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Alaska's Lawyer-Client Fee Dispute System Receives C+ on National Report Card
Watchdog Group Says Reform is Needed in Resolving Disputes with Attorneys
October 29, 2007

Contact: Rachel Decker, Media Coordinator, HALT
rdecker@halt.org or 202-887-8255

Washington, DC—Today the nation's first comprehensive study of the out-of-court programs that resolve lawyer-client fee disputes ranked Alaska's fee arbitration system 7th in the nation and issued the state's system a C+ grade. To spur reform of these important but under-utilized forums, legal consumer watchdog group HALT — An Organization of Americans for Legal Reform released its 2007 Fee Arbitration Report Card, analyzing programs in all 50 states and D.C.

"The most pervasive complaint about lawyers is that their fees are too high for the work done," stated HALT Senior Counsel Suzanne M. Blonder. "The Alaska Bar Association has a valuable program to help clients and lawyers resolve everyday fee disputes."

One of the first state bars in the nation to sponsor a system for arbitrating lawyer-client fee disputes, the Alaska bar received high marks for requiring attorneys to participate in the program at a client's request. "By compelling lawyers to submit to fee arbitration when a client challenges a bill, and disciplining lawyers for failing to return inflated fees, the Alaska Bar places a much-needed check on skyrocketing lawyer fees," explained Blonder.

While the Report Card found much to applaud in Alaska's system, it also noted critical areas for reform. In particular, HALT found the bar's online resources on fee arbitration difficult to understand and observed that its Web site failed to include a downloadable arbitration petition form. "In an era in which most Americans turn to the Internet as their primary tool for information gathering, it's inexcusable that the bar fails to offer even the most basic information about how this important program operates," stated Blonder.

HALT's Report Card graded states in six categories: (1) whether lawyers must participate in arbitration at a client's request; (2) the ease of initiating arbitration; (3) the amount of publicity of the state's fee arbitration system; (4) the program's reliance on non-lawyer arbitrators; (5) whether non-binding mediation is offered as an alternative to arbitration; and (6) how the system enforces arbitration awards.

The top five states - D.C., Maine, New Jersey, New York and California - scored no higher than a B average. Three states - New Hampshire, Vermont and West Virginia - flunked. Another eight received Incompletes because they do not offer statewide systems to settle lawyer-client fee disputes.

Information about the Fee Arbitration Report Card, including Alaska's Report Card, can be found at www.halt.org. Founded in 1978, HALT - An Organization of Americans for Legal Reform is a nonpartisan, nonprofit public interest group that challenges the legal establishment to increase accountability and reduce costs in the civil justice system.