Mandatory Fee Arbitration – Clients

Disputing your attorney’s fees

If you think your lawyer charged you too much, you have the right to have that bill reviewed by a neutral third party instead of going to court. This page explains how that works and what it costs.
Who reviews it
A neutral arbitrator
What it costs
5% of the amount
Most you would pay
$5,000
How long it takes
About six months
The basics

What fee arbitration is

Fee arbitration is a way to settle an attorney fee dispute, a disagreement about a legal bill, without filing a lawsuit. You explain why you think the charges are too high, your attorney explains why they are not, and a neutral person listens to both sides and decides what a reasonable fee would be.
It is called mandatory because your attorney has to participate if you are the one who starts it. The reverse is not true. If your attorney starts it, you can choose whether to take part, unless you already signed something agreeing to arbitrate fee disputes.
Hearings are informal. They are nothing like a courtroom. You may hire an attorney to represent you if you want one, at your own expense, but you are not required to.
What an arbitrator can decide
  • Whether the fees your attorney charged were reasonable
  • Whether the costs your attorney billed were reasonable
  • Whether you are owed a refund, or still owe money
What an arbitrator cannot decide
  • Whether your attorney made a mistake in handling your case
  • Whether your attorney behaved unethically
  • Any claim for money beyond the fees and costs in dispute
  • Fees that were already set by a statute or by a court order
If your concern is about how your case was handled
Complaints about an attorney’s conduct go to the State Bar of California, which licenses and disciplines lawyers. That is a separate process from this one, and you can pursue both. File a complaint with the State Bar.
An arbitrator can still hear evidence about the quality of your attorney’s work, but only to the extent it affects what the fee should have been.
Authority

Where BHBA’s authority comes from

Your right to have a fee dispute arbitrated comes from California law. Business and Professions Code sections 6200 through 6206, known as the Mandatory Fee Arbitration Act, gives every client the right to arbitrate an attorney fee dispute, and requires attorneys to participate when a client asks for it.
The State Bar of California oversees the system. It sets the minimum standards every program has to meet, approves the bar associations that are allowed to run one, and handles arbitrations itself in counties that have no local program.
Beverly Hills Bar Association is a State Bar approved program serving Los Angeles and Ventura counties. BHBA’s Rules of Procedure for Fee Arbitrations are approved by the State Bar and govern every case BHBA administers.
Eligibility

Before you file

Los Angeles County  ·  Ventura County
BHBA can hear your attorney fee dispute if your attorney has an office in Los Angeles County or Ventura County, had one there when they did the work, or did most of the work for you in one of those counties.
If that does not describe your situation, you are not out of options. Most counties have their own bar association program, and the State Bar handles disputes from counties that do not. Find the program for your county.
There are also time limits on how long after the fact you can file. If your matter ended a while ago, don’t assume you’re too late, but don’t wait either.

What it costs

The filing fee is 5% of the amount you are disputing, and it never goes above $5,000. So a $4,000 dispute costs $200 to file, and a $60,000 dispute costs $3,000. You pay it at the same time you complete the form.
That fee covers up to four hours of mediation and up to four hours of arbitration. It is not money you necessarily lose. The fee becomes part of the dispute itself, so it can be built into a settlement, and if the case goes to a hearing the arbitrator decides who ends up paying it.
Deadlines

Two situations where timing matters

You received a Notice of Client’s Right to Arbitrate
Before an attorney can sue you over unpaid fees, Business and Professions Code section 6201 requires them to give you this form, either before or at the same time they serve you with the lawsuit. It gives you 30 days from the date you receive it to request arbitration.
If you miss that 30-day window, you give up the right to arbitrate and your attorney can take you to court. Your filing date is the day BHBA receives your completed request and payment of the filing fee, not the day you start filling it out, so do not wait until the last day.
You have already been sued
You can still arbitrate, but act before you respond to the lawsuit. Filing your request for arbitration automatically pauses the court case. BHBA does not communicate with the court, so notifying the court is your responsibility. File a Notice of Stay of Proceedings (form CM-180), attach a copy of your request for arbitration, and serve a copy on the attorney.
The process

What happens after you file

1
You submit the request and pay the filing fee
The form is online. The fee is 5% of the amount in dispute, up to $5,000, and you pay it at the same time you complete the form.
2
BHBA notifies your attorney
Your attorney is required to participate. BHBA gives them a 30 day window to respond and provide their side of the story. If your attorney ignores it or refuses to take part, the case still goes forward and the arbitrator decides based on the evidence that is presented.
3
You can try mediation first
If both sides agree, a neutral mediator helps you work out a resolution yourselves. This is included in what you already paid.
4
BHBA assigns your arbitrator or panel
One arbitrator handles disputes of $25,000 or less. Larger disputes go to a panel of three, an experienced attorney panel chair, a second attorney arbitrator, and a non-attorney lay arbitrator. If the amount in dispute is over $25,000, both sides can agree in writing to use a single attorney arbitrator instead. All are neutral.
5
The hearing
Usually two to four hours. Most hearings are held over Zoom, but the format is the panel chair’s call. You explain your side, your attorney explains theirs, and you can bring documents and witnesses. You are also allowed to bring someone with you for support. No decision is announced that day.
6
The award
The arbitrator writes up a decision, generally within 15 days after the hearing, or 25 days if a panel heard your case. BHBA reviews it and sends it to you and your attorney. It comes with a document called Notice of Your Rights After Arbitration that explains what to do next.
Afterward

Is the decision final?

Usually not right away. Unless both of you agreed in writing after the dispute arose to be bound by the result, either side has 30 days to reject the award and ask a court for a new trial. If nobody does that, the award becomes binding on its own and can be enforced like a court judgment.
The whole process is confidential. Unlike a court case, the file, the hearing, and the award stay private. That changes only if someone goes to court to challenge or enforce the award.
If you win a refund and your attorney doesn’t pay, the State Bar can help you collect. Ask your attorney in writing first, then submit a Request for Enforcement to the State Bar. You have to wait at least 100 days after the award, and you have up to four years.

How to prepare

  • Gather your fee agreement, every invoice you received, and proof of what you paid
  • Write out a short timeline of the work and what you were told it would cost
  • Keep any emails or letters about billing
  • Be specific about which charges you think are wrong and why
Ask your attorney for the case file if you don’t already have it.
File

File your request

Read the rules before you file. They are written for both clients and attorneys, and they answer most procedural questions that come up.
Contact

Questions about the program

BHBA staff can walk you through the rules, the forms, and where your matter stands in the arbitration process. BHBA cannot give legal advice about your dispute, advise you on what amounts or information to enter on the form, or predict how an arbitrator will rule.