I have noticed an increasing number of abstractors complaining about non payment for their work. The largest concern with collection appears to be with the cost of collecting in  states other than that in which the abstractors are located.

A while back James Lin Toney suggested setting up a panel of arbitrators to resolve the issues. Lin if you are out there feel free to comment. He had previously offered to serve as an arbitrator in return for a modest fee. I would also be willing to do the same. If there are any other attorneys on the board who would be willing to serve in this capacity, I would encourage you to join in this conversation.

Unlike litigation arbitration requires the written agreement of the claimant and respondent to arbitrate. The rules of the American Arbitration Association can be invoked by the agreement between the abstractor and his client. Arbitrating through the American Arbitration Association can be extremely expensive, and enforcement of the arbitration award would need to be enforced through the court if the Respondent fails to pay the arbitration award. 

However these issues can be resolved less expensively by an agreement to arbitrate through alternate means concluded between the abstractor and his/her client. In other words, you will need to have a written agreement in place with your client providing for arbitration as a means of dispute resolution.

Issues such as the cost of arbitration, the location of arbitration and location of the court in which arbitration is to be enforced can be addressed in said agreement. The agreement can limit the costs of arbitration and limit enforcement of the award through the courts of the abstractors home state. Recovery of arbitration expenses can be awarded to the prevailing party.

Like the procedures of the American Arbitration Association much can be accomplished through email and faxing of documents. The actual hearing could be accomplished through teleconferencing, video cam or instant messaging.

Anyone interested in exploring this?