Mandatory Fee Arbitration

If the client has NOT waived their right to fee arbitration, fee arbitration is mandatory for the attorney. If the attorney chooses not to attend the hearing, the hearing will take place without the attorney. The client waives their right to fee arbitration if a request for arbitration is not filed within 30 days of receipt of the Notice of Client's Right to Arbitrate from the attorney.

If the client and attorney have a written fee agreement with an arbitration clause in it, YES. If there is no written fee agreement OR if the written fee agreement does not contain an arbitration clause, NO. (See Business and Professions Code)

Charges

No. The Business and Professions Code prohibits arbitrators from awarding fees to an attorney for their time in preparing for and/or attending the fee arbitration hearing. A section of a written fee agreement calling for this is void.

Timing

If the client has not waived their rights (see Client's Right to Arbitration form), the client may file for fee arbitration. If an attorney, or the attorney's assignee, commences an action to collect fees or costs in any court or other proceeding, with limited exceptions including provisional remedies, the court action or other proceeding is automatically stayed upon filing a request for fee arbitration with a State Bar approved fee arbitration program. The party who requested fee arbitration has a duty to notify the court of the stay and attach a copy of the arbitration request form. If the party who requested or caused the stay has not appeared in the court action or other proceeding, or is not subject to the jurisdiction of the court, the plaintiff in the court action must immediately file a notice of stay and attach a copy of the arbitration request form showing that the proceeding is stayed. Upon request, the Fee Arbitration Program may provide a copy of a notice of automatic stay to the party.

Yes. One does not affect the other. They are totally separate processes. (In fact, no information is shared due to confidentiality laws.)

You should hear from the panel chair or sole arbitrator within 30 days of the date on the Notice of Assignment. At that time, they will ask you for your available dates and you will be contacted when a final date is chosen. Your cooperation in supplying as many available dates as possible will help speed the process along. The SCCBA Fee Arbitration Program Administrator will send a written notice of the date, time and location of the hearing.

The interested party must contact the panel chair or sole arbitrator. The arbitrator may grant a continuance if the reason is considered to be for good cause. No one else can grant a continuance. No request will be granted in the 72 hour period before the hearing unless it is an emergency. If a request is turned down and the party wants a review of the denial for a continuance, it will be reviewed by the Presiding Arbitrator of the SCCBA Fee Arbitration Program. The party seeking a review must contact the Fee Arbitration Administrator to ask for the review. It would be very rare for the Presiding Arbitrator to overrule an arbitrator.

The average time for arbitration is about three months from the date of the filing of the request to the mailing of the arbitrator's decision.