Has Nevada Banned Mandatory Arbitration Provisions In Articles And Bylaws?
Friday, June 7, 2019

Recently, I wrote about Nevada's enactment of legislation that will permit a Nevada corporation to include in its articles of incorporation a provision requiring any, all or certain internal actions must be brought solely or exclusively in the court or courts specified in the requirement, which must include at least one court in Nevada.  Any such provision must be "not inconsistent with" applicable jurisdictional requirements.  The legislation defines "court" to mean any court of:

"(1) This State [Nevada], including, without limitation, those courts in any county having a business court, as that term is defined in NRS 13.050;
(2) A state other than this State [Nevada]; or
(3) The United States.

Noticeably absent is any mention of arbitration.  If the statute is interpreted under the principle of expressio unius est exclusio alterius, it seems that by authorizing exclusive judicial fora, the legislature has prohibited arbitral fora.  

 

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