Arbitration agreement wording

[Joopsman]

Please help me to understand the full meaning of the clause below concerning who pays for private contractual arbitration.  This is from a GECRB agreement from 06/2012.  Does this imply that they will only pay if we win in arbitration?  If that is the case, then compelling arbitration may not be the best option in our case.  Thanks in advance!

"If you ask us to, we will pay all the fees the administrator or arbitrator charges, as long as we believe you are acting in good faith. We will always pay arbitration costs, as well as your legal fees and costs,
to the extent you prevail on claims you assert against us in an arbitration proceeding which you have commenced."

[nobk4me]

You also have to look at the arbitration forum's rules to determine what arbitration might cost you.  For example, In JAMS, their consumer rules limit the amount you have to pay to $250.00.

[Joopsman]

From JAMS website:

Minimum Standards for Arbitration Procedures

JAMS will administer arbitrations pursuant to mandatory pre-dispute arbitration clauses between companies and consumers¹ only if the contract arbitration clause and specified applicable rules comply with the following minimum standards of fairness.

1. The arbitration agreement must be reciprocally binding on all parties such that (a) if a consumer is required to arbitrate his or her claims or all claims of a certain type, the company is so bound; and, (b) no party shall be precluded from seeking remedies in small claims court for disputes or claims within the scope of its jurisdiction.
2. The consumer must be given notice of the arbitration clause. Its existence, terms, conditions and implications must be clear.
3. Remedies that would otherwise be available to the consumer under applicable federal, state or local laws must remain available under the arbitration clause, unless the consumer retains the right to pursue the unavailable remedies in court.
4. The arbitrator(s) must be neutral, and the consumer must have a reasonable opportunity to participate in the process of choosing the arbitrator(s).
5. The consumer must have a right to an in-person hearing in his or her hometown area.
6. The clause or procedures must not discourage the use of counsel.
7. 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.
8. In California, the arbitration provision may not require the consumer to pay the fees and costs incurred by the opposing party if the consumer does not prevail.
9. The arbitration provision must allow for the discovery or exchange of non-privileged information relevant to the dispute.
10. An Arbitrator's Award will consist of a written statement stating the disposition of each claim. The award will also provide a concise written statement of the essential findings and conclusions on which the award is based.

Per clause #7, it looks like the max we would pay would be $250 if we initiate - with no mention of of who prevails being an issue.

I take clause #8 to read that because I am not in California that I COULD have to pay for the opposing party's fees.  The language seems wishy-washy.

[fisthardcheese]

Read more carefully.

8. In California, the arbitration provision may not require the consumer to pay the fees and costs incurred by the opposing party if the consumer does not prevail.

The Card Agreement may not say that you must pay arb fees if you lose in CA.  However, this point is moot since your card agreement does not say that.

Your card agreement states: " We will always pay arbitration costs, as well as your legal fees and costs, to the extent you prevail on claims you assert against us in an arbitration proceeding which you have commenced."  Does that say you are on the hook if you lose?  No it does not. it says if you win, they WILL pay all your fees & costs.  That's all it says.  Don't read more into it that is not there.