I recently completed the California State Bar Mandatory Fee Arbitration Training. Why California? Because they have one, that’s why. California has a mandatory fee arbitration program that provides an efficient, low-fee option for resolving fee disputes (so do Hawai‘i and several other states). Washington, where I’m licensed to practice, does not.
The Battle of the Moneybags and the Strongboxes, Peter Bruegel, c. 1570
Fee disputes can still be resolved through mandatory arbitration after a lawsuit is filed, but attorneys and clients wishing to resolve fee disputes confidentially—and out of court (especially attorneys who want to resolve fee disputes quickly because unhappy clients often file counterclaims for malpractice and bar complaints after they are sued for fees)—are on their own to find a qualified mediator or arbitrator who understands the dynamics of the attorney-client relationship and the legal and ethical requirements of fee agreements and billing practices.
I've seen it time and again, where an attorney sues a client for fees and the client counters with a malpractice claim and threatens or actually files a bar complaint alleging unethical billing practices. A simple misunderstanding about the scope of work or reasonableness of fees can quickly escalate out of control, costing both parties a lot of time, stress, and money.
A lot of this could be avoided if the fee agreement included a mandatory mediation and arbitration clause, requiring both parties to mediate the dispute first and then, if mediation failed, submit the dispute to arbitration. In my experience, fee disputes are often easily resolved but, for whatever reason, the attorney and client aren't communicating and feel that the other party is trying to cheat them, leading to escalating distrust, hostility, and expensive litigation. Let me tell you, it's foolish for anybody to litigate over fees. Nobody "wins," but they do spend a lot of time (that could be put to better, more-profitable use) fighting about fees and, in the end, usually end up where they would have ended up had they worked it out in the first place.
I’ve done a lot of fee litigation over the years, representing both attorneys and clients in state and federal courts with up to six-figure fees at stake, and am available to mediate and arbitrate fee disputes. If you’re a client disputing an attorney’s bill or an attorney facing an unhappy client, please feel free to contact me. I’m happy to help you resolve your dispute.
If you are involved in an attorney's fee dispute and want to find out more about mediation or arbitration, call me at (206) 397-0020 or email jeffsmootlaw@gmail.com .
Copyright © 2023 by Jeffrey L. Smoot. All rights reserved.
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