral
Awards of June 10, 1958
Section 306. Applicable
rules of Inter-American Commercial Arbitration Commission
Section 307. Chapter 1;
residual application
THE FEDERAL ARBITRATION
ACT
CHAPTER 1. GENERAL PROVISIONS
Section 1. "Maritime
transactions" and "commerce" defined;
exceptions to operation of title
"Maritime transaction",
as herein defined, means charter parties, bills of lading
of water carriers, agreements relating to wharfage,
supplies furnished vessels or repairs to vessels, collisions,
or any other matters in foreign commerce which, if the
subject of controversy, would be embraced within admiralty
jurisdiction; "commerce", as herein defined,
means commerce among the several States or with foreign
nations, or in any Territory of the United States or
in the District of Columbia, or between any such Territory
and another, or between any such Territory and any State
or foreign nation, or between the District of Columbia
and any State or Territory or foreign nation, but nothing
herein contained shall apply to contracts of employment
of seamen, railroad employees, or any other class of
workers engaged in foreign or interstate commerce.
Section 2. Validity,
irrevocability, and enforcement of agreements to arbitrate
A written provision in
any maritime transaction or a contract evidencing a
transaction involving commerce to settle by arbitration
a controversy thereafter arising out of such contract
or transaction, or the refusal to perform the whole
or any part thereof, or an agreement in writing to submit
to arbitration an existing controversy arising out of
such a contract, transaction, or refusal, shall be valid,
irrevocable, and enforceable, save upon such grounds
as exist at law or in equity for the revocation of any
contract.
Section 3. Stay of proceedings
where issue therein referable to arbitration
If any suit or proceeding
be brought in any of the courts of the United States
upon any issue referable to arbitration under an agreement
in writing for such arbitration, the court in which
such suit is pending, upon being satisfied that the
issue involved in such suit or proceeding is referable
to arbitration under such an agreement, shall on application
of one of the parties stay the trial of the action until
such arbitration has been had in accordance with the
terms of the agreement, providing the applicant for
the stay is not in default in proceeding with such arbitration.
Section 4. Failure to arbitrate
under agreement; petition to United States court having
jurisdiction for order to compel arbitration; notice
and service thereof; hearing and determination
A party aggrieved by the
alleged failure, neglect, or refusal of another to arbitrate
under a written agreement for arbitration may petition
any United States district court which, save for such
agreement, would have jurisdiction under Title 28, in
a civil action or in admiralty of the subject matter
of a suit arising out of the controversy between the
parties, for an order directing that such arbitration
proceed in the manner provided for in such agreement.
Five days' notice in writing of such application shall
be served upon the party in default. Service thereof
shall be made in the manner provided by the Federal
Rules of Civil Procedure. The court shall hear the parties,
and upon being satisfied that the making of the agreement
for arbitration or the failure to comply therewith is
not in issue, the court shall make an order directing
the parties to proceed to arbitration in accordance
with the terms of the agreement. The hearing and proceedings,
under such agreement, shall be within the district in
which the petition for an order directing such arbitration
is filed. If the making of the arbitration agreement
or the failure, neglect, or refusal to perform the same
be in issue, the court shall proceed summarily to the
trial thereof. If no jury trial be demanded by the party
alleged to be in default, or if the matter in dispute
is within admiralty jurisdiction, the court shall hear
and determine such issue. Where such an issue is raised,
the party alleged to be in default may, except in cases
of admiralty, on or before the return day of the notice
of application, demand a jury trial of such issue, and
upon such demand the court shall make an order referring
the issue or issues to a jury in the manner provided
by the Federal Rules of Civil Procedure, or may specially
call a jury for that purpose. If the jury find that
no agreement in writing for arbitration was made or
that there is no default in proceeding thereunder, the
proceeding shall be dismissed. If the jury find that
an agreement for arbitration was made in writing and
that there is a default in proceeding thereunder, the
court shall make an order summarily directing the parties
to proceed with the arbitration in accordance with the
terms thereof.
Section 5. Appointment
of arbitrators or umpire
If in the agreement provision
be made for a method of naming or appointing an arbitrator
or arbitrators or an umpire, such method shall be followed;
but if no method be provided therein, or if a method
be provided and any party thereto shall fail to avail
himself of such method, or if for any other reason there
shall be a lapse in the naming of an arbitrator or arbitrators
or umpire, or in filling a vacancy, then upon the application
of either party to the controversy the court shall designate
and appoint an arbitrator or arbitrators or umpire,
as the case may require, who shall act under the said
agreement with the same force and effect as if he or
they had been specifically named therein; and unless
otherwise provided in the agreement the arbitration
shall be by a single arbitrator.
Section 6. Application
heard as motion
Any application to the
court hereunder shall be made and heard in the manner
provided by law for the making and hearing of motions,
except as otherwise herein expressly provided.
Section 7. Witnesses
before arbitrators; fees; compelling attendance
The arbitrators selected
either as prescribed in this title or otherwise, or
a majority of them, may summon in writing any person
to attend before them or any of them as a witness and
in a proper case to bring with him or them any book,
record, document, or paper which may be deemed material
as evidence in the case. The fees for such attendance
shall be the same as the fees of witnesses before masters
of the United States courts. Said summons shall issue
in the name of the arbitrator or arbitrators, or a majority
of them, and shall be signed by the arbitrators, or
a majority of them, and shall be directed to the said
person and shall be served in the same manner as subpoenas
to appear and testify before the court; if any person
or persons so summoned to testify shall refuse or neglect
to obey said summons, upon petition the United States
district court for the district in which such arbitrators,
or a majority of them, are sitting may compel the attendance
of such person or persons before said arbitrator or
arbitrators, or punish said person or persons for contempt
in the same manner provided by law for securing the
attendance of witnesses or their punishment for neglect
or refusal to attend in the courts of the United States.
Section 8. Proceedings
begun by libel in admiralty and seizure of vessel or
property
If the basis of jurisdiction
be a cause of action otherwise justiciable in admiralty,
then, notwithstanding anything herein to the contrary,
the party claiming to be aggrieved may begin his proceeding
hereunder by seizure of the vessel or other property
of the other party according to the usual course of
admiralty proceedings, and the court shall then have
jurisdiction to direct the parties to proceed with the
arbitration and shall retain jurisdiction to enter its
decree upon the award.
Section 9. Award of
arbitrators; confirmation; jurisdiction; procedure
If the parties in their
agreement have agreed that a judgment of the court shall
be entered upon the award made pursuant to the arbitration,
and shall specify the court, then at any time within
one year after the award is made any party to the arbitration
may apply to the court so specified for an order confirming
the award, and thereupon the court must grant such an
order unless the award is vacated, modified, or corrected
as prescribed in sections 10 and 11 of this title. If
no court is specified in the agreement of the parties,
then such application may be made to the United States
court in and for the district within which such award
was made. Notice of the application shall be served
upon the adverse party, and thereupon the court shall
have jurisdiction of such party as though he had appeared
generally in the proceeding. If the adverse party is
a resident of the district within which the award was
made, such service shall be made upon the adverse party
or his attorney as prescribed by law for service of
notice of motion in an action in the same court. If
the adverse party shall be a nonresident, then the notice
of the application shall be served by the marshal of
any district within which the adverse party may be found
in like manner as other process of the court.
Section 10. Same; vacation;
grounds; rehearing
(a) In any of the following
cases the United States court in and for the district
wherein the award was made may make an order vacating
the award upon the application of any party to the arbitration
(1) Where the award was
procured by corruption, fraud, or undue means.
(2) Where there was evident
partiality or corruption in the arbitrators, or either
of them.
(3) Where the arbitrators
were guilty of misconduct in refusing to postpone the
hearing, upon sufficient cause shown, or in refusing
to hear evidence pertinent and material to the controversy;
or of any other misbehavior by which the rights of any
party have been prejudiced.
(4) Where the arbitrators
exceeded their powers, or so imperfectly executed them
that a mutual, final, and definite award upon the subject
matter submitted was not made.
(5) Where an award is vacated
and the time within which the agreement required the
award to be made has not expired the court may, in its
discretion, direct a rehearing by the arbitrators.
(b) The United States district
court for the district wherein an award was made that
was issued pursuant to section 590 of title 5 may make
an order vacating the award upon the application of
a person, other than a party to the arbitration, who
is adversely affected or aggrieved by the award, if
the use of arbitration or the award is clearly inconsistent
with the factors set forth in section 582 of Title 5.
Section 11. Same; modification
or correction; grounds; order
In either of the following
cases the United States court in and for the district
wherein the award was made may make an order modifying
or correcting the award upon the application of any
party to the arbitration
(a) Where there was an
evident material miscalculation of figures or an evident
material mistake in the description of any person, thing,
or property referred to in the award.
(b) Where the arbitrators
have awarded upon a matter not submitted to them, unless
it is a matter not affecting the merits of the decision
upon the matter submitted.
(c) Where the award is
imperfect in matter of form not affecting the merits
of the controversy.
The order may modify and
correct the award, so as to effect the intent thereof
and promote justice between the parties.
Section 12. Notice of
motions to vacate or modify; service; stay of proceedings
Notice of a motion to vacate,
modify, or correct an award must be served upon the
adverse party or his attorney within three months after
the award is filed or delivered. If the adverse party
is a resident of the district within which the award
was made, such service shall be made upon the adverse
party or his attorney as prescribed by law for service
of notice of motion in an action in the same court.
If the adverse party shall be a nonresident then the
notice of the application shall be served by the marshal
of any district within which the adverse party may be
found in like manner as other process of the court.
For the purposes of the motion any judge who might make
an order to stay the proceedings in an action brought
in the same court may make an order, to be served with
the notice of motion, staying the proceedings of the
adverse party to enforce the award.
Section 13. Papers filed
with order on motions; judgment; docketing; force and
effect; enforcement
The party moving for an
order confirming, modifying, or correcting an award
shall, at the time such order is filed with the clerk
for the entry of judgment thereon, also file the following
papers with the clerk:
(a) The agreement; the
selection or appointment, if any, of an additional arbitrator
or umpire; and each written extension of the time, if
any, within which to make the award.
(b) The award.
(c) Each notice, affidavit,
or other paper used upon an application to confirm,
modify, or correct the award, and a copy of each order
of the court upon such an application.
The judgment shall be docketed
as if it was rendered in an action.
The judgment so entered
shall have the same force and effect, in all respects,
as, and be subject to all the provisions of law relating
to, a judgment in an action; and it may be enforced
as if it had been rendered in an action in the court
in which it is entered.
Section 14. Contracts
not affected
This title shall not apply
to contracts made prior to January 1, 1926.
Section 15. Inapplicability
of the Act of State doctrine
Enforcement of arbitral
agreements, confirmation of arbitral awards, and execution
upon judgments based on orders confirming such awards
shall not be refused on the basis of the Act of State
doctrine.
Section 16. Appeals
(a) An appeal may be taken
from
(1) an order
(A) refusing a stay of
any action under section 3 of this title,
(B) denying a petition
under section 4 of this title to order arbitration to
proceed,
(C) denying an application
under section 206 of this title to compel arbitration,
(D) confirming or denying
confirmation of an award or partial award, or
(E) modifying, correcting,
or vacating an award;
(2) an interlocutory order
granting, continuing, or modifying an injunction against
an arbitration that is subject to this title; or
(3) a final decision with
respect to an arbitration that is subject to this title.
(b) Except as otherwise
provided in section 1292 (b) of title 28, an appeal
may not be taken from an interlocutory order
(1) granting a stay of
any action under section 3 of this title;
(2) directing arbitration
to proceed under section 4 of this title;
(3) compelling arbitration
under section 206 of this title; or
(4) refusing to enjoin
an arbitration that is subject to this title.
THE FEDERAL ARBITRATION
ACT
CHAPTER 2. CONVENTION
ON THE RECOGNITION AND ENFORCEMENT OF FOREIGN ARBITRAL
AWARDS
Section 201. Enforcement
of Convention
The Convention on the Recognition
and Enforcement of Foreign Arbitral Awards of June 10,
1958, shall be enforced in United States courts in accordance
with this chapter.
Section 202. Agreement
or award falling under the Convention
An arbitration agreement
or arbitral award arising out of a legal relationship,
whether contractual or not, which is considered as commercial,
including a transaction, contract, or agreement described
in section 2 of this title, falls under the Convention.
An agreement or award arising out of such a relationship
which is entirely between citizens of the United States
shall be deemed not to fall under the Convention unless
that relationship involves property located abroad,
envisages performance or enforcement abroad, or has
some other reasonable relation with one or more foreign
states. For the purpose of this section a corporation
is a citizen of the United States if it is incorporated
or has its principal place of business in the United
States.
Section 203. Jurisdiction;
amount in controversy
An action or proceeding
falling under the Convention shall be deemed to arise
under the laws and treaties of the United States. The
district courts of the United States (including the
courts enumerated in section 460 of Title 28) shall
have original jurisdiction over such an action or proceeding,
regardless of the amount in controversy.
Section 204. Venue
An action or proceeding
over which the district courts have jurisdiction pursuant
to section 203 of this title may be brought in any such
court in which save for the arbitration agreement an
action or proceeding with respect to the controversy
between the parties could be brought, or in such court
for the district and division which embraces the place
designated in the agreement as the place of arbitration
if such place is within the United States.
Section 205. Removal
of cases from State courts
Where the subject matter
of an action or proceeding pending in a State court
relates to an arbitration agreement or award falling
under the Convention, the defendant or the defendants
may, at any time before the trial thereof, remove such
action or proceeding to the district court of the United
States for the district and division embracing the place
where the action or proceeding is pending. The procedure
for removal of causes otherwise provided by law shall
apply, except that the ground for removal provided in
this section need not appear on the face of the complaint
but may be shown in the petition for removal. For the
purposes of Chapter 1 of this title any action or proceeding
removed under this section shall be deemed to have been
brought in the district court to which it is removed.
Section 206. Order to
compel arbitration; appointment of arbitrators
A court having jurisdiction
under this chapter may direct that arbitration be held
in accordance with the agreement at any place therein
provided for, whether that place is within or without
the United States. Such court may also appoint arbitrators
in accordance with the provisions of the agreement.
Section 207. Award of
arbitrators; confirmation; jurisdiction; proceeding
Chapter 1 applies to actions
and proceedings brought under this chapter to the extent
that chapter is not in conflict with this chapter or
the Convention as ratified by the United States.
Section 208. Chapter
1; residual application
Chapter 1 applies to actions
and proceedings brought under this chapter to the extent
that chapter is not in conflict with this chapter or
the Convention as ratified by the United States.
CHAPTER 3. INTER-AMERICAN
CONVENTION ON INTERNATIONAL COMMERCIAL ARBITRATION
Section 301. Enforcement
of Convention
The Inter-American Convention
on International Commercial Arbitration of January 30,
1975, shall be enforced in United States courts in accordance
with this chapter.
Section 302. Incorporation
by reference
Sections 202, 203, 204,
205, and 207 of this title shall apply to this chapter
as if specifically set forth herein, except that for
the purposes of this chapter "the Convention"
shall mean the Inter-American Convention.
Section 303. Order to
compel arbitration; appointment of arbitrators; locale
(a) A court having jurisdiction
under this chapter may direct that arbitration be held
in accordance with the agreement at any place therein
provided for, whether that place is within or without
the United States. The court may also appoint arbitrators
in accordance with the provisions of the agreement.
(b) In the event the agreement
does not make provision for the place of arbitration
or the appointment of arbitrators, the court shall direct
that the arbitration shall be held and the arbitrators
be appointed in accordance with Article 3 of the Inter-American
Convention.
Section 304. Recognition
and enforcement of foreign arbitral decisions and awards;
reciprocity
Arbitral decisions or awards
made in the territory of a foreign State shall, on the
basis of reciprocity, be recognized and enforced under
this chapter only if that State has ratified or acceded
to the Inter-American Convention.
Section 305. Relationship
between the Inter-American Convention and the Convention
on the Recognition and Enforcement of Foreign Arbitral
Awards of June 10, 1958
When the requirements for
application of both the Inter-American Convention and
the Convention on the Recognition and Enforcement of
Foreign Arbitral Awards of June 10, 1958, are met, determination
as to which Convention applies shall, unless otherwise
expressly agreed, be made as follows:
(1) If a majority of the
parties to the arbitration agreement are citizens of
a State or States that have ratified or acceded to the
Inter-American Convention and are member States of the
Organization of American States, the Inter-American
Convention shall apply.
(2) In all other cases
the Convention on the Recognition and Enforcement of
Foreign Arbitral Awards of June 10, 1958, shall apply.
Section 306. Applicable
rules of Inter-American Commercial Arbitration Commission
(a )For the purposes of
this chapter the rules of procedure of the Inter-American
Commercial Arbitration Commission referred to in Article
3 of the Inter-American Convention shall, subject to
subsection (b) of this section, be those rules as promulgated
by the Commission on July 1, 1988.
(b) In the event the rules
of procedure of the Inter-American Commercial Arbitration
Commission are modified or amended in accordance with
the procedures for amendment of the rules of that Commission,
the Secretary of State, by regulation in accordance
with section 553 of Title 5, consistent with the aims
and purposes of this Convention, may prescribe that
such modifications or amendments shall be effective
for purposes of this chapter.
Section 307. Chapter
1; residual application
Chapter 1 applies to actions
and proceedings brought under this chapter to the extent
chapter 1 is not in conflict with this chapter or the
Inter-American Convention as ratified by the United
States
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