Tennessee House Bill HB0492

Tennessee 2023-2024 Regular Session

• Introduced: 1/25/23

Caption

AN ACT to amend Tennessee Code Annotated, Title 29, relative to arbitration.

Impact

The amendment to arbitration fees under HB0492 has far-reaching implications for both individuals and businesses that may seek arbitration as a means of dispute resolution. Higher costs may deter some parties from pursuing arbitration, which could lead to an increase in litigation instead. The bill aims to ensure that arbitration remains a viable option while addressing the need for a more sustainable fee structure that matches current economic realities.

Summary

House Bill 0492 aims to amend the Tennessee Code Annotated, specifically Title 29, which pertains to arbitration. The principal change proposed by this bill is related to the fees charged in arbitration cases. It suggests increasing the rate from five dollars for each day of arbitration to a new rate of fifteen dollars per hour. This shift indicates a significant change in how arbitration costs are calculated, potentially impacting parties involved in arbitration settlements.

Contention

Although the documentation does not provide extensive details on pushback or specific contention points, changes to arbitration costs traditionally raise concern among interest groups, particularly those who advocate for lower costs in dispute resolution mechanisms. Supporters may argue that the change is necessary to keep pace with inflation and the complexities of modern arbitration, while critics might express concern that such increases could disproportionately affect low-income individuals or smaller firms seeking resolution through arbitration.