Legal Question in Real Estate Law in California

Loss mitigation agreement

If we signed a contract with an arbitration clause can I take the attorney to small claims court?


Asked on 7/16/09, 1:46 am

3 Answers from Attorneys

David Gibbs The Gibbs Law Firm, APC

Re: Loss mitigation agreement

I'm not sure I get what you are asking. Did an attorney represent you in negotiating the loan modification agreement, and you are saying you didn't realize or want to agree to arbitration? If so, what are your damages for having signed that clause? Its not likely the attorney would have any liability until such time as you actually incurred damages as result of having signed the arbitration clause.

A second issue you have is its going to be extremely difficult to claim that you didn't know about the arbitration clause. You signed the agreement, pressumably you read it, AND most arbitration clauses require that you initial them separately right below the clause.

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Answered on 7/16/09, 1:27 pm
Terry A. Nelson Nelson & Lawless

Re: Loss mitigation agreement

Small claims court is NOT arbitration. If you have an attorney fee dispute, as implied, you can file that claim with the local Bar Association to handle, and they generally have a little bias in favor of the client. If not a fee dispute, then if you file a suit contrary to the arbitration terms, the other side could enforce the arbitration provision and make you do so, thus wasting your time and money in having filed the lawsuit. If this is a substantial enough problem to justify you hiring an attorney to help you, feel free to contact me.

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Answered on 7/16/09, 2:23 pm
Scott Linden Scott H. Linden, Esq.

Re: Loss mitigation agreement

First of all, attorneys are not allowed to represent others in small claims. You can have the advice of an attorney, but they are not allowed to speak on your behalf.

Second, if you signed an arbitration clause, why are you not having the attorney represent you at an arbitration hearing? Why is this even in small claims in the first place?

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Answered on 7/16/09, 6:24 pm


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