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Arbitration fee denial


Cat123
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I've been over all the previous posts and did see this.  I apologize if I missed something.

 

We elected arb and in court, the Plaintiff denied that we had the right.  The court ordered that we do according to the arb clause and we had 30 days to initiate arb, which we did.

 

JAMS sent us a bill for $250. and we were in contact with JAMS, who agreed and said, "It does appear the Plaintiff will pay fees up front."

 

However, we just received a notice from the Plaintiff, also sent to JAMS, that quotes our clause, and they say they do not have to pay it.  The clause reads, "At your written request, we will advance any arbitration filing, administrative and hearing fees which you would be required to pay to pursue a claim or dispute as a result of our electing to arbitrate that claim or dispute.  The arbitrator will decide who will ultimately be responsible for paying those fees.  You will only be responsible for paying or reimbursing our arbitration filing administrative or hearing fees to the extennt you would have been responsible for paying "attorneys' fees and court or other collection costs" had the action proceeded in court.  In no event will you be required to pay any fees or costs incurred by us in connection with an arbitration proceeding where such a payment or reimbursement is prohibited by applicable law."

 

Does this mean we will have to pay for everything or.....?   Unfortunately, we are not in a position to do this.  Total amount due is $9k.

 

Thank you.

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First I assume this is a Consumer Arbitration and not a Business to Business dispute. I have never seen a Credit Card arb clause written in that fashion, so this must be some other type of debt or loan.

Given that, and only having the liminted amount of arb language to base a response on they are accurate in that you will need to pay the filing fee ($250) to move the process forward.

From that point you need to read the JAMS Consumer Minimum Standards. Rule 7 which states-

"With respect to the cost of the arbitration, when a consumer initiates arbitration against the company, the only fee required to be paid by the consumer is $250, which is approximately equivalent to current Court filing fees. All other costs must be borne by the company including any remaining JAMS Case Management Fee and all professional fees for the arbitrator's services. When the company is the claiming party initiating an arbitration against the consumer, the company will be required to pay all costs associated with the arbitration."

It is not uncommon that you will need to pay the 250 filing fee, if you want JAMS.

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send your written request to the law firm and to discover, sounds like a junk debt buyer doesnt want to pay the fees.your doing fine.

Fees and Costs.

 

If you wish to begin an arbitration against

us but you cannot afford to pay the organization’s or

arbitrator’s costs, we will pay those costs if you ask us in

writing. Any request like this should be sent to Discover,

PO Box 30421, Salt Lake City, UT 84130-0421. If you

lose the arbitration, the arbitrator will decide whether

you must reimburse us for money we advanced for you

for the arbitration. If you win the arbitration, we will

not ask for reimbursement of money we advanced.

Additionally, if you win the arbitration, the arbitrator

may decide that you are entitled to be reimbursed

your reasonable attorneys’ fees and costs (if actually

paid by you).

Hearings and Decisions.

 

Arbitration hearings will take

place in the federal judicial district where you live.

 

Survival of this Provision.

 

This arbitration provision

shall survive:

• closing of your Account;

• voluntary payment of your Account or any part of it;

• any legal proceedings to collect money you owe;

• any bankruptcy by you; and

any sale by us of your Account.

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  • 1 month later...

Update on JAMS fee denial....  After about two weeks, we received a copy of the email (from JAMS) which was sent to JAMS, stating the Plaintiff agreed to pay the initial $250.

 

Approx. 1 month later, we rec'd the arbitrator candidate list, with today as our deadline for striking.  After looking at each, we are just about ready to send (before end-of-business).

 

Now we start with our formal complaint and I don't even know where to begin, so I will study Linda's posts to see if I can find any violations.  This worries me.

 

Anyway, that's it... just an update on the progression of things it helps anyone.

 

 

So, if we do not prevail, and have to pay in full plus arb expenses, will that be in the form of a judgement?  And if so, I am assuming this can be included in BK, if it comes to that.

 

Any direction is greatly appreciated.

 

Thank you!!!!!

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From that point you need to read the JAMS Consumer Minimum Standards. Rule 7 which states-

"With respect to the cost of the arbitration, when a consumer initiates arbitration against the company, the only fee required to be paid by the consumer is $250, which is approximately equivalent to current Court filing fees. All other costs must be borne by the company including any remaining JAMS Case Management Fee and all professional fees for the arbitrator's services. When the company is the claiming party initiating an arbitration against the consumer, the company will be required to pay all costs associated with the arbitration."

It is not uncommon that you will need to pay the 250 filing fee, if you want JAMS.

I'm fairly sure that this $250 is the only fee that you'll have to pay, whether you win or lose.

I could be wrong, but I have not heard of Defendants paying rediculous fees in the thousands.

 

That's one of the reasons JDB's hate Arb and Jams - it's costs them a LOT of money to go through it.

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Discover has appeal on claims over $100 K , but for contract's appeal clause to be intact complaint must ask for that amount in damages. I would seriously look into this as if things don't turn out favorable, then rise and repeat a second time.

 

Cost of first round arbitration is around $10-$25K ( this can be even higher depending on how many teleconferences or motions filed )

 

Cost of three panel is priceless !

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