New Mexico Notice to Client of Client's Right to Arbitrate Dispute over Attorney's Fees

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Multi-State
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US-02641BG
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Description

Arbitration is an alternative means of settling a dispute by impartial persons without proceeding to a court trial. It is sometimes preferred as a means of settling a matter in order to avoid the expense, delay, and acrimony of litigation. There is no discovery and there are simplified rules of evidence in arbitration. The arbitrator or arbitrators are selected directly by the parties or are chosen in accordance with the terms of a contract in which the parties have agreed to use a court-ordered arbitrator or an arbitrator from the American Arbitration Association.


Courts have the inherent authority to supervise the charging of fees for legal services under their power to regulate the practice of law. A growing number of states, the courts and bar associations are seeking to encourage out-of-court resolution of fee disputes between attorneys and clients in alternative dispute resolution programs established and administered by bar associations. Typically these programs provide a client with the opportunity to voluntarily submit a fee dispute to either arbitration or mediation.


This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.

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FAQ

Arbitration can only take place if both parties have agreed to it. In the case of future disputes arising under a contract, the parties insert an arbitration clause in the relevant contract. An existing dispute can be referred to arbitration by means of a submission agreement between the parties.

In most cases, this decision is binding. In other words, it is the equivalent of a judge's ruling and is not a mere suggestion. In most cases, arbitration is a voluntary process. In other words, both parties must agree to arbitrate their dispute ? one party cannot be ?forced? into it.

If an attorney is claiming that you owe an outstanding balance of fees and/or costs, the attorney must forward a ?Notice of Client's Right to Arbitration? form approved by the State Bar to you prior to filing a lawsuit or other proceeding to collect the amount owed.

Selecting a Party Arbitrator. The agreement to use party arbitrators usually directs the process for selecting the chair. It is most common for the party arbitrators to select the chair, with or without the participation of the parties.

The arbitrator's final decision on the case is called the ?award.? This is like a judge's or jury's decision in a court case. Once the arbitrator decides that all of the parties' evidence and arguments have been presented, the arbitrator will close the hearings. This means no more evidence or arguments will be allowed.

The court acts as a ?gatekeeper,? and decides if a contract to arbitrate exists; and then, arbitrators, as fact finders, decide disputes allowed under the controlling contract. (Sandquist, supra, at p. 249; Code Civ. Proc., § 1281.2.)

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New Mexico Notice to Client of Client's Right to Arbitrate Dispute over Attorney's Fees