Calif. High Court Rules On Fee Dispute Arbitrability

Law360, New York (January 23, 2009, 12:00 AM EST) -- The California Supreme Court has ruled that the state's Mandatory Fee Arbitration Act doesn't limit the ability of attorneys and clients involved in fee disputes to enter into binding contractual arbitration.

The decision, issued Monday, overturns a state appellate court's ruling that the right to a trial de novo after statutory arbitration defeats any contractual obligation to arbitrate attorney-client fee disputes.

At issue in the Schatz case was the relationship between arbitration under the MFAA, which authorizes a trial de novo, and a predispute contractual arbitration...
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