(a) Notwithstanding Sections 1283.2 and 1284.2, the party acquiring the property shall pay all of the expenses and fees of the neutral arbitrator and the statutory fees and mileage of all witnesses subpoenaed in the arbitration, together with other expenses of the arbitration incurred or approved by the neutral arbitrator, not including attorney's fees or expert witness fees or other expenses incurred by other parties for their own benefit.
§ 1273.020.Payment of Arbitrator's Expenses and Fees, Witness Fees and Mileage and Attorney's Fees
Title 7. Eminent Domain Law · Chapter 12. Arbitration of Compensation in Acquisitions of Property for Public Use · Enacted 1975 · no amendments on record · Last verified July 29, 2026
In one sentenceSection 1273.020 requires the party acquiring the property to pay the neutral arbitrator's fees and expenses and subpoenaed witnesses' statutory fees and mileage, permits an agreement to also require it to pay other parties' attorney's and expert fees, and allows payment from acquisition or other available funds.
Full Text of § 1273.020
(b) An agreement authorized by this chapter may require that the party acquiring the property pay reasonable attorney's fees or expert witness fees, or both, to any other party to the arbitration. If the agreement requires the payment of such fees, the amount of the fees is a matter to be determined in the arbitration proceeding unless the agreement prescribes otherwise.
(c) The party acquiring the property may pay the expenses and fees referred to in subdivisions (a) and (b) from funds available for the acquisition of the property or other funds available for the purpose.
Plain-English Summary
Arbitration under this chapter still costs money, and this section decides who bears which pieces of that cost, overriding the general arbitration statute's default cost allocation for this particular context.
The party acquiring the property -- typically the public entity -- always pays the neutral arbitrator's expenses and fees, along with the statutory fees and mileage of any witness subpoenaed for the arbitration, plus other arbitration expenses the neutral arbitrator incurs or approves. That baseline obligation doesn't extend to attorney's fees or expert witness fees the other parties incur for their own benefit; those stay with whoever incurred them, unless the agreement says otherwise.
That exception matters: an arbitration agreement under this chapter can go further and require the acquiring party to also pay reasonable attorney's fees, expert witness fees, or both, to the other side. When the agreement includes that kind of provision, the arbitration proceeding itself determines the actual dollar amount of those fees, unless the agreement spells out some other method for setting them.
Finally, the acquiring party isn't limited to a specific funding source for any of this. It can pay these arbitration expenses and fees out of the funds set aside for acquiring the property, or from any other funds it has available for that purpose.
Frequently Asked Questions
Who pays the arbitrator's fees and expenses under a Chapter 12 arbitration agreement?
The party acquiring the property, along with the statutory fees and mileage of subpoenaed witnesses and other arbitration expenses the arbitrator incurs or approves.
Does the acquiring party automatically pay the other side's attorney's fees?
No, unless the arbitration agreement specifically requires it; attorney's fees and expert fees incurred for a party's own benefit otherwise stay with that party.
If the agreement does require paying the other side's fees, who sets the amount?
The arbitration proceeding itself determines the amount, unless the agreement provides a different method.
Where can the acquiring party draw funds to pay these arbitration costs?
From funds available for acquiring the property, or from any other funds available for that purpose.
Amendment History
Added by Stats. 1975, Ch. 1275.
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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