Sophisticated Client, An Attorney, Participated In MFAA Arbitration Such That Failure To Provide Notice Was Not Jurisdictional.
After participating in a Mandatory Fee Arbitration Act (MFAA), Bus. & Prof. Code, §§ 6200-6206, fee arbitration and losing to the tune of about $13,000, ex-client—a licensed attorney–appealed a confirmed fee award in favor of her ex-attorneys. The award was confirmed on the merits in Knitter & Knitter, LLP v. Du Par, Case No. A157660 (1st Dist., Div. 3 May 26, 2021) (unpublished). However, she did raise the issue that her former attorneys’ failures to provide a notice to arbitrate under B&P Code § 6201(a) necessarily required a dismissal of the arbitration proceeding. Not so, said the appellate court. The failure to give this notice only makes dismissal a discretionary, not mandatory decision. Relevant to the decision is whether the client is sophisticated and aware of the arbitration rights even in the absence of notice. (Richards, Watson & Gerson v. King, 39 Cal.App.4th 1176, 1180 (1995).) Here, ex-client was an attorney and fully participated in the arbitration during which the ex-attorneys’ client action was stayed. As such, no dismissal was required, as well as no prejudice shown given that ex-client was an attorney and participated in proceedings below.