Judgment on Trial De Novo Equal to or Less Favorable than

Arbitration Award for Party Electing; Payment of Nonrefundable Costs and Fee.

(a)If the judgment upon the trial de novo is not more favorable in either the amount of damages awarded or the type of relief granted for the party electing the trial de novo than the court-referred arbitration award, the court shall order that party to pay the following nonrefundable costs and fees incurred in the trial de novo, unless the court finds, in writing and upon motion, that the imposition of such costs and fees would create such a substantial economic hardship as not to be in the interest of justice:

(1)To the Superior Court, the costs of the arbitration, less any amount paid pursuant to paragraph (4);

(2)To the other party or parties, all costs including legal fees and expenses, and the party electing the trial de novo shall not recover his or her costs including legal fees and expenses;

(3)To the other party or parties, the reasonable costs of the services of expert witnesses, who are not regular employees of any party, actually incurred or reasonably necessary in the preparation or trial of the case; and

(4)To the other party or parties, the costs of the arbitration paid by the other party or parties, pursuant to Subsection

(b)of Section 42B108. Such costs and fees, other than the compensation of the arbitrator, shall include only those incurred from the time of election of the trial de novo.

(b)If the party electing the trial de novo has proceeded in the action in forma pauperis and has failed to obtain a more favorable judgment, the costs and fees under paragraphs

(2)and

(3)of Subsection

(a)shall be imposed only as an offset against any damages awarded in favor of that party.

(c)If the party electing the trial de novo has proceeded in the action in forma pauperis and has failed to obtain a more favorable judgment, the costs under paragraph

(1)of Subsection

(a)shall be imposed only to the extent COL412014 CH. 42B COURT-REFERRED ARBITRATION AND ALTERNATIVE DISPUTE RESOLUTION that there remains a sufficient amount in the judgment after the amount offset under Subsection

(b)has been deducted from the judgment.