Failure To Pay Arbitration Fees Was A Waiver Of Right To Arbitrate

In Cinel v. Barna, the Court of Appeals ruled that the failure to pay the arbitrator’s fees constitutes a waiver of arbitration. There, numerous parties were ordered to arbitrate by the trial court.  The plaintiff paid his portion of the fees, as did two of six defendants.  At that point, the American Arbitration Association (“AAA”) told the parties that if all the fees were not paid, the arbitration would be dismissed.  After the fees were not paid, the claim was dismissed.  The defendants then asked the trial court to rule for them based on the dismissal in arbitration.  The trial court refused and held that the failure by all the parties to live up to the contract and abide by the terms was a waiver of the arbitration provision. The Appellate Court agreed.

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