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S.B. 61

This document includes Senate 3rd Reading Floor Amendments incorporated into the bill on Wed, Feb 8, 2006 at 11:07 AM by smaeser. -->              1     

UNIFORM MEDIATION ACT

             2     
2006 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Lyle W. Hillyard

             5     
House Sponsor: Lorie D. Fowlke

             6     

             7      LONG TITLE
             8      General Description:
             9          This bill enacts the Utah Uniform Mediation Act.
             10      Highlighted Provisions:
             11          This bill:
             12          .    enacts the Utah Uniform Mediation Act;
             13          .    provides definitions;
             14          .    applies to most mediations;
             15          .    sets waiver provisions for privileges and communications within mediation;
             16          .    states mediation information is confidential and not admissible in court, and
             17      specifies exceptions; and
             18          .    provides for mediator's disclosure of conflicts of interest.
             19      Monies Appropriated in this Bill:
             20          None
             21      Other Special Clauses:
             22          None
             23      Utah Code Sections Affected:
             24      ENACTS:
             25          78-31c-101, Utah Code Annotated 1953
             26          78-31c-102, Utah Code Annotated 1953
             27          78-31c-103, Utah Code Annotated 1953



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             28
         78-31c-104, Utah Code Annotated 1953
             29          78-31c-105, Utah Code Annotated 1953
             30          78-31c-106, Utah Code Annotated 1953
             31          78-31c-107, Utah Code Annotated 1953
             32          78-31c-108, Utah Code Annotated 1953
             33          78-31c-109, Utah Code Annotated 1953
             34          78-31c-110, Utah Code Annotated 1953
             35          78-31c-111, Utah Code Annotated 1953
             36          78-31c-112, Utah Code Annotated 1953
             37          78-31c-113, Utah Code Annotated 1953
             38          78-31c-114, Utah Code Annotated 1953
             39     

             40      Be it enacted by the Legislature of the state of Utah:
             41          Section 1. Section 78-31c-101 is enacted to read:
             42     
CHAPTER 31c. UTAH UNIFORM MEDIATION ACT

             43          78-31c-101. Title.
             44          This chapter is known as the "Utah Uniform Mediation Act."
             45          Section 2. Section 78-31c-102 is enacted to read:
             46          78-31c-102. Definitions.
             47          As used in this chapter:
             48          (1) "Mediation" means a process in which a mediator facilitates communication and
             49      negotiation between parties to assist them in reaching a voluntary agreement regarding their
             50      dispute.
             51          (2) "Mediation communication" means conduct or a statement, whether oral, in a
             52      record, verbal, or nonverbal, that occurs during a mediation or is made for purposes of
             53      considering, conducting, participating in, initiating, continuing, or reconvening a mediation or
             54      retaining a mediator.
             55          (3) "Mediation party" means a person that participates in a mediation and whose
             56      agreement is necessary to resolve the dispute.
             57          (4) "Mediator" means an individual who S. is neutral, and .S conducts a mediation.
             58          (5) "Nonparty participant" means a person, other than a party or mediator, that



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             59
     participates in a mediation.
             60          (6) "Person" means an individual, corporation, estate, trust, business trust, partnership,
             61      limited liability company, association, joint venture, government, governmental subdivision,
             62      agency, or instrumentality, public corporation, or any other legal or commercial entity.
             63          (7) "Proceeding" means:
             64          (a) a judicial, administrative, arbitral, or other adjudicative process, including related
             65      prehearing and posthearing motions, conferences, and discovery; or
             66          (b) a legislative hearing or similar process.
             67          (8) "Record" means information that is inscribed on a tangible medium or that is stored
             68      in an electronic or other medium and is retrievable in perceivable form.
             69          (9) "Sign" means:
             70          (a) to execute or adopt a tangible symbol with the present intent to authenticate a
             71      record; or
             72          (b) to attach or logically associate an electronic symbol, sound, or process to or with a
             73      record with the present intent to authenticate a record.
             74          Section 3. Section 78-31c-103 is enacted to read:
             75          78-31c-103. Scope.
             76          (1) Except as otherwise provided in Subsection (2) or (3), this chapter applies to a
             77      mediation in which:
             78          (a) the mediation parties are required to mediate by statute, court, or administrative
             79      agency rule or referred to mediation by a court, administrative agency, or arbitrator;
             80          (b) the mediation parties and the mediator agree to mediate in a record that
             81      demonstrates an expectation that mediation communications will be privileged against
             82      disclosure; or
             83          (c) the mediation parties use as a mediator an individual who holds himself or herself
             84      out as a mediator or the mediation is provided by an entity that holds itself out as providing
             85      mediation.
             86          (2) The chapter does not apply to a mediation:
             87          (a) relating to the establishment, negotiation, administration, or termination of a
             88      collective bargaining relationship;
             89          (b) relating to a dispute that is pending under or is part of the processes established by



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             90
     a collective bargaining agreement, except that the chapter applies to a mediation arising out of
             91      a dispute that has been filed with an administrative agency or court;
             92          (c) conducted by a judge who might make a ruling on the case; or
             93          (d) conducted under the auspices of:
             94          (i) a primary or secondary school if all the parties are students; or
             95          (ii) a correctional institution for youths if all the parties are residents of that institution.
             96          (3) If the parties agree in advance in a signed record, or a record of proceeding reflects
             97      agreement by the parties, that all or part of a mediation is not privileged, the privileges under
             98      Sections 78-31c-104 through 78-31c-106 do not apply to the mediation or part agreed upon.
             99      However, Sections 78-31c-104 through 78-31c-106 apply to a mediation communication made
             100      by a person that has not received actual notice of the agreement before the communication is
             101      made.
             102          Section 4. Section 78-31c-104 is enacted to read:
             103          78-31c-104. Privilege against disclosure -- Admissibility -- Discovery.
             104          (1) Except as otherwise provided in Section 78-31c-106 , a mediation communication is
             105      privileged as provided in Subsection (2) and is not subject to discovery or admissible in
             106      evidence in a proceeding unless waived or precluded as provided by Section 78-31c-105 .
             107          (2) In a proceeding, the following privileges apply:
             108          (a) A mediation party may refuse to disclose, and may prevent any other person from
             109      disclosing, a mediation communication.
             110          (b) A mediator may refuse to disclose a mediation communication, and may prevent
             111      any other person from disclosing a mediation communication of the mediator.
             112          (c) A nonparty participant may refuse to disclose, and may prevent any other person
             113      from disclosing, a mediation communication of the nonparty participant.
             114          (3) Evidence or information that is otherwise admissible or subject to discovery does
             115      not become inadmissible or protected from discovery solely by reason of its disclosure or use in
             116      a mediation.
             117          Section 5. Section 78-31c-105 is enacted to read:
             118          78-31c-105. Waiver and preclusion of privilege.
             119          (1) A privilege under Section 78-31c-104 may be waived in a record or orally during a
             120      proceeding if it is expressly waived by all parties to the mediation, and:



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             121
         (a) in the case of the privilege of a mediator, it is expressly waived by the mediator;
             122      and
             123          (b) in the case of the privilege of a nonparty participant, it is expressly waived by the
             124      nonparty participant.
             125          (2) A person that discloses or makes a representation about a mediation
             126      communication which prejudices another person in a proceeding is precluded from asserting a
             127      privilege under Section 78-31c-104 , but only to the extent necessary for the person prejudiced
             128      to respond to the representation or disclosure.
             129          (3) A person that intentionally uses a mediation to plan, attempt to commit or commit a
             130      crime, or to conceal an ongoing crime or ongoing criminal activity is precluded from asserting
             131      a privilege under Section 78-31c-104 .
             132          Section 6. Section 78-31c-106 is enacted to read:
             133          78-31c-106. Exceptions to privilege.
             134          (1) There is no privilege under Section 78-31c-104 for a mediation communication that
             135      is:
             136          (a) in an agreement evidenced by a record signed by all parties to the agreement;
             137          (b) available to the public under Title 63, Chapter 2, Government Records Access and
             138      Management Act, or made during a mediation session which is open, or is required by law to
             139      be open, to the public;
             140          (c) a threat or statement of a plan to inflict bodily injury or commit a crime of violence;
             141          (d) intentionally used to plan a crime, attempt to commit or commit a crime, or to
             142      conceal an ongoing crime or ongoing criminal activity;
             143          (e) sought or offered to prove or disprove a claim or complaint of professional
             144      misconduct or malpractice filed against a mediator;
             145          (f) except as otherwise provided in Subsection (3), sought or offered to prove or
             146      disprove a claim or complaint of professional misconduct or malpractice filed against a
             147      mediation party, nonparty participant, or representative of a party based on conduct occurring
             148      during a mediation; or
             149          (g) S. [ sought or offered to prove or disprove abuse, neglect, abandonment, or exploitation
             150      in a proceeding in which a child or adult protective services agency is a party, unless the case is
             151      referred by a court to mediation and a public agency participates.
] subject to the reporting

             151a      requirements in 62A-4a-403 or 62A-3-305. .S



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             152
         (2) There is no privilege under Section 78-31c-104 if a court, administrative agency, or
             153      arbitrator finds, after a hearing in camera, that the party seeking discovery or the proponent of
             154      the evidence has shown that:
             155          (a) the evidence is not otherwise available;
             156          (b) there is a need for the evidence that substantially outweighs the interest in
             157      protecting confidentiality; and
             158          (c) the mediation communication is sought or offered in:
             159          (i) a court proceeding involving a felony or misdemeanor; or
             160          (ii) except as otherwise provided in Subsection (3), a proceeding to prove a claim to
             161      rescind or reform or a defense to avoid liability on a contract arising out of the mediation.
             162          (3) A mediator may not be compelled to provide evidence of a mediation
             163      communication referred to in Subsection (1)(f) or (2)(c)(ii).
             164          (4) If a mediation communication is not privileged under Subsection (1) or (2), only
             165      the portion of the communication necessary for the application of the exception from
             166      nondisclosure may be admitted. Admission of evidence under Subsection (1) or (2) does not
             167      render the evidence, or any other mediation communication, discoverable or admissible for any
             168      other purpose.
             169          Section 7. Section 78-31c-107 is enacted to read:
             170          78-31c-107. Prohibited mediator reports.
             171          (1) Except as required in Subsection (2), a mediator may not make a report,
             172      assessment, evaluation, recommendation, finding, or other communication regarding a
             173      mediation to a court, administrative agency, or other authority that may make a ruling on the
             174      dispute that is the subject of the mediation.
             175          (2) A mediator may disclose:
             176          (a) whether the mediation occurred or has terminated, whether a settlement was
             177      reached, and attendance;
             178          (b) a mediation communication as permitted under Section 78-31c-106 ; or
             179          (c) a mediation communication evidencing abuse, neglect, abandonment, or
             180      exploitation of an individual to a public agency responsible for protecting individuals against
             181      such mistreatment.
             182          (3) A communication made in violation of Subsection (1) may not be considered by a



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             183
     court, administrative agency, or arbitrator.
             184          Section 8. Section 78-31c-108 is enacted to read:
             185          78-31c-108. Confidentiality.
             186          Unless subject to Title 52, Chapter 4, Open and Public Meetings, and Title 63, Chapter
             187      2, Government Records Access and Management Act, mediation communications are
             188      confidential to the extent agreed by the parties or provided by other law or rule of this state.
             189          Section 9. Section 78-31c-109 is enacted to read:
             190          78-31c-109. Mediator's disclosure of conflicts of interest -- Background.
             191          (1) Before accepting a mediation, an individual who is requested to serve as a mediator
             192      shall:
             193          (a) make an inquiry that is reasonable under the circumstances to determine whether
             194      there are any known facts that a reasonable individual would consider likely to affect the
             195      impartiality of the mediator, including a financial or personal interest in the outcome of the
             196      mediation and an existing or past relationship with a mediation party or foreseeable participant
             197      in the mediation; and
             198          (b) disclose any known fact to the mediation parties as soon as practical before
             199      accepting a mediation.
             200          (2) If a mediator learns any fact described in Subsection (1)(a) after accepting a
             201      mediation, the mediator shall disclose it as soon as practicable.
             202          (3) At the request of a mediation party, an individual who is requested to serve as a
             203      mediator shall disclose the mediator's qualifications to mediate a dispute.
             204          (4) Subsections (1), (2), (3), and (6) do not apply to an individual acting as a judge S. or
             204a      ombudsman .S .
             205          (5) This chapter does not require that a mediator have a special qualification by
             206      background or profession.
             207          (6) A mediator must be impartial, unless after disclosure of the facts required in
             208      Subsections (1) and (2) to be disclosed, the parties agree otherwise.
             209          Section 10. Section 78-31c-110 is enacted to read:
             210          78-31c-110. Participation in mediation.
             211          An attorney or other individual designated by a party may accompany the party to, and
             212      participate in, a mediation. A waiver of participation given before the mediation may be
             213      rescinded.



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             214
         Section 11. Section 78-31c-111 is enacted to read:
             215          78-31c-111. International commercial mediation.
             216          (1) In this section:
             217          (a) "International commercial mediation" means an international commercial
             218      conciliation as defined in Article 1 of the Model Law.
             219          (b) "Model Law" means the Model Law on International Commercial Conciliation
             220      adopted by the United Nations Commission on International Trade Law on 28 June 2002 and
             221      recommended by the United Nations General Assembly in a resolution (A/RES/57/18) dated
             222      19 November 2002.
             223          (2) Except as otherwise provided in Subsections (3) and (4), if a mediation is an
             224      international commercial mediation, the mediation is governed by the Model Law.
             225          (3) Unless the parties agree in accordance with Subsection 78-31c-103 (3) that all or
             226      part of an international commercial mediation is not privileged, Sections 78-31c-104 through
             227      78-31c-106 and any applicable definitions in Section 78-31c-102 of this chapter apply to the
             228      mediation and nothing in Article 10 of the Model Law derogates from Sections 78-31c-104
             229      through 78-31c-106 .
             230          (4) If the parties to an international commercial mediation agree under Article 1,
             231      Section (7), of the Model Law that the Model Law does not apply, this chapter applies.
             232          Section 12. Section 78-31c-112 is enacted to read:
             233          78-31c-112. Relation to Electronic Signatures in Global and National Commerce
             234      Act.
             235          This chapter modifies, limits, or supersedes the federal Electronic Signatures in Global
             236      and National Commerce Act, 15 U.S.C. Section 7001 et seq., but does not modify, limit, or
             237      supersede Section 101(c) of that act or authorize electronic delivery of any of the notices
             238      described in Section 103(b) of that act.
             239          Section 13. Section 78-31c-113 is enacted to read:
             240          78-31c-113. Uniformity of application and construction.
             241          In applying and construing this chapter, consideration should be given to the need to
             242      promote uniformity of the law with respect to its subject matter among states that enact it.
             243          Section 14. Section 78-31c-114 is enacted to read:
             244          78-31c-114. Application to existing agreements or referrals.



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             245
         (1) This chapter governs a mediation pursuant to a referral or an agreement to mediate
             246      made on or after May 1, 2006.
             247          (2) Notwithstanding Subsection (1), on or after May 1, 2007, this chapter governs all
             248      agreements to mediate whenever made.





Legislative Review Note
    as of 1-5-06 3:28 PM


Based on a limited legal review, this legislation has not been determined to have a high
probability of being held unconstitutional.

Office of Legislative Research and General Counsel


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