Arbitration is good for the side that wins! As Charlie has said, both sides pay the fees. The arbitrator is paid and gets paid not matter what happens, he/she is paid first. I just finished working with an attorney who's client had a really bad roof on their home. They had three arbitration meetings, each one cost $500. On the third meeting the arbitrator found in favor of the homeowner with the bad roof. This could have all been settled in the first meeting, but it was extended and extended at the request of the arbitrator. At the first meeting everyone had my report and photos showing that the shingles were laid directly on the OSB with no felt or moisture barrier of any type. Pretty darn simple, but apparently they needed me to come to the second meeting to verify what I found. This arbitrator was an attorney that just does arbitration's. Urrrrrrr, I just could not belive that they extended it to three meetings. IMO, it was simply to raise the amount of money the arbitrator received.