Washington, DC—Today the nation's first comprehensive study of the out-of-court programs that resolve lawyer-client fee disputes ranked Arizona's fee arbitration system 28th in the nation, issuing the state's system near failing marks. To spur reform of these important but under-utilized forums, legal consumer watchdog group HALT — An Organization of Americans for Legal Reformreleased its 2007 Fee Arbitration Report Card, ranking 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. "Arizona has a program that's meant to help clients and lawyers resolve everyday fee disputes, but unfortunately the state's rules allow lawyers to reject a client's request to settle the conflict through arbitration—forcing many consumers to take their cases to court."

HALT also criticized the state's lack of publicity of its fee arbitration system. The American Bar Association's latest study found that Arizona is one of the few states that fails to advertise its system in public venues, such as local courthouses.

Unlike fee arbitration programs in most states, Arizona only allows non-lawyer arbitrators to serve on the panels that decide lawyer-client fee disputes when the amount in dispute is over $10,000. "The Arizona bar's reliance on lawyers to resolve fee disputes adds to the public's perception that the fee arbitration system is of the lawyers, by the lawyers and for the lawyers," explained 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.

"In an era of skyrocketing lawyer fees, we hope Arizona officials will reform the state's fee arbitration program because all Americans should be able to challenge a lawyer's bill in a low-cost, efficient forum," stated Blonder.