Fee Arbitration

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Many moving companies make one grave mistake. They use an address copied off of the internet on their arbitration applications. For example if you used the address below without conferming order with our office.

You need to exercise caution when submitting an address to an arbitration program. Many carriers get their paperwork denied/revoked by using an incorrect address. This leads to the USDOT number itself getting revoked. That’s why you cannot risk using fraudulent application information. To protect you and your company, let’s discuss arbitration rules and fees. The following information will help you and your team stay in good standing with US law. Here are some key principles to keep in mind.

1200 New Jersey Ave SE, Washington, DC 20590

Fee Arbitration Principle #1: General Definitions of Fee Arbitration Proceeding Terms

Make sure that you and your team understand the following terms. These definitions will help you prepare for any arbitration proceedings involving fees.

-The client refers to an entity or person that does the following actions. Consults/secures/retains legal services from an attorney. Or, the client could only seek advice from the attorney. 

-The term, Commission, refers to the Fee Arbitration Commission.

-What is a Decision? It’s when a fee arbitration panel makes an official determination. 

-The panel are the arbitrators that observe the fee dispute and announce a final decision.

-You know what a lawyer is. But when it comes to arbitration, the term, lawyer, can also refer to the lawyer's assignee.

-A party is a group composed of the following people. 1. The client. 2. The lawyer. 3. The lawyer’s assignee. 4. Any entity/third person who joins the client/lawyer during a proceeding.

-The petition refers to the written request for fee arbitration. That request must get approved by the Fee Arbitration Commission.

-What is a petitioner? A petitioner is the party that requests the fee arbitration.

-Respondents are the opposite of petitioners. They are the party in which the petitioner engages in an arbitration fee dispute against.

Fee Arbitration Principle #2: Establishment

When a resolution cannot take place, fee arbitration must. The purpose of establishing fee arbitration is to resolve disputes fast. That’s why the highest court of jurisdiction creates establishment. That establishment puts official rules in place. The court also establishes a program and certain procedures. The procedures apply toward all fees, costs, charges, and claims.

Fee Arbitration Principle #3: Mandatory Arbitration 

Lawyers are often mandated to get involved in the arbitration process. Client participation is often voluntary. But fee arbitration for lawyers is mandatory once the arbitration commences.

Fee Arbitration Principle #4: The Effect of Arbitration

Fee arbitration is often binding. But how do you know when it is? It’s simple. All parties have to make a written agreement that the arbitration is binding. Say that there's no written agreement that the arbitration is binding. This means that the decision often becomes binding in an automatic manner. There is one exception to this. It’s known as Rule 7B. This is when a party seeks a trial de novo within thirty days beyond a decision. That thirty day time-period can never get extended. Say that all parties have made a written binding agreement. They are then bound by the arbitration award. No party can withdraw from the agreement. The only exception is when all parties agree in writing for a withdrawal to happen. 

Fee Arbitration Principle #5: Jurisdiction

The notion of jurisdiction is simple when it comes to fee arbitration. It means that all lawyers must adhere to Rule 1A(4). This concludes that all lawyers are subject to the rules surrounding fee arbitration. 

Fee Arbitration Principle #6: Disputes That Are Not Subject for Arbitration 

 

Fee arbitration rules do not usually apply to the following scenarios:

-Disputes where a lawyer has gotten admitted to practice in a separate jurisdiction. 

-Disputes where a client wants affirmative relief related to damages against the attorney. The damages should get based on either professional misconduct or potential malpractice. 

-Disputes where entitlement to lawyer fees get decided by a court order, decision, or rule.

-Disputes involving a third person that takes care of paying the fees. Plus, the client does not take part requesting arbitration. 

-Disputes where arbitration requests get filed 4+ years beyond termination of lawyer-client relationships. Or, 4+ years after the billing gets received by a client. There is a small exception to this involving civil actions. Civil action involving a disputed total can't get barred by a statute of limitations.

Fee Arbitration Principle #7: The Notice of Right to Arbitration/Client Waivers

The lawyer should provide a written notice of his or her client’s right to arbitration. This needs to take place before or during the time of service of a civil action summons. The notice should get sent through certified mail with a requested return receipt. The Commission must approve the notice. The notice must contain a provision that advises the client. A client must know the consequences of failing to file the Petition for Fee Arbitration. That petition must get filed within thirty days of service. Otherwise, civil actions can get dismissed without proper written notices.

Say that the lawyer does a fee collection action through a court. The court can issue the order once the client provides notice to the court/lawyer. That order states that the Petition for Arbitration has gotten filed. And, that the filing went through the commission. That filing must take place within thirty days of service. 

Assume that the client has filed a Petition. The attorney should refrain from conducting non-judicial collection activities that involve the fees. The activities can also not involve the costs related to the arbitration dispute.

Say that not all parties have agreed in writing for arbitration to happen. This means that the client’s right to maintain arbitration or petition can get waived. This happens when one of the following two situations take place:

1. A client does not file the Petition for Arbitration within the mandated period of 30 days. 

2. The client conducts or maintains a civil action. Or, he or she files a pleading asking for judicial resolution of the fee dispute. Or, he or she wants affirmative relief against an attorney. That wanted relief is due to damages involving potential malpractice. 

The Fee Arbitration System

What does the Fee Arbitration System do? It gives clients and lawyers a mechanism to resolve fee disputes outside of court. Most fee arbitration processes are inexpensive, fast, and very private. All US courts should make sure that there is enough funding for the fee arbitration program to work. Keep in mind that there is a common alternative to fee arbitration. Mediation can take place to resolve many different forms of fee disputes.

The Client’s Role in the Fee Arbitration System

Clients should understand their rights within the Fee Arbitration System. Say a client thinks that he or she has gotten overcharged by an attorney. The client can get the attorney's fee reviewed without paying for formal litigation. Once a client makes a request for arbitration, the lawyer must take part. Decisions are only binding if there is a written agreement by both parties. Without it, all parties can conduct a trial de novo. The trial de novo has to happen within thirty days beyond an official decision. So, when does the decision become binding? When all parties choose not to conduct the trial de novo within thirty days. The lawyer regulatory system cannot regulate a consumer’s (client's) legal services. That’s why the arbitration program is optional for all clients. But all lawyers and clients can enter into contracts for binding arbitration at any time.

More About the Fee Arbitration Program

So, when do lawyers provide notices to clients in the Fee Arbitration Program? An attorney must notify availability of the program before/during a key event. That event is the service of a civil action summons. This is so fees can get recovered that relate to professional services. One again, the written notice has to go through certified mail. A return receipt should get requested. All clients should file their Petitions for Fee Arbitration within 30 days of the notice. Otherwise, the client waives his or her right to conduct a petition. The right to maintain the arbitration proceeding also gets waived. Sometimes, fee arbitration happens without a client filing a Petition for Fee Arbitration. But for this to take place, all parties must hold complete agreement with one another. 

Contact Us Today for Help With All Fee Arbitration Matters

Moving Authority's prepared to help you with all issues related to fee arbitration. Our mission is to do more than assist you and your team with cutting costs. It is also to help you prevent legal issues from taking place. But when they do, Moving Authority is on your side. We want to help you avoid as many fines and violations as we can. Feel free to give us a call or email with any questions related to arbitration. We know that all legal disputes can get resolved fast once you have the right information. And that information is one phone call away. Our team looks forward to helping you and your company thrive for years to come.