Arbitration after Mediation
Arbitration can be used when the mediation process did not result in a resolution, or if it is set out in an Agreement as a way to resolve disputes. The matter could proceed to court, but there may have been a mediator involved in the process. The parties may agree that the mediator that was engaged shall also be the “arbitrator.” The arbitration process is where there will be a ruling made based on evidence and submissions.
It is being assumed that other steps have been completed, so that there is some evidence to be called, but that it would be rather minimal, perhaps 1 or 2 hours on each side, and that the arbitration process as a hearing will be completed in 1 day.
Preparing for the Arbitration
This would involve preparing some evidence, perhaps some Affidavits, or going through transcripts. The amount of time that this would probably take, including the communication with the arbitrator in coordinating this, is ½ of a day in general preparation, and ½ of a day preparing law and other submissions. Thus, it is assumed that this would take at least 1 day of counsel. Thus, the estimated cost is $5,000.
Attending at the Arbitration
This would involve the attendance of both sides with the arbitrator, and they would be therefore the entire day. Thus, the cost of counsel is estimated to be $5000.
Cost of the Arbitrator
The arbitrator, even if they were the mediator, would still spend some time reviewing some background materials in coordinating this. It would probably take at least 2 hours. Then there would be the full day of the arbitrator ($5,000), and then the arbitrator has to complete their ruling or judgment. This would probably take at least ½ day, and thus the estimated total cost of the arbitrator is $10,000.
The above is for the cost of the arbitrator up to the ruling. Then there are cost submissions. The arbitrator would have to review this as cost submissions, and make a secondary ruling. This would probably take about ½ day, or a little more of the arbitrator’s time. This is assuming that the arbitrator wants the cost submissions in writing only. If the arbitrator requires an attendance it could be greater. The figure that will be used will be $3,000.
The all-in figure that will be used is $13,000, and each side ordinarily pays ½ so that the cost of this to each side would be $6,500.
Counsel Receiving the Ruling of the Arbitrator
The initial ruling of the arbitrator would be received and reviewed with the parties. The cost of this would probably be $1,000.
Preparing Cost Submissions
There is significant preparation because the parties may be fighting about who should pay the legal costs of the other side. This would be based on offers that have been exchanged. These cost submissions would take some time to prepare, and thus for the counsel on each side it is suggested that an estimate could be $2,000.
Receiving Final Ruling on Costs
This is what would be provided by the arbitrator. This would have to be reviewed by each side with their client. There would be other administrative tasks to complete, and thus the estimated cost on each side for counsel would be $1,000.
From the above figures, it can be seen that the estimated total costs on each side might be $19,500. There would also be some other expenses incurred, copying and other cost, so a rounded off figure of the cost of this arbitration could be, to each side, $20,000. The cost of both sides, therefore, would be $40,000.
This is an estimate only, and cannot be relied on as a quote of cost. It depends on time and processes. However, it is some guideline as to what might be the costs incurred.
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