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Arbitrator Cancellation Fees

Wednesday, July 02, 2025 9:53 AM | Anonymous

How to Write a Fair Cancellation Policy for Your Business

What policies do arbitrators use for party cancellations? Do they differ for certain types of cases (e.g., commercial, construction, employment, international)?  What is a reasonable cancellation fee time period, if any?

What are your thoughts?

Comments

  • Wednesday, July 02, 2025 10:15 AM | Anonymous
    i dont use them, and they arent common in my area--too much competition.
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  • Wednesday, July 02, 2025 10:16 AM | Michael Leb
    I have a 30 day cancellation policy. I charge a daily rate for every day reserved. If the matter is taken off calendar 30 days or fewer before the scheduled hearing. If a hearing is scheduled for four days and it lasts only three, I also charge for the other reserve date. I think it really matters Whether the neutral can "mitigate" by filling the time. I am not one of those neutrals, who is likely to fill a slot when a matter is canceled on short notice.
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  • Wednesday, July 02, 2025 10:21 AM | Jeremy Vermilyea
    I'm really curious about what others are doing in this regard. I was at a conference a few weeks ago and this was something one of the panels discussed, and it seems like opinions are all over the map.

    I have a 14-day cancelation period and a half-day charge per day of cancelation, but I tend to be pretty flexible about whether and how much I charge.
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    • Wednesday, July 02, 2025 12:27 PM | Tracy Steedman
      We met at that conference! We discussed your cancellation fees. I am revising mine based on our discussion.
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  • Wednesday, July 02, 2025 10:22 AM | Anonymous
    My policy is 60 day out, because I am usually booking 90 - 120 days into the future. I don't charge to the extent I can fill the dates with other matters, and make clear to the parties that I don't want to charge them, but they need to keep it in mind. On the few occasions that I have imposed it, the lawyers understand.
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  • Wednesday, July 02, 2025 10:22 AM | Charlie Herf
    7 days and one hearing day fees.
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  • Wednesday, July 02, 2025 10:28 AM | Charles Platto
    I believe that cancellation fees are appropriate in commercial arbitrations 60 days 1/2 reserved time; 30 days full for reserved time - adjustment if reschedule or good cause shown. parties should have responsibility to keep to schedule and also to compensate arbitrators if they settle close to hearing dates
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  • Wednesday, July 02, 2025 10:29 AM | Anonymous
    I too have a 30 day notice cancellation charge. Before I imposed it, I found that lawyers would reserve 2 weeks, I would turn down other with, and they would cancel a day before the reserved date. Unfair to use my livelihood as a tickle file!
    But it is hard to rebook even with a 30 day window.
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  • Wednesday, July 02, 2025 10:30 AM | Anonymous
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    I have always charged a cancellation fee for arbitrations that cancel within 30 days of calendared hearings but reserve the right to not impose the charge. It is usually the equivalent of at least one-half of a day charge for each day cancelled, up to a full day charge. Depends on the size of the case and if there is a panel or I am the sole arbitrator. Have never had any push back.
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  • Wednesday, July 02, 2025 10:31 AM | Ernest Brown
    If you are a full time neutral, a modest cancellation fee with a 30 day cut off is reasonable. If you are a busy lawyer, not so much.

    I have had 4 week arbitrations settle the first day of hearings, so some compensation is fair.
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  • Wednesday, July 02, 2025 10:32 AM | GARY JAVORE
    My cancellation period is 30 days. But I make every effort to fill the time and reduce the cancellation fee by the amount I am able to invoice on other matters.
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  • Wednesday, July 02, 2025 10:35 AM | Anonymous New Yorker who arbitrates to help parties not penalize them
    No cancellations fees for me as arbitrator - amicable resolution is supposed to be a win for the parties, arbitrators should not detract from that - disputes are already expensive and unpleasant for parties - if arbitrators want parties to choose arbitration, don’t penalize them if they can find an amicable resolution
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  • Wednesday, July 02, 2025 10:39 AM | George Lobman
    I have a short timeline for cancellation. If within one day I charge 3/4 of my rate because I have cleared mtgs and other matters for quite some time! Backfilling that date is doubtful.
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  • Wednesday, July 02, 2025 10:41 AM | Hal Bruno
    At this point in my career, while I still have an active practice outside of being an arbitrator, I do not charge a cancellation fee because I can always fill the time with other work. I also hope that a no cancellation fee policy gets me selected more. I, however, forsee in the future as I try to wind down my practice outside of being an arbitrator, charging a cancellation fee.
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  • Wednesday, July 02, 2025 10:54 AM | Arbitrator
    Within 60 days of final hearing only 50% of deposit returned. Within 10 days non-refundable. You’d be surprised how many cases work out…
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  • Wednesday, July 02, 2025 11:01 AM | Howard Broadman
    45 day cancellation policy
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  • Wednesday, July 02, 2025 11:12 AM | Henry Parr
    Although i have cancellation fees, i have never actually charged them.
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  • Wednesday, July 02, 2025 11:18 AM | Charles Peckham
    I quote a 50% fee for cancellations made within one week prior to the arbitration (I think that is what I have in my papers). I NEVER actually charge it - it is always waived. The purpose is to receive as early notice as possible of the cancellation, but to charge it is to guarantee that none of the parties will ever use me again. Waiving the fee is a business call, and is rightly perceived as magnanimous enough that the parties often will reach out to schedule other matters with me - mediations or arbitrations.
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  • Wednesday, July 02, 2025 11:18 AM | Hon. Alvin Zimmerman
    I do think for me arbitrator’s cancellation fees are necessary because if we didn’t reserve the date(s) for the parties we could have used the date for others. In today’s economic world, if you make an appointment with a doctor and other professionals (CPA), they (some) are charging you for the cancelation. The next question is what is fair as to cancelation reasons and amounts. There are times when the excuse to cancel merits not charging. If a participant gets sick and they need to reschedule I may not charge and there are other reasons not to charge. As to the amount, it may depend upon how much notice is given and the reason. If the cancelation occurs and I’m notified at least 30 days in advance, I generally will not require a cancelation fees. If it is within the 30 days I will charge the full rate for the number of days reserved with the caveat that if I can rebook others I often will not charge.
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  • Wednesday, July 02, 2025 11:49 AM | Anonymous
    I have not yet imposed cancellation charges, however, I do indicate on my resume that charges may be made for one day of hearing (7 hours) if the cancellation is made within 48 hours of the scheduled hearing. No charge for cancellations made outside 48 hours.
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  • Wednesday, July 02, 2025 12:18 PM | Leslie W. Langbein
    I recently changed my cancellation policy on Labor Arbitrations on the advice of AAA. I shortened the length of time to cancel from a 30 day window before the first hearing date to 15 days. It has not seemed to enhance the chances of my selection. On the other hand, I keep the 30 day cancellation period on Employment and Commercial cases because those cases generally require me to reserve multiple days on my calendar which cannot be filled with other work on short notice. In my opinion, parties do not make a decision on who to choose as an arbitrator because of their maintenance of a cancellation policy. And, of course, whether you choose to enforce it or not as a matter of goodwill is another issue.
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  • Wednesday, July 02, 2025 12:38 PM | Jim Daniels International Arbitrator in Mining oil & gas
    Cancel more than 6 months in advance = no charge
    Cancel between six and three months = half fees payable
    Cancel between three months and one month 3/4 fees payable. Cancel in the month before time booked =full fees payable.
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  • Wednesday, July 02, 2025 7:25 PM | Dustin Hecker
    I have a cancellation charge listed on my profile but have never imposed it. despite many many postponements and cancellations. at the end of the day I just chalk it up as a cost of business. what I do try to do however is to delay in setting a hearing on the merits until after the case has gotten far enough along and discovery that it is clear we can set a date that is meaningful. for reasons that escape me even my fellow arbitrators resist in doing that.
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  • Wednesday, July 02, 2025 7:48 PM | Anonymous
    Especially for those who impose fees a month or more out from the hearing,
    the imposition of full cancellation fees should take into account the procedural schedule set by the arbitrator. If witness lists, exhibits, or expert disclosures are permitted too close to the hearing date, the parties may still be evaluating key evidence when the hearing nears. In such cases, if the hearing is canceled or postponed, it’s not solely the parties’ doing—it’s a consequence of a tight timetable that limited early resolution or preparation. When the arbitrator’s scheduling decisions contribute to a late cancellation, fairness requires that cancellation fees be reduced or waived accordingly. Arbitrators should exercise discretion and avoid imposing penalties that don’t reflect the shared responsibility for the outcome.
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  • Wednesday, July 02, 2025 8:07 PM | Anonymous
    When I was a busy litigator as well as an arbitrator, I usually waived my cancellation fees. Now that I am a full-time arbitrator, I have a 21-day cancellation policy and charge @half-day for each day that was booked that I cannot re-book.
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  • Wednesday, July 02, 2025 8:24 PM | Julia E. Sullivan
    As counsel, I never charged my clients a cancellation fee, and as arbitrator, I never charge the parties a cancellation fee. Such fees are not earned and, worse, they can create a disincentive to settle.
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  • Thursday, July 03, 2025 4:21 AM | Anonymous
    I will start by commenting of the principle and the dynamics. First, cancellation fee is meant to be payment/compensation for time reserved by an arbitrator for an activity (mention, hearing or site visit), which is cancelled due to a party's or parties' default or inability to proceed. It is not a penalty or fine to a party. Neither is not meant to be a bonus or windfall for the arbitrator. Its service as an incentive to parties not to cancel is purely incidental.

    Second is that for mentions or short hearings, part of the reserved time is anyway taken up in preparing directions or a ruling regarding the application or circumstances which led to the cancellation. In such cases, I bill for the time taken in preparing the directions/ruling and little, if any, for the cancellation itself.

    Third, an arbitrator's office is one of trust and holds a lot of power. This calls for fairness and self-consorship especially in ad hoc arbitrations. The fact that parties do not challenge an arbitrator's unfair billing does not mean that they are pleased.

    Generally, I reserve the right to charge 100% for the reserved time for cancellation on the reserved date and 50% for reservations within 7 days but the % goes up if the scheduled activity is in a different country or if a particular cancellation has caused me undue inconvenience.

    I am usually quite busy and can easily switch to other work on the second day of what would have been a 5-day hearing. So I would not charge for the other 4 days unless exceptional circumstances prevail.

    The cancellation cost has two components - my fee and that of the non-defaulting party. The second component does not arise when cancellation is by consent of the parties.

    The fees come with the attendant disbursements like the arbitrator's cancellation of flights, hotel, room hire, and the transciber. The non-defaulting party's disbursements are similar but typically have additional items with respect to assisting counsel and witnesses.

    Who pays the cancellation fee and when? I determine this after briefly hearing the parties. The fee is generally payable by the party which caused the cancellation "in any event", that is, regardless of the award on merits. I normally order payment within like a month of the cancellation.

    Paul Ngotho, Chartered Arbitrator, Nairobi, Kenya.
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  • Thursday, July 03, 2025 6:57 AM | Linda Gerstel
    For ten years I never had any cancellation fees. I changed my policy 2 years ago when I noticed some of the more established arbitrators had them. I also had many cases where parties wait until 2 weeks before a scheduled arbitration to settle a case.

    I started with a 30 day policy which approximately reflects half charges of my billing rates.

    If parties are planning to settle and they know there could be a cancellation fee then it would likely motivate them to settle before the cancellation fee is triggered. This seems fair to the arbitrator and fair to the parties who are on notice of financial consequences to settle a bit sooner rather than waiting until the hearing is about to begin.
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  • Thursday, July 03, 2025 8:49 AM | Robbie MacPherson
    I have a cancellation fee for hearings cancelled on less than 10 days notice, but have not charged that in the case of a settlement. I plan to amend my written policy to say the fee will not be charged in the case of settlements, which should be encouraged.
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  • Thursday, July 03, 2025 7:03 PM | Sharon Daily
    I have never charged a cancellation fee and won't start now. If parties cancel, they have their own reason(s). I have plenty of other work to do. Others differ, and I'm fine with that.
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  • Thursday, July 03, 2025 11:59 PM | Mark Bunim
    I never had a cancellation fee but a number of years ago I had a 3-week hearing reserved and on day 2 the parties settled. Having lost 1 other arbitration and 2 mediations that wanted my time during that same span, I instituted a cancellation fee. It now reads: Cancellation fee (of 7 hours per day cancelled) only if the hearing is scheduled for 3 days
    or more and is cancelled on less than 21 days prior to the start of the hearing or during the hearing.
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