Is Your Arbitration Agreement Enforceable in Nevada?

Is Your Arbitration Agreement Enforceable in Nevada?

10.7.19 update:  In MMAWC, LLC v. Zion Wood Obiu Wan Trust, 135 Nev. Adv. Op. 38, __ P.3d __ (2019), the Nevada Supreme Court ruled that NRS 597.995 is preempted by the FAA.

UPDATE NOTATION:  See Is Your Arbitration Agreement Void, or Enforceable Nevada? for an important update on this topic.

In 2013, Nevada’s legislature passed a law which holds that contracts failing to provide “specific authorization” that the parties have “affirmatively agreed” to an arbitration provision are “void and unenforceable.”  The law, Nevada Revised Statute 597.995, does not apply to collective bargaining agreements.  The legislature does not explain what is required in order to provide “specific authorization,” but presumably, a separate initial of the parties next to the arbitration provision would suffice to satisfy a tribunal.





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