Sepahi Law Group, APC

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What is the Cost of Arbitration?

January 20, 2015 by Sage Sepahi

Arbitration is a form of alternative dispute resolution that is frequently used in business litigation. It is very common for commercial contracts to contain arbitration clauses requiring that all disputes arising from the commercial transaction be resolved in arbitration.  Parties who become involved in a disagreement may also decide at the time of the conflict that arbitration is a better way of resolving their case than going to court. arbitrator

There are many benefits associated with arbitrating a dispute. For example, arbitration can keep your dispute private and make it possible for you to have someone familiar with your industry preside over your case.  However, you also need to be aware that arbitration may have costs associated with the process. It is important to consider the cost of arbitration before you decide that this approach is the right one for you to take. An experienced San Diego business law attorney can assist you throughout the arbitration process and help you to do everything possible to manage the cost of arbitration.

What is the Cost of Arbitration?

The cost of arbitration varies depending upon the circumstances.  If the arbitration is ordered by the court at a case management conference or after a stipulation, then the court may pay for the costs. According to the Superior Court of California, County of San Diego,  the court will pay the arbitrator presiding over court-ordered arbitration a maximum of $150 for up to four hours, and a maximum of $300 regardless of the number of sessions that the arbitrator and disputing parties attend. The court pays for the costs only in situations where the parties involved in the disagreement choose to use an arbitrator on the court’s Arbitration Panel.

When the arbitration is not court ordered, then the court does not pay the fees and costs of arbitration. In many business disputes, the arbitration is not mandated by the court. Instead, the dispute has to be decided in arbitration due to an arbitration clause the parties signed, or the parties agree to submit to non-binding arbitration to keep their case from going to trial.

Most arbitrators will charge by the hour when parties submit a dispute to arbitration. The costs of the arbitrator’s time can vary significantly depending upon the arbitrator’s background, training and qualifications. The Superior Court of California estimates that the hourly fees for an arbitrator usually range from between $200 per hour to $1,000 per hour. The costs and fees may be higher in situations where you choose an arbitrator who not only has the necessary legal-specific know-how to resolve the case but who also has a background in and understanding of your particular field or industry.

When paying by the hour, it is possible to try to reduce the cost of arbitration by resolving some of the disputed issues on your own. If you can try to come to an agreement about most or all of the points of conflict, then your arbitrator can make decisions on fewer issues and the process will go quicker, thus saving you money.

A San Diego arbitration law attorney at Sepahi Law Group, APC will work hard to keep you to manage the cost of arbitration while presenting a compelling case to the arbitrator. Call today to schedule a consultation and learn more.

About Sage Sepahi

Sage Sepahi provides business litigation, class action litigation, employment litigation, real estate litigation, civil right litigation, commercial litigation, corporate formation, business dissolution, and arbitration/mediation services to residents of San Diego city and county, La Jolla, and Del Mar.

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Testimonials

  • Business Client

    I appreciate the friendliness and the prompt response I would receive from him. I would definitely recommend Mr. Sepahi he is very knowledgeable in what he does and I wouldn't hesitate to use his service again. I had a really good experience working with him.

  • Daniel

    I am also an attorney in San Diego. I needed a business law attorney to assist me with a very complex matter. As I have been an attorney in family law for 9 years, I did not even know where to start in looking for a business attorney. I was informed about Sage Sepahi who had an excellent representation in Northern California. I was a bit nervous about using someone new to San Diego, but I couldn't have been happier. I got a six figure settlement and am very pleased. He knows business law like the back of his hand and was great. I would never use anybody else and find he was extremely professional and always returned calls and emails.

  • Steve

    I hired Sage a couple years ago to step into a case that my previous lawyers had managed to screw up. From the moment Sage took over my case things changed. He understood the complex issues I was dealing with created an effective strategy that allowed us to prevail on every significant aspect of the case. I hired Sage during a very stressful time in my life and it was one of the best decisions I ever made. Being a business owner for the past 25 years, I have dealt with many attorneys who view you as a quick and easy way to make a buck. Sage is the exact opposite of this- highly ethical and trustworthy. I can't thank Sage enough and he will be the first person I call when another issue presents itself.

  • BT

    Sage has represented me in a variety of legal matters including business disputes, transactional matters and employee conflicts. Sage is a great communicator and his ability to prevent legal problems before they arise. He is among the best attorneys I have worked with. I highly recommend Sage.

  • Matthew

    Attorney Sage Sepahi is simply the best! Sage came highly recommended by one of my clients who was in a similar situation as I was with his business partners. He took on a tough case for me and I was very happy with the results. He goes out of his way to ensure you are kept up-to-date on the status of your case to the end. I would definitely recommend Sage if you are looking for a honest, efficient and knowledgeable attorney. Thank you Sage!

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All Rights Reserved.

Mailing address:
P.O. Box 2608
Del Mar, CA 92014
+1 858. 465. 9206

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