LAST UPDATED SEPTMBER 1, 2012
Current Costs of Arbitration - Arbitrators and Attorney Fees posted September 1, 2012
Scroll down this page to see more examples of excessive arbitration costs.
In the State of Nevada when the Homeowner or the Board claims the other has Violated the Governing Documents which include the CC&Rs, By Laws or Rules of the Association the only legal route to resolve the dispute is going to Arbitration or Mediation. There are two types of Arbitration, Binding or Non Binding. Do NOT let the term Non Binding fool you. Non Binding Arbitration has TEETH which can be costly to the homeowner.
This entire process is a TRAP for the unsuspecting homeowner who has never been down this road before.
The process includes a limited number of Arbitrators in the State who favor the Association Boards making "awards "in favor of the Associations..
According to the Nevada Real Estate Division over 85% of the Arbitrators decisions go AGAINST the Homeowners!
The process is controlled by NRS 38.300-360 a subsection within NRS 38 the Arbitration State Statute.
There are a limited number of Attorneys who represent Associations who know the current 18 Arbitrators in the State. Many of these Arbitrators have Biased opinions that think that a Board can NEVER be wrong putting the homeowner in a vulnerable position and causing the homeowner to lose.
The awards by these Arbitrators in most cases stick the homeowner with the Associations' Attorneys fees, which are in the Thousands of Dollars. On top of that the Arbitrators run up very high "fees" for their services. These "fees" can be over $10,000.00, which the homeowner is now saddled with.
When contacting the Nevada Real Estate Division concerning the "ADR Program" homeowners are told the cost is $50.00. This is misleading in that this is simply the cost to File the request for Mediation or Arbitration with the State. It does NOT include the costs of the Arbitrator or the Attorney fees.
If one party requests Mediation and the other party requests Arbitration ( either Binding or Non Binding) then the dispute goes to Non Binding Arbitration.
This process which was contemplated as a fast inexpensive way of resolving disputes has become a gold mine for a limited number of Attorneys and Arbitrators. It becomes very EXPENSIVE for the homeowner.
When the homeowner loses in the Non Binding Arbitration process then and only then can the losing party take the dispute to District Court in what is know as a De Novo law suit.
You had better have a fat checkbook to see justice prevail.
This is why this entire process is a TRAP for the homeowner. Be aware of the costs involved.
Below is a summary or matrix of one Arbitrators decision in 17 cases where he only ruled once in favor of the homeowner! Note the amounts of his fees and the total costs awarded against the homeowner.
SENATOR COPENING PROMOTION OF AN ARBITRATION TRAP-
FORTUNATELY GOV. SANDOVAL VETOED - SENATOR COPENING'S SB 254. (A horrible bill from a conflicted Senator) - VETOES SB 254 View Download
ARBITRATION - THE AMERICAN RULE - LEGISLATIVE COUNCIL BUREAU (Carson City) INTERPRETATION of NRS 38 -View
Attorney complaint against Arbitrator ALVIN APFELBERG click here
LIST OF AWARDS PLEASE SEE HOW MUCH THE ARBITRATOR AWARDED HIMSELF. SEVEN THOUSAND DOLLARS was tops.
REVIEW OF ALVIN APFELBERG ARBITRATOR AWARDS 2005 to 2009 CLICK HERE FOR ANOTHER VIEW OF CHART
THE FOLLOWING LINK IS SCARY IF YOU THINK YOU WANT TO GO TO ARBITRATION.
ARBITRATION FEEs FROM NRED 2011 View
THE FOLLOWING LINK IS EVEN MORE SCARY IF YOU WANT TO GO TO ARBITRATION
ARBITRATION FEES CHARGED BY ATTORNEY 2011 - View