Arbitration is an alternative means of setttling a dispute by impartial persons without proceeding to a court trial. It is sometimes preferred as a means of settling a matter in order to avoid the expense, delay, and acrimony of litigation.
New York Client Response to Request for Fee Arbitration - Fee Dispute
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New York
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NY-137-5B
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A non-refundable process fee is assessed against each member that is a party to the arbitration at the time the parties are sent arbitrator lists. FINRA assessed this fee to you because staff generated and sent arbitrator lists to you. This fee is assessed even if no hearings are held in a case.
Once the arbitrator has paid or is required to pay an expense, the parties must pay this amount and it is non-refundable. Other costs of arbitration may include hearing room rental fees, abeyance fees, and the costs a party will need to spend to prepare and present their case in arbitration.
Arbitration is a private process where disputing parties agree that one or several individuals can make a decision about the dispute after receiving evidence and hearing arguments.When arbitration is binding, the decision is final, can be enforced by a court, and can only be appealed on very narrow grounds.
Arbitrator's fees may be $400-$700 per hour and total tens of thousands of dollars or more. The arbitration administrator, e.g., the American Arbitration Association, usually also charges substantial administrative fees. The AAA's fees currently range from $1,550 to $82,500 depending on the amount in controversy.
If you have a problem with a lawyer's bill, you don't have to spend more money to go to court to resolve it. The State Bar can help you resolve a problem with attorney fees through an informal, confidential and low-cost alternative called Mandatory Fee Arbitration.
Arbitration is a form of alternative dispute resolution in which an expert arbitrator settles a dispute between two or more parties. An arbitrator is an expert in the subject of the dispute, and has had formal training in arbitration. Many, but not all, arbitrators are lawyers.