N.C. R. Ct. Ord. Arb. 5

As amended through June 18, 2024
Rule 5 - Fees and Costs
(a)Arbitration Costs. The arbitrator may include, in an award, court costs accruing through the arbitration proceedings in favor of the prevailing party. Costs may not include the arbitrator fee or any portion of said fee, which shall be equally divided between the parties in accordance with these rules.
(b)Arbitrator Fee. The arbitrator's fee shall be equally divided among all parties to that action pursuant to Arb. Rule 5(c). No party shall be required to be responsible for any more than their pro rata share of the arbitrator's fee.
(c)Payment of Arbitrator's Fee.
(1)By Non Indigent Parties. Each party not found by the clerk to be indigent shall pay, into the clerk of court, an equal share of the arbitrator fee prior to the arbitration hearing. Failure to pay the fee shall not be a ground for continuance of the arbitration. The clerk, to whom the fee is paid, shall document each party that pays or is found to be indigent in the file on the proper form promulgated by the Administrative Office of the Court. This form shall be placed in the file.
(2)By Indigent or Partially Indigent Parties.
(i)Partially Indigent Persons. If, in the opinion of the clerk or court, an indigent person is financially able to pay a portion, but not all, of their pro rata share of the arbitrator's fee, the court shall require the partially indigent person to pay such portion prior to the arbitration. Failure to pay the fee shall not be a ground for continuance of the arbitration. The clerk, to whom the fee is paid, shall document each party that pays the proper amount or is found to be indigent in the file on the proper form promulgated by the Administrative Office of the Courts. This form shall be placed in the file. The clerk shall apply the criteria enumerated in N.C.G.S. § 1-110(a).
(ii)Fully Indigent Persons. Upon a finding that the party is indigent, that party shall not be required to pay their portion of the arbitration fee prior to the arbitration.
(3)Liens. In all cases, wherein any portion of a party's pro rata share of the arbitrator's fee is not paid in full, the court shall direct that a judgment be entered in the office of the clerk of superior court for the unpaid portion of that party's pro rata share of the arbitrator's fee, which shall constitute a lien as prescribed by the general law of the State applicable to judgments. Any reimbursement to the State as provided in this rule or any funds collected by reason of such judgment shall be deposited in the State treasury and credited against the judgment. A district court judge shall direct entry of judgment for actions or proceedings filed in district court or for those matters appealed from a magistrate's award.
(4)Judgment for Fee. The order or judgment shall become effective and the judgment shall be docketed and indexed pursuant to N.C.G.S. § 1-233 et seq., in the amount of the partially indigent or indigent party's share of the arbitrator's fee. Each judgment docketed against a person shall include the social security number, if any, of the judgment debtor.

N.C. R. Ct. Ord. Arb. 5

365 N.C. 711.
Amended effective 12/23/2020.

COMMENT

When determining each party's equal share of the fee in accordance with Arb. Rule 5(b), take the total arbitrator fee and divide it by the total number of parties in the action. If one party has been granted relief to sue as an indigent, include that party in the number by which the fee is divided to calculate other parties' equal share. Multiple plaintiffs and defendants shall be counted individually and not as one party. These fees are non-refundable.

For purposes of Arb. Rule 5, a person shall apply for indigency before the clerk if requesting indigent status as it relates to the arbitration fee by completing and submitting AOC-G-106 or similar form if this form is modified and/or replaced by the Administrative Office of the Courts.

For purposes of Arb. Rule 5, if a party that is not a living human being, as defined by Arb. Rule 1, is listed as a party and a living human being, who is an owner, shareholder or has any other ownership interest in that non-human being party is also listed as a party, then each shall be counted as an individual party.

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