| |
|
 |
 |
 |
|
| Recent Trends: To Arbitrate or Not to Arbitrate? |
|
Many restoration contractors have binding arbitration clauses in their contracts. However, arbitration is losing popularity.
The primary reason is cost. Arbitration usually involves the services of a retired judge or veteran attorney who bills on an hourly or daily basis for all services rendered. Arbitration fees in excess of $500 per hour are not unusual in metropolitan areas, plus the arbitration service typically charges an administrative fee. Court cases, on the other hand, usually involve a filing fee of a few hundred dollars, motion-filing fees usually less than $50 and nothing for the judge’s time during trial. Notably, Bank of America recently released a notice to its credit card holders that it has removed the arbitration provision from its cardholder agreements.
However, in some geographic areas, there are tactical advantages to including an arbitration clause. For example, Riverside County, California has a badly backlogged civil calendar and the speed of arbitration is an attractive alternative. If you believe there is a bias against contractors in your area, a jury may be dangerous and arbitration may be the way to go. |
|
|
 |
|
|
|
|
|
|
|
|
|
|
