The Fee Arbitration Program is an informal, inexpensive service provided by The Florida Bar to resolve legal fee disputes between attorneys and clients and between attorneys. The arbitration process may be initiated by either the client or the attorney and may be used instead of a lawsuit to settle a fee dispute.
The sole purpose of the arbitration hearing is to decide the fair and reasonable value of the legal services performed by the attorney for the client. The program is not mandatory for either attorneys or clients and both parties must agree to arbitrate, instead of pursuing the dispute through the courts, before the program can be put into effect.
The Florida Bar encourages the friendly resolution of all fee disputes whenever possible. However, if a dispute cannot be resolved, the Fee Arbitration Program is available and authorized by the Florida Supreme Court to settle fee matters.
HOW DOES BINDING FEE ARBITRATION WORK?
Binding arbitration means the parties agree to accept the decision of the arbitrators. Once both parties agree to arbitrate and return the required filing form to the applicable circuit chair, an arbitrator (or arbitrators) will be selected from a local circuit arbitration committee. This committee is comprised of volunteer attorneys and non-lawyers. If the dispute involves $2,500 or less, the arbitrator assigned will usually be a volunteer attorney. At the request of one of the parties and, upon agreement of the circuit committee chair, a case involving $2,500 or less may be heard by a three-member panel or a nonlawyer arbitrator. If the dispute exceeds $2,500, a three-member panel, made up of at least one attorney and at least one non-attorney, will be appointed.
The arbitrators will hear testimony from both sides and take evidence from which they will make a decision. The only question which will be addressed by the arbitrators at the hearing is the "fair and reasonable value" of the lawyer's services. Complaints concerning attorney conduct and/or ethics should be filed through The Florida Bar Grievance Department.
WHAT INFORMATION SHOULD I FURNISH TO THE CIRCUIT ARBITRATION COMMITTEE?
The arbitrators need to learn as much as possible about the fee dispute and the matter the attorney is handling or has handled. Therefore, in addition to the information you supply on the required printed form, the following documents should be supplied to the Circuit Arbitration Committee:
7 copies of the attorney's bills;
7 any records you have of the time spent by the attorney on the case;
7 copies of any written fee agreements;
7 copies of correspondence between the parties regarding the fee dispute;
7 copies of all work done by the lawyer (i.e. marital separation agreement, deeds, contracts, etc.); and
7 any other documents relating to the attorney's fee or the case.
All records, documents, files, proceedings and hearings pertaining to fee arbitration are open to the public, upon request.
WHEN WILL I RECEIVE NOTICE OF HEARING?
The arbitration hearing will be held within 45 days after the circuit chair receives the completed filing form and fee from both parties. Written notice will be provided to both parties not less than 10 days before the hearing.
The arbitration may proceed in the absence of a party who, after receiving notice, fails to appear or to obtain a postponement from the panel chair or sole arbitrator. Postponement, however, is granted only after good cause is shown.
If all parties to the fee dispute agree, the hearing may be waived and all evidence and statements may be furnished in writing to the arbitrators. The arbitrators will make a decision based on the information provided within 10 days of receipt.
WHAT WILL HAPPEN DURING THE HEARING?
The parties will meet the arbitrators and take an oath that they will tell the truth. The person who requested the arbitration (the applicant) will have the first opportunity to explain his or her side of the story. The other person (the respondent) will then be allowed to ask questions. After questioning, the respondent will have an opportunity to present his or her side of the dispute, and the applicant will be allowed to ask questions. Please keep in mind, the arbitrators are only concerned with evidence directly related to the fee dispute.
The arbitrators may ask questions at any time during the hearing. Each party should answer each question as completely as possible. The arbitrators will be better able to reach a fair decision if they have a good understanding of each position and the reasoning behind it.
Each party will be afforded a full and equal opportunity to be heard and, therefore, should follow the procedure established by the arbitrators. At the conclusion of the hearing, the panel will ask each party for the presentation of additional evidence. If neither party has additional evidence, the hearing will conclude.
SHOULD I BE REPRESENTED BY AN ATTORNEY AT THE HEARING?
The purpose of arbitration is to resolve legal fee disputes quickly and inexpensively without having to hire an attorney to represent you. However, should you question your ability to represent yourself, you have the right to be represented by an attorney at any arbitration hearing at your own cost.
WHEN CAN I EXPECT A DECISION FROM THE ARBITRATORS?
Within 10 days after the close of the hearing you will receive a written opinion signed by a majority of the panel. If there is a dissent, it will be signed separately, but the award is binding if signed by a majority of the arbitrators.
If the arbitration award is in your favor and the other party does not pay, you have the right to petition the court for an order confirming the arbitration decision. The award is confirmed by the court without any further evidentiary proceeding and may be enforced in the same manner as a court judgment. A petition for confirmation must be filed with the proper court within 90 days after receipt of the award.
Either party may appeal the decision of the arbitrators through the court by filing a petition to vacate or correct the award. There are limited grounds for appeal which are set out in Sections 682.13 and 682.14 of the Florida Statutes. Application for appeal must be made with the court within 90 days after receipt of the award.
WHAT WILL THIS PROCEDURE COST ME?
Both parties will be subject to a filing fee of $15. The fee is to defray the administrative costs of the arbitration proceedings. If either party declines to arbitrate, the filing fee will be refunded.
You may incur additional expenses if you employ an attorney to represent you or if you wish to employ a stenographer to record the hearing proceedings.
HOW DO I FILE FOR ARBITRATION?
Submit a completed agreement to arbitrate form, along with copies of back-up material and the filing fee, to the Fee Arbitration Program Coordinator, The Florida Bar, 650 Apalachee Parkway, Tallahassee, Florida 32399-2300. If attorney agrees to arbitrate, the completed Agreement to Arbitrate (signed by both the applicant and the attorney) will be forwarded to the applicable circuit committee chair. Disputes are generally arbitrated in the circuit where the legal work was done.
HOW TO AVOID FUTURE FEE DISPUTES --
7 DISCUSS LEGAL FEES AND RELATED COSTS DURING THE INITIAL CONSULTATION and DEVELOP A WRITTEN FEE AGREEMENT. Make sure you understand what the agreement does and does not cover. For example, will the client be charged each time he or she telephones the attorney? Does the fee include regular status reports to the client?
7 When a deposit or "retainer" is requested, discuss whether or not any part of it will be refunded if the case does not proceed.
7 If an attorney is billing by the hour, discuss the need for a monthly statement so the client can be aware of the costs associated with the case.
7 If an attorney accepts a case on a contingency basis, make sure both parties understand how it will work. Contingency means the client won't be charged attorney's fees if the case is lost; but the client may still be responsible for costs such as filing fees, investigators and/or transcripts. If the client wins, the attorney is paid a percentage of the money awarded by the court. Both parties should be knowledgeable of the attorney's percentage and whether or not it will be taken before or after court costs are subtracted.
7 Request that provision for arbitration of fee disputes be included in your written fee agreement.
The material in this pamphlet represents general legal advice. Since the law is continually changing, some provisions in this pamphlet may be out of date. It is always best to consult an attorney about your legal rights and responsibilities regarding your particular case.
Revised 8/98