Originally from:
AAA Handbook on Employment Arbitration and ADR - 2nd Edition - Hardcover
AAA Handbook on Employment Arbitration and ADR - 2nd Edition - Electronic
Preview Page - CHAPTER 30
ALLOCATING COSTS IN EMPLOYMENT
ARBITRATION
Stephen K. Huber and Susan C. Zuckerman*
I. Introduction
The subject of forum costs in employment arbitration has become the
focus of several court decisions addressing the enforceability of
predispute arbitration provisions in the context of statutory employment
claims. Some courts have taken the position that any arbitration clause
that requires the claimant to pay any portion of the costs of the
arbitration proceeding, including the arbitrator’s compensation, is
invalid. Those courts reason that an employee need not pay a judge to
decide statutory claims asserted in litigation; therefore, the employee
should not be required to pay arbitration costs. But not all courts see the
issue in such black and white terms. This chapter surveys current
developments on this issue.
Stephen K. Huber is the Foundation Professor of Law at the University of Houston
Law Center. He has law degrees from the University of Chicago and Yale University,
and has also taught law at the University of Texas, Pepperdine University, Rice
University, and the University of East Africa (Dar es Salaam, Tanzania). Professor Huber
is the author of many articles and several books, including The Bank Officer's Handbook
of Government Regulation (2d ed. 1989); Arbitration: Cases and Materials (2d ed. 2006)
(with Maureen Weston); and Mediation and Negotiation: Reaching Agreement in Law
and Business (2d rev. ed. 2007) (with Wendy Trachte-Huber). He is the editor of
Alternative Resolutions, the quarterly journal of the Dispute Resolute Section of the State
Bar of Texas.
Susan C. Zuckerman, an attorney, is the editor of ADR CURRENTS and author of
numerous articles on Alternate Dispute Resolution topics, including SDNY Declines
Enforcement of NY Convention Award, DISPUTE RESOLUTION JOURNAL, 2/1/04;
Construction: Who may serve as arbitrator, DISPUTE RESOLUTION JOURNAL, 5/1/02;
Employment: Modified standard of review, DISPUTE RESOLUTION JOURNAL, 5/1/02; Oil
and gas: Removal jurisdiction and the New York convention, DISPUTE RESOLUTION
JOURNAL, 5/1/02; and Health care: Equitable estoppel, DISPUTE RESOLUTION JOURNAL,
5/1/02.