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Arbitrator Cancellation Fee

Monday, May 25, 2026 5:26 PM | Anonymous

Cancellation Fee Stock Illustrations ...

Should arbitrators charge cancellation fees?  If so, how many days before the scheduled hearing is appropriate to trigger the cancellation fee?

What are your thoughts?

Comments

  • Tuesday, May 26, 2026 10:10 AM | Anonymous
    Yes, arbitrators should charge cancellation fees to both compensate the arbitrator for the lost day and also to encourage the parties to initiate settlement talks before the cancellation date. A 15-day cancellation period seems reasonable to me, especially when you factor in any special travel arrangements the arbitrator, parties and witnesses have to make.
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    • Tuesday, May 26, 2026 10:20 AM | Georges Affaki
      I agree with the previous commentator. At present, this issue is essentially confined to proceedings in which arbitrators bill by the hour. Institutions applying ad valorem fee scales generally refuse cancellation fees on the basis that the arbitrators’ remuneration is unaffected by a late cancellation. That reasoning seems somewhat disconnected from reality.
      Arbitrators with active practices who are informed sufficiently early of a cancellation may well be able to reallocate the reserved hearing time to other fee-generating work. The economic prejudice caused by a late cancellation is therefore real.
      A sensible solution would be a cancellation fee increasing in proportion to the lateness of the cancellation, covering up to 50% of the originally scheduled hearing duration, together with any non-recoverable hotel or flight cancellation charges.
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    • Tuesday, May 26, 2026 7:12 PM | Anonymous
      I agree mine is 14 days
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  • Tuesday, May 26, 2026 10:15 AM | Marshall Bennett
    When a party reserves an extended period for a hearing, e.g. two weeks, it is appropriate to impose a cancellation fee. I would prefer to see a scheduling fee instead to reserve the dates.
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  • Tuesday, May 26, 2026 10:16 AM | Robbie MacPherson
    I do not believe it appropriate to charge a cancellation fee if the reason is a settlement. Doing do may discourage a settlement if the cancellation fee is high. If the cancellation is for any other reason a week to 10 days is reasonable.
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    • Tuesday, May 26, 2026 10:26 AM | Anonymous
      Agreed. Nor do I charge a cancellation fee for any other reason. That's a carryover from when I was lawyering full time and a cancellation actually allowed me to dive back into my workload. Now that I'm retired from the practice of law, I've maintained my policy of no-cancellation fees.
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  • Tuesday, May 26, 2026 10:25 AM | Marty Coleman
    I started charging a cancellation fee after the parties informed the Panel on Monday morning (of a 2 week hearing) that they wanted to delay the start to Tuesday to discuss settlement. Then they did the same thing Tuesday morning and Wednesday morning before telling the Panel that they had settled. So I started charging a cancellation fee if the hearing cancels within 14 days of the start of the hearing.
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    • Tuesday, May 26, 2026 11:29 AM | Judgersa
      I agree. I put aside time and don’t take other work. I have a two week cancellation fee. I have been burned on flat fee cases. I have had two now cancel the day before hearing when I turned down other work.
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    • Tuesday, May 26, 2026 2:08 PM | Tom Yocum
      I charge a cancellation fee of 50% of the fee for scheduled days if the hearing is scheduled for more than 3 days and is cancelled within 14 days of the hearing date. In my opinion, this forces the parties to get serious about settlement discussions in advance of the hearing date.
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  • Tuesday, May 26, 2026 10:25 AM | Anonymous
    If the parties cancel on less than 30 days, but more than 10 days' notice, I charge 50% of the daily hearing rate (4 hours). If they cancel on less than 10 days' notice, I charge the full 8 hours. This motivates the parties to settle, if that is what they want to do, before 30 days. In the 10 years I have had this cancellation rate practice in place I have never had to utilize it.
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    • Tuesday, May 26, 2026 10:56 AM | Dan Harris
      I like this policy. I have always charged for cancellation of the hearing less than 14 days before the hearing. In five years it has only happened once. The parties to a month long hearing recently announced "essential settlement" arrangement just one day before the fee applied, leaving me with a month off work.
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  • Tuesday, May 26, 2026 10:31 AM | Lou Russo, Russo Law LLC
    Absolutely. Hearing dates are often reserved many months in advance, with arbitrators turning away other matters to keep that time available. The key is setting the cancellation cutoff close enough to the hearing that the parties are actively preparing and incurring real costs, while still encouraging meaningful settlement discussions before everyone fully ramps up for the hearing.

    A 30-day window often strikes that balance, although in practice lawyer schedules and ongoing negotiations do not always make early resolution realistic.

    So I understand the tiered approach some arbitrators take with cancellation costing more the closer it happens to the scheduled hearing.
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  • Tuesday, May 26, 2026 10:33 AM | Rebecca A. Bowman, Esq., P.E., D.F.E. (NAFE #1153)
    Never a cancellation fee for an executed settlement agreement, although I do bill for nonrefundable travel expenses. For pretty much any other reason (excepting hospitalization or death of a party), I use no cancellation fee if cancelled more than two weeks before the hearing, 50% of the scheduled number of days if less than two weeks before the hearing, and 75% of the scheduled number of days if less then 24 hours before the beginning of the scheduled hearing.
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  • Tuesday, May 26, 2026 10:45 AM | David E. Robbins
    Five business days - this will discourage last minute cancellations.
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  • Tuesday, May 26, 2026 11:04 AM | dan feinstein
    I join the vast majority of responses above. I absolutely do charge a cancellation fee if allowable under the terms of my appointment (i.e. none in AAA consumer cases). My policy is anything cancelled within two weeks of the hearing will result in a fee equal to my per diem times the number of reserved days but for very long (>3 days) anticipated hearings, have been known to grant an ad hoc discount. I do not charge for a *first* postponement if the case is subsequently heard.
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  • Tuesday, May 26, 2026 11:21 AM | David B. Wilson
    Whether to charge a cancellation fee is a matter of personal preference. I don't charge a cancellation fee. The way I look at it, the parties compensate me for my time. Thus, I don't bill for time that I did not incur. In an effort to avoid last-minute settlements, however, I set a deadline by which the parties are expected to complete mediation.
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  • Tuesday, May 26, 2026 11:28 AM | Stephen Sorensen
    Yes, a cancellation fee is appropriate when the parties cancel the arbitration. A 30 day cancellation fee is also reasonable
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  • Tuesday, May 26, 2026 11:46 AM | Scott Simpson
    I suspect full-time Arbitrators probably lean more towards cancellation fees because it’s harder for them to reposition their schedule on short notice. If you hire a more senior person who works exclusively as an Arbitrator, then I think the business model may demand it. For part-time Arbitrators, it’s much easier to pivot. And as long as people know in advance, what the rules are, they should act accordingly.
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  • Tuesday, May 26, 2026 11:50 AM | Judge Richard B. Klein (ret.)
    I agree with the majority that a cancellation fee is appropriate in many cases. I also think there should be a time limit - probably 15-30 days depending on the case. Knowing there is the possibility of settlement, if I have to travel for the arbitration, I will spend the extra money (or the lawyers will) to make sure I have refundable air fare and refundable hotel reservations.
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  • Tuesday, May 26, 2026 12:26 PM | Marc
    It’s perfectly appropriate to charge a cancellation fee, but the amount should be reasonable. It should be an amount that mitigates the loss of time and income incurred by the arbitrator, at least in part, but not an amount that would discourage the parties from settlement. Several comments have talked about a sliding scale where the cancellation fee increases the closer it gets to the actual hearing date and I think that concept strikes of your balance.
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  • Tuesday, May 26, 2026 1:09 PM | Christopher Johns
    Generally, I do not think an Arbitrator should charge a cancellation fee. If parties resolve their disputes prior to the scheduled arbitration hearing, we should not punish them with additional costs as it leaves a sour taste in their mouths. We should applaud and incentivize them for resolving their dispute prior to the hearing . If no cancellation fee, the parties are likely to return at some point with another matter. There is an exception depending on the size of the case and the amount of time devoted to pre-arbitration hearing work and the timing of the cancellation, which may on occasion warrant a cancellation fee.
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  • Tuesday, May 26, 2026 1:13 PM | Julia Sullivan
    I never charge a cancellation fee. The parties should be encouraged to settle, and cancellation fees can create an (admittedly small) disincentive. Also, I don’t believe in charging for time when I wasn’t actually working on behalf of the parties.
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  • Tuesday, May 26, 2026 1:29 PM | Kabir Duggal
    We should encourage parties to resolve disputes amicably and, where possible, to reach consensual settlements without the chilling effect of punitive cancellation fees. Such fees should not operate as a disincentive to efficient dispute resolution. The sole exception, however, concerns non-recoverable out-of-pocket expenditures, such as travel and accommodation costs, which should appropriately remain reimbursable.
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  • Tuesday, May 26, 2026 1:51 PM | Robert L. Arrington
    I quote a modest cancellation fee for arbitrations that are cancelled at seven or fewer days prior to the hearing. I frequently waive the fee.
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  • Tuesday, May 26, 2026 2:46 PM | Leslie W Langbein
    I have always charged a cancellation fee for each day of hearing that was set. I have reduced the number of days of advance notice over the years. It was 30 days' advance notice of the first day of hearing; it now is 15 days' advance notice of the first day of hearing. I impose a cancellation fee for the reasons cited by other arbitrators and also because it is not fair to me in instances when I have turned down acceptance of a new case because the requested hearing dates already were reserved by the first set of parties. The cancellation fee becomes compensation for the lost opportunity.
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  • Tuesday, May 26, 2026 3:53 PM | Dana Gloor
    For commercial cases, I charge a cancellation fee of $1,000 per scheduled hearing day if the parties cancel or postpone a hearing that is scheduled to last more than one full day on less than 15 days' notice. I do not charge the cancellation fee for cancellation or postponement of a hearing that is scheduled to last up to one full day or that is canceled/postponed at least 15 days before the first scheduled hearing date.
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  • Tuesday, May 26, 2026 4:47 PM | Anonymous
    Yes- 30 days out. Counsel and parties do not appreciate how neutrals set aside other matters for the cases they receive. There is little if any thought given to our calendars and lost revenue by those who use us. Hearing dates (and mediation) dates become benchmarks for counsel to get into thinking about how to resolve or try a case. I always encourage settlement but there is very little that takes place 30 days before the hearing dates that changes the negotiation or leverage of any participant. Full-time neutrals such as myself don’t have other cases to fill the voids. When they set up a week long hearing process, it is really annoying to lose the revenue and to have passed up other events that might have been more fun or interesting but once the date is committed, the neutrals I know stick with them. Hence I always set a final pre-hearing conference call with counsel 45-60 days out to avoid just this situation if we can.
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    • Tuesday, May 26, 2026 6:52 PM | David Lichter
      I agree completely with the foregoing comment by “Anonymous.” My cancellation fee begins 21 days out and here is the language I use (some of which is dictated by AAA, particularly the “first reschedule” wording):

      "The cancellation fee will be waived for each day or portions thereof scheduled if the arbitrator is able to book another matter. Cancellation fee is also charged for continuances sought and granted within cancellation period (provided it is not the first reschedule and the continuance is not arbitrator-generated), which charges are also waived if another matter is booked for each particular day. Arbitrator retains the right to waive portions of the cancellation fee."
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  • Tuesday, May 26, 2026 8:36 PM | Clifford B Donn
    I arbitrate exclusively labor cases. I have always had a cancellation policy and in recent years this has been thirty calendar days. I charge my per diem rate for a cancellation. I don't see this as discouraging negotiated settlements at all. It just moves up the deadline to try to negotiate and many cases I accept end up settling often with no cancellation fee but sometimes with a cancellation fee. The parties never seem to object (I presume those who do object don't choose me as their arbitrator). It seems that failure to charge a cancellation fee would only encourage the parties to waste my time.
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  • Tuesday, May 26, 2026 9:13 PM | Dustin Hecker
    I reserve the right to charge a cancellation fee because when a hearing is scheduled, I can't plan anything else. But I've never assessed it. I try instead to wait until late in the case to schedule the hearing on the merits. That way, I am less likely to be reserving a week when I might want to make other plans and it's a bit more likely the case actually will go forward.
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