[§658A-6] Validity of agreement to arbitrate.

309 words·~1 min read·/hi/658a-6

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)An agreement contained in a record to submit to arbitration any existing or subsequent controversy arising between the parties to the agreement is valid, enforceable, and irrevocable except upon a ground that exists at law or in equity for the revocation of a contract.

(b)The court shall decide whether an agreement to arbitrate exists or a controversy is subject to an agreement to arbitrate.

(c)An arbitrator shall decide whether a condition precedent to arbitrability has been fulfilled and whether a contract containing a valid agreement to arbitrate is enforceable.

(d)If a party to a judicial proceeding challenges the existence of, or claims that a controversy is not subject to, an agreement to arbitrate, the arbitration proceeding may continue pending final resolution of the issue by the court, unless the court otherwise orders. [L 2001, c 265, pt of §1]

Case Notes

Circuit court erred in determining that petitioner's claim that the arbitration provision in question was unconscionable on several grounds were beyond the scope of its review in deciding on a motion to compel arbitration; unconscionability is a generally applicable contract defense and is within the scope of the circuit court's review on the question of whether a valid and enforceable agreement to arbitrate exists. 130 H. 437, 312 P.3d 869 (2013).

The circuit court should have granted the petitioner's motion to compel arbitration because there was an arbitration agreement between the parties that clearly and unmistakably left the issue of arbitrability to the arbitrator. 132 H. 426, 322 P.3d 966 (2014).

Where substantively unconscionable terms pervaded the arbitration agreement and, therefore, no part of the arbitration agreement could be spared and given effect, circuit court erred in declining to invalidate the entire arbitration agreement. 140 H. 325, 400 P.3d 526 (2017).

Cited: 297 F. Supp. 2d 1259 (2003).