Legal Question in Civil Litigation in California

Binding arbitration vs. small claims action

I retained an Att'y (sole practice) to represent me in a civil suit and paid a $2,500 retainer for her to handle the case. Our contract had a binding arbitration clause. The att'y later signed on as an assoc. with a law firm w/o notification to me and effectively ''dissapeared''. I found her several mo's later, but she chose not to continue with my case and withdrew w/o cause. I filed a small claims case to recover the retainer and add'l costs caused by the 10 mo delay. On the day of the hearing, she presented a petition to compel arbitration and dismiss my small claims case. Judge ruled in her favor. Arbitration via AAA will cost me a min. of $5k to $10K, which is more than my claim. This seems grossly unjust. Is there anything I can do to get my day in court. Wouldn't this appear to be an unconscionable contractual requirement under the circumstances? (MFA N/A because claim is more than fee paid.)


Asked on 9/03/07, 10:08 pm

1 Answer from Attorneys
George Shers Law Offices of Georges H. Shers

Re: Binding arbitration vs. small claims action

Yes, it is unfair, but, no a court would probably not throw the case out as in general, such a clause is reasonable.

See if she will agree to using the county bar association dispute resolution process where the fees would be a few hundred dollars. Ask for a billing statement and your file back from her; if the number

of hours she claims she worked on the case times her hourly rate is less than $2,500, she may realize that she has committed a crime and could get disbarred even if the D.A. will not prosecute. File a complaint with the State Bar.

Good luck

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Answered on 9/10/07, 2:27 am


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