N.C. R. Ct. Ord. Arb. 2

As amended through June 18, 2024

Rule 2 - Actions Subject to Arbitration

(a)By Order of the Court.

(1) All civil actions filed in the district court division are subject to court-ordered arbitration under these rules in accordance with the authority set forth in N.C.G.S. § 7A-37.1(c), except actions:

(i) Which are assigned to a magistrate, provided that appeals from judgments of magistrates are subject to court-ordered arbitration under these rules except appeals from summary ejectment actions and actions in which the sole claim is an action on an account;

(ii) In which class certification is sought;

(iii) In which a request has been made for a preliminary injunction or a temporary restraining order including claims filed under N.C.G.S. Chapter 50C;

(iv) Involving family law matters including claims filed under N. C.G.S. chapters 50, 50A, 50B, 51, 52, 52B and 52C;

(v) Involving title to real estate;

(vi) Which are special proceedings; or

(vii) In which the sole claim is an action on an account.

(2)Requests for Jury Trial. Cases otherwise eligible for arbitration shall be arbitrated regardless of whether a party made a request for a jury trial.

(3)Identification of Actions for Arbitration. The clerk shall identify actions eligible for arbitration upon the filing of the complaint or docketing of an appeal from a magistrate's judgment, in accordance with Arb. Rule 2(a)(1) and notify the court that the case has been identified for arbitration.

(4)Notice to Parties. The court shall serve notice upon the parties or their counsel as soon as practicable after the filing of the last required responsive pleading or the expiration of time for the last required responsive pleading or the docketing of an appeal from a magistrate's judgment.

(5)Arbitration by Agreement. The parties in any other civil action pending in the district court division may, upon joint written motion, request to submit the action to arbitration under these rules. The court may approve the motion if it finds that arbitration under these rules is appropriate. The consent of the parties shall not be presumed, but shall be stated by the parties expressly in writing.

(b)Exemption and Withdrawal From Arbitration. The court may exempt or withdraw any action from arbitration on its own motion, or on the motion of a party, made not less than 10 days before the arbitration hearing and a showing that:

(1) the action is excepted from arbitration under Arb. Rule 2(a)(1) or

(2) there is a compelling reason to do so.

N.C. R. Ct. Ord. Arb. 2

365 N.C. 711.

Amended effective 12/23/2020.

COMMENT

The purpose of these rules is to create an efficient, economical alternative to traditional litigation for prompt resolution of disputes in district court. The rules provide for court-ordered arbitration of district court actions because district court actions are typically suitable for consideration in the manner provided in these rules.

An arbitrator may award damages in any amount which a party is entitled to recover. These rules do not affect the jurisdiction or functions of the magistrates where they have been assigned such jurisdiction.

In a case involving multiple defendants when there is an appeal from a magistrate's judgment, and one or more defendants have been dismissed, an appeal by a remaining defendant does not operate to rejoin the dismissed defendant(s) in the action absent properly filed pleadings in accordance with N.C. R. Civ. P. 13.

Family law matters" in Arb. Rule 2(a)(1)(iv) includes all family law cases such as divorce, guardianship, adoptions, juvenile matters, child support, custody, and visitation. "Summary ejectments", referred to in Arb. Rule 2(a)(1)(i) and "special proceedings", referred to in Arb. Rule 2(a)(1)(vi), are actions so designated by the North Carolina General Statutes.

Arb. Rule 2(a)(3) contemplates that the clerk or designee shall determine whether an action is eligible for arbitration after reviewing the pleadings. The rule further contemplates that the clerk or designee will look beyond the cover sheet and filing codes to make this determination. The purpose of these rules is to be inclusive of the cases eligible for arbitration.

An action on an account" as referenced and excluded in Arb. Rule 2(a)(1)(i) and 2(a)(1)(vii) includes all cases involving an account wherein the account holder is authorized to complete multiple transactions. These actions should only include accounts in which the account holder has the ability to make more than one purchase during different periods. This exemption should not include cases wherein there was one transaction, even if multiple payments are included in the agreement. The accrual of interest does not constitute multiple transactions. Action on an account, as excluded by Arb. Rule 2(a)(1)(i) and Arb. Rule 2(a)(1)(vii), does not include the exclusion of monies owed claims. Cases in which attorneys' fees are requested are not "actions in which the sole claim is an action on an account" and are therefore not excluded under Arb. Rule 2(a)(1)(vii).

No case should be excluded from the mandatory arbitration process pursuant to Arb. Rule 2(a)(1)(vii) for the action on account exception unless the original petition is accompanied by a verified itemized statement which evidences multiple transactions. All other cases shall be treated as a claim for monies owed and should be arbitrated. The court or their designee shall review any petition alleging it is an action on an account and verify that the verified itemized statement is attached. If there is no such attachment, the matter shall be deemed a petition for monies owed and the matter shall be noticed for arbitration. N.C.G.S. § 8-45.

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