[robynhgl]

Arbitration, Bench or Jury award?

In a case that has been to Arbitration (where the parties involved are not allowed to testify, the attorneys do all of the talking), and the Arbitrators have concluded that the party that brought on the lawsuit had no legal grounds and instead awarded the defendant money for legal fees (but not enough to cover the fees because they cannot be told how much the fees are... ), should the defendant accept the Arbitrator's findings, ask the Judge to allow enough to cover the expense of the legal fees or ask that the matter be sent to trial?

[CaptainForest]

If the Arbitrator sides with the defendant, why would the defendant appeal that decision?

[robynhgl]

If the defendant has spent almost twice as much money as was awarded by the Arbitrators trying to fight the frivolous suit should they not be entitled to at least recoup what they have lost?

[Fr_Chuck]

I would agree with Capt, they won, lost some legal fees, but if they appeal, then there is more legal fees, and they go to court, and guess what, it may not end up with the same result in court.

Arbitrators are looking at the event, and in court all that will be seen is evidence that is allowed under rules of evidence.

[CaptainForest]

If the defendant appeals, he might lose and be out even more money.

Plus, he will spend even more money on the appeal.

Yes, it's not a fair system, but that is the system we have.

[robynhgl]

It's not a question of appealing the decision. It's a question of accepting or declining what the Arbitrators came up with. The Plaintiff also has the option to accept or decline.

If a party declines, it will go to a jury trial. The party the declines must win in court. If the party is the Plaintiff--the jury must find that they had cause and award them what they were seeking in the first place. If the defendant declines, they must win by the amount the Arbitrators came up with plus 10%. If the party that declines loses, they are responsible for the other party's legal fees.

This is a decision I must make. At this point I do not know, and may not know what the other side has chosen to do until it goes back before the Judge.

Long story short; I had a contract for a loan on my motorcycle through my credit union. I had an accident and called them before my payment was due to make arrangements to pay. We made an arrangement, they followed up the arrangement with a letter stating the terms and the date which had been agreed upon. (I had been paying on this loan for two years with no lates.) On the date that we had agreed upon the credit union sent a third party to my home to repossess the motorcycle (while I was at my regular bank withdrawing the funds to make the payment to the credit union). They opened my garage and my house (I believe they were looking for the keys). When I returned home before going in to the CU I found my garage and house wide open and the bike missing. I called the credit union to tell them I would be in that day later in the afternoon as someone had broken into my home that day. At that time they told me they had come to my home. I called the police department but they refused to come out, they said it was a civil matter. I took the letter with the terms to the credit union and tried to make the payment. It was refused. (I only owed $164.00 and it was at the 30 day mark... and I had been in contact with them throughout this period.)

I retained an attorney. The CU later made an offer to the attorney that I would get my bike back. I had to make up the payments that would be due (Nov, Dec, Jan and Feb) and they wanted me to pay at least 1K on the proncipal. They said the bike would not be sold until the matter was resolved. I accepted the offer through my attorney. Two weeks later I got a notice that the bike had been sold. Nothing telling me how, where or when. The CU contacted me trying to collect the balance they said was owing--but showed me no breakdown of the costs. I told them to contact my attorney. This went on for over a month. I then received papers for small claims court--they were suing me for the amount they had previously asked for plus approximately $240. More--interest I think.

I have been to court regarding this approximately 5 times. Each of the first 3 times the attorney for the CU was not prepared and asked for a 60 day continence. It finally went to Arbitration and the outcome was that the CU was WRONG and that they owed me $3500for my trouble. The problem is--I have paid almost twice that in fees.

I just want to be put in the same financial position that I was in at the time they did this... which would be the amount I have put into fees plus the amount that I had already paid off on the motorcycle.

At this point I do not know what to do, my attorney cannot tell me what to do. I have been trying to make this decision for the past month and I am stuck. I have a bias because I am involved--naturally if I try to put myself in the position of a juror on this case I would find for the Defendant. I live in an area of regular middleclass working people. These people are like me, they would understand where I am coming from... but would they be inclined to award me enough to cover the Arbitrator's award plus another $350. ($3850) I'd like to think so. I don't want a big settlement--what I'd like is for the CU to pay me for my legal fees and allow me to re-finance a bike (which they already said they'd do at Arbitration along with dropping their suit... they failed to mention paying my fees also.)

And that is why I have asked this question. Your impartial opinions are appreciated. I am incapable of being impartial...

BTW--the Arbitrators would have been inclined to award 3 times that amount but they could not understand that the police (state police in my rural area--we do not have a city department or sheriff's patrol contracted here) refused to come to my home to fill out a report. There is one state police post that two officers man. I did take the officer's name and I wrote down the date and time that I called along with notes regarding what he said to me.

[LisaB4657]

Thank you for explaining the full story. I had been leaning towards your question being a homework question. :)

Here is what I would do if I were in your situation: I would decline the arbitration finding, go back to court and file a counterclaim for damages, court costs and legal fees. I would also request punitive damages for the malicious acts of the plaintiff. If your small claims court is limited to $5000 then I would make a motion to have the case removed to the district or superior court so that you can seek a higher amount.

With the arbitration decision you received you might be able to find an attorney who would handle this case on a contingency basis for you from this point on.

One of the very first things a new attorney learns is that you can never tell which way a judge or jury will decide. And I will admit that I'm a bit of a gambler. But with the positive indication you received from arbitration I think you would have a pretty good chance. Try speaking to other attorneys in your area. Many attorneys offer a free consultation so you can find out if anyone else might be interested in taking on the case. You're not required to stick with the attorney you have now.

[ScottGem]

I agree with Lisa. Based on the story as you told it, assuming you have documents to back it up (the letter of terms, the offer to the attorney). You have a very strong case. Juries hate companies picking on the little people and this certainly appears like you acted reasonably and they didn't.

[robynhgl]

Thanks you both for the honest answers. I was leery about giving more details because people tend to slant things in their own favor, I wanted answers that were not based upon that 'slant'.

I do have all of the papers from the CU during the time that this was going on, I also keep a calendar that I write notes on pertaining to matters such as this. It's easier to recall phone conversations and remember things if you make notes on a calendar at the time... this is a habit that I have always had. So I do have a very good way to reference everything that has occurred.

I do like the attorney that I have been working with, he and his partner have been very decent. He told me in a conversation after the Arbitration hearing that the attorney for the CU was very angry when he left, so that may be an indication that the CU will not be willing to accept the Arbitrator's resolution.

I will contact my attorney and bring up the counter-suit proposal. I need to make this decision by the 7th of this month and the attorney has to have it by the 8th. We go back to court on the 11th and the judge will 'open' the files and decide how the case will proceed based upon what the Plaintiff and I decide.

Again -- thank you.

BTW--Lisa, I am a bit of a gambler too, but I'm too damn conservative to take a wager unless I am pretty sure that the odds are leaning in my favor. I also know that I should never bet on my 'feelings'---feelings are great, they just don't carry the weight that facts do!

[ScottGem]

Good luck and keep us posted.