We were served a complaint and heard that we first have the right to go to an arbitration mediator and then arbitration. We were not notified of the ability to do this. Once we filed the Answer doesn't that waive our rights to arbitration?
NOTICE OF CLIENT’S RIGHT TO ARBITRATION
You have the right under Sections 6200-6026 of the California Business and Professions Code to request arbitration of these fees or costs by an independent, impartial arbitrator or panel of arbitrators through a bar association program created solely to resolve fee disputes between lawyers and clients.
You will LOSE YOUR RIGHT TO ARBITRATION UNDER THIS PROGRAM if:
1. YOU DO NOT FILE A WRITTEN APPLICATION FOR ARBITRATION WITH THE BAR ASSOCIATION WITHIN 30 DAYS FROM RECEIPT OF THIS NOTICE USING A FORM PROVIDED BY THE SANTA CLARA BAR ASSOCIATION; OR
2. YOU FILE AN ACTION OR PLEADING IN ANY LAWSUIT WHICH SEEKS A COURT DECISION ON THIS DISPUTE.
I have the right to file a lawsuit against you if you give up your right to mandatory
fee arbitration. The Santa Clara County Bar Association can be reached at __________
Failure to inform you of this right prevents court action. You can demand arbitration even though you have answered. There has not been a knowing waiver if you just discovered this right.
I agree with Attorney Fink's answer and would add - do you owe the money and just can't pay (if so, maybe try setting up a payment plan with the attorney rather than arbitrate a debt you admit you owe) or if there is a real dispute then the arbitration might be good idea.
If you are served with the "Notice of Cient's Right to Arbitrate" and THEN you filed an answer this does waive your right to fee arbitration under the Business & Professions code progam called Mandatory Fee Arbitration (MFA).
If you sue your lawyer for a refund of leagl fees then this waives your right to fee arbitration
If you were not served with the Notice and you have not sued your attorney for a refund then you can file a request for fee arbitration (MFA) with either the local bar program or with the State Bar.
Once you do get the Notice served on you then you have only 30 days from the day you received this Notice to file for fee arbitration.
None of this affects your rights under a contractual right to arbitration. That is a separate right. If your retainer agreement has a provision for arbitration then this can be enforced after the Mandatory Fee Arbitration process is completed.
