Clients who find themselves in a dispute over their attorney's fees can use the Fee Arbitration Service administered by the Client-Attorney Assistance Program (CAAP) staff. The Fee Arbitration Service members are attorneys and non-attorneys from throughout New Mexico who donate their time to help resolve fee disputes. The State Bar urges clients to first discuss fee problems directly with the lawyer involved. Frank discussion may help to avoid arbitration. However, if straight talk does not solve your problem, you may request a fee arbitration hearing. This hearing can settle fee disputes. Voluntary fee arbitration can help to avoid difficult, lengthy, and often expensive lawsuits. Arbitration can be requested by either the client or the attorney.
The service is free.
These are the steps to take to arbitrate a fee dispute:
1. Request two forms from the State Bar of New Mexico by calling (505) 797-6068 or use the links below.
These one-page forms are called:
a) Petition for Arbitration; and
b) Agreement to Submit Controversy to Arbitration.
2. Fill in the basic information requested in the "Petition" and the "Agreement" forms, including your name, the lawyer's name, and the amount in dispute. There is a space for a brief statement of the facts giving rise to the dispute. Sign and date the two forms, then make three copies of each. If you have any supporting documents, such as fee agreements or letters, make three copies of these also. Mail the original set and two copies to CAAP, State Bar of New Mexico, PO Box 92860, Albuquerque, NM 87199. Keep one copy for your records. You have now filed for fee arbitration.
3. The dispute will be reviewed to see if it is proper for arbitration. If it is, the "Petition" and "Agreement" will be sent to the lawyer involved. The lawyer has 20 days from the mailing of the "Petition" and "Agreement" to sign and return the "Agreement." An answer may also be submitted at the time of returning the "Agreement."
4. If the lawyer declines arbitration or does not return the signed agreement within 20 days, he or she is considered to have refused to arbitrate and you will be notified. If arbitration is refused by the attorney, you still have the option to take your case to court.
5. If the attorney agrees to arbitrate, both you and the chair of the Fee Arbitration Service will receive a copy of the "Agreement" and any answer that may have been submitted by the attorney.
6. The chair of the Fee Arbitration Service will refer the dispute to a lawyer member of the Service in the district where the dispute arose.
7. If the amount in dispute is $10,000 or less, the hearing will be before a single arbitrator. If the amount in dispute is more than $10,000, the hearing will be before a panel of three arbitrators. The three-member panel may be waived if you and the attorney are both willing to proceed before one arbitrator. This will enable the hearing to be scheduled sooner.
8. A hearing date will be set by the Chair of the Arbitration Panel. It may be held over the phone. Either party may request a stenographic record of the hearing at their own expense if they request the written record promptly after the hearing is set.
9. At the hearing, both parties may be heard, may be represented by an attorney, present evidence, and cross-examine witnesses appearing at the hearing. Remember, however, this is not a trial. Also, if one party does not attend the hearing (either in person, by an attorney or by phone), the arbitrators may still hear and determine the controversy.
10. A determination will be made by the arbitrator(s). It will be in writing and signed by the arbitrator(s). It will be sent to the CAAP Attorney who will forward the determination to the two parties (client and attorney) and the chair of the Fee Arbitration Service. |
Fee Arbitration Agreement
Fee Arbitration Rules
Fee Arbitration Petition
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