§ 171.055.Arbitrator's Fees and Expenses

Who pays for the arbitration, in one default sentence.

The award allocates the cost. The arbitrators’ expenses and fees, with other expenses incurred in conducting the arbitration, are paid as provided in the award.

The agreement comes first. The default applies only where the agreement to arbitrate does not provide otherwise, and many agreements do.

Institutional rules commonly split costs or tie them to the outcome, and adopting those rules is a way of providing otherwise.

The expenses covered are broad — the arbitrators’ own fees and expenses, plus other expenses of conducting the arbitration such as the hearing facility, the reporter and administrative charges.

Attorney’s fees are not part of this section. Section 171.048(c) governs them separately and allows them only where the agreement or the underlying law provides.

Court costs are also separate. Section 171.092(b) lets the court award costs of the application and subsequent proceedings, and disbursements.

The allocation is part of the award, which means it is confirmed, vacated or modified along with everything else in it.

Cost allocation is worth negotiating in advance. The default hands the question to the arbitrators, and a party who wants a different answer has to write it into the agreement.