FAQ's - Frequently Asked Questions

A ] Lawyers in New York State are generally required to provide their clients with retainer agreements or letters of engagement which discuss the fees and expenses to be charged.  At the initial conference with your lawyer, you should request a retainer agreement or letter of engagement and ask any questions you may have regarding the fee to be charged.
Despite the letter of engagement and discussions about fees, sometimes disputes arise.  In general, your lawyer may not sue you in court over a fee dispute unless he or she first provided you with notice of your right to utilize the FDRP.  Once you have received this notice you have 30 days to decide whether to use the FDRP.  If you don’t choose to participate in the FDRP within 30 days, your lawyer is free to pursue the matter in court.

A ] Arbitration is a hearing conducted by one or more neutral persons who have special training and experience.  One arbitrator or a panel of three arbitrators (at least one of whom must be a nonlawyer) listen to the arguments on both sides and decide the outcome of the dispute.  Fee arbitration is fair, inexpensive and usually faster than going to court. 

A ]

• Your attorney practices in New York and your case involved a civil matter (personal injury and criminal cases are not covered);
• The amount in dispute is between $1,000 and $50,000 (fee disputes can involve fees that you have already paid your attorney and for which you seek a refund, or fees that your attorney claims are owed by you);
• The legal representation began on or after January 1, 2002;
• Your attorney has rendered services to you within two years prior to the filing of the request for fee arbitration.
  

A ] The FDRP’s Board of Governors has approved a number of local programs which administer the FDRP on a region by region basis. These local programs are run by bar associations or by the court system’s regional Administrative Judges.  All local programs have been carefully reviewed to ensure that they will resolve fee disputes in a fair, impartial and efficient manner.  To find out which local program has jurisdiction over your fee dispute you need to identify the county in which the majority of the legal services in your case were performed.  This is usually (but not always) the county where your lawyer’s office is located. 

A ] There are three ways in which you can enter the FDRP.  In all three situations, the filing of a Request for Fee Arbitration form officially starts the process.
           
Situation 1.  Your lawyer has mailed you a Notice of Client’s Right to Arbitrate.
A dispute over fees exists between you and your lawyer and he or she has provided you with a form entitled “Notice of Client’s Right to Arbitrate” (UCS 137-1).  You now have 30 days to decide whether to utilize the FDRP by filing a form entitled “Client Request for Fee Arbitration” (UCS 137-4a) with the appropriate local program. Once you file the Client Request for Fee Arbitration your attorney will be required to participate in the FDRP unless your dispute is one that the FDRP is not designed to handle.
If you do not file the Request for Fee Arbitration within 30 days, you lose your right to utilize the FDRP and your lawyer will be free to take legal action.

Situation 2. You have not received the Notice of Client’s Right to Arbitrate.
You have not received the Notice of Client’s Right to Arbitrate from your lawyer but decided to look into the FDRP on your own.  You may have found information on this website, contacted a local program directly or asked your attorney to provide you with information about the FDRP.  If you believe you have a fee dispute you should read the Fee Dispute Brochure carefully.  If you then want to use the FDRP, complete the Client Request for Arbitration form by downloading a packet from the local program’s page (UCS 137-4a) and file it with the local program.   Once you file this form, your attorney will be required to participate in the FDRP unless your dispute is one the FDRP is not designed to handle. 
 
Situation 3.  You and your lawyer have agreed ahead of time to use the FDRP.
You and your attorney previously agreed in writing to resolve fee disputes through the FDRP rather than in court.  You probably agreed to this option when your attorney first began representing you and after you had the opportunity to read about the FDRP and how it works.  If you believe that you have a fee dispute, you may simply file the Client Request for Arbitration form (UCS 137 - 4a) with the local program, together with a copy of the agreement to arbitrate.  Filing the request form with the local program will start the process and your attorney will be required to participate. 

Since a trial de novo obviously will add significantly to the time and expense of resolving your fee dispute, you and your attorney may wish to waive this right ahead of time in writing. However, keep in mind that if you do so and agree to final and binding arbitration, the arbitrators’ decision can be vacated only on very limited grounds. Vacating an award is different from a trial de novo. It is more like an appeal of the award and in order to vacate the award, the court must review the award itself and determine whether it should be overturned. This process is governed by CPLR Article 75.

If you are claiming that you do not owe the other party money, this is considered “declaratory relief” and only Supreme Court has the power to make such a determination.

[For example, you are the client and you want a court order stating you do not owe the attorney money or you are the attorney who wants a court order stating that you do not have to refund money to the client.]

You may, however, file for trial de novo in one of the courts of limited jurisdiction if you are trying to get money from the other party. [For example, you are the client and you are seeking a refund of money you have already paid to the attorney or you are the attorney seeking to get money from the client who has not yet paid the bill.] The amount you are seeking must fall within the court’s monetary jurisdiction.

If outside New York City, claims for $3,000 or less may be filed in the Town and Village Courts and claims for $15,000 or less may be filed in the City Court. If in Nassau County, and certain parts of Suffolk County, claims for $15,000 or less may be filed in the District Court. Claims for more than $15,000, outside New York City, are filed in Supreme Court.

A ] It’s up to you. Your attorney cannot force you to enter into such an agreement. The FDRP offers a quick, inexpensive and informal means of resolving fee disputes. Litigation in the courts can take longer and cost more. Unlike litigation in the courts, arbitration is confidential and closed to the public. The speed, informality and less confrontational nature of arbitration allows the parties to quickly get on with their lives.

On the other hand, you may prefer the formality of a lawsuit, and to have your dispute resolved by a judge or jury rather than by arbitrators. In a lawsuit, you have the right to conduct depositions and engage in pretrial fact finding, which are generally not permitted in arbitration, and to appeal a judgment that you think is contrary to law.
So think it over carefully. To enter into a valid agreement ahead of time, the agreement must be in writing and specify that you read the written materials describing the rules and procedures of the FDRP and the appropriate local program.

A ] If you want to preserve your right to go to court to resolve disputes over fees, then you may wish to avoid final and binding arbitration and you should not waive your right to a trial de novo. On the other hand, if you are interested in achieving closure quickly and inexpensively and want to avoid litigation in the courts, then you may wish to choose final and binding arbitration by waiving your right to a trial de novo.
To enter into a valid agreement ahead of time and waive the right to de novo review, the agreement must be in writing and specify that you read the written materials describing the rules and procedures of the FDRP and of the appropriate local program. The written agreement must specify that you understand that you are waiving your right to a trial de novo.