Arbitration in attorney legal fee disputes are governed by 22 NYCRR 1200 and the following statutes.  There is a complex statutory scheme, including specific forms, fee dispute committees, hearing schedules, and a body of law which accompanies the fee dispute proceedings.

A recent case, illustrates one quirk of the system.  Morelli & Gold v. Altman permitted the law firm to start a fee action de novo after arbitration because [this is the quirk], the law firm had not used an official form to notify the client of his right to arbitrate, and even though the retainer agreement made such arbitration "final and binding" it became neither final nor binding.

Another twist on this issue is the Quinn Emanuel Urquhart Oliver & Hedges arbitration clause.  This firm inserts an arbitration clause into its retainer agreements.  In this particular case,  ConnectU Inc. v. Quinn Emanuel Urquhart Oliver & Hedges, 602082/08, Justice Lowe of Supreme Court, New York County upheld the arbitration agreement , finding that there was no showing that they had been subject to fraud, misrepresentation or duress when they signed the retainer agreement.

"Accordingly, the court rejects petitioners’ assertion that the arbitration clause was obtained without their consent or as a result of some overreaching or other improper action on Quinn Emanuel’s part."

We’ll continue this discussion.