South Carolina General Assembly
108th Session, 1989-1990

Bill 3744

                    Current Status

Bill Number:               3744
Ratification Number:       450
Act Number                 397
Introducing Body:          House
Subject:                   Application of contract and arbitration
                           agreements relative to venue of actions
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(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

(A397, R450, H3744)

AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 15-7-120 SO AS TO PROVIDE THAT NOTWITHSTANDING A CONTRACT PROVISION REQUIRING AN ACTION ARISING UNDER THE CONTRACT TO BE BROUGHT IN A LOCATION OTHER THAN AS PROVIDED BY THE APPLICABLE LAWS AND COURT RULES OF THIS STATE, THE ACTION MAY BE BROUGHT AS PROVIDED IN THE APPLICABLE LAWS AND COURT RULES OF THIS STATE FOR SIMILAR CAUSES OF ACTION AND TO MAKE UNENFORCEABLE AN ARBITRATION AGREEMENT PROVISION REQUIRING ARBITRATION PROCEEDINGS OUTSIDE THIS STATE WITH RESPECT TO AN ACTION WHICH, BUT FOR THE AGREEMENT, IS TRIABLE IN THIS STATE AND TO PROVIDE FOR THE ENFORCEABILITY OF THE OTHER PROVISIONS OF THE ARBITRATION AGREEMENT AND THE METHOD OF SELECTING A FORUM FOR ARBITRATION PROCEEDINGS.

Be it enacted by the General Assembly of the State of South Carolina:

Application of contract and arbitration agreements relative to venue of actions

SECTION 1. Chapter 7, Title 15 of the 1976 Code is amended by adding:

"Section 15-7-120. (A) Notwithstanding a provision in a contract requiring a cause of action arising under it to be brought in a location other than as provided in this title and the South Carolina Rules of Civil Procedure for a similar cause of action, the cause of action alternatively may be brought in the manner provided in this title and the South Carolina Rules of Civil Procedure for such causes of action.

(B) A provision in an arbitration agreement that arbitration proceedings must be held outside this State is not enforceable with respect to a cause of action, which, but for the arbitration agreement, is triable in the courts of this State. The enforceability of the remaining provisions of the arbitration agreement and the method of selecting a forum for the conduct of the arbitration proceedings is as provided in this title, the Federal Arbitration Act, and any applicable rules of arbitration.

(C) This act applies to contracts entered into after the effective date of this section."

Time effective

SECTION 2. This act takes effect upon approval by the Governor.

Approved the 3rd day of April, 1990.