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Question about using arbitration vs small claims for construction issue

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oohlalaw

Member
Hello.

I am familiar with how small claims works and would like to know what to expect in case we use arbitration in California instead.

We were told by a county investigator that we can choose between having a builder's license disciplined, arbitration or small claims. An actual civil case would be too expensive for the issue in question which is grading a lot without a grading permit, compaction test or erosion control, resulting in having to remove the fill and do the grading and compaction properly and with a permit.

The investigator advised that if we use arbitration, an impartial third party would hold the hearing; that the hearing could be appearing in front of the arbitrator or by phone; and that sometimes both parties attend the hearing.

Is arbitration similar to appearing in court where evidence is provided and testimony is given?

Are there costs for arbitration? I'm asking this because the amount of damages is around $15,000, which is $5,000 above the small claims amount allowed but within the amount arbitration can award.

What would make you choose arbitration over small claims court, or vice versa?

Thanks in advance.
 



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