A BILL TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING SECTION 38-77-720, RELATING TO PROPERTY DAMAGE LIABILITY CLAIMS ARBITRATION FEES AND ARBITRATOR COMPENSATION, SO AS TO INCREASE FEES AND COMPENSATION; BY AMENDING SECTION 38-77-730, RELATING TO ARBITRATION CLAIM FILINGS, SO AS TO REVISE FILING REQUIREMENTS; BY AMENDING SECTION 38-77-740, RELATING TO ARBITRATION CLAIM HEARINGS, SO AS TO PROVIDE ARBITRATORS MAY AWARD REASONABLE ATTORNEY'S FEES AND COSTS TO THE PREVAILING PARTY; AND BY AMENDING SECTION 38-77-770, RELATING TO THE RIGHT TO A DE NOVO APPEAL OF ARBITRATOR DECISIONS, SO AS TO PROVIDE ARBITRATOR DECISIONS ARE ADMISSIBLE AS SUBSTANTIVE EVIDENCE OF LIABILITY, DAMAGES, OR BOTH.
Impact
The proposed changes would streamline the arbitration process for parties involved in property damage claims and ensure that arbitration decisions are more impactful in legal contexts. Additionally, the bill introduces a provision allowing arbitrators to award reasonable attorney's fees and costs to the prevailing party. This could lead to more equitable outcomes in which parties that prevail in an arbitration hearing may receive a portion of their legal expenses back, potentially incentivizing claimants to pursue legitimate claims.
Summary
House Bill 4732 aims to amend the South Carolina Code of Laws regarding arbitration fees and procedures related to property damage liability claims. The bill intends to increase the fee structures associated with arbitration and improve compensation for arbitrators. Specifically, revisions are made to Section 38-77-720, which establishes a panel of arbitrators that must include practicing attorneys and determines compensation on a rotational basis, as well as structural changes to filing requirements and hearing processes for claims.
Contention
One notable concern surrounding H4732 involves the implications of the bill on access to justice for claimants, especially those who may find the increased fees burdensome. Critics may argue that the heightened costs associated with arbitration could deter individuals from filing claims, thus creating inequities in the system. Furthermore, by making arbitrator decisions admissible as substantive evidence of liability and damages in court, some stakeholders worry that it may lead to a lack of thorough judicial review of arbitrator rulings, thereby affecting the rights of the parties involved.