What is the cost of using arbitration?

The cost of using arbitration in South Carolina depends on the complexity of the dispute, the length of the hearings, and the fees charged by the arbitrator(s). Arbitration fees are typically paid by each of the parties in the dispute. Each party pays a portion of the arbitrator’s hourly fees, travel costs, and other related charges. The fees may also include administrative fees charged by the program or agency conducting or managing the arbitration. If the parties reach agreement without actually having to hold a hearing, the arbitration fees may be reduced. In some cases, if a party fails to pay its portion of the fee, the other side may be ordered to pay the entire fee. In general, the cost of arbitration can be quite high. The hearing and administrative fees can add up to hundreds or even thousands of dollars, but this cost is typically much less than what the parties would have to pay in traditional court litigation. The cost-effectiveness of arbitration comes from the fact that it is a much faster process than going to court. For disputes that don’t require complex hearings and that can be resolved through mediation, the cost of arbitration may be substantially less than going to court. And, if the parties come to an agreement before the arbitration hearing takes place, the costs can be minimal.

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What is the cost of using arbitration?

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