Who Pays for Arbitration Fees: A Comprehensive Guide

When it comes to resolving disputes, arbitration is often seen as a favorable alternative to litigation. It is a process that is often less expensive and time-consuming than going to court. But when it comes to the costs associated with arbitration, who is responsible for footing the bill?The answer to this question depends on the terms of the policy and the type of arbitration being used. Generally, the parties involved in the dispute are responsible for their own costs of preparing and presenting their case in arbitration.

This includes courtroom rental fees, suspension fees, and other expenses related to the arbitration process. In addition, the parties must pay any expenses incurred by the arbitrator or arbitration panel. This includes any non-refundable processing fees applied to each member who is a party to the arbitration. The insurance company and policyholder may divide these costs between them. For more information on reimbursing filing fees, refer to Rule 12900 (c) and Rule 12902 (e) of the Code of Arbitration Procedures for Disputes with Customers and Rule 13900 (c) and Rule 13902 (e) of the Code of Arbitration Procedure for Industrial Disputes. It is important to note that arbitrators are independent individuals, whether they have been hired independently or through an organization such as the American Arbitration Association (AAA). As such, their fees are not refundable. Despite its advantages, arbitration can be costly for policyholders.

It is important to understand who is responsible for covering these costs before entering into an arbitration agreement.

Nicole Fratercangelo
Nicole Fratercangelo

Total beer aficionado. Avid pop culture fanatic. Unapologetic travel lover. Proud reader. Friendly internet practitioner.

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