Mandatory Fee Arbitration

TomTom16

New Member
Jurisdiction
California
Hello

I had an attorney (dissolution) and in our retainer agreement, there was a provision for Mandatory Arbitration in event of dispute.
That attorney was overcharging me so we amended our agreement (via email) to a flat fee "pay me x to get you to single man status". I paid x, even above it, however attorney attended trials but didn't get me "single man status".
During our relationship, I kept getting invoices, which he described "it's only to track hours, doesn't reflect our (flat fee) agreement". Eventually we parted ways when he wanted brand new retainer agreement.
But now...I received Notice of Clients Rights To Fee Arbitration.
My questions are:
- should I initiate non binding Mandatory Fee Arbitration or no? (It's expensive)
- if I don't initiate, what is his next step? Enforcing binding contract arbitration? Who pays for it?
- is MFA more fair than AAA arbitration?
-can I lose considering I have emails where he outlines our flat fee agreement and his signature is at end of email (without any disclaimers)?
-should I pursue malpractice arbitration? I know I waive MFA if I do.
 
- should I initiate non binding Mandatory Fee Arbitration or no? (It's expensive)
It's actually supposed to be an inexpensive (or at least lower-cost) way of resolving fee disputes.
if I don't initiate, what is his next step? Enforcing binding contract arbitration? Who pays for it?
Either sue you, or start arbitration. The Notice probably indicates whether anything has already been commenced.

As for who pays for it, typically the consumer (i.e. you) has to pay a modest filing fee, and then the other party bears the lion's share of the actual arbitration costs. YMMV, check the retainer agreement you have with your lawyer. Under California law, you might not even have to pay the initial fee.

As for which is more fair, I have no clue.
-can I lose considering I have emails where he outlines our flat fee agreement and his signature is at end of email (without any disclaimers)?

You can always lose. Are your chances good? Well, you have the email. I expect the lawyer will say that your retainer was something different than just that, and that he did all those other things you wanted, in a good and workmanlike way. Who wins? Who knows?
-should I pursue malpractice arbitration? I know I waive MFA if I do.
If all you want is to not have to pay your ex-lawyer more than you think you bargained for, then no.
 
I just noticed that our initial retainer agreement says "any dispute related to rendering the services, including malpractice is subject to arbitration but arbitration regarding legal fees is at clients option".

- does this mean "legal fees" is attorney fees or court cost in event of arbitration?
- can I be sent to collections if I waive MFA? (Someone told me), meaning do I lose any rights by not participating in MFA? (Since its non binding)

- when we made flat fee agreement, does that mean previous retainer agreement stopped or flat fee was just an amendment to original agreement?
 
I just noticed that our initial retainer agreement says "any dispute related to rendering the services, including malpractice is subject to arbitration but arbitration regarding legal fees is at clients option".

- does this mean "legal fees" is attorney fees or court cost in event of arbitration?
- can I be sent to collections if I waive MFA? (Someone told me), meaning do I lose any rights by not participating in MFA? (Since its non binding)

- when we made flat fee agreement, does that mean previous retainer agreement stopped or flat fee was just an amendment to original agreement?


You're at a disadvantage.
The questions you're asking, your attorney knows the answers to and more.
I suggest you open negotiations in an effort to achieve a WIN-WIN.
You don't want to open a can of decaying earthworms.

In the future don't agree to anything unless you FULLY understand the agreement.
 

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