This content is for informational purposes only and does not constitute legal advice or create an attorney-client relationship.
After a case manager is assigned to your arbitration, the next step is simple in theory, but sometimes slow in practice. Your lender needs to pay their share of the arbitration fees.
Unfortunately, many lenders delay this part of the process, which can stall your case for several weeks or even months.
Here’s what happens during this step, and how Prevost Law Firm responds if your lender tries to drag their feet.
What the Lender Is Responsible For
When your arbitration is filed, the arbitration organization (such as JAMS or AAA) sends an invoice to the respondent, usually your lender. This is their required share of the arbitration cost, often around $1,750. Your portion of the fee has already been paid when we filed your case.
The lender is legally expected to pay this invoice upon receipt, but in many cases, they don’t.
What Happens While We Wait
While the case manager may continue to send reminders to the lender every 30 days, your arbitration cannot move forward until this payment is made. Unfortunately, this means your case may feel “paused” for several weeks.
We understand how frustrating that is, and we take it seriously.
At Prevost Law Firm, we remain in regular contact with the arbitration organization during this time. We check in, track the communication history, and continue preparing for next steps behind the scenes.
When the Lender Refuses to Pay
If the lender still hasn’t paid after several reminders, we take legal action. We file a motion to compel arbitration in state court. This asks a judge to enforce the arbitration agreement and force the lender to participate.
This is a powerful legal tool. If the judge approves the motion, and they often do, the lender is required to move forward. Refusing to comply can lead to serious consequences, including sanctions, fines, or even jail time.
However, this legal action takes time.
Filing and concluding a motion to compel can delay your case by 3 to 5 months. But it’s an effective strategy that keeps your case alive and moving, even when the lender refuses to cooperate.
Delays Can Happen But You’re Still Protected
Lenders may try to stall your case by avoiding payment, but we don’t let them off the hook. At Prevost Law Firm, we know how to escalate matters strategically and enforce your right to arbitration.