Schatz

Schatz v. ALLEN MATKINS LECK GAMBLE

Good Law
146 Cal. App. 4th 674·2007 Cal. App. LEXIS 20·2007 Daily Journal DAR 407·53 Cal. Rptr. 3d 173·2006 Cal. Daily Op. Serv. 317
Court of Appeal of CaliforniaJanuary 9, 2007D047347California4,388 words

Opinion

Opinion

McCONNELL, P.J.

This case involves an attorney fees dispute. In Alternative Systems, Inc. v. Carey (1998) 67 Cal.App.4th 1034 , 79 Cal. Rptr.2d 567 ( Alternative Systems) , the court held the mandatory fee arbitration act (MFAA; Bus. & Prof.Code [1] § 6200 et seq.), which for public policy reasons entitles clients to nonbinding arbitration and trial de novo, supersedes a retainer agreement's binding arbitration clause when the client opts for the MFAA procedure. Under the MFAA, a client may commit to binding arbitration only after a fee dispute arises. ( Alternative Systems, supra, at pp. 1042-1044, 79 Cal.Rptr.2d 567 .)

The issue here is whether Alternative Systems remains good law in light of the Supreme Court's opinion in Aguilar v. Lerner (2004) 32 Cal.4th 974 , 12 Cal. Rptr.3d 287 , 88 P.3d 24 ( Aguilar) . In a concurring opinion in Aguilar , Justice Chin submitted that the majority opinion effectively overruled Alternative Systems. ( Aguilar, supra, at pp. 992-993 , 12 Cal. Rptr.3d 287 , 88 P.3d 24 (con. opn. of Chin, J.).) Justice Chin concluded the MFAA complements, rather than supersedes the California Arbitration Act (CAA), and after nonbinding arbitration under the…

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