How Fees and Expenses To Arbitrate a Dispute Are Determined

Fees have various components. These components include administration fee, arbitrator compensation, and expense reimbursements.

Administration: These are the fees of New Jersey Arbitrations, Inc. to manage the dispute. Managing the dispute means making an initial determination that the dispute is actually arbitrable. Thereafter, managing includes overseeing the arbitrator selection process, handling communications between the selected arbitrator or arbitrators and the parties, and reviewing arbitrators' orders and awards for compliance with statutory requirements. Managing includes review of draft orders and final awards for form. Managing the dispute does not involve substantive review of contents of orders or awards. Substantive contents are the sole province of the arbitrators.

Our initial determination of arbitrability is only tentative since arbitrability itself is sometimes an issue that the arbitrator must eventually decide. Management activities include reviewing the demand (or submission form) for arbitration, the arbitration clause, and communications with the case forwarder. Administration is a flat fee that varies, depending on the amount of the claim, as indicated just below. Counterclaims require their own filing fee.

Administration fees are payable upon submitting the case for review or, for counterclaims, upon their filing. However, these fees are refundable if, upon our initial review, we determine that the dispute is not arbitrable, or we decline for any other reason to accept the case. Convenience fees (please see below) are not refundable.

Amount in Dispute	Administration Fee
$0.01 to $4,999.99	$500.00
$5,000.00 to $49,999.99	$1,500.00
$50,000.00 to $499,999.99	$6,500.00
$500,000.00 to $4,999.999.99	$15,000.00
Above $4,999,999.99	$25,000.00

Counterclaims and third party claims incur the same administration fees. Thus, for example, a claim of $10,000.00 by a claimaint, and a counterclaim of $25,000.00 by respondent/counterclaimant, will require an administration fee of $1,500.00 from each, payable when the claim, counterclaim (or third party claim) is filed. For claims where amount is initially unknown, maximum recovery will be limited to amount corresponding to administration fee paid. Multiple parties represented by the same law firm are treated as a single party for fee-determination purposes.

Administration fees relating to nonmonetary claims (e.g. declaratory relief, injunctive relief) is the greater of the administration fee if combined with a monetary claim, or $6,500.00, if standalone. Claims can be amended upwards after filed upon payment of fee corresponding to higher amount in dispute. However, amendments requires Arbitrator approval once any Arbitrator or Arbitrators have been confirmed.

Arbitrator Compensation: Arbitrators establish their own fee schedules. These schedules are contained on their individual pages. Fee schedules do not change for a given dispute once the selection of an arbitrator is confirmed.

Apportionment of Fees: The arbitrator apportions fees to the parties in accordance with apportionment provisions in the parties' arbitration agreement. In the absence of such provision, the arbitrator apportions fees in the manner the arbitrator deems appropriate. Factors the arbitrator may consider in making such determination will include which party or parties prevails, the good faith of the parties in seeking, or resisting, an award, and resources of the parties.

Deposit for Fees and costs: The arbitrator will require a deposit for anticipated fees and expenses. Unless the arbitration agreement specifies otherwise, the party seeking arbitration is responsible for the deposit. Deposits for arbitrator fees and expenses is a prerequisite for events with the arbitrator. New Jersey Arbitrations Inc. will notify the Claimant (or, for Submissions, the parties) of the amount that the Arbitrator requires in order to proceed. Amounts paid are subject to reallocation by the arbitrator at conclusion of the case. Unexpended deposits, except for convenience fees, are returned to the payor.

Convenience Fees: New Jersey Arbitrations Inc's preferred form of payment is by personal or corporate check. Payments in that manner incur no convenience fee. New Jersey Arbitrations Inc. also accepts payment via PalPal. Payments made in that manner are subject to a convenience fee. Convenience fees are not refundable.

Non-payment of Fees and costs: Arbitration proceedings are subject to suspension when payment of fees is delinquent. When arbitration compensation is outstanding, our arbitrators can decline to proceed with hearings, or can withhold issuance of their award. One option for parties to arbitrations may be to pay their adversaries' fees in anticipation of the arbitration panel incorporating reimbursement in its award.