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Non Binding Arbitration Required in Nevada

Thursday, June, 2, 2011

Non binding arbitration became the law of the land in Nevada this Memorial Day when the State Assembly passed legislation affecting Home Owner Association complaints.  Senate Bill 254 requires homeowners to pay for a mediation attorney first; if the dispute is not resolved in mediation, it will be required to go to arbitration.  There is a $1000 cost structure in such arbitrations in Nevada, with the home owners' associations and the homeowner themselves splitting the cost.


Non Binding Arbitration: Good for Homeowners


According to State Senator Allison Copening, a Democrat representing Las Vegas, Senate Bill 254 is good for homeowners because it contains language to protect them from excessive mediation and arbitration fees.  Copening is the author of the legislation, which specifies that a mediation attorney in such cases may only charge $225 per hour.  Since the average rate in Nevada for such services is approximately $300 per hour, this represents a significant discount.


The fee limit on arbitration works differently.  Rather than being a per-hour charge, arbitration in total may not cost more than $1000 per cases that qualify under the law.  According to Copening, "The problem with the current situation is mediation and arbitration can get expensive because there are no caps in place." She added that her bill "creates a process by which a complaint is immediately referred to mediation because most cases are resolved in mediation."