§652. Jurisdiction

(a) Actions That May Be Referred to Arbitration.-(1) Notwithstanding any provision of law to the contrary and except as provided in subsections (b) and (c) of this section, and section 901(c) of the Judicial Improvements and Access to Justice Act, a district court that authorizes arbitration under section 651 may-

(A) allow the referral to arbitration of any civil action (including any adversary proceeding in bankruptcy) pending before it if the parties consent to arbitration, and

(B) require the referral to arbitration of any civil action pending before it if the relief sought consists only of money damages not in excess of $100,000 or such lesser amount as the district court may set, exclusive of interest and costs.

(2) For purposes of paragraph (1)(B), a district court may presume damages are not in excess of $100,000 unless counsel certifies that damages exceed such amount.

(b) Actions That May Not Be Referred Without Consent of Parties.-Referral to arbitration under subsection (a)(1)(B) may not be made-

(1) of an action based on an alleged violation of a right secured by the Constitution of the United States, or

(2) if jurisdiction is based in whole or in part on section 1343 of this title.

(c) Exceptions From Arbitration.-Each district court shall establish by local rule procedures for exempting, sua sponte or on motion of a party, any case from arbitration in which the objectives of arbitration would not be realized-

(1) because the case involves complex or novel legal issues,

(2) because legal issues predominate over factual issues, or

(3) for other good cause.

(d) Safeguards in Consent Cases.-In any civil action in which arbitration by consent is allowed under subsection (a)(1)(A), the district court shall by local rule establish procedures to ensure that-

(1) consent to arbitration is freely and knowingly obtained, and

(2) no party or attorney is prejudiced for refusing to participate in arbitration.

(Added Pub. L. 100–702, title IX, §901(a), Nov. 19, 1988, 102 Stat. 4659 .)

References in Text

Section 901(c) of the Judicial Improvements and Access to Justice Act, referred to in subsec. (a)(1), is section 901(c) of Pub. L. 100–702, which is set out as a note below.

Exception to Limitation on Money Damages

Section 901(c) of Pub. L. 100–702 provided that: "Notwithstanding section 652 [28 U.S.C. 652] (as added by subsection (a) of this section), establishing a limitation of $100,000 in money damages with respect to cases referred to arbitration, a district court listed in section 658 [28 U.S.C. 658] (as added by subsection (a) of this section), whose local rule on the date of the enactment of this Act [Nov. 19, 1988] provides for a limitation on money damages, with respect to such cases, of not more than $150,000, may continue to apply the higher limitation."

Section Referred to in Other Sections

This section is referred to in sections 651, 653 of this title.