Section 10240.13 Of Article 7.1. Resolution Of Contract Claims From California Public Contract Code >> Division 2. >> Part 2. >> Chapter 1. >> Article 7.1.
10240.13
. The cost of conducting the arbitration shall be borne
equally by the parties. The filing fee, witness fees, costs of
discovery, or any other cost necessarily incurred by one party shall
not be shared by any other party, except that the arbitrator may
allow the prevailing party to recover its costs and necessary
disbursements, other than attorney's fees, on the same basis as is
allowed in civil actions. These costs shall be taxed as in civil
actions.
Interest may be recovered as part of the award as in a civil
action. The arbitrator has the same authority as a court in awarding
interest and the commencement of the arbitration is equivalent to the
filing of an action under subdivision (b) of Section 3287 of the
Civil Code for the purpose of an award of interest.
If a party has made an offer of settlement and the award is less
favorable than the offer, then the party who has received the offer
shall not recover any interest accruing from and after the date on
which the offer was made, nor costs of suit.
Reasonable attorney fees may be recovered according to any of the
following:
(a) By a party who has made an offer under the circumstances set
forth in the preceding sentence but only as to those fees incurred
from and after the time of making the offer.
(b) Against a party when substantial evidence establishes that the
party has acted frivolously or in bad faith in its demand for, or
participation in, the arbitration.