Hidden Risk Of Arbitration: Can An Arbitrator Withhold Your Award If The Other Side Doesn't Pay?

Picture this: you have a contractual dispute that must be resolved via arbitration. As part of this process, you jump through all the hoops – and incur all of the cost, time, and inconvenience – associated with taking your matter through to an arbitration hearing. The arbitrator's fees are split between you and your opponent.

The hearing goes swimmingly and it is all but academic that you will be victorious. Following the hearing, the arbitrator advises that they will release their award once the last of their fees have been paid. All of a sudden, your opponent decides that they don't want to pay the arbitrator. The arbitrator, who has done their job, says that they are withholding their award until their fees are paid.