Arbitration Blog

American Arbitration Association – Consumer Arbitration Rules – Who Pays for the Court Reporter?

Even for binding arbitrations, a record of the proceedings may be important for the attorneys and the arbitrator, especially when there are many witnesses and the subject matter is complex. Having computers or tablets with the transcript available to the parties in real-time is an effective tool for counsel when cross-examining a witness.

Our court reporting firm specializes in arbitrations that we host at our Discovery Conference Centre. The question has come up, “Who pays for the court reporter?” The majority of the time, the parties agree to share the per diem for the court reporter, the time that a court reporter is writing the proceedings, but what if one party wants a court reporter present to provide rough drafts and real-time, and the other party doesn’t? What happens in the scenario when the party that didn’t want a court reporter present and didn’t agree to share in the cost of the per diem, after the arbitration has started, wants to order a rough draft or partial final transcript?

In doing research, I found the following Rule from the AAA Consumer Arbitration Rules:

R-27 – Written Record of Hearing

  • If a party wants a written record of the hearing, that party must make such arrangements directly with a stenographer (court reporter) and notify the opposing parties, the AAA, and the arbitrator of these arrangements at least three business days before the hearing. The party or parties who request the written record shall pay the cost of the service.
  • No other type of recording will be allowed unless the parties agree or the arbitrator directs a different type of recording.
  • The arbitrator may resolve disputes between the parties over who will pay the costs of written record or other type of recording.
  • The parties can agree or the arbitrator may decide that the transcript (written record) is the official record of the hearing. If it is the official record of the hearing, the transcript must be given to the arbitrator and made available to all the parties so that it can be reviewed. The date, time, and place of the inspection will be decided by the arbitrator.

Court reporters want to do the right thing and provide transcripts, rough drafts, and real-time to anyone who makes the request, offering the same services to every party. Looking at FINRA Rule 12606 the court reporter is only a   note-taker and is NOT to provide transcripts to all parties unless the panel decides the transcript is the official record. CA CCP Section 2025.310 – 2025.340 tells the deposition officer he/she must offer to provide the same services to all parties at the same time.

The AAA, Consumer Arbitration Rules, makes it clear the parties who want the written record shall pay for the cost of the service, and if there is any dispute, the arbitrator will resolve the dispute.


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