If you think a lawyer charged you too much, you may be able to settle it through a process called “fee arbitration.” Arbitration is cheaper and faster than going to court. The decisions made in fee arbitration are final and must be followed.

Lawyers must charge fees that are considered "reasonable." To figure out if a fee is reasonable, factors such as the time, skill, and labor required; the going rate for similar work; and the results obtained are taken into account. For new clients or those who will pay based on the case outcome, the fee agreement has to be in writing when the lawyer takes the case.

There are 17 district fee arbitration committees with the power to handle these disputes and make decisions about fee issues. Some disputes cannot be handled by these committees, like fees awarded by a court. For more details on what cannot be handled, check the Office of Attorney Ethics website.

How do I file for fee arbitration?

Before a lawyer can sue for fees, they must inform you (the client) of your right to fee arbitration. This notice must include contact information for the District Fee Arbitration Committee secretary and say that you have 30 days to file for arbitration. If you do not file within 30 days, you lose the right to use fee arbitration for this dispute.

To file for fee arbitration, you need to submit an original and five copies of the Attorney Fee Arbitration Request Form along with a $50 nonrefundable fee. Both you and the lawyer must pay this fee. If you cannot afford the fee, you can request a waiver by filling out a form with financial details. You can get a copy of this form by calling the Office of Attorney Ethics’ Fee Arbitration Unit at 609-403-7800 extension 34120. You must submit a copy of this form with your Fee Arbitration Request.

The completed arbitration request and fee (or waiver approval letter) should be sent to the district fee arbitration secretary in the county where the lawyer's office is located. The statewide fee arbitration coordinator can help find the correct secretary and answer other questions.

When you file for arbitration, the lawyer gets a copy of the request and must respond with details about the fee. The lawyer's response is also sent to you.

Fee arbitration proceedings are private. Do not talk about the fee dispute with anyone else. There are only two times you can discuss it: with people involved in the fee arbitration process or if you talk to a lawyer about the case.

The Fee Committee Hearing

For fee disputes of $3,000 or less, one lawyer from the committee will hear the case. Larger amounts will be handled by a panel of two lawyers and one non-lawyer. The hearing includes reviewing documents, listening to sworn testimony from the client, lawyer, and witnesses, and then giving a written decision.

The lawyer must prove the fee agreement is reasonable. Neither you nor the lawyer can appeal the decision, except for certain procedural issues.

The decision is binding and must be followed. If the committee decides you deserve a refund, the lawyer must pay within 30 days, or they might be suspended. If you owe money, it becomes a court judgment. Once the fee is paid, the lawyer must provide a "warrant of satisfaction," ending any legal action over the fee.

This information last reviewed: Oct 30, 2024