Fee Arbitration as an Alternative for Resolution of Fee Disputes

• Publication year: 2013
• Pages: 115
• Citation: Vol. 42 No. 11 Pg. 115

42 Colo.Law. 115 Fee Arbitration as an Alternative for Resolution of Fee Disputes Vol. 42, No. 11 [Page 115] The Colorado Lawyer November, 2013

Departments Law Practice Management

By Jennifer I. Holt

Suggestions for Law Practice Management article topics or draft manuscripts may be submitted to LPM Coordinating Editor Susan Gamel at sgamel@lathropgage.com. Questions about the CBA LPM Department may be sent to Reba Nance at reban@cobar.org or Sue Betram at sbertram@cobar.org.

Whether a lawyer should include any arbitration language in the engagement fee letter with clients, and under what circumstances the client would be bound by that language, are important considerations every practitioner should keep in mind. This article discusses the fee dispute resolution services available through the Colorado Bar Association (CBA), and generally explains the fee dispute process. It also mentions other methods that exist to collect disputed fees.

Pros and Cons of Arbitration

Resolving a controversy quickly and finally are advantages of fee arbitration. However, the finality of the award, and the abbreviated findings and awards, as well as the limitations on modification or appeal of awards, may be disadvantages of the process.

Fee Agreement Language

If the attorney and client both sign a fee agreement that includes mandatory arbitration language, any court would be expected to enforce that agreement to arbitrate.^[1] Under Colorado’s Uniform Arbitration Act, ^[2] a valid, enforceable arbitration provision in a contract divests trial courts of jurisdiction over all questions to be submitted to arbitration, pending the conclusion of arbitration.^[3]

If a fee letter includes an arbitration clause, but is not signed by the client, there is a question of whether the client has agreed to arbitration. Courts review de novo whether the parties have agreed to arbitrate.^[4] Whether an unsigned letter, agreement, or notice containing an arbitration requirement is enforceable depends on the circumstances, such as whether work actually was performed.^[5] If there is no agreement to arbitrate—signed or unsigned—a court cannot require arbitration and can require only mediation.^[6]

CBA/DBA Fee Arbitration Committee

The Denver Bar Association Fee Arbitration Committee has been joined with the CBA Fee Arbitration Committee (Committee). The Committee offers fee dispute resolution services. Other local bar associations also may offer such services. Contacting either the CBA or the local bar office closest to the attorney’s office and/or the controversy is the best way to find out whether fee arbitration services are offered and to obtain information about the process. Committee members volunteer their time to hold hearings and report on those hearings to...