A qualified warranty may include
mandatory binding arbitration of all disputes arising out of or
in connection with a qualified warranty. The provision may
provide that all claims for a single condominium be heard by the
same arbitrator, but shall not permit the joinder or
consolidation of any other person or entity. The arbitration
shall comply with the following minimum procedural standards:
(1) Any demand for arbitration shall be delivered by
certified mail return receipt requested, and by ordinary
first-class mail. The party initiating the arbitration shall
address the notice to the address last known to the initiating
party in the exercise of reasonable diligence, and also, for any
entity which is required to have a registered agent in the state
of Washington, to the address of the registered agent. Demand
for arbitration is deemed effective three days after the date
deposited in the mail;
(2) All disputes shall be heard by one qualified arbitrator,
unless the parties agree to use three arbitrators. If three
arbitrators are used, one shall be appointed by each of the
disputing parties and the first two arbitrators shall appoint the
third, who will chair the panel. The parties shall select the
identity and number of the arbitrator or arbitrators after the
demand for arbitration is made. If, within thirty days after the
effective date of the demand for arbitration, the parties fail to
agree on an arbitrator or the agreed number of arbitrators fail
to be appointed, then an arbitrator or arbitrators shall be
appointed under *RCW 7.04.050 by the presiding judge of the
superior court of the county in which the condominium is located;
(3) In any arbitration, at least one arbitrator must be a
lawyer or retired judge. Any additional arbitrator must be
either a lawyer or retired judge or a person who has experience
with construction and engineering standards and practices,
written construction warranties, or construction dispute
resolution. No person may serve as an arbitrator in any
arbitration in which that person has any past or present
financial or personal interest;
(4) The arbitration hearing must be conducted in a manner
that permits full, fair, and expeditious presentation of the case
by both parties. The arbitrator is bound by the law of
Washington state. Parties may be, but are not required to be,
represented by attorneys. The arbitrator may permit discovery to
ensure a fair hearing, but may limit the scope or manner of
discovery for good cause to avoid excessive delay and costs to
the parties. The parties and the arbitrator shall use all
reasonable efforts to complete the arbitration within six months
of the effective date of the demand for arbitration or, when
applicable, the service of the list of defects in accordance with
RCW 64.50.030;
(5) Except as otherwise set forth in this section,
arbitration shall be conducted under *chapter 7.04 RCW, unless
the parties elect to use the construction industry arbitration
rules of the American arbitration association, which are
permitted to the extent not inconsistent with this section. The
expenses of witnesses including expert witnesses shall be paid by
the party producing the witnesses. All other expenses of
arbitration shall be borne equally by the parties, unless all
parties agree otherwise or unless the arbitrator awards expenses
or any part thereof to any specified party or parties. The
parties shall pay the fees of the arbitrator as and when
specified by the arbitrator;
(6) Demand for arbitration given pursuant to subsection (1)
of this section commences a judicial proceeding for purposes of
RCW 64.34.452;
(7) The arbitration decision shall be in writing and must
set forth findings of fact and conclusions of law that support
the decision.
[2004 c 201 § 1601.]
NOTES:
*Reviser's note: Chapter 7.04 RCW was repealed in its entirety by 2005 c 433 § 50, effective January 1, 2006.