Joseph W. Eason, Chair
Fee Dispute Resolution Committee

The Tenth Judicial District Bar Fee Arbitration Committee has changed its name and its procedures, but not its mission: to help attorneys and their clients settle fee disputes fairly, inexpensively and promptly. The Committee is now the Fee Dispute Resolution Committee. As such, the Committee will put more emphasis on mediation and less on arbitration, with the intention of handling its cases quickly. However, binding arbitration will remain available when mediation fails and both parties to the dispute decide that they prefer arbitration to civil litigation.

Under the Committee’s new bylaws and consistent with Rule 1.5(f) of the N. C. State Bar Revised Rules of Professional Conduct, an attorney must make reasonable efforts to notify a client about the Committee and its services at least 30 days before filing suit to collect a fee. Either the attorney or the client may ask the Committee to mediate a fee dispute, but if the attorney files the petition against the client, the matter will not go forward unless the client consents. Regardless of who files the petition, the attorney must act in good faith throughout the mediation. All this continues prior practice.

Once a petition is filed, the other party will be asked to file a written response within 15 days. Under the Committee’s new bylaws, after the response is received, the Committee member assigned to the case has the duty to decide whether “the matter is suitable for mediation.” If the Committee member thinks it is not, the matter can be dismissed without mediation. This is a change from the prior practice.

If the case goes forward, as most probably will, mediation may be in two stages. Initially, the Committee member assigned to mediate will act “informally” by telephone, e-mail, fax or letter. If this informal approach is unsuccessful, the mediator will hold a face-to-face session with the parties. This two-stage approach is also a change from prior practice.

If mediation fails, the parties will be offered voluntary binding arbitration. Either party may reject this option. This is a change from prior practice, which required the attorney to participate in mandatory non-binding arbitration. If there is arbitration, the panel will consist of three members, at least one of whom will be an attorney member of the Committee and none of whom will be the mediator. This is a continuation of the prior practice. Arbitration decisions will be enforceable under the Arbitration Act.

Finally, the Committee remains willing to help settle a fee dispute between two attorneys, between an attorney and a court reporter, or between an attorney and an expert or other consultant.

Questions about the Committee and its new bylaws may be addressed to Alice Roman at the Tenth Judicial District Bar.
 

Amendments to Rules 1.5 (f) of the N.C. State Bar Revised Rules of Professional Conduct

(f) Any lawyer having a dispute with a client regarding a fee for legal services must:
(1) make reasonable efforts to advise his or her client of the existence of the North Carolina State Bar’s program of mediation at least 30 days prior to initiating legal proceedings to collect the disputed fee; and
(2) participate in good faith in mediation of the fee dispute if such is subject to the jurisdiction of any duly constituted fee arbitration committee of the North Carolina State Bar or any of its constituent district bars if the client submits a proper request for fee arbitration.

{Complies with Rule 1.5 (f)}

[Client Name and Address]

Re: [Description of Representation]

Dear [Client]:

This letter is to notify you that [I, this firm] intend[s] to initiate legal action to collect the unpaid [fee/fees and expenses] owed this firm in connection with the above described representation. Pursuant to the North Carolina State Bar’s Rules of Professional Conduct, I must advise you of the existence of the State Bar’s program of fee dispute resolution at least 30 days prior to initiating legal proceedings.

Should you dispute the fees or expenses, you may request resolution of the dispute by contacting the Tenth Judicial District Bar Fee Dispute Resolution Clerk, Alice Roman, P.O. Box 3686, Cary, NC 27519-3686. The telephone number is (919) 677-9903. The Clerk can provide you with more information about the fee dispute resolution program and a petition for requesting resolution. Participation by an attorney in fee dispute resolution proceedings requested by the client is mandatory.

If you have not filed a petition for fee dispute resolution with the Fee Dispute Resolution Clerk within 30 days of the date of this letter, I will proceed with legal action to resolve this matter. In the meantime, please do not hesitate to call me if you have any questions, or if you wish to discuss this matter further.

Sincerely,
[Attorney]