Legal Question in Real Estate Law in California

I have been sued by a previous real estate client. According to the California Association of Realtors listing agreement, he must demand mediation and then binding arbitration (if mediation doesn�t work). However, he sued me in Civil Court. We have a counter claim for breach of contract, but the listing agreement clearly says that one must demand mediation and arbitration, and if they file a lawsuit in civil court they waive their right to attorney�s fees.

Our answer is due next week. My attorney has already demanded mediation. My attorney wants to file a counterclaim in civil court, however my concern is that would waive our right to attorney�s fees (since he isn�t going through binding arbitration). I also think this will cost a lot of money (to write the counter claim compared to a general denial) so I am not sure if his intentions are correct.

Do you know how this process works? If the contract calls for mediation then arbitration, then would it be a bad strategy to file the counterclaim with my answer? Could we lose attorney�s fees? Is Res Judicata applicable? Help!


Asked on 12/01/14, 5:01 pm

2 Answers from Attorneys

William Christian Rodi Pollock

Why is your attorney not answering these questions for you? THis is why you hire counsel.

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Answered on 12/01/14, 5:04 pm

No ethical attorney will discuss a case with a represented party, unless you are looking to hire new counsel. This is a Q&A service. So it is inappropriate for us to comment. You need to discuss this with your attorney or talk to a new one about taking on the case.

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Answered on 12/01/14, 5:06 pm


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