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Volume 16, Number 3 · July 2006

Arbitration Expanded

The mandatory arbitration limits have been raised by statute to $50,000 in 4th class counties, effective in Washington County on Monday, July 10, 2006. This applies to personal injury, contract and all civil actions seeking money damages, except suits involving real estate titles, accounting, replevin, actions in equity, mandamus and mortgage foreclosure which must still be tried in the Court of Common Pleas.

It is anticipated this will relieve the civil trial lists of the courts substantially. Arbitration cases are heard by panels of three lawyers, one of whom must have at least ten years experience and another at least five. Cases can also be transferred to arbitration by consent of the parties, or by order of court. Arbitration in Pennsylvania has a long and largely successful record. Originally voluntary, it was changed to a compulsory system for civil claims up to $10,000. About 1970, the limit was raised to $20,000, and later to $35,000.

At that level, in Washington County some 159 arbitration cases were heard annually with less than one-half appealed to the court for final disposition and only 29% received jury trials. Expedited procedure and simplified evidentiary rules speed up arbitration practice. Experience shows the savings to parties and the judicial system are substantial in time and money.



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