Although Tel-Law information is periodically reviewed, it is important for you to realize that changes may occur in this area of law. This information is not intended to be legal advice regarding your particular problem, and it is not intended to replace the work of an attorney.

If you do not have an attorney, the Oregon State Bar Lawyer Referral Service can help you. Online Lawyer Referral Service information and a fill-in form is available. Or you may contact the service by phone: The number to call from the Portland area is 503-684-3763 or toll-free from anywhere else in Oregon, 1-800-452-7636.

The following information regarding mandatory arbitration is brought to you as a public service by the lawyers of the State of Oregon. The following explanation of arbitration describes the general process of arbitration in the state trial courts, which exists in all Oregon counties. However, each county has its own rules, and you should read those local county rules or ask a lawyer. The material presented is intended to alert you to possible legal problems and solutions.

What is arbitration?
Arbitration is a procedure, much like a trial but less formal. Instead of a decision being made by a judge or jury, an arbitrator hears the evidence and makes a decision. Like a judge, an arbitrator makes rulings on motions, decides the order in which witnesses appear and the testimony they give, and may impose penalties on a party who disobeys the arbitrator’s orders. Like a jury, an arbitrator, after hearing the evidence, decides which side wins and which side loses, and what the result will be.

Who is an arbitrator?
In the state court system, an arbitrator is a lawyer who has been admitted to practice for at least five years. The arbitrator is either chosen by the parties and their attorneys or selected by a judge or court clerk.

What kind of cases go into arbitration?
There are two kinds of cases that go into arbitration. The first kind is a civil lawsuit. A civil lawsuit is a case where one party, the plaintiff, is suing another person or corporation, the defendant, for money. Examples include a personal injury case from an automobile accident, a disagreement about a contract, or some other type of case that doesn’t involve criminal charges. In civil cases, the lawsuit goes into arbitration depending on the amount of money the plaintiff is asking for. In some counties, all cases involving less than $25,000 must go into arbitration, and in other counties, cases less than $50,000 must go into arbitration.

The second kind of case that goes into arbitration is a domestic relations or family law case, where the parties are arguing about something other than custody or support. An example is a case where the husband and wife cannot agree on how to divide their property and their debts. In some counties, the parties agree to arbitrate disagreements about support, as well.

How does a case end up in arbitration?
The court orders a case into arbitration. Once the court order is entered, the court provides a list of arbitrators, and the parties can either select an arbitrator from the list or choose someone that both sides trust to make fair decisions.

What is the cost of arbitration?
The cost of arbitration is different in each county. However, each side typically pays half of the arbitration fee, which is usually $50 to $125 per hour of the arbitrator’s time. Usually, the parties must send a deposit to the arbitrator when the arbitrator is selected, and the whole fee must be paid before the hearing. Most courts limit the total amount of the arbitrator’s fee, unless the case is so complicated or time-consuming that the arbitrator should be paid more. Usually, the party who loses the case must repay the other side for its share of the arbitration fee. Of course, each side must pay his or her own lawyer fees, and the arbitrator may, in certain types of cases, order the losing side to pay the winning side’s lawyer fees.

If either or both parties are unable to afford the cost of an arbitrator, a judge may waive the arbitrator’s fee, in which case the state pays the arbitrator. The judge also may defer the fees until the winner has been determined, and then the fees are paid by the losing party.

How does arbitration work?
Arbitration is a way to keep the cost of lawsuits down and shorten the time it takes for a case to get resolved. The arbitrator decides when motions and hearings are set. Generally, the case will have a hearing within 7 weeks from the day the arbitrator is chosen. Before the hearing, each side must give the arbitrator a list of the witnesses who will testify at the arbitration hearing and a description of any evidence that will be presented.

An arbitration hearing is more informal than a court proceeding, but the arbitrator is required to have witnesses swear that their testimony is true and allow the parties or their lawyers to ask questions and introduce evidence. The arbitrator may ask questions of the witnesses or require that the parties or their lawyers submit other evidence after the hearing. An arbitrator may also delay or continue a hearing to give each side a chance to get its entire case presented. Because the rules of evidence are less strict in arbitration than in a trial, the parties may be able to save the cost of paying witnesses, such as doctors and other experts, by submitting their written reports instead.

An arbitrator should issue a decision within 20 days after the hearing is finished.

Can an arbitrator decision be appealed?
In most cases, the decision of the arbitrator is either accepted by both sides, or both sides decide to settle the case. If either side does not want to accept the arbitrator’s decision, the case may go back before a judge or jury for a decision. A party wishing to appeal the arbitration award must do so within 20 days after the arbitration award is filed with the court, and must also pay $150 to the clerk of the court.

The case then goes to trial. The judge or the jury deciding the case does not know what the arbitrator decided. The party who ultimately loses the case may still be required to pay the winner’s share of the arbitration fees. If an appealing party does not get a better result in the judge or jury trial, that party will lose the $150 it paid to have the appeal.

This information is from the Oregon State Bar's Tel-law service, a collection of recorded legal information messages prepared by the lawyers of Oregon. In addition to being online, the Tel-law service is accessible by telephone at 503-620-3000 or toll-free in Oregon only, 1-800-452-4776. A touch tone phone allows direct access 24 hours a day, 7 days a week. To receive a free Tel-law brochure listing the subjects available call 503-620-0222, ext. 0.