FEES AND COSTS FOR BINDING ARBITRATION OR NON-BINDING MEDIATION GOVERNED BY NAM'S COMPREHENSIVE RULES AND PROCEDURES
(for 2 party cases, effective 12/12/08)


The following is a description of the types of fees assessed by NAM, the manner in which the fees are calculated and an explanation of the parties responsible for the various fees. NAM's Comprehensive Rules and Procedures incorporate this Fee Schedule and require that the parties pay the fees set forth herein.


ARBITRATIONS

The parties may elect to have an Arbitration based on Written Submissions or to have an In-Person/Oral Arbitration Hearing. Depending upon which type of Arbitration is selected, the following fees apply:

Arbitration based on Written Submissions:

Claim Amount Administrative Fee Arbitration Hearing Fee
0-$5,000 $105 $155
$5,001-$10,000 $105 $310
$10,001-$30,000 $105 $410
$30,001-$50,000 $310 $900
$50,001-$75,000 $410 $1,230
Unspecified claim amount $410 $1,230


In-Person/Oral Arbitration Hearing:

Claim Amount Administrative
Fee
Arbitration
Hearing Fee
Includes
(up to)
Cost for Additional
Time (per hour)
0-$5,000 $105 $310 1.5 hours $310
$5,001-$10,000 $105 $620 1.5 hours $310
$10,001-$30,000 $105 $720 2 hours $460
$30,001-$50,000* $310 $1,030 2 hours $515
$50,001-$75,000* $410 $1,030 2 hours $515
$75,001-$500,000* $1,030 $1,540 3 hours $515
$500,000* + $2,060 $1,540 3 hours $515
Unspecified claim amount* $2,060 $1,540 3 hours $515


*For claims in these categories, if the parties select a "Special-Rate Hearing Officer" as designated as such on NAM's Roster, the Arbitration Hearing Fee will be increased by $105 per hour (that is, if the Arbitration Hearing Fee includes up to 2 hours, the Arbitration Hearing Fee when a "Special-Rate Hearing Officer" is selected will be $1,240 instead of $1,030 and if the Arbitration Hearing Fee includes up to 3 hours, the Arbitration Hearing Fee when a "Special-Rate Hearing Officer" is selected will be $1,855 instead of $1,540). Additionally, the Cost for Additional Time per hour will be increased by $105 per hour from $515 per hour to the rate of $620 per hour.

The Administrative Fee includes case administration, coordination, scheduling, document handling, faxing and postage. Such fee is charged for each claim and counterclaim.

Arbitration based on Written Submissions is a matter that is resolved by an Arbitrator based solely on the documentary evidence presented. If this methodology is selected to resolve a dispute involving a claim of more than $75,000, the parties may contact NAM for the appropriate pricing.

In-Person/Oral Arbitration Hearing is any proceeding in which an Arbitrator entertains oral testimony or arguments and reviews documents and evidence to render an award, judgment or to settle a dispute. The hearing/conference may take place in-person or via telephone or teleconference.

The Arbitration Hearing Fee for both Arbitrations based on Written Submissions and In-Person/Oral Arbitration Hearings includes the combination of conference/pre-hearing conference/hearing time, travel time (if required), study and review of written submissions and documents from the parties, research and award preparation time. In an effort to minimize the fees to be charged to the parties, the award to be received by the parties for claims of $75,000 or less will indicate the name of the prevailing party and the amount awarded. For claims of $75,001 or more, a reasoned decision will also be provided.

If, however, the parties decide that they would like to receive a reasoned decision for cases in which the amount claimed is $75,000 or less, the following additional fees apply:

Claim Amount Reasoned Decision Fee
$5,000 or less $205
$5,001-$10,000 $255
$10,001-$30,000 $310
$30,001-$50,000* $410
$50,001-$75,000* $515


*For claims in these categories, if the parties select a "Special-Rate Hearing Officer" as designated as such on NAM's Roster, the Reasoned Decision Fee will be increased by $105 (that is, from $410 to $515 if the claim amount is from $30,001 to $50,000 and from $515 to $620 if the claim amount is from $50,001 to $75,000).


Payment of Fees:

The fees discussed above are to be paid either by one party or split between the two parties depending upon the nature of the Claimant and Respondent as follows:


For Cases where the Parties are both Businesses:

The Administrative Fee shall be paid by the party that files a Demand for Arbitration, thus initiating a claim. Such party must indicate whether the matter is to be decided by an Arbitration based upon Written Submissions or an In-Person/Oral Arbitration Hearing and whether the decision is to be reasoned or not. The total fees (that is, the Administrative Fee, the Arbitration Hearing Fee and, if applicable, the Reasoned Decision Fee) shall be paid by the Claimant when a Demand for Arbitration is filed. If the responding party agrees with one or both of the choices made by the Claimant, the matter will proceed as agreed upon. To the extent that the responding party does not agree with one or both of the choices made by the Claimant, the matter will default to an In-Person/Oral Arbitration Hearing and/or a reasoned decision will apply. To the extent the Claimant has paid insufficient fees to cover the type of hearing/decision, such fees are due and payable before a hearing is scheduled. As part of the Demand for Arbitration, the Claimant may request that the Arbitrator order that all or a portion of the cost of the arbitration be reimbursed to the Claimant from the Respondent.


Consumer Cases:

Consumer Claimants: A Consumer Claimant pays $55 of the Administrative Fee and one-half of the Arbitration Hearing Fee, up to a total maximum fee of $260, unless otherwise provided for by agreement between the parties or by applicable law. Such fees shall be paid by the Consumer Claimant when the Demand for Arbitration is filed, thus initiating a claim. The Consumer Claimant must indicate whether the matter is to be decided by an Arbitration based upon Written Submissions or an In-Person/Oral Arbitration Hearing and whether the decision is to be reasoned or not. If the Business Respondent agrees with one or both of the choices made by the Claimant, the matter will proceed as agreed upon. To the extent that the responding party does not agree with one or both of the choices made by the Claimant, the matter will default to an In-Person/Oral Arbitration Hearing and/or a reasoned decision will apply. The Business Respondent pays the balance of the Administrative Fee and the balance of the Arbitration Hearing Fee that remains unpaid by the Consumer Claimant and all of the Reasoned Decision Fee, if applicable. Such fees are due and payable by the Business Respondent before a hearing is scheduled. Also, to the extent the Consumer Claimant has paid insufficient fees to cover the type of hearing, such fees are due and payable before a hearing is scheduled. As part of the Demand for Arbitration, the Consumer Claimant and/or the Business Respondent may request that the Arbitrator order that all or a portion of the cost of the arbitration be reimbursed between the parties.

Consumer Respondents: The Business Claimant pays the entire Administrative Fee. The Business Claimant must indicate whether the matter is to be decided by an Arbitration based upon Written Submissions or an In-Person/Oral Arbitration Hearing and whether the decision is be reasoned or not. If the Consumer Respondent agrees with one or both of the choices made by the Claimant, the matter will proceed as agreed upon. To the extent that the Consumer Respondent does not agree with one or both of the choices made by the Business Claimant, the matter will default to an In-Person/Oral Arbitration Hearing and/or a reasoned decision will apply. If the parties agree to an Arbitration based upon Written Submissions, all fees (that is, the Administrative Fee, the Arbitration Hearing Fee and the Reasoned Decision Fee, if applicable) are due and payable by the Business Claimant at the time the Business Claimant files the Demand for Arbitration. If the parties agree to an In-Person/Oral Arbitration Hearing (or if this is the default hearing), one-half the Arbitration Hearing Fee, up to a maximum of $260, is due and payable by the Consumer Respondent before a hearing is scheduled. In this instance, the remaining fees (that is, the Administrative Fee, the remaining portion of the Arbitration Hearing Fee and the Reasoned Decision Fee, if applicable) are due and payable by the Business Claimant. The Business Claimant should pay the applicable fees when filing the Demand for Arbitration based upon the choices made by the Business Claimant up front. To the extent the Business Claimant has paid insufficient fees to cover the type of hearing and award, such fees are due and payable before a hearing is scheduled. As part of the Demand for Arbitration, the Business Claimant and/or the Consumer Respondent may request that the Arbitrator order that all or a portion of the cost of the arbitration be reimbursed between the parties.


MEDIATIONS*

For Business-to-Business disputes:

Administrative Fee Mediation Conference Fee
$205 $1,030 (includes up to 2 hours of time; additional hours at $515 per hour)


The above fees are to be split equally between the parties and are due and payable as follows:
by the Claimant at the time a request for mediation is filed
by the Respondent at the time a response to the request for mediation is filed


For Consumer-to-Business or Business-to-Consumer disputes:

Administrative Fee Mediation Conference Fee
$205 $1,030 (includes up to 2 hours of time; additional hours at $515 per hour)


The above fees are to be paid as follows:
Consumer: the Consumer pays $55 of the Administrative Fee and $205 of the Mediation Conference Fee, unless otherwise provided by agreement between the parties or by applicable law.
Business: the Business pays the remainder of the Administrative fee or $150 and the remainder of the Mediation Conference Fee ($825 for up to 2 hours of time; additional hours at $515 per hour), unless otherwise provided by agreement between the parties or by applicable law.


The fees to be paid by the Consumer and the Business are due and payable as follows:
by the Claimant at the time a request for mediation is filed
by the Respondent at the time a response to the request for mediation is filed


For Individual-to-Individual disputes:

Administrative Fee Mediation Conference Fee
$205 $1,030 (includes up to 2 hours of time; additional hours at $515 per hour)


The above fees are to be split equally between the parties and are due and payable as follows:
by the Claimant at the time a request for mediation is filed
by the Respondent at the time a response to the request for mediation is filed


*If the parties select a "Special-Rate Hearing Officer" as designated as such on NAM's Roster, the Mediation Conference Fee will be increased by $105 per hour (that is, as the Mediation Conference Fee includes up to 2 hours, the Mediation Conference Fee when a "Special-Rate Hearing Officer" is selected will be $1,240 instead of $1,030. Additionally, the Cost for Additional Time per hour will be increased by $105 per hour from $515 per hour to the rate of $620 per hour.


Adjournment Fees:

The Arbitrator/Mediator may, in his/her discretion, grant a party's request for postponement of a scheduled In-Person/Oral Hearing/Conference. Any such arbitration or mediation adjourned with at least 7 business days notice to NAM is billable at $205 to the adjourning party. Any such arbitration or mediation adjourned without 7 business days notice to NAM but prior to the hearing/conference date is billable at $310 to the adjourning party. For adjournments on the actual Hearing/Conference date, the adjourning party shall incur a fee equal to the amount of hours reserved, but in no event less than a minimum fee equal to 2 hours of Arbitrator/Mediator time.

The Arbitrator may, in his/her discretion, grant a party's request for postponement of the date fixed for the receipt of documentary evidence for an Arbitration based on Written Submissions. Any such arbitration adjourned with at least 7 business days notice to NAM is billable at $105 to the adjourning party. Any such arbitration adjourned without 7 business days notice to NAM is billable at $155 to the adjourning party.


Administrative, Cancellation and Settlement Fees:

The Administrative Fee is non-refundable. Additionally, for In-Person/Oral Hearings and Mediation Conferences, if the arbitration or mediation settles or cancels without at least 7 business days notice to NAM, the Arbitration Hearing Fee is also non-refundable. Furthermore, if the Hearing Officer has expended any time on the matter (whether such time relates to study and review time, pre-hearing conference/hearing time, etc.), the Arbitration Hearing Fee or the Mediation Conference Fee (as applicable) is also non-refundable.


Multi-Party and Tri-Panel Cases:

The fees detailed herein are for two-party cases. For cases involving multiple parties or a tri-panel of Arbitrators, please request from NAM the specific fee schedule for such matters that is in effect at the time a claim is filed.


Translation or Interpreter Fees:

Normally, if a party requires translation or interpretation services, that party is responsible to find an appropriate service and pay for it directly. If a party requests that NAM directly provide translation or interpretation services and NAM is able to provide such services (note that NAM is not in this business and does not have professional translators), the fee for such service is $205 per hour.


PAYMENT TERMS

  1. All fees are due and payable by the Claimant when a demand/request is filed and by the Respondent when a demand/request is responded to. In any event, all such fees must be paid before a hearing/conference is scheduled. Fees for adjournments and additional Arbitrator/Mediator time are due within 10 days of invoice date.
  2. To the extent that additional Arbitrator/Mediator time is required beyond that which was originally anticipated or if other circumstances arise whereby additional fees are incurred, NAM may direct the parties to make one or several advance, interim or final payments for the costs associated with the arbitration/mediation process. Such deposits shall be made to NAM. The Arbitrator(s)/Mediator(s) shall not proceed with the arbitration/mediation until receiving confirmation that all outstanding payments have been made to NAM by the parties.
  3. Each party is responsible to pay the fees billed to them by NAM directly to NAM. If, as part of the award, the Arbitrator/Mediator orders that a portion of the cost of the arbitration/mediation be reimbursed from one party to the other party, such reimbursement is to be made between/among the parties after NAM has been paid in full and without the involvement of NAM.
  4. In the event that a party fails or refuses to make payments, NAM may direct the other party to effect a substitute payment to allow the arbitration/mediation to proceed (subject to any Award for costs). In such circumstances, the party paying the substitute payment may be entitled to recover that amount from the defaulting party. NAM may elect not to commence administration of the claim or not to allow the hearing/conference to proceed until all outstanding fees are paid.
  5. In the event a dispute arises with respect to the payment of fees, the NAM Administrator, in his/her sole discretion, will determine who is responsible for the payment of fees.
  6. The NAM Administrator may, in his or her discretion, agree to waive any of the fees payable to NAM by an individual who is indigent and unable to pay.
  7. All fees are to be paid in U.S. dollars.
  8. Interest will be charged at a rate of 1.5% per month on balances more than 30 days past due.
  9. Any questions or concerns regarding invoices should be brought to NAM's attention within 30 days of the receipt of the invoice. Any comments received after 30 days cannot be considered.

Fees and costs are effective as of 7/1/08. All fees will automatically increase by 4% annually as of July 1st of each year. Arbitrator/Mediator travel time (should any be required) is billable to each party at the assigned Arbitrator/Mediator's travel time rate.



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