August 1999

Fee Arbitration Services Offered Through the Alternative Dispute Resolution Program

by Veronica Nations
WSBA ADR Coordinator

The WSBA Lawyer Services Department, through the Alternative Dispute Resolution (ADR) Program, provides lawyers and clients with two methods of resolving disputes. The Mediation Program (May Bar News, p. 40) offers lawyers the opportunity to resolve disputes through a designated mediator. The Voluntary Fee Arbitration Program, in operation since the 1970s, provides lawyers and their clients with a quick, low-cost method of resolving disputes concerning the fair and reasonable value of legal services. The ADR process is typically faster and less costly than traditional court proceedings.

The sole purpose of the WSBA Fee Arbitration Program is to decide the fair and reasonable value of a lawyer's legal services for a client. The program is not mandatory for either lawyers or clients. If both parties agree to arbitration, a neutral arbitration panel is assigned to hear testimony and consider evidence offered by the disputing parties. Following the hearing, the arbitration panel submits a binding decision regarding the issue of reasonable value for legal services.

There is a fee of $50 for each party in the arbitration.

When a lawyer has a fee dispute with a client, or when a client has a fee dispute with a lawyer, either party may contact the WSBA ADR coordinator for information about resolving the dispute through arbitration. After a petition for arbitration is filed and the $50 arbitration fee is paid, the ADR coordinator mails a copy of the petition, and information regarding the ADR process, to the respondent, with a letter asking the respondent to reply within 30 days. If the respondent fails to reply within the 30-day period, the arbitration fee is refunded to the petitioner and the file is closed. If the respondent agrees to proceed with arbitration, he or she pays a $50 fee and the hearing is scheduled.

Either party can, before agreeing to 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.

The hearing date is scheduled at a convenient time for all parties involved. Our goal is to resolve disputes as quickly and efficiently as possible, often within 60 days of the agreement to arbitrate. The parties are asked to submit a concise statement of the nature of the dispute and documentation supporting their positions, for the arbitration panel's review prior to the scheduled hearing.

At the fee dispute hearing, the arbitration panel takes testimony, accepts other relevant evidence, and conducts a complete and full hearing on the issue of the reasonable value of a lawyer's services.

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

The arbitrators usually submit a decision within 30 days of the hearing. The decision typically includes a brief statement of reasons for the award. The decision is then 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.

For information on other services available to lawyers through the WSBA Lawyer Services Department, including the Lawyers' Assistance Program, the Law Office Management Assistance Program and the Ethics Program, please call 206-727-8268 or visit the WSBA website at www.wsba.org.

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