Kassel

Ervin, Cohen & Jessup, LLP v. Kassel

Good Law
147 Cal. App. 4th 821·2007 Cal. App. LEXIS 191·2007 Daily Journal DAR 2120·54 Cal. Rptr. 3d 685·2007 Cal. Daily Op. Serv. 1680
Court of Appeal of CaliforniaFebruary 14, 2007B191761California2,818 words

Opinion

Opinion

Johnson, J.

Ervin, Cohen & Jessup, LLP (EC&J), appeals from an order denying its motion to compel its former clients to arbitrate a dispute concerning legal fees and costs pursuant to an arbitration clause in a retainer agreement. Citing the Mandatory Fee Arbitration Act (MFAA), the trial court concluded a predispute agreement for binding arbitration of a claim for unpaid fees and costs is unenforceable.

We find EC&J gave its former clients notice of their right to resolve the fee dispute via nonbinding arbitration under the MFAA. The clients failed to request such an arbitration within the requisite time period (or at any time thereafter) and thereby waived the protections of the MFAA. Having failed to invoke their statutory right to nonbinding arbitration under the MFAA, the retainer agreement required them to submit any and all disputes with EC&J to binding arbitration before the American Arbitration Association (AAA). Accordingly, we reverse the trial court’s order denying EC&J’s motion to compel arbitration of its fee dispute with its former clients.

FACTS AND PROCEEDINGS BELOW

In or about February 2002, Steven H. Kassel and Firse Tax, Inc., doing business as Taxes.com…

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