Aralar did not respond and McRae filed a motion to dismiss the case and force arbitration. Once again, Aralar did not respond, although he accepted the Arbitration Tribunal about six weeks after his filing. The court then forced the case to arbitration and proceeded to the case until the results. Aralar did not apply for conciliation for another six months after the Tribunal`s decision. In the absence of an additional response from Aralar, McRae filed a motion in court to uphold the sentence. Aralar eventually woke up and filed to evacuate the lawyer`s allowance. Conciliators are often faced with agreements that authorize or require the granting of legal fees to the “dominant party.” 1 Although arbitration agreements on lawyers` fees remain silent, both parties often demand them. Does your arbitration agreement allow you to recover legal fees when the employee rebels against arbitration and you have to force it? Maybe it should be. In Aralar v. Scott McRea Automotive Group, a court in Florida recently upheld an arbitrator award of nearly $20,000 in legal fees for the defendant`s anger at moving for arbitration. Employers who have entered into arbitration agreements should be encouraged to recover the costs associated with moving arbitration proceedings (if necessary to cut it clearly) using the contractual clause. In court, the “american general rule” is that the dominant party must not recover legal fees as costs or otherwise. 6 Federal statutes that authorize or require legal fees and are therefore exceptions to the general rule include cartel, patent and civil rights laws7. For example, AAA Commercial ArbitrationRules, R-47 (d) (ii) (ii) allows the arbitrator to grant legal fees “if all parties have requested such a sentence or if it is approved by law or by their arbitration agreement.” 3 UNCTOS Arbitration Regulations, section 40 requires the Court of Arbitration to “set the costs of arbitration in the final distinction” and defines “costs” include “legal and other costs incurred by the parties with respect to arbitration, to the extent that the arbitration tribunal determines that the amount of these costs is reasonable.” 4The rules allow the arbitrator to award legal fees, even if this is not expressly authorized by the parties` agreement or requested by the parties.
For example, ICDR International Arbitration Rules, Article 31 obliges the Arbitration Tribunal to “set arbitration costs in its arbitration award” and states that “[s]uch of fees may include costs … the reasonable cost of representing a winning party. 5 The decision is sound and these rate deferral clauses could be a useful tool to avoid arbitration disputes. If the employer has to force his lawyers to force a case to do the arbitration, if the worker should have accepted that the unnecessary costs should come out of the plaintiff`s pocket. Employers should find a small incentive to enforce royalty collection provisions. At least Aralar`s decision influences peaceful agreements in arbitration proceedings rather than in a fight. No complainant wants to pay a former employer, especially if they have taken legal action to obtain money. Here is my own advice for those who argue over this subject: There is room for parties who manage to obtain confirmed (or cleared) arbitration awards to make arguments for legal fees under the applicable state`s uniform arbitration law.