ARBITRATION
WE SETTLE DISPUTES
SOCAL DRC ARBITRATION PROCEDURES
Arbitration is an adversarial process where a neutral arbitrator renders a decision, called an award, after there has been a presentation of evidence. Like a court trial, arbitration may include representation by counsel, pre-hearing discovery, written briefs, examination of witnesses and oral argument.
The advantages of process arise from the ways in which arbitration differs from a court trial. First, arbitration procedures are flexible and less formal. This flexibility can lead to significant cost savings in terms of time and expense. Another benefit is that the parties can choose their arbitrator directly which enables them to pick someone with the requisite amount of experience and subject matter expertise to render an accurate award. Finally, the arbitration process is private and confidential, and usually final.
The parties may become involved in the arbitration process in one of three ways: court ordered, contractual or by stipulation. In a court ordered arbitration, the judge has ordered the parties to arbitrate based upon certain aspects of their dispute. The court itself sponsors an arbitration program and will facilitate the process. Court ordered arbitrations are non-binding, meaning that either party that is dissatisfied with the award of the arbitrator may request a new trial. Since the process is non-binding, no party has given up any constitutional rights by engaging in arbitration.
Contractual arbitration and arbitration by stipulation are private and binding. Here, the parties have chosen to go to arbitration instead of through a court trial. There is no appeal process in traditional arbitration and thus the award of the arbitrator is final except for the most extraordinary circumstances. In contractual arbitration the parties have agreed pursuant to a contract between them that in the event of a dispute, the matter will be arbitrated. Generally there will be a set of rules or procedures incorporated into the arbitration clause that dictate how the parties will proceed. Under an arbitration by stipulation scenario the parties have agreed to arbitrate after the dispute has arisen. The parties must then choose which set of rules and procedures to follow to guide the proceedings.
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FEE SCHEDULE & TERMS
The standard fee for a full day arbitration is $4,000 and $5,000 for class action or complex litigation matters requiring extensive preparation. This flat rate includes:
- All preparation time, no matter how extensive
- Pre-mediation calls with counsel and/or parties
- Unlimited hours at the mediation
- Travel time within Southern California
- Reasonable follow-up work
Fees may be higher for arbitrations scheduled on weekends or holidays.
Half-day arbitrations are $2,000, which include all preparation. In the event that a full session is settled in the first half of mediation, we are happy to provide a $2,000 refund for the unused time.
For less complicated disputes requiring less preparation, arbitrations may be booked on an hourly basis at the rate of $400 per hour. An administrative and case management fee of $250 will be charged to each party. The fees for services other than hearing time include, but are not limited to, the review of submitted materials, preparation for discovery issues and motions, research, if necessary, and deliberation time. A discretionary refundable retainer fee will be charged for anticipated services, plus the possible need for additional hearing time, unless it is otherwise agreed.
The rate for these services is to be shared on a pro rata basis, unless modified by the mutual consent of the parties, Court Order or by ruling from the arbitrator. Parties must advance the estimated hourly/daily fees and the retainer to lock in reserved dates. Any unused time will be refunded. Our agreement to render services is with the attorney or representative of the parties and payment is and remains the responsibility of the recipient and/or their firm or company until received in full. Failure to provide payment entitles SoCal DRC to withhold providing rulings until full payment is received by all parties.
All continuances/cancellations must be requested in writing and copied to all parties. Continuances requested less than two business days prior to the hearing date will result in a $500 penalty by the requesting party. Cancellations within 2 business days prior to the hearing date will result in no refunds or will require full payment by the parties. All cancellations or requests made more than two business days in advance of the hearing date will require full payment for lost time by the requesting party(ies). No fees will be due for any portion of the vacated time SoCal DRC can fill. Refunds will be issued on cases canceled beyond the applicable timeframe, less the non-refundable charges and preparation time expended prior to cancellation.