§ 1141.28.Administrative Costs; Actual Costs of Compensation of Arbitrators

Title 3. Of Summary Proceedings · Chapter 2.5. Judicial Arbitration · Last amended 2001 · Last verified July 29, 2026

In one sentenceSection 1141.28 makes the court pay the administrative costs of judicial arbitration, including arbitrator compensation, except that where arbitration happens only because the parties stipulated to it in a case that wouldn't otherwise qualify, the parties split the arbitrator's compensation equally, unless that cost would create a substantial economic hardship a court can review.

Full Text of § 1141.28

Text sizeJump to: (a) (b)

(a) All administrative costs of arbitration, including compensation of arbitrators, shall be paid for by the court in which the arbitration costs are incurred, except as otherwise provided in subdivision (b) and in Section 1141.21.

(b) The actual costs of compensation of arbitrators in any proceeding which would not otherwise be subject to the provisions of this chapter but in which arbitration is conducted pursuant to this chapter solely because of the stipulation of the parties, shall be paid for in equal shares by the parties. If the imposition of these costs would create such a substantial economic hardship for any party as not to be in the interest of justice, as determined by the arbitrator, that party's share of costs shall be paid for by the court in which the arbitration costs are incurred. The determination as to substantial economic hardship may be reviewed by the court.

Plain-English Summary

Judicial arbitration is meant to be low-cost for the parties, and § 1141.28 makes the court the default payer. Subdivision (a) puts all administrative costs of arbitration, including arbitrator compensation, on the court in which those costs are incurred, except as subdivision (b) and § 1141.21 otherwise provide.

Subdivision (b) carves out a different rule for cases that land in arbitration only because the parties stipulated to it under § 1141.12(a), rather than because the case qualified under § 1141.11 or § 1141.12(b). In those purely stipulated cases, the parties themselves pay the arbitrator's actual compensation costs, split equally. If that expense would cause a party such substantial economic hardship that paying it wouldn't serve the interest of justice, the arbitrator decides that question, and the court in which the arbitration costs are incurred picks up that party's share instead, subject to the court's own review of the arbitrator's hardship finding.

Frequently Asked Questions

Who pays for arbitration under this chapter?

The court, generally — Section 1141.28(a) makes the court responsible for administrative costs of arbitration, including arbitrator compensation, except as this section and § 1141.21 otherwise provide.

Are there cases where the parties pay the arbitrator instead of the court?

Yes. If a case is arbitrated only because the parties stipulated to it, and wouldn't otherwise be subject to this chapter, the parties split the arbitrator's actual compensation costs equally.

What if paying that cost would be a hardship for one party?

The arbitrator decides whether the cost would create substantial economic hardship inconsistent with the interest of justice, and if so, the court pays that party's share; the court may review that hardship determination.

Amendment History

Amended by Stats 2000 ch 447 (SB 1533), s 3, eff. 1/1/2001.

Source & verification. Section text is reproduced verbatim from the Deering's California Codes Annotated / vLex. Enacted by the California Legislature. Last verified July 29, 2026. · Official source

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