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While parties are not required to have an attorney to participate in arbitration, arbitration is a final, legally-binding process that may impact a party's rights. As such, parties may want to consider consulting an attorney at any time before, during, or after the arbitration.
Arizona, however, is one of the few states that does not charge for fee arbitration. Rather, Arizona's Fee Arbitration Program is a free forum in which lawyers and clients can resolve their differing views on what fees are appropriate for the legal services performed.
The arbitrator's decision usually is legally binding (enforceable by the courts), but it can also be non-binding (only recommended) if that is what the parties have agreed to.
In most cases, the parties to an arbitration divide the cost of the arbitrator's fees and expenses evenly that is, each pays half.
Under Section 31, unless otherwise agreed by the parties, the cost of an Arbitrator shall be fixed by the Arbitral Tribunal.
First, any valid arbitration agreement must reflect the conscious, mutual and free will of the parties to resort to arbitration and not to other means of dispute resolution, including State courts. The consent of both parties to submit their dispute to arbitration is the cornerstone of arbitration.
Arizona Court of Appeals Division One holds that an arbitration agreement requiring one party to bear all costs and fees regardless of who prevails is unconscionable, but the offending provision may be severable.
If an employee can show some substantial relationship between the fraud committed or the misrepresentation made by the employer and the arbitration agreement, a court will void the agreement.
Compulsory Arbitration is a mandatory program for disputes valued under $50,000. A court-appointed arbitrator reviews the case to decide a just resolution and award. Arbitration is intended to lower court costs for litigants and allow the Court to utilize judicial resources more effectively.
Each party will have costs to conduct their case in arbitration just as they would in court. These costs might include attorneys' fees, costs for expert witnesses, costs to have witnesses travel to the arbitration, costs for copying and presenting exhibits, etc.