Rules and Steps to Follow
in Fee Arbitration

Click here to download fee arbitration form.

Fee Arbitration
(printer-friendly)

Board of Overseers of the Bar

The Board of Overseers of the Bar was created by the Maine Supreme Judicial Court in 1978 to control the conduct of lawyers as officers of the Court. The Board consists of six lawyers and three public members. The lawyers are appointed by the Court, and the public members are appointed by the Court on recommendations by the Governor.

The Board controls the conduct of lawyers by enforcing the Maine Bar Rules adopted by the Court. The purpose of the Bar Rules is to protect the public and the courts from lawyers who do not properly discharge their professional responsibilities.

Under the Bar Rules, the Board appoints Bar Counsel who investigates alleged misconduct by lawyers and prosecutes lawyers in disciplinary proceedings. The Board also maintains a register of all lawyers who are members of the Bar of the State of Maine, as well as records of the termination or suspension of the right of any lawyer to practice law in Maine.

The Board appoints members to three commissions established by the Bar Rules: the Grievance Commission, the Fee Arbitration Commission, and the Professional Ethics Commission.

 

How to Start the Fee Dispute Arbitration Process

If you have a dispute about a lawyer’s fee, you may ask that your dispute be resolved by arbitration. You, the Petitioner, start the process by writing or calling the Secretary of the Fee Arbitration Commission and requesting a Petition for Arbitration.

When completing the Petition, be sure to include the facts of the dispute and copies of supporting documentation such as bills, receipts, and correspondence relating to the dispute. If you wish to provide evidence by electronic means (audio tapes, etc.) you must also provide a transcript of the recording.

Upon receipt, the Secretary will mail a copy of your petition and a copy of this booklet to the lawyer (Respondent) involved in the dispute together with a Respondent’s Reply form. Similarly, upon receipt, the Secretary will mail you a copy of the Respondent’s Reply.

Both your Petition and the Respondent’s Reply are then mailed to the members of the appropriate Arbitration Panel serving your area. The Arbitration Panel Chair will attempt to assign the matter for hearing within sixty (60) days. The Secretary will send notice of the time and place of hearing to the Petitioner and Respondent.

No fees or other costs will be charged to anyone by the Board or Arbitration Panel for filing or hearing fee disputes. You may use, but should not need, a lawyer to help you complete your Petition and proceed through the fee arbitration process.

The Petitioner and the Respondent are encouraged to continue a good faith effort to communicate directly with one another to try to resolve the dispute before the day of the hearing. If this occurs, please call the Fee Arbitration Commission Secretary. Panel members volunteer their time to serve as arbitrators, so it is only fair to them that the parties continue to attempt to resolve their dispute to avoid the necessity of a hearing if possible.

 

Structure of Commission and
Arbitration Panels

Purpose

The purpose of the Fee Arbitration Commission and its hearing Panels is to provide for the arbitration of fee disputes between clients (Petitioners) and lawyers (Respondents) who practice law in the State of Maine.

The Commission

The Fee Arbitration Commission consists of fifteen members serving on five panels. In addition, there are several alternate members who serve on panels as needed. All members of the Commission are appointed by the Board of Overseers of the Bar for three year terms.  Each panel is represented by two lawyers and one non-lawyer.

Executive Council

The Executive Council (consisting of the Chair of the Fee Arbitration Commission and the Chairs of the various panels) is charged with the responsibility of overseeing the work of the Commission.

Fee Arbitration Panels

Fee Arbitration Panels are assigned geographically and perform their functions within the following areas:

Panel 1A  York County

Panel 1B  Cumberland County

Panel 2    Androscoggin, Franklin, Lincoln, Oxford and Sagadahoc Counties

Panel 3    Kennebec, Knox, Somerset and Waldo Counties

Panel 4    Aroostook, Hancock, Penobscot,
Piscataquis and Washington Counties

In instances where a Petitioner and Respondent live or are otherwise located in counties of more than one Panel, the Chair or the Secretary of the Commission has the authority to direct which Panel shall hear the dispute in question.

Records

The Secretary maintains a record of all petitions filed, as well as all proceedings, determinations, and awards of the Commission and its respective panels.

 

Procedures and Rules for the Arbitration
of Fee Disputes

Initiation of Proceedings

Upon receiving a complaint regarding legal fees paid to or charged by a lawyer admitted to the Bar of this State, the Secretary shall forward to the complaining party a copy of these procedures and any relevant regulations adopted by the Board of the Board of Overseers with respect to fee arbitration, along with the blank form titled, “Petition for Arbitration of Fee Disputes”. Proceedings before a Fee Arbitration Panel of the Commission shall be started by the Petitioner (or Petitioner’s guardian or conservator) or other interested party by completing and forwarding the Petition to the Secretary.  In the Petition, the Petitioner shall:

(A)    fully identify the Petitioner and the Respondent with whom there is a dispute;

(B)    agree to be bound by the decision of a Fee Arbitration Panel and give up the legal right to bring action in court;

(C)    certify that a good faith effort has been made to resolve the dispute with the Respondent before filing the Petition;

(D)    in those cases where the Respondent has already begun a civil action against the Petitioner to recover fees, provide confirmation of whether and when the Respondent provided the Petitioner with written notice of a right to file for fee arbitration with the Fee Arbitration Commission; and

(D)    certify that the dispute is not presently the subject of legal action, nor has the matter been finally decided by a Court or administrative agency, except as otherwise explained in the Petition.

Informal Arbitration

After the Petition is filed with the Secretary, it will be reviewed by Bar Counsel who may try to resolve the dispute informally by communicating directly with the Petitioner and the Respondent.

If the dispute is resolved informally, the Petition shall be treated as withdrawn. The Petitioner and Respondent will be so advised by receiving a written Notice of Dismissal by the Chair of the Commission.

In addition, a Petition shall be dismissed by the Secretary upon: a) the Petitioner’s submission of a written request for dismissal prior to the Respondent’s filing of a Reply to the dispute, or b) the filing with the Secretary of a stipulation of dismissal signed by the Petitioner and the Respondent.

Preliminary Commission Review

If Bar Counsel determines that the Petition for Arbitration was not filed within six years from the time the bill in dispute was sent or the fee paid in whole or in part, whichever occurs first, or action by the Commission is otherwise unwarranted, Bar Counsel may refer the matter to the Chair of the Commission, together with a brief written report setting forth the facts, recommendations for dismissal, and the basis for those recommendations.

If the Chair agrees to the recommendations, the matter shall be closed and both the Petitioner and the Respondent shall be notified and receive a copy of the Chair’s dismissal order.

If the Chair disapproves of the recommendations, the matter shall be returned to the Secretary for further proceedings.

Notice to Respondent

If the matter is not informally resolved, or has not been dismissed as a result of the preliminary action by the Chair of the Commission within 30 days after the filing of the Petition, a copy of the Petition, together with the blank form captioned “Respondent’s Reply”, and a copy of these procedures and any relevant rules and regulations, shall be forwarded by certified mail, return receipt requested, to the Respondent lawyer with whom the Petitioner is in dispute.

The Secretary shall, after receiving the Respondent’s Reply, forward a copy of that reply to the Petitioner.

A petition may be filed by someone other than the actual client of the lawyer involved with the disputed fee. However, prior to processing such matters, the Secretary will provide the actual client with notice of the Petition and an opportunity to consent in writing to the petition being processed by the Commission. If that consent is not provided within 21 days, the matter will be referred to the Commission Chair for determination whether the Commission has jurisdiction to hear the dispute.

Referral to Arbitration Panel

Thirty (30) days after forwarding a copy of the Petition to the Respondent, the Secretary shall forward a copy of the Petition to the Chair and each member of the Arbitration Panel responsible for conducting the hearing. If received, the Respondent’s reply shall also be forwarded to the Chair and Panel members.

The Chair of the Arbitration Panel shall make every effort to have the matter scheduled for hearing within 60 days after the date of receipt of the copy of the Petition from the Secretary.

The Petitioner and the Respondent shall be notified by the Secretary as to the date, time, and place of hearing, as well as the names of the panel members, the identity and addresses of lawyer members’ law firms, and lay members’ municipality of residence. The Petitioner and the Respondent each have a right to present witnesses and documentary evidence in support of their positions.

If there is a pending action before a court or agency of this State instituted by either the Petitioner or Respondent involving the disputed fees, the Petitioner must file a request in writing to the court or agency in order to postpone the court or agency proceeding until a decision has been made by the Arbitration Panel.

Right to Counsel

Although not required, the Petitioner and the Respondent shall have the right to legal representation at their own expense at any stage of the arbitration. For cause shown, or on its own motion, an Arbitration Panel may, in its discretion, obtain the volunteer services of and assign a lawyer to represent either the Petitioner or the Respondent in any proceedings before the Panel.

Failure of the Lawyer to Reply

If the Respondent fails, without good cause, to file a reply within 30 days after receiving a copy of the Petition form, the Panel may proceed to hear the Petition and make its findings and award upon the evidence.  The Petitioner and the Respondent shall be bound by the findings and award of the Panel.

Subpoenas

A witness or party may be summoned by subpoena to appear before a Fee Arbitration Commission Panel. Any member of a Fee Arbitration Commission Panel assigned to hear the dispute, a notary public, or the Clerk of the Superior Court in any county may issue subpoenas for witnesses and documents. If the subpoena is unreasonable or oppressive, the Fee Arbitration Commission Chair or any Chair of a Panel, upon motion made promptly, may stop or modify any subpoena issued for appearance before a Fee Arbitration Commission Panel. For further information, refer to Rule 45 of the Maine Rules of Civil Procedure.

Arbitration Hearing

On or about 20 days prior to the hearing, the Secretary shall provide a copy of the Notice of Hearings to the parties. As stated in that Notice, reasons for any objection to the participation of any named members of the hearing panel must be submitted in writing to the Secretary within seven (7) days of receipt of that notice.

If, at the time set for a hearing before a Panel, all three members are not present, the Chair of the Panel, or in the event of the Chair’s unavailability, the other Panel members present, in their sole discretion, may decide either to postpone the hearing, or, with the written consent of those parties present, to proceed with the hearing with less than three arbitrators.

The members of the Fee Arbitration Panels shall be vested with all of the powers, and shall assume all of the relevant duties granted and imposed upon neutral arbitrators by the Uniform Arbitration Act 14 M.R.S.A. §5927, et seq., to the extent that the same is not in conflict with these Rules.

On the hearing date, the Arbitration Panel shall meet, take testimony, receive other evidence and otherwise conduct an impartial, fair, and expeditious hearing on the matter.

Upon request of a party to the arbitration or upon its own determination, an Arbitration Panel may, for good cause shown, adjourn or postpone the hearing.

The Chair of the Panel shall preside at the hearing. For purposes of admissibility, the Chair shall be the judge of the relevance and materiality of the evidence offered and shall rule on questions of procedure. The Chair shall exercise all powers relating to the conduct of the hearing. Conformity to the Rules of Evidence shall not be necessary.

The Petitioner and the Respondent, or counsel representing them, shall be entitled to be heard, to present evidence and to cross-examine parties and witnesses appearing at the hearing. In addition, any Panel Member shall be entitled to make inquiries of any party or witness at the hearing.

On request of the Petitioner or the Respondent or any member of the Panel, the testimony of witnesses shall be given under oath. When so requested, the Chair of the Panel may administer oaths to witnesses testifying at the hearing.

If either the Petitioner or the Respondent (or both), having been notified of the time, date, and place of the hearing in accordance with these procedures fails to appear at the hearing, the Chair of the Panel may either postpone the hearing or proceed with the hearing and determine the controversy upon the Petition, reply, and other evidence both parties have seen.

Either the Petitioner or the Respondent may have the proceedings of the hearing recorded at their own expense.  If either does so, that party must provide a copy of the transcript, free of charge, to the Panel. Further, in such event, any other party to the arbitration shall be likewise entitled to a copy of the transcript at that party’s expense, by arrangements made directly with the reporter.

In the event of the death or incompetency of a party to the arbitration proceeding before the close of hearing, the proceeding shall end without prejudice to either party to proceed in a court of proper jurisdiction to seek such relief as may be warranted. In the event of death or incompetency of a party after the close of the hearing but before the decision is issued, the decision rendered shall be binding upon the heirs, administrators or executors of the deceased and upon the estate or guardian of the incompetent.

In the event there is no written agreement or engagement letter between the parties concerning fees and expenses as to the particular matter in dispute, the Respondent must bear the burden of proof of an agreement, or other basis for recovery of fees and expenses, and of the reasonableness of those fees and expenses.

Arbitration Award

The decision of the Arbitration Panel shall be expressed in a written award, signed by all of the panelists hearing the matter, and then filed with the Secretary. If there is a dissent, it shall be signed separately, but the award shall be binding if signed by a majority of the arbitrators. An award may also be entered on consent of the parties. Once the award is signed and filed, the hearing may not be reopened except upon consent of all parties and a majority of the arbitrators serving on the Arbitration Panel which heard the matter.

The decision of the Arbitration Panel and its award need not be in any particular form but shall be in writing and contain at a minimum, a statement of the amount or nature of the award, if any, and the terms of payment, if applicable.

The decision of the Arbitration Panel may be communicated orally after the close of the hearing, and shall be issued and filed with the Secretary within twenty (20) days thereof, unless the time for issuing such award is extended by the Chair of the Commission.

A copy of the decision containing the award shall be forwarded by the Secretary to the Petitioner, the Respondent, their respective counsel, if any, the Chair of the Commission and the Board, as soon as reasonably possible after the same has been filed.

Enforcement of the Award

The award decision by an Arbitration Panel may be enforced by either party or instead application may be made for a court to vacate, modify or correct it in accordance with the Uniform Arbitration Act, 14 M.R.S.A. §5927, et seq.

Any refund of a fee ordered by an award shall be refunded by the Respondent within 30 days of notice. If the Respondent fails to make that refund within 30 days, the Petitioner should inform the Secretary of the Commission in writing forthwith.

Confidentiality

With the exception of the award itself, all petitions, replies, records, documents, files, proceedings, and hearings pertaining to arbitrations of any fee dispute under these procedures and regulations shall be confidential, and, unless otherwise ordered by the Court, shall not be open to the public, press, or any person not involved in the dispute, excepting only the staff and members of the Commission, the Board, and any justice of the Court. Notwithstanding that confidentiality, any person, including but not limited to members of the Board, Fee Arbitration Commission and Board staff may notify governmental officials of actual or threatened criminal conduct by any individual.

Immunity

In the absence of malice, the Petitioner and any witness shall be immune from liability based upon the filing of a fee complaint or petition and the giving of any testimony in any proceeding hereunder.

Members of the Board, its staff, and members of the Commission, shall be immune from liability for any conduct in the course of their official duties pertaining to fee disputes under any provision of the Maine Bar Rules.

 

The foregoing summary is based upon the Maine Bar Rules as adopted by the Supreme Judicial Court, as amended, and reference should be made to those rules and, in particular, Rule 9, for a more complete explanation of fee arbitration and procedures.

 

Fee Arbitration Commission
Attn:  Secretary
Board of Overseers of the Bar
P.O. Box 527
Augusta, Maine 04332-0527
Tel: 207-623-1121 • Fax: 207-623-4175

 

You may need to download Adobe Reader to view the reports.
Select the Adobe icon below and follow the download instructions.

Revised January 2007