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Get paid, not burned: free mediation and arbitration
Listen to this articleAs Chair of the Fee Dispute Resolution Committee for the Bar Association of Baltimore City (“BABC”), my fellow blogger’s recent article On Retainers and Payment Plans compelled me to give this Public Service Announcement to my peers that have been burned, instead of paid, and those who would like to avoid it. The BABC offers FREE mediation and arbitration for attorney-client related fee disputes. You may think, good luck getting a non-paying client to agree to arbitration/mediation, but don’t be so quick to judgment. There is a simple remedy to this dilemma. Be proactive, not reactive. It is common practice to include an arbitration clause in a Retainer Agreement. Having an agreement with your client before the payment issues arise can save you a lot of heartache. Think of it as a Pre-nup. Hope for the best and that no fee issues arise, but if the unfortunate happens, you and your client have both made plans for the worse when you both are level-headed.
The Fee Dispute Resolution Committee can receive petitions from both clients and attorneys. Mediation offers a non-binding option, which becomes binding if a settlement agreement is reached. While Arbitration offers a binding option, which is decided by arbitrator(s).
There are various benefits to using the program, as follows:
1. It’s FREE! (in case you missed it above)
2. You do not have to sue your client, and vice-versa. A wise attorney once told me; think hard before suing a client, because it will almost always lead to an Attorney Grievance Complaint and/or a Counter-Suit (hello, malpractice insurance carrier).
3. It is confidential.
4. The process is informal.
5. A neutral third-party can make all the difference.
6. It is a much speedier process (typically, only a few months for a resolution).
7. Arbitration is binding, and recognized by the Court.
If you have questions about the Bar Association’s Fee Dispute Resolution program and/or questions concerning implementing an Arbitration Clause in your Retainer Agreement, email me at agipe@gblegalteam.com.
