How are the costs of securities arbitration disputes divided?

Securities arbitration disputes in California typically involve two parties, an investor and a broker, who are at odds over some type of financial transaction. When such disputes arise, the parties must agree to resolve them through arbitration. During the arbitration process, the parties present their cases before an independent arbitrator, who reviews their arguments and then renders a decision. When it comes to the cost of arbitration, the parties are typically responsible for dividing the expenses. In most cases, this means each party pays for their own legal fees and costs associated with presenting their case, such as the cost of having expert witnesses testify or documents gathered for evidence. Generally, the arbitration process itself is paid for by the parties, regardless of the decision that is rendered. In some cases, the arbitrator will also award the successful party all or some of their legal fees and costs if that party was successful. In some cases, the arbitrator may also limit the total amount of fees and costs that each party can incur to participate in the arbitration process. This leverage can be used to prevent one party from using costly techniques to gain an advantage, as well as to ensure that the arbitration process remains cost-effective for all parties involved. In cases where the arbitrator finds that the dispute was frivolous, they may also order the loser to pay some or all of the costs associated with the arbitration process, regardless of who initiated the dispute.

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How are the costs of securities arbitration disputes divided?

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