Arbitration hearing management tip

Dispute Resolution Journal, Feb-Apr 2003

The inability or failure of a party to pay arbitration fees is not a ground to preclude a party from presenting its case in arbitration under the American Arbitration Association rules. These rules provide the procedure for the situation in which a party is unable or refuses to pay its share of arbitrator or administrative fees.

Under these rules, the arbitrators may proceed with the arbitration or they may suspend or terminate the proceedings if the other party is unable or unwilling to advance the payment required. In a recent case, a panel of arbitrators allowed a party who paid its share of fees to continue presenting its case in the arbitration, but prohibited a non-paying party from actively participating in the hearing. This resulted in a vacated award.