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§ 154.054.Compensation of Impartial Third Parties

Title 7. Alternate Methods of Dispute Resolution · Chapter 154. Alternative Dispute Resolution Procedures · Subchapter C. Impartial Third Parties · Last amended 1987 · Last verified August 29, 2026

In one sentenceSection 154.054 lets the court set a reasonable fee for an appointed impartial third party and, absent an agreed payment method, tax it as costs of suit.

Full Text of § 154.054

Text sizeJump to: (a) (b)

(a)The court may set a reasonable fee for the services of an impartial third party appointed under this subchapter.
(b)Unless the parties agree to a method of payment, the court shall tax the fee for the services of an impartial third party as other costs of suit.
End

Plain-English Summary

Two subsections on who pays the neutral.

The court may set a reasonable fee for the services of an impartial third party it appointed.

Judicial control of the fee follows from judicial appointment. A court that can order parties into a procedure sets what that procedure costs them.

The parties may agree on a method of payment, and their agreement governs.

Absent agreement, the fee is taxed as other costs of suit. That places it with the costs a prevailing party may recover under the ordinary rules.

Taxing as costs is a meaningful default. The expense follows the outcome rather than resting where it was first paid.

Section 154.055 is the related provision, since a volunteer neutral who takes no compensation beyond expenses receives qualified immunity that a paid neutral does not.

The court sets the fee, and the parties can set the method. Those are two different questions, and the section answers them in that order.

Fee disputes are therefore a matter for the court. A neutral appointed by the court is paid what the court finds reasonable, not what the neutral would charge in private practice.

Taxing as costs also keeps the expense inside the case. It is handled with the other costs of suit rather than as a separate claim between the parties and the neutral.

Frequently Asked Questions

Who sets the mediator’s fee?

The court may set a reasonable fee for an appointed impartial third party.

How is it paid?

By whatever method the parties agree to. Absent agreement, the court taxes it as other costs of suit.

Does that mean the losing party may bear it?

Taxing the fee as costs of suit puts it with the other costs, which follow the ordinary rules.

Amendment History

  • Added by Acts 1987, 70th Leg., ch. 1121, Sec. 1, eff. June 20, 1987.
Source & verification. Section text is reproduced verbatim from Texas Legislature Online (statutes.capitol.texas.gov). Enacted by the Texas Legislature. Current through May 14, 2026. Last verified August 29, 2026. · Official source