Appellate Court Has Great Discussion on Fee Arbitration Rejection Requirements.
Here is one that reminds everyone–clients and attorneys–engaging in fee arbitrations to keep a very open eye on complaint filing prerequisites applicable to rejection of adverse non-binding fee arbitration awards.
The opinion discussing these topics is Clyne v. Hoover, Case No. H035539 (6th Dist. June 29, 2011) (unpublished), where an ex-client lost her bid to get a new trial after losing a fee arbitration award of over $69,000 to her ex-lawyer under Business and Professions Code section 6204. We will tell you why she lost her bid soon.
There are two sets of rules that operate, as the appellate court cogently reminded us. Set number 1 is that the losing party need only file a rejection of the award and request for trial de novo within 30 days of the award if a court action is pending. (Bus. & Prof., § 6204(b).) Set number 2, which is where ex-client stumbled, specifies that the loser must initiate the commencement of a court action within 30 days after service of the fee arbitration award. (Bus. & Prof., § 6204(c).)
Client, unfortunately, did not file a complaint. She argued that her Judicial Council Form ADR-104 (rejection form) did the trick, but the appellate court was not impressed. After all, the form itself has language indicating that a complaint was being filed by which a new action was commenced–something not done by client. Ouch, we say.