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Dispute & Independent Aribtration

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Active Member
Hasan M Member Since: Oct 5, 2020
1 of 5

Hi 

 

I just had an unfortunate experience with a client, regarding a website project. To summarise initially she wanted a basic listing site as their budget was very short. Anyway, we agreed and kept very clear communication. Several times we went way above the contract to meet unreasonable demands in terms of budget but just to satisfy the client and get the job done. In the end, it still ended up in dispute and now it's heading to arbitration.

 

The amount in Escrow is $250, and this is milestone 2. The first milestone is paid.

 

What I would like help with is if we go to arbitration, we obviously have to pay around $300 which is non-refundable. In the best-case scenario, what would be the max amount we would get? Would it be the $250 or could it be more than that so it covers the $300 as well?

 

Thanks in advance.

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Moderator
Andrea G Moderator Member Since: Jul 7, 2020
2 of 5

Hi Hasan,

 

I'm sorry to hear you've had trouble with this client. In order to make an informed decision about whether it is in your best interest to pursue Arbitration, please see the Fixed-Price Escrow Instructions here.

 

Thanks!

~Andrea
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Active Member
Hasan M Member Since: Oct 5, 2020
3 of 5

Thank you Andrea

 

I think Preston quite clearly gave me the answer I was looking for Smiley Happy

 

Cheers

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Community Guru
Preston H Member Since: Nov 24, 2014
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4 of 5

re: "What I would like help with is if we go to arbitration, we obviously have to pay around $300 which is non-refundable. In the best-case scenario, what would be the max amount we would get? Would it be the $250 or could it be more than that so it covers the $300 as well?"

 

If you AGREE to go to arbitration, but the client does NOT agree, then you get all of the money in escrow: $250.

 

So it could indeed work out for you to say that you WANT to go to arbitration.

 

BUT: If you agree to go to arbitration and the client ALSO agrees, then you will BOTH be charged $291, and Upwork will pay $291. And none of that is refundable. The MOST money that you could get would be $250.

 

So you would end up losing $41 if you completely win. That is the BEST you could do:
negative $41.

 

If the client completely wins, then the client gets $250, and your net loss is larger.

negative $541

View solution in original post

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Active Member
Hasan M Member Since: Oct 5, 2020
5 of 5

Hi Preston

 

Thank you very much, you just gave me the exact information that I was looking for.

 

The decision now feels like taking a risk, which is very unfortunate because all of this is not what we come here to do on Upwork, and you get dragged in because of such people.