Program Guidelines: Fee Arbitration

This page in printer-friendly format [PDF]

Arbitration Form [PDF]

What is the Fee Arbitration Program?

The WSBA fee arbitration program has only one purpose: to decide the fair and reasonable value of the lawyer's legal services for a client. The program is not mandatory for either lawyers or clients. Fee arbitration does not occur unless both parties agree to arbitrate and agree on the amount in dispute. If there is pending litigation regarding a lawyer's claim for fees, arbitration can not occur without a court order deferring the lawsuit. The program handles all types of lawyer-client fee disputes, including but not limited to flat feel, hourly, and contingency fee agreements.

What Does it Cost?

The filing fee depends on the amount in dispute. If the amount in dispute is under $10,000 the filing fee for each party is $75. If the amount in dispute is $10,000 or over, the filing fees are $125. The person beginning the process sends the filing fee to the WSBA with their petition to arbitrate. The other side, if he or she agrees to arbitrate, pays the filing fee when returning the petition form.

How Do I Start Fee Arbitration?

The person starting fee arbitration is called the petitioner. The petitioner fills out a form provided by the WSBA. This form, called a petition, must be used. The filing fee (either $75 or $125 as explained above) must be submitted with the form. If the other party (called the respondent) refuses to participate in the arbitration, the filing fee will be refunded.

What Does the WSBA Do With My Petition?

Within 10 days of receiving the petition and the required filing fee, the WSBA will mail a copy of this brochure, the petition, and any supporting materials you have sent, to the respondent at the respondent's last known address, with a letter asking the respondent to agree to arbitrate. Fee arbitration can occur only if the respondent answers within 30 days of the mailing of the petition, agrees to arbitration and to the amount in dispute, and submits the appropriate filing fee. If the WSBA receives no response we will return the petitioner's filing fee and close our file. You can then pursue other remedies such as court action.

Is Fee Arbitration Binding?

FEE ARBITRATION IS BINDING. The provisions of Chapter 7.04A of the Revised Code of Washington apply. BY AGREEING TO FEE ARBITRATION BOTH PARTIES WAIVE THE RIGHT TO BRING OR DEFEND AN ACTION IN COURT. Clients should consult a lawyer or contact the WSBA if they have any questions concerning the effect of agreeing to fee arbitration.

What Does Arbitration Resolve?

Fee arbitration resolves only the amount in dispute between the client and the lawyer. Arbitration does not permit either party to seek fees for participating in arbitration. Either party can, before agreeing to binding arbitration, require the other to deposit the disputed amount with the WSBA. The funds are held in trust until the arbitration panel issues a written decision. The funds do not earn interest.

When Will the Arbitration Be Held?

If the amount in dispute is less than $10,000, the dispute will be assigned to a one-lawyer panel. If the dispute is for more than $10,000, the dispute will be assigned to a three- member panel consisting of one lawyer and two nonlawyers. If both parties agree, the three-person requirement can be resolved by a one-lawyer panel. The hearing date is set by considering the schedules of all involved. Our goal is to resolve disputes as quickly and efficiently as possible.

What Information Should I Submit?

Please limit the amount of supplemental material submitted with the petition form to a brief description of the dispute and a copy of the written fee agreement (if any). The arbitrator will request your supporting documents after the hearing is scheduled. Arbitrators prefer an advance written explanation of each party's position. You are responsible for providing copies of any materials to the arbitrator(s) and to the other party by the due date set by the arbitrator.

Can I Get the Hearing Date Changed?

There are times when you may need the hearing postponed, e.g., illness or other emergency. Request for a change in the hearing date should be sent to the Chairperson of the Fee Arbitration Panel after you notify the other parties of your intent to seek a change in the hearing date. WSBA staff can not grant a postponement.

What Happens at the Hearing?

At the hearing, the arbitrator(s) will take testimony, accept other relevant evidence, and conduct a complete and full hearing on the issue of the reasonable value of the lawyer's services and the amout of interest to be awarded if allowed by agreement between the parties. You may have a lawyer represent you. You can make arrangements for witnesses to testify at the hearing. The arbitrator or the panel chair has authority to issue subpoenas requiring people to appear and testify.

All proceedings before the arbitrator(s) are strictly confidential. By participating in fee arbitration, both the client and the attorney agree to confidentiality. The arbitrator's decision and other portions of the record may be filed, however, in court if needed to enforce the award.

When Can I Expect A Decision?

The arbitrator(s) will prepare and submit to the WSBA a written Fee Arbitration Award, usually within 30 days of the hearing. (The 30-day period, however, is aspirational and is not jurisdictional). The decision usually includes a brief statement of reasons for the award. The decision will then be mailed to both parties by certified mail. If the decision is not honored within a reasonable time, the prevailing party is entitled to enforce the award in Washington State Superior Court.

Can I Appeal if I Don't Like the Decision?

There is no right to appeal the Fee Arbitration Board's decision unless procedural rules have been violated. Such appeals must be made in writing to the Executive Director of the WSBA within 30 days of the decision's mailing. The Executive Director will determine if the procedural rules for fee arbitration have been violated and if such a violation substantially prejudiced the rights of either party. If so, the Executive Director can order a rehearing of the matter, but cannot change the decision.

Factors in Determining Reasonable Legal Fees

There are a number of factors involved in establishing a reasonable legal fee according to the Rules of Professional Conduct for lawyers. They include:

the time and labor required,
the novelty and difficulty of the questions involved,
the skill required to perform the legal service,
the terms of any fee agreement between the lawyer and the client,
the fee customarily charged locally for similar legal services,
the likelihood, if clear to the client, that the acceptance of the particular employment will preclude the lawyer from accepting other employment;
the amount involved and the results obtained,
the time limitations imposed by the client or the circumstances;
the nature and length of the professional relationship with the client;
the experience, reputation, and ability of the lawyer, and
whether the fee agreement or any confirming writing demonstrates that the client received a reasonable and fair disclosure of material elements of the fee agreement and the lawyer's billing practices.