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Second Circuit Refuses to Compel Arbitration in Fees Row
The Second Circuit Court of Appeals recently held that the issue of whether a party is required to pay initial arbitration fees is a question for the arbitral body to decide, not the federal courts. The court further held that a party’s refusal to pay fees assessed is not necessarily a refusal to arbitrate under the Federal Arbitration Act (FAA). The ruling clarifies the boundaries of judicial intervention in arbitration proceedings, particularly regarding the allocation of fees.
