Revises provisions relating to alternative dispute resolution. (BDR 3-472)

Existing law requires, with certain exceptions, civil actions for damages that do not exceed $50,000 per plaintiff to be submitted to nonbinding arbitration. (NRS 38.250, 38.255) Section 1.5 of this bill increases the monetary threshold for mandatory nonbinding arbitration in civil actions to $100,000 per plaintiff. Section 2 of this bill makes a conforming change to reflect that the monetary threshold for mandatory nonbinding arbitration is increased to $100,000 per plaintiff by section 1.5. Existing law requires the Supreme Court to adopt rules to provide for the establishment of a program of arbitration, and such rules must include, for example: (1) provisions for the payment of fees to an arbitrator who is appointed to hear a case and who must be compensated at a rate of $100 per hour, to a maximum of $1,000 per case, unless otherwise authorized by the arbitration commissioner for good cause shown; (2) guidelines for the award of attorney's fees; and (3) exclusion of certain types of actions from the program, such as class actions, probate actions and actions involving domestic relations. (NRS 38.255) Section 2 revises the requirements for the rules adopted by the Supreme Court to: (1) remove the existing limitations on the amount of compensation for an arbitrator and instead require the payment of both fees and costs to an arbitrator, which are generally subject to certain maximum limitations on compensation required to be established by the rules; (2) authorize an arbitrator to award to a prevailing party attorney's fees in an amount not to exceed $15,000, as provided by specific statute or court rule, and costs and interest as provided by specific statute or court rule; and (3) exclude additional types of actions from the program. Existing law provides that the Supreme Court may authorize the use of settlement conferences and other alternative methods of resolving disputes, including, without limitation, a short trial. If the Supreme Court authorizes the use of an alternative method of resolving disputes, the Supreme Court is required to adopt rules and procedures to govern the use of any such method. (NRS 38.258) Section 3 of this bill provides that if the Supreme Court authorizes the use of a short trial, in addition to any other appropriate provisions, the rules and procedures governing a short trial must authorize the short trial judge to award to the prevailing party attorney's fees in an amount not to exceed $15,000, as provided by specific statute or court rule. Sections 1, 1.5 and 3 make a conforming change to apply the definition of the term “short trial” to the provisions of this bill.