Are there limits to the amount of attorney’s fees that can be awarded by an arbitrator?
In Virginia, there are limits to the amount of attorney’s fees that can be awarded by an arbitrator. According to the Virginia Code, an arbitrator, who is a neutral third-party chosen by both parties involved in a dispute, is authorized to award reasonable attorney’s fees to the prevailing party. However, the award of attorney’s fees is limited to the fees and expenses incurred in the arbitration proceeding and those that the arbitrator determines to be reasonable and necessary for the proper resolution of the dispute. The arbitrator cannot award punitive damages, treble damages, or other damages based on any theory of liability other than a contract claim or breach of an arbitration agreement. The arbitrator also cannot award costs such as filing or docketing fees that are not related to arbitral proceedings. Furthermore, the arbitrator must base the award of attorney’s fees on the time, labor, and skill reasonably required for the representation of each party, the complexity of the case, the results obtained by the attorneys, and other factors that the arbitrator determines to be relevant and material. In Virginia, the award of attorney’s fees is actually limited to the amount awarded to the prevailing party in the arbitration.
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