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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 Hawaii's fee
arbitration system 30th in the nation and issued the state's program a D+
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. "Hawaii
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, which can be time-consuming and
often cost-prohibitive."
HALT also faulted the Hawaii State Bar Association for failing to use
formal methods to enforce arbitration awards against attorneys; bar
associations in other states automatically suspend lawyers if they
unreasonably delay compliance with an arbitrator's decision. "Even the best
fee arbitration system is worthless if it does not provide clients with a
mechanism for obtaining a refund when a panel has found that a lawyer
inflated a bill," 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 on the Report Card. 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 Hawaii officials will
reform the state's fee arbitration program so that more clients can
effectively resolve disputes with attorneys," stated Blonder.
Information about the Fee Arbitration Report Card, including Hawaii'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.
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