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Khalil Khazindar Law Firm
in Association with
JASON HUF INTERNATIONAL pc
Ammar Commercial Center

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Kingdom of Saudi Arabia
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  • New Jersey Senate Passes International Arbitration Bill

    The New Jersey (NJ) Senate, by unanimous vote, has passed Senate Bill 602, the "New Jersey International Arbitration, Mediation and Conciliation Act", sponsored by Senate Minority Leader Thomas H. Kean, Jr.

    A step in the right direction, if this bill becomes law as presently written, it would empower public research universities in the state to establish centers for arbitration and mediation, with such centers providing their own procedural rules.

    Parties having a qualifying dispute would chose their own substantive law (with NJ law serving as the “gap filler”) and would be able opt into such a center’s procedural rules or any other set of procedural rules the parties agree to choose.

    A qualifying dispute would be one in which one or more of the parties is a non-US resident (individual or corporate) as defined by the bill, or when the property or other asset(s) in controversy are located outside of the United States, or when the underlying business relationship significantly concerns some foreign jurisdiction.  Domestic commercial disputes may also be arbitrated or mediated at such a center, provided the parties expressly agree to avail themselves of such a facility in the dispute resolution clause of the underlying contract.

    Parties who elect to have their dispute heard before a panel or tribunal housed by an arbitration center in NJ would have to fully fund a bond equal to the amount of their exposure in the controversy.  Additionally, the parties would be deemed to have voluntarily submitted themselves to the (in personam) jurisdiction of the courts of New Jersey upon the execution of their agreement to arbitrate in the state, but only to the extent required by the arbitration and enforcement its resulting decision.

    Having been passed by the NJ Senate, the bill now moves to the relevant committee of the NJ General Assembly.

    JHI will continue to track this legislation.