How Arbitration Works in Civil Lawsuits in Oregon

This article is part of a step-by-step guide to debt collection lawsuits in Oregon. Go here to read the guide and see related articles.

If you're being sued for a debt in Oregon and the amount is $50,000 or less, your case will likely go to mandatory arbitration instead of a trial. 

Arbitration is a less formal process than a court trial. A neutral arbitrator oversees and decides the case, rather than a judge or jury.

This article explains how arbitration works, what to expect, and how to prepare.

What is arbitration?

Arbitration can be a simpler and sometimes faster way to resolve a lawsuit than a trial with a judge or jury.

• You, the other side, and the arbitrator (a court-approved lawyer or retired judge) meet, often by video.
• Each side tells its story, shows documents, and may call witnesses.
• The arbitrator listens and writes a decision, called an award.
• If no one objects, the award becomes a binding court decision.
• If losing side can object and start over with a full jury trial, but this can mean more fees and costs.

Will my case go to arbitration?

Your case will almost always go to arbitration if the amount being asked for is $50,000 or less.

• This includes most lawsuits related to debt collection, debt buyers, credit cards, medical bills, car repairs, and other consumer debts.
• This does not include small claims lawsuits. For more information on what happens in a small claims case, go here.
• A judge can keep a case out of arbitration only for a few reasons, such as complex legal issues or if one side asks for a court order to clarify their rights, called declaratory relief. 

How much does arbitration cost?

You and the other side usually split the cost of arbitration. The fee is typically $150 to $200 per hour, but the exact amount depends on the county where your case is filed.

If you can't afford the fees:

• If you were approved for a fee waiver when you filed your response, meaning you were allowed to file for free or to pay later, you can also ask for an "Arbitration Cost Waiver or Deferral." Ask the court clerk for the form.

If you win your case:

• The arbitrator can tell the other side to repay your share of the arbitration fee as part of the award. If you have a lawyer, the arbitrator can sometimes include your attorney fees in the award.

Who is the arbitrator, and how are they chosen?

The arbitrator is chosen by both sides or by the court.

• Watch your mail: Soon after the case is filed, the court clerk sends a notice and a list of court-approved arbitrators.
• You have 21 days to choose: You and the other side may agree on any lawyer from that list (or another who qualifies).
• No agreement? Follow the instructions you received in the mail, return the list, and the clerk will assign an arbitrator for you.
• Who are the arbitrators? An arbitrator must be an Oregon lawyer or retired judge with at least five years of experience and special training.

What happens during arbitration?

1. A hearing date is set. Within about seven weeks, the arbitrator will contact you to schedule a hearing, which will be when you and the other side present your cases. The hearing will be between one and two hours, in person or by video.
2. You exchange evidence. Unless the arbitrator says otherwise, each side must give the arbitrator and the other side copies or summaries of their evidence and a list of witnesses at least 14 days before the hearing. Your evidence is any documents, photos, bills, expert reports, or anything else you want to show the arbitrator.
3. You attend the hearing. During the hearing, you and the other side will swear an oath to tell the truth and then show the arbitrator your evidence. If you have witnesses, they can talk to the arbitrator, and you and the other side may question each other's witnesses.
4. The arbitrator makes a decision. Within 20 days of the hearing, the arbitrator makes their decision, called an award. They give it to the court and mail a copy to each side.
5. Appeal or it becomes a judgment. The losing side has the choice to object to the decision and ask for the case to be sent to court for a new trial, this time with a courtroom, judge, and jury. If neither side objects, the decision becomes a binding court judgment, which is a legal document that says one side owes the other side money. Read more about judgments here.

How do I object if I don't like the decision?

If you lose and disagree with the decision, you can object and request a full jury trial called a trial de novo:

1. File the correct form within 20 days after the award, and
2. Pay the regular trial fee plus a $150 deposit.

If you do not improve your outcome at trial, the judge may order you to also pay the other side's costs after arbitration and attorney fees, and you will lose your deposit. 

How can I prepare for my arbitration hearing?

• Collect evidence early. Bank statements, contracts, receipts, letters, photos—anything that supports your side.
• Use written reports. Doctors, mechanics, or other experts may be able to write reports that can be given to the arbitrator so they do not have to attend.
• Practice your story. You may only have a very short time to explain your evidence and why you should win.
• Be on time and respectful. Even though the setting is informal, the hearing is under oath and may be recorded.

Where to get help

• Court Self‑Help. Clerks can explain local rules and fee‑waiver forms. They cannot give you advice about what you should do or what is the right decision for your circumstances.
• Talk to a lawyer:
  • Oregon State Bar's Lawyer Referral Service can connect you with a lawyer for a low-cost consultation.
    • You can also read this article to learn more about how to hire a lawyer.
• Free or low-cost legal services: Find other low-cost and free legal services in our Legal Directory.

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