Court Annexed Arbitration Act

(Reported to Senate from the Committee on the Judiciary with amendment, S. Rept. 95-1103)

Court-Annexed Arbitration Act - Establishes, on a three-year experimental basis, compulsory, nonbinding arbitration as an alternative to conventional litigation.

Authorizes United States district courts to refer the following types of civil actions to arbitration: (1) actions where all parties consent to arbitration; or (2) money damage tort and contract actions under $100,000 in which jurisdiction is based in whole or in part on a Federal question, diversity, admiralty, the United States as plaintiff, or the United States as defendant. Excludes the following cases from referral to arbitration: (1) constitutional rights cases; (2) official immunity cases; (3) certain civil rights cases; and (4) civil fraud cases. Allows the district courts to establish by rule procedures for excepting from arbitration, for good cause shown, individual cases that would otherwise be referred to arbitration.

Authorizes the district courts to certify arbitrators and to provide guidelines for arbitration proceedings.

Permits any party dissatisfied with the arbitration hearing to demand a trial de novo in the district court. Stipulates that if such party fails to obtain in the district court a judgment, exclusive of interest and costs, more favorable to him or her than the arbitration award, the court may tax against that party the cost of the arbitration proceeding.

Directs the Federal Judicial Center to submit to Congress, six months before the expiration of the third year, a report on the use, effectiveness, and benefits of the arbitration process.

Authorizes the appropriation for fiscal year 1979 to the judicial branch such sums as may be necessary to carry out the purposes of this Act.