Arbitration has been sold as a more efficient, cheaper alternative to litigation. But, the reality is that it can be very expensive. And, unlike traditional courts, if you do not pay the arbitrator, the lawsuit stops. AAA, the leading provider of arbitral service, requires periodic deposits to cover anticipated future costs of the arbitration. Pres. Trump is learning this the hard way in his lawsuit against Omarosa Manigault Newman. Ms. Manigaiult Neman wrote a “tell-all” book about Pres. Trump. The Trump campaign then sued her for violating the terms of a Non-Disclosure Agreement. Her NDA likely included a non-disparagement clause.

But, the Trump campaign has failed to provide the latest requested deposit of $51,940. AAA sent a letter to both parties saying it wold dismiss the action if the deposit was not made. The letter is addressed to both parties, but its the Trump Campaign’s arbitration. So if they want it to continue, then they must pay the piper. See Politico news report here. AAA sends that sort of letter only after more discrete requests for the deposit have been ignored.

Arbitrations typically start with a required deposit. But, if the process drags on further and the hours invested by the arbitrator mount up, then AAA will request an additional deposit. Records indicate the campaign paid $49,000 to AAA in 2019. So, that was apparently the initial deposit. It appears this $51,940 deposit is the later or subsequent deposit. Its easy to file a lawsuit. Its hard to pay those subsequent deposits.