Are there limits to the amount of attorney’s fees that can be awarded by an arbitrator?
In South Carolina, there are limits to the amount of attorney’s fees that an arbitrator can award. The South Carolina Supreme Court has issued several decisions in which it held that an arbitrator does not have the power to award attorney’s fees in excess of those authorized by statute or contract. This means that in order for an arbitrator to award attorney’s fees, there must be a specific agreement or statute which allows attorney’s fees to be awarded. If such an agreement or statute exists, the amount of attorney’s fees awarded by the arbitrator must not exceed the maximum amounts allowed by the agreement or statute. For example, South Carolina Code Section 15-48-80(A) allows a court to award the “prevailing party” reasonable attorney’s fees and costs of arbitration. However, the court may not award the prevailing party an amount of attorney’s fees in excess of 20% of the amount in controversy in the arbitration. Therefore, if an arbitrator found that the prevailing party was entitled to attorney’s fees, they could award the prevailing party attorney’s fees in any amount up to the 20% maximum. In conclusion, an arbitrator in South Carolina can award attorney’s fees, provided that they are authorized to do so by contract or statute. The amount of attorney’s fees awarded must not exceed the maximum amount allowed by the contract or statute.
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