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About Timmy Chou
Expertise
I am a experienced Mediator and a partner in a management consulting firm. As a mediator I work as a third-party neutral and specialize in partnership/shareholder disputes, management/labor issues, company culture difficulties, and family-owned business problems. I can help describe why alternative dispute resolution may be a good choice for you. As an experienced management consultant I may be able to offer creative ideas to help resolve your organizational and business problems and disputes. "If you say conflict, I say opportunity".

 
   

You are here:  Experts > Business > Corporate Law > Arbitration/Mediation > Attorney Fee Dispute

Arbitration/Mediation - Attorney Fee Dispute


Expert: Timmy Chou - 1/29/2009

Question
Hello:
I had an attorney who worked on a EEO case for me that utimately settled for $19,000 cash and a detail to another agency for one year (there is no monetary value, as I am receiving the same pay and grade).  When the check was forwarded my attorney indicated that her attorneys fees were 16,000.00 and that she would cut me a check for $3000.00.  I went back and pull my copy of our contract/agreement between us, it clearly states that she would receive 33 1/3 percent, plus any actual costs.  Not once did the attorney provide any billing documentation to me indicating what her actual costs were.  In November of 2008 I questioned her keeping $16,000.00 or nearly 84 1/2% of my settlement.  She has now stated that she is placing a monetary value on my detail to another agency, though she did no work on this and never informed of this "hidden fee."  I feel completely shocked and taken advantage of.  Now she hardly returns my calls and/or e-mails.  I last indicated to her that I would be filing with the County Bar Assocation for her county (I currently live out of state, but she is in California, where the majority of the work was done.)  I have made it clear that I want a refund in the amount of $9730, as I feel she is entitled to $6270, because she never provided any billing statements to me, and that I would pursue this at the Fee Dispute Mediation Program, or I would be willing to compromise to $8,000.00, and she would keep $1730 for costs if she made a refund to me within the next two weeks.  I am right and is this reasonable?  She is hardly corresponding with me at this point and I want this over with a.s.a.p. What to do?

Answer
Thank you for your question!

As I always mention to questioners, mediators act as neutral third parties to disputes and never "get involved" in judging the merits of conflict, but merely use special techniques to help the parties decide how to negotiate their own settlement.

The case you describe here is very typical and can be considered a "classic" office politics dispute presentation.  I am not an attorney or legal expert and cannot comment on the "merits" of a particular position, however I can respond to your question from my business consulting and mediation experience.

As you have found out, it is very easy to get bulldozed by lawyers and very hard to get help in dealing with them.  This lawyer has no incentive to deal with you at all and only hopes that you give up and go away.  Hopefully you won't go along, but will continue to press your case.  

You are right that you must be presented with evidence and billing statements for the expenses and work performed.  You are wise to offer various compromise solutions.

So, at this point, you must be prepared to raise the level of this matter or find a way to work with it.  In either case, you should document a very careful chronology of events as they have occurred.  Names, dates and locations, attempts to contact, offers of compromise.  Send your correspondence certified.  

The BAR Association is the correct place to begin with a complaint.  You can work through the fee mediation procedure, but be prepared to file a formal complaint.  You may also check with the CA Licensing office and see if there is also a State procedure to follow.  Lawyers that steal money should not have licenses to practice.

In addition, you might want to contact any advocacy groups or press representatives, or any consumer reporting agencies, or lawyer referral agencies.  The key here is to turn up the heat and make this attorney see that it is going to cost alot more to deal with the damage you are going to cost her than to just settle with you.

As far as her attaching your current pay, you may want to consult another lawyer here and perhaps file a restraining order.  This is highly out of line it seems to me.

Be prepared to go the distance.  People must be convinced you are serious as a heart attack about this and prepared to go all the way with a complaint unless this is taken care of.  Be sure to copy press outlets when dealing with this as neither the attorney nor the BAR wants negative press.

These are some ideas.  Feel free to follow up with additional questions.

For your information, the pros and cons of the types of dispute resolution methods follows.

GOOD LUCK!

Arbitration, Mediation, and Litigation

Arbitration: the referral of a dispute to one or more impartial persons for final and binding determination outside of the judicial system

Benefits of Arbitration:

    Confidential, no public record
    Limited exchange of documentation, information
    Quick, don't have to wait for a court date
    Arbitrators have expertise in the subject matter and are trained in conflict resolution
    Cheaper than litigation
    Preserves business relationships

Negatives of Arbitration

    It's a compromise, no 100% winner
    Complex arbitration can be costly
    If not satisfied, may litigate the arbitration procedure
    Poor results with an unskilled arbitrator
    Both parties must agree to cooperate in the process

Mediation: the process by which parties submit their dispute to a neutral third party (the mediator) who works with the parties to reach a settlement of their dispute.

Benefits of Mediation:

    Neutral mediator can objectively suggest alternatives not considered before
    Parties are directly engaged in negotiating the settlement
    Can be quicker than litigation
    Less costly than litigation
    Preserves business relationships
    85% of American Arbitration Association cases mediated find successful solutions

Negatives of Mediation

    may not reach a binding decision
    unskilled mediator

Litigation: using the judicial system to resolve disputes

Benefits of litigation:

    a clear winner and loser
    uses a prescribed set of procedures
    more predictable outcomes
    is final

Negatives of Litigation:

    waiting for court dates can do more harm
    usually more expensive than mediation and arbitration
    part of the public record  

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