Can I require customers to sign contracts with binding arbitration clauses in New Mexico? What are the requirements?

To require customers to sign contracts with binding arbitration clauses in New Mexico, businesses must ensure that the agreement to arbitrate is enforceable, clearly and unmistakably agreed upon, and not against public policy. Additionally, businesses must not waive the right to arbitrate, be authorized to do business in New Mexico, and cannot compel consolidated arbitration without express statutory authorization or agreement of all concerned parties [44-7A-8 NMSA].

Furthermore, an arbitrator may award punitive damages or other exemplary relief if such an award is authorized by law in a civil action involving the same claim and the evidence produced at the hearing justifies the award under the legal standards otherwise applicable to the claim. An arbitrator may also award reasonable attorney’s fees and other reasonable expenses of arbitration if such an award is authorized by law in a civil action involving the same claim or by the agreement of the parties to the arbitration proceeding [44-7A-22 NMSA].

A court of New Mexico having jurisdiction over the controversy and the parties may enforce an agreement to arbitrate. An agreement to arbitrate providing for arbitration in New Mexico confers exclusive jurisdiction on the court to enter judgment on an award under the Uniform Arbitration Act [44-7A-27 NMSA].

An arbitrator may conduct an arbitration in such manner as the arbitrator considers appropriate for a fair and expeditious disposition of the proceeding. The authority conferred upon the arbitrator includes the power to hold conferences with the parties to the arbitration proceeding before the hearing and, among other matters, determine the admissibility, relevance, materiality and weight of any evidence [44-7A-16 NMSA].

Therefore, to require customers to sign contracts with binding arbitration clauses in New Mexico, businesses must ensure that the agreement to arbitrate meets the requirements outlined in 44-7A-8 NMSA. Additionally, businesses should be aware that an arbitrator may award punitive damages or other exemplary relief and reasonable attorney’s fees and other reasonable expenses of arbitration. A court of New Mexico having jurisdiction over the controversy and the parties may enforce an agreement to arbitrate, and an arbitrator may conduct an arbitration in such manner as the arbitrator considers appropriate for a fair and expeditious disposition of the proceeding.

Jurisdiction

New Mexico

• General