1-1 By: Wentworth S.B. No. 1381
1-2 (In the Senate - Filed March 13, 1995; March 20, 1995, read
1-3 first time and referred to Committee on Jurisprudence;
1-4 April 19, 1995, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 6, Nays 0; April 19, 1995,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 1381 By: Wentworth
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to the application of certain statutes providing for
1-11 arbitration.
1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13 SECTION 1. Article 224, Revised Statutes, is amended to read
1-14 as follows:
1-15 Art. 224. Validity of arbitration agreements. A written
1-16 agreement to submit any existing controversy to arbitration or a
1-17 provision in a written contract to submit to arbitration any
1-18 controversy thereafter arising between the parties is valid,
1-19 enforceable and irrevocable, save upon such grounds as exist at law
1-20 or in equity for the revocation of any contract. A court shall
1-21 refuse to enforce an agreement or contract provision to submit a
1-22 controversy to arbitration if the court finds it was unconscionable
1-23 at the time the agreement or contract was made. Provided, however,
1-24 that none of the provisions of this Act shall apply to:
1-25 (a) any collective bargaining agreement between an employer
1-26 and a labor union;
1-27 (b) <any contract for the acquisition by an individual
1-28 person or persons (as distinguished from a corporation, trust,
1-29 partnership, association, or other legal entity) of real or
1-30 personal property, or services, or money or credit where the total
1-31 consideration therefor to be paid or furnished by the individual is
1-32 $50,000 or less, unless said individual and the other party or
1-33 parties agree in writing to submit to arbitration and such written
1-34 agreement is signed by the parties to such agreement and their
1-35 attorneys;>
1-36 <(c)> any claim for personal injury except upon the advice
1-37 of counsel to both parties as evidenced by a written agreement
1-38 signed by counsel to both parties; or
1-39 (c) a<. A> claim for workers' compensation <shall not be
1-40 submitted to arbitration under this Act>.
1-41 SECTION 2. This Act takes effect September 1, 1995, and
1-42 applies only to a controversy arising under a contract entered into
1-43 on or after that date. A controversy arising under a contract
1-44 entered into before the effective date of this Act is governed by
1-45 the law applicable to the controversy immediately before the
1-46 effective date of this Act, and that law is continued in effect for
1-47 that purpose.
1-48 SECTION 3. The importance of this legislation and the
1-49 crowded condition of the calendars in both houses create an
1-50 emergency and an imperative public necessity that the
1-51 constitutional rule requiring bills to be read on three several
1-52 days in each house be suspended, and this rule is hereby suspended.
1-53 * * * * *