Attorneys who miss the 30-day window to file a demand for trial de novo will receive a slight reprieve in the future under court rule amendments adopted by the Judiciary. Acting on recommendations of the Joint Working Group on Arbitration Rules and Procedures, the state Judiciary adopted notable changes to the civil arbitration system that the New Jersey State Bar Association supported.
Under the amended rules, a party who misses the 30-day window to file a demand for a trial de novo will receive an additional 10 days to file a motion to reject an arbitration award and demand a trial de novo. If the party is able to establish good cause for having missed the deadline, the motion will be granted. Motions filed beyond the 10-day time frame will be subject to a showing of extraordinary circumstances. If a motion allowing the filing of a trial de novo demand beyond the original deadline is granted, the parties will remain subject to all other timelines in the Court Rules. The NJSBA advocated for relief from the strict 30-day timeframe to reject an arbitration award, noting that, at times, inadvertent oversights occur. The NJSBA supported permitting an additional window beyond the original filing deadline.
As a further safeguard against any misunderstanding of the de novo filing deadline, the Court announced the creation of a new eCourts function that will send electronic notifications seven days prior to the expiration of the filing deadline.
Another important measure the NJSBA advocated for – which the Judiciary adopted is an increase in civil arbitrator compensation. Under current provisions, arbitrators receive $350 per day for single arbitrator panels and $450 for two-arbitrator panels. Those payments will increase to $400 and $650, respectively. The NJSBA noted in comments to the Judiciary that a compensation increase is long overdue, and the increases will more fairly and equitably compensate arbitrators.
The permissible length of arbitration statements will also be limited under the new rules to five pages, not to exceed 35 pages including exhibits. Presently, there are no limitations.
Finally, the trial de novo fee will increase from $200 to $265. The NJSBA agreed an increase made sense in exchange for the increase in arbitrator fees.
The NJSBA had asked the Judiciary to consider implementing additional proposals that would
require submission of arbitration statements three days before the arbitration, allow an opt-in for in-person hearings when remote hearings are scheduled, and prohibiting telephonic arbitrations. The organization argued those proposals would ensure all parties have sufficient time to review and prepare for the hearing and sufficient opportunity to present their case to the arbitrator. The Judiciary, however, did not take action on those.
The new rules, effective July 1, can be found at njscourts.gov.