TRENTON – Legislation sponsored by Senator Sandra B. Cunningham making New Jersey more attractive to international trade and more business friendly cleared the full Senate yesterday.
The bill, S-602, would declare that it is the policy of this State to encourage the use of arbitration, mediation, and conciliation to reduce disputes arising out of international business, trade, commercial, and other relationships. The bill would establish a process for the facilitation and recognition of international alternative dispute resolution in the State of New Jersey.
“This bill is about making our state more business friendly,” said Senator Cunningham (D-Hudson). “Arbitration is a faster and less expensive way of resolving legal disputes, and this bill will send a strong signal to businesses around the world that New Jersey is an appealing place to locate and do business.”
The bill, which is titled the “New Jersey International Arbitration, Mediation, and Conciliation Act,” would allow qualified non-profit organizations in the State to organize centers, whose principal purpose is to facilitate the resolution of international business, trade, commercial, and other disputes between persons by means of arbitration, mediation, conciliation, and other means as an alternative to the resort to litigation.
The bill would provide that conducting arbitration in this State, or making a written agreement to arbitrate which provides for arbitration within this State, shall constitute consent by the parties to the exercise of personal jurisdiction by the courts of this State, and arbitral awards or settlements issued by a center would be enforceable in the our Courts.
In recent years, arbitration has become an increasingly popular mechanism for resolving disputes between corporations. Parties are constantly seeking more efficient ways to resolve their commercial disputes.
This bill would permit qualified non-profit entities in the State to organize centers to facilitate the resolution of international business, trade, commercial, and other disputes between persons by means of arbitration. Thus, the bill would make New Jersey a more attractive state for corporate arbitration.
S-602 cleared the full Senate 33-0 and will head to the full Assembly for further consideration.