AN ACT RELATING TO COURTS AND CIVIL PROCEDURE -- PROCEDURE IN PARTICULAR ACTIONS -- ARBITRATION (Extends time for a party to apply for stay of arbitration to180 days; invalidates any provision that penalizes a party for seeking legal representation; requires arbitrator to provide notice of default to a party for failure to pay fees.)

S2396

2026 -- S 2396
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LC004516
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STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
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A N A C T
RELATING TO COURTS AND CIVIL PROCEDURE -- PROCEDURE IN PARTICULAR
ACTIONS -- ARBITRATION

Introduced By:
Senators McKenney, Burke, LaMountain, Appollonio, and Bissaillon

Date Introduced:
January 30, 2026

Referred To:
Senate Judiciary
It is enacted by the General Assembly as follows:
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SECTION 1. Sections 10-3-2, 10-3-22, 10-3-23 and, 10-3-24 of the General Laws in
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Chapter 10-3 entitled "Arbitration" are hereby amended to read as follows:
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10-3-2. Agreements to arbitrate subject to chapter — Notice.
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(a) When clearly written and expressed, a provision in a written contract to settle by
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arbitration a controversy thereafter arising out of such contract, or out of the refusal to perform the
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whole or any part thereof, or an agreement in writing between two (2) or more persons to submit
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to arbitration any controversy existing between them at the time of the agreement to submit shall
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be valid, irrevocable, and enforceable, save upon such grounds as exist at law or in equity for the
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revocation of any contract; provided, however, that the provisions of this chapter shall not apply
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to
, arbitration agreements governed by 9 U.S.C. §§ 1 through 16,
collective contracts between
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employers and employees, or between employers and associations of employees, in respect to terms
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or conditions of employment; and provided further, that in all contracts of primary insurance,
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wherein the provision for arbitration is not placed immediately before the testimonium clause or
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the signature of the parties, the arbitration procedure may be enforced at the option of the insured,
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and in the event the insured exercises the option to arbitrate, then the provisions of this chapter
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shall apply and be the exclusive remedy available to the insured.
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(b)
Notice of intention to arbitrate.
A party may serve upon another party a demand for
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arbitration or a notice of intention to arbitrate, specifying the agreement pursuant to which

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arbitration is sought and the name and address of the party serving the notice, or of an officer or
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agent thereof if such party is an association or corporation, and stating that unless the party served
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applies to stay the arbitration within
twenty (20)

one hundred-eighty (180)
days after such service
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they shall thereafter be precluded from objecting that a valid agreement was not made or has not
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been complied with and from asserting in court the bar of a limitation of time. Such notice or
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demand shall be served in the same manner as a summons or by registered or certified mail, return
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receipt requested. An application to stay arbitration shall be made by the party served within
twenty
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(20)

one hundred-eighty (180)
days after service upon the party of the notice or demand, or they
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shall be so precluded. Notice of such application shall be served in the same manner as a summons
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or by registered or certified mail, return receipt requested. Service of the application may be made
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upon the adverse party, or upon their attorney if the attorneys’ name appears on the demand for
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arbitration or the notice of intention to arbitrate. Service of the application by mail shall be timely
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if such application is posted within the prescribed period. Any provision in an arbitration agreement
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or arbitration rules that waives the right to apply for a stay of arbitration or prescribes a manner of
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notifying a party of an intention to commence arbitration that is more burdensome than that
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described in this section is hereby declared null and void.
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(c) The party required to send notice pursuant to subsection (b) of this section shall
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affirmatively include in the notice the rights being waived by failure to apply for the stay of
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arbitration. Said notice shall be done in bold print and highlighted.
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10-3-22. Right to representation.
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A party has the right to be represented by an attorney and may claim such right at any time
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as to any part of the arbitration or hearings that have not taken place. This right may not be waived.
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If a party is represented by an attorney, papers to be served on the party shall be served upon the
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party’s attorney. Any
provision of an
agreement that discriminates against or penalizes a party for
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retaining the services of counsel in an arbitration is null and void.
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10-3-23. Fees and costs of arbitration initiation — Invoice — Breach of agreement —
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Sanctions.
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(a)(1) In an employment or consumer arbitration that requires, either expressly or through
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application of state or federal law or the rules of the arbitration provider, unless there is a mutually
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agreed upon provision to split costs equally, the drafting party, unless otherwise specified, is to pay
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certain fees and costs before the arbitration can proceed. If the fees or costs to initiate an arbitration
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proceeding are not paid within thirty (30) days after the due date the drafting party is in
default and
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the arbitration provider shall send notice of default to the drafting party. If the drafting party fails
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to cure the default within fifteen (15) days after notice of the default or to file an action in court or

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a motion in arbitration to challenge whether the arbitration filings or notice of default are proper,
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the drafting party is in
material breach of the arbitration agreement, is in default of the arbitration,
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and waives its right to compel arbitration under § 10-3-4.
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(2) After an employee or consumer meets the filing requirements necessary to initiate an
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arbitration, the arbitration provider shall immediately provide an invoice for any fees and costs
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required before the arbitration can proceed to all of the parties to the arbitration. The invoice shall
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be provided in its entirety, shall state the full amount owed and the date that payment is due, and
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shall be sent to all parties by the same means on the same day. To avoid delay, absent an express
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provision in the arbitration agreement stating the number of days in which the parties to the
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arbitration must pay any required fees or costs, the arbitration provider shall issue all invoices to
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the parties as due upon receipt.
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(b) If the drafting party materially breaches the arbitration agreement and is in default under
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subsection (a) of this section, the employee or consumer may do either of the following:
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(1) Withdraw the claim from arbitration and proceed in a court of appropriate jurisdiction;
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or
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(2) Compel arbitration in which the drafting party shall pay reasonable attorneys’ fees and
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costs related to the arbitration.
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(c) If the employee, consumer, or other involved party withdraws the claim from arbitration
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and proceeds with an action in a court of appropriate jurisdiction under subsection (b)(1) of this
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section, the statute of limitations with regard to all claims brought or that relate back to any claim
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brought in arbitration shall be tolled as of the date of the first filing of a claim in a court, arbitration
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forum, or other dispute resolution forum.
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(d) If the employee or consumer proceeds with an action in a court of appropriate
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jurisdiction, the court shall impose sanctions on the drafting party in accordance with § 10-3-25.
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10-3-24. Material breach of agreement — Remedies.
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(a)(1) In an employment or consumer arbitration that requires, either expressly or through
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application of state or federal law or the rules of the arbitration provider, that the drafting party pay
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certain fees and costs during the pendency of an arbitration proceeding, if the fees or costs required
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to continue the arbitration proceeding are not paid within thirty (30) days after the due date, the
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drafting party is in
default and the arbitration provider shall send notice of default to the drafting
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party. If the drafting party fails to cure the default within fifteen (15) days after notice of the default
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or to file an action in court or a motion in arbitration to challenge whether the arbitration filings or
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notice of default are proper, the drafting party is in
material breach of the arbitration agreement, is
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in default of the arbitration, and waives its right to compel the employee or consumer to proceed

LC004516 - Page 3 of 6
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with that arbitration as a result of the material breach.
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(2) The arbitration provider shall provide an invoice for any fees and costs required for the
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arbitration proceeding to continue to all of the parties to the arbitration. The invoice shall be
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provided in its entirety, shall state the full amount owed and the date that payment is due, and shall
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be sent to all parties by the same means on the same day. To avoid delay, absent an express
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provision in the arbitration agreement stating the number of days in which the parties to the
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arbitration must pay any required fees or costs, the arbitration provider shall issue all invoices to
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the parties as due upon receipt. Any extension of time for the due date shall be agreed upon by all
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parties.
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(b) If the drafting party materially breaches the arbitration agreement and is in default under
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subsection (a) of this section, the employee or consumer may unilaterally elect to do any of the
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following:
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(1) Withdraw the claim from arbitration and proceed in a court of appropriate jurisdiction.
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If the employee or consumer withdraws the claim from arbitration and proceeds with an action in
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a court of appropriate jurisdiction, the statute of limitations, with regard to all claims brought or
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that relate back to any claim brought in arbitration, shall be tolled as of the date of the first filing
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of a claim in any court, arbitration forum, or other dispute resolution forum;
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(2) Continue the arbitration proceeding, if the arbitration provider agrees to continue
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administering the proceeding, notwithstanding the drafting party’s failure to pay fees or costs. The
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neutral arbitrator or arbitration provider may institute a collection action at the conclusion of the
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arbitration proceeding against the drafting party that is in default of the arbitration for payment of
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all fees associated with the employment or consumer arbitration proceeding, including the cost of
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administering any proceedings after the default;
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(3) Petition the court for an order compelling the drafting party to pay all arbitration fees
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that the drafting party is obligated to pay under the arbitration agreement or the rules of the
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arbitration provider; or
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(4) Pay the drafting party’s fees and proceed with the arbitration proceeding. As part of the
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award, the employee or consumer shall recover all arbitration fees paid on behalf of the drafting
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party without regard to any findings on the merits in the underlying arbitration.
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(c) If the employee or consumer withdraws the claim from arbitration and proceeds in a
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court of appropriate jurisdiction pursuant to subsection (b)(1) of this section, both of the following
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apply:
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(1) The employee or consumer may bring a motion, or a separate action, to recover all
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attorneys’ fees and all costs associated with the abandoned arbitration proceeding. The recovery of

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arbitration fees, interest, and related attorneys’ fees shall be without regard to any findings on the
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merits in the underlying action or arbitration; and
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(2) The court shall impose sanctions on the drafting party in accordance with § 10-3-25.
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(d) If the employee or consumer continues in arbitration pursuant to subsections (b)(2)
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through (4) of this section, inclusive, the arbitrator shall impose appropriate sanctions on the
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drafting party, including monetary sanctions, issue sanctions, evidence sanctions, or terminating
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sanctions.
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SECTION 2. This act shall take effect on January 1, 2027.
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO COURTS AND CIVIL PROCEDURE -- PROCEDURE IN PARTICULAR
ACTIONS -- ARBITRATION
***
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This act would provide that effective January 1, 2027 contract provisions relative to
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arbitration would not apply to agreements covered by 9 U.S.C. §§ 1 through 16 and extend the time
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for a party to apply for a stay of arbitration to one hundred-eighty (180) days. The act would also
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invalidate any provision of an agreement that penalizes a party for seeking legal representation in
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an arbitration; and require the arbitrator to provide notice of default to a party for failure to pay fees
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and afford the party in default to challenge any notice of default.
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This act would take effect on January 1, 2027.
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