EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

1-1 Section 1. NRS 38.255 is hereby amended to read as follows:

1-2 38.255 1. The rules adopted by the supreme court pursuant to NRS

1-18 The rules may provide for similar programs for the other judicial districts.

2-1 3. The rules must exclude the following from any program of

2-2 mandatory arbitration:

2-3 (a) Actions in which the amount in issue, excluding attorney’s fees,

2-4 interest and court costs, is more than $40,000 or less than the maximum

2-5 jurisdictional amounts specified in NRS 4.370 and 73.010;

2-6 (b) Class actions;

2-7 (c) Actions in equity;

2-8 (d) Actions concerning the title to real estate;

2-9 (e) Probate actions;

2-10 (f) Appeals from courts of limited jurisdiction;

2-11 (g) Actions for declaratory relief;

2-12 (h) Actions involving divorce or problems of domestic relations;

2-13 (i) Actions brought for relief based on any extraordinary writs;

2-14 (j) Actions for the judicial review of an administrative decision; and

2-15 (k) Actions in which the parties, pursuant to a written agreement

2-16 executed before the accrual of the cause of action, have submitted the

2-17 controversy to arbitration or any other alternative method for resolving a

2-18 dispute.

2-19 4. The rules must include:

2-20 (a) Guidelines for the award of attorney’s fees and maximum

2-21 limitations on the costs to the parties of the arbitration;

2-22 (b) Disincentives to appeal; and

2-23 (c) Provisions for trial upon the exercise by either party of his right to a

2-24 trial anew after the arbitration.

2-25 5. The rules must provide that in actions in which the amount in

2-26 issue, excluding attorney’s fees, interest and court costs, does not exceed

2-27 $40,000, the district court:

2-28 (a) May grant a request for a trial anew after the arbitration if the

2-29 court determines that it is in the interests of justice; and

2-30 (b) Shall grant a request for a trial anew after the arbitration if the

2-31 court determines that the award is:

2-32 (1) In violation of a constitutional or statutory provision;

2-33 (2) In excess of the statutory authority of the arbitrator;

2-34 (3) Made upon unlawful procedure;

2-35 (4) Affected by any other error of law;

2-36 (5) Clearly erroneous in view of the reliable, probative and

2-37 substantial evidence on the whole record; or

2-38 (6) Arbitrary, capricious or characterized by abuse of discretion.

2-39 In determining whether to grant a trial anew, the district court may

2-40 substitute its judgment for that of the arbitrator.

2-41 6. The supreme court shall, on or before February 1 of each odd-

2-42 numbered year, submit a report to the director of the legislative counsel

2-43 bureau for transmittal to the chairmen of the assembly and senate standing

3-1 committees on the judiciary. The report must include, for the period since

3-2 the previous such report, if any:

3-3 (a) A listing of the number of actions which were submitted to

3-4 arbitration or other alternative methods of resolving disputes pursuant to

3-5 NRS 38.250 or 38.258 and their manner of disposition;

3-6 (b) A statement of the amount of money collected in each judicial

3-7 district pursuant to NRS 19.0315 and a summary of the manner in which

3-8 the fees were expended; and

3-9 (c) Any recommendations for legislation or other information regarding

3-10 the programs on arbitration deemed relevant by the supreme court.

3-11 Sec. 2. This act becomes effective on July 1, 1999.