New Mexico Statutes

N.M. Stat. § 44-7A-5 (2026)

Disabling civil dispute clause voidable.

✓ current as of May 2026

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In the arbitration of a dispute between a consumer, borrower, tenant or employee
and another party, a disabling civil dispute clause contained in a document relevant to
the dispute is unenforceable against and voidable by the consumer, borrower, tenant or
employee. If the enforcement of such a clause is at issue as a preliminary matter in
connection with arbitration, the consumer, borrower, tenant or employee may seek
judicial relief to have the clause declared unenforceable in a court having personal
jurisdiction of the parties and subject matter jurisdiction of the issue.

History: Laws 2001, ch. 227, § 5.

                                     ANNOTATIONS

Compiler's note. — Laws 2002, ch. 227, § 33 repealed the former Uniform Arbitration
Act, Sections 44-7-1 to 44-7-22 NMSA 1978, enacted by Laws 1971, ch. 168, §23. The
Uniform Arbitration Act compiled as 44-7A-1 to 44-7A-32 NMSA 1978 was enacted
effective July 1, 2001.

Am. Jur. 2d, A.L.R. and C.J.S. references. — Constitutionality of compulsory
arbitration statutes, 55 A.L.R.2d 432.

Validity and enforceability of provision for binding arbitration, and waiver thereof, 24
A.L.R.3d 1325.

Notes of Decisions

Cited in 4 cases, 2012–2016 · leading case: Dalton v. Santander Consum. USA, Inc., 2016 NMSC 035 (N.M. 2016).

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Dalton v. Santander Consum. USA, Inc., 2016 NMSC 035 (N.M. 2016). · cites it 2× “” NMSA 1978, § 44-7A-5 (2001). Both parties benefit from the economy and efficiency of a small claims court when either party has a claim worth less than $10,000.”

Figueroa v. Thi of New Mexico, 2013 NMCA 077 (N.M. 2012). · cites it 3× “¶ 13 (citing NMSA 1978, § 44-7A-1(b)(4)(f) (2001) and § 44-7A-5 (2001)). 2 The New Mexico Supreme Court noted that the statute may have been preempted by the FAA because it specifically singled out arbitration agreements, but nevertheless, the Court reasoned that the statute was…”

Figueroa v. THI of New Mexico, 2013 NMCA 77 (N.M. Ct. App. 2012). · cites it 3× “2 The New Mexico Supreme Court noted that the statute may have been preempted 2 Section 44-7A-5 states: “In the arbitration of a dispute between a consumer, borrower, tenant or employee and another party, a disabling civil dispute clause contained in a document relevant to the…”

Figueroa v. THI of NM at Casa Arena Blanca, LLC (N.M. Ct. App. 2012). · cites it 3× “2 The New Mexico Supreme Court noted that the statute may have been preempted 2 Section 44-7A-5 states: “In the arbitration of a dispute between a consumer, borrower, tenant or employee and another party, a disabling civil dispute clause contained in a document relevant to the…”

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