COMMITTEE SUBSTITUTE
FOR
H. B. 2039
(By Delegate Ellem)
(Originating in the Committee on the Judiciary.)
[February 22, 2008]
A BILL to amend the Code of West Virginia, 1931, as amended, by
adding thereto a new section, designated § 55-8-15, relating
to defining regulated contracts; the prohibition of mandatory
arbitration clauses in regulated contracts; mandatory
arbitration clauses in regulatory contracts void; and
preemption by federal law.
Be it enacted by the Legislature of West Virginia:
That the Code of West Virginia, 1931, as amended, be amended
by adding thereto a new section, designated § 55-8-15 to read as
follows:
ARTICLE 8. ACTIONS ON CONTRACTS.
§55-8-15. Mandatory arbitration clauses prohibited and void
in regulated contracts; regulated contracts
defined; and, federal preemption.
(1) As used in this section, "regulated contract" means any contract subject to the terms of the "West Virginia Consumer Credit
and Protection Act", chapter forty-six-a.
(2) Unless preempted by federal law, a regulated contract may
not contain any terms or any clauses requiring mandatory
arbitration proceedings for disputes arising out of the agreement.
Any mandatory arbitration terms or clauses in a regulated contract
are void.
NOTE: The purpose of this bill is to establish that unless
preempted by federal law, a regulated contract may not contain a
mandatory arbitration clause, and that any mandatory arbitration
clause in a regulated contract is void.
Since the bill proposes to add a new section to the code,
there are no underlines or strike-throughs.
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