[House Report 105-381]
[From the U.S. Government Publishing Office]



105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                    105-381
_______________________________________________________________________


 
   TECHNICAL CORRECTIONS TO SECTION 10 OF TITLE 9, UNITED STATES CODE

_______________________________________________________________________


November 5, 1997.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

Mr. Hyde, from the Committee on the Judiciary,  submitted the following

                              R E P O R T

                        [To accompany H.R. 2440]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on the Judiciary, to whom was referred the 
bill (H.R. 2440) to make technical amendments to section 10 of 
title 9, United States Code, having considered the same, 
reports favorably thereon without amendment and recommends that 
the bill do pass.


                           TABLE OF CONTENTS
                                                                   Page
Purpose and Summary........................................           2
Background and Need for Legislation........................           2
Hearings...................................................           2
Committee Consideration....................................           2
Vote of the Committee......................................           2
Committee Oversight Findings...............................           2
Committee on Government Reform and Oversight Findings......           2
New Budget Authority and Tax Expenditures..................           2
Congressional Budget Office Estimate.......................           2
Constitutional Authority Statement.........................           3
Section-by-Section Analysis................................           3
Agency Views...............................................           4
Changes in Existing Law Made by the Bill, as Reported......           4


                          Purpose and Summary

    H.R. 2440 makes a technical correction to an obvious 
punctuation error in Section 10, Title 9, United States Code.

                Background and Need for the Legislation

    Section 10, Title 9, United States Code provides the 
grounds under which a federal district judge can vacate an 
arbitrator's award. Section 10(a) (1) through (5) enumerates 
these grounds. The error, which has existed from the original 
enactment in 1925, apparently evaded detection because each 
enumerated ground begins with the word ``where.'' However, 
paragraph (5), rather than stating a ground for vacating an 
award, is obviously meant to begin the first sentence of the 
next subsection.

                                Hearings

    No hearings were held on H.R. 2440.

                        Committee Consideration

    On September 11, 1997, the Subcommittee on Commercial and 
Administrative Law met in open session and ordered reported the 
bill H.R. 2440, without amendment by a voice vote, a quorum 
being present. On September 17, 1997, the Committee met in open 
session and ordered reported favorably the bill H.R. 2440 
without amendment by voice vote, a quorum being present.

                         Vote of the Committee

    There were no recorded votes in full Committee.

                      Committee Oversight Findings

    In compliance with clause 2(l)(3)(A) of rule XI of the 
Rules of the House of Representatives, the Committee reports 
that the findings and recommendations of the Committee, based 
on oversight activities under clause 2(b)(1) of rule X of the 
Rules of the House of Representatives, are incorporated in the 
descriptive portions of this report.

         Committee on Government Reform and Oversight Findings

    No findings or recommendations of the Committee on 
Government Reform and Oversight were received as referred to in 
clause 2(l)(3)(D) of rule XI of the Rules of the House of 
Representatives.

               New Budget Authority and Tax Expenditures

    Clause 2(l)(3)(B) of House Rule XI is inapplicable because 
this legislation does not provide new budgetary authority or 
increased tax expenditures.

               Congressional Budget Office Cost Estimate

    In compliance with clause 2(l)(3)(C) of rule XI of the 
Rules of the House of Representatives, the Committee sets 
forth, with respect to the bill, H.R. 2440, the following 
estimate and comparison prepared by the Director of the 
Congressional Budget Office under section 403 of the 
Congressional Budget Act of 1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                Washington, DC, September 23, 1997.
Hon. Henry J. Hyde, Chairman,
Committee on the Judiciary,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 2440, a bill to 
make technical amendments to section 10 of Title 9, United 
States Code.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Susanne S. 
Mehlman, who can be reached at 226-2860.
            Sincerely,

                                           June E. O'Neill, Director.  
    Enclosure.

cc:    Hon. John Conyers, Jr.,
          Ranking Minority Member.
H.R. 2440--A bill to make technical amendments to section 10 of Title 
        9, United States Code
    CBO estimates that enacting H.R. 2440 would not have any 
impact on the federal budget. Because enactment of H.R. 2440 
would not affect direct spending or receipts, pay-as-you-go 
procedures would not apply. The bill does not contain any 
intergovernmental or private-sector mandates as defined in the 
Unfunded Mandates Reform Act of 1995 and would impose no costs 
on state, local, or tribal governments.
    H.R. 2440 would correct punctuation errors and make other 
minor wording changes to section 10 of Title 9, United States 
Code, which specifies the grounds under which a federal judge 
can vacate an arbitrator's award. Because these changes are 
technical and would make no substantive changes to the laws 
affecting arbitration, CBO estimates that enacting H.R. 2440 
would not have any budgetary impact.
    The CBO staff contact for this estimate is Susanne S. 
Mehlman, who can be reached at 226-2860. This estimate was 
approved by Robert A. Sunshine, Deputy Assistant Director for 
Budget Analysis.

                   Constitutional Authority Statement

    Pursuant to Rule XI, clause 2(l)(4) of the Rules of the 
House of Representatives, the Committee finds the authority for 
this legislation in Article I, section 8 of the Constitution.

                      Section-by-Section Analysis

    Section one corrects a technical error in Section 10 of 
title 9, United States Code: by indenting the margin of 
paragraphs (1) through (4) of subsection (a) 2 ems; by striking 
``Where'' in such paragraphs and inserting ``where''; by 
striking the period at the end of paragraphs (1), (2), and (3) 
of subsection (a) and inserting a semicolon; by adding ``or'' 
at the end of paragraph (3); by redesignating subsection (b) as 
subsection (c); by striking ``Where an award'' in paragraph (5) 
and inserting in lieu thereof ``If an award''; by inserting a 
comma after ``expired'' in paragraph (5); and by redesignating 
the paragraph as subsection (b).

                              Agency Views

    No agency views were received on H.R. 2440.

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3 of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, existing law in which no change 
is proposed is shown in roman):

               SECITON 10 OF TITLE 9, UNITED STATES CODE

Sec. 10. Same; vacation; grounds; rehearing

    (a) In any of the following cases the United States court 
in and for the district wherein the award was made may make an 
order vacating the award upon the application of any party to 
the arbitration--
            (1) [Where] where the award was procured by 
        corruption, fraud, or undue means[.];
            (2) [Where] where there was evident partiality or 
        corruption in the arbitrators, or either of them[.];
            (3) [Where] where the arbitrators were guilty of 
        misconduct in refusing to postpone the hearing, upon 
        sufficient cause shown, or in refusing to hear evidence 
        pertinent and material to the controversy; or of any 
        other misbehavior by which the rights of any party have 
        been prejudiced[.]; or
            (4) [Where] where the arbitrators exceeded their 
        powers, or so imperfectly executed them that a mutual, 
        final, and definite award upon the subject matter 
        submitted was not made.
    [(5) Where an award] (b) If an award is vacated and the 
time within which the agreement required the award to be made 
has not expired, the court may, in its discretion, direct a 
rehearing by the arbitrators.
    [(b)] (c) The United States district court for the district 
wherein an award was made that was issued pursuant to section 
580 of title 5 may make an order vacating the award upon the 
application of a person, other than a party to the arbitration, 
who is adversely affected or aggrieved by the award, if the use 
of arbitration or the award is clearly inconsistent with the 
factors set forth in section 572 of title 5.