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Nevada's Lawyer-Client Fee Dispute System Receives C+ on National Report Card
Watchdog Group Says Reform is Needed in Resolving Disputes with Attorneys
October 15, 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 Nevada's fee arbitration system 11th 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. "Nevada has a system in place to help resolve these kinds of disputes over inflated fees."

Although HALT identified strengths in Nevada's fee arbitration system, the watchdog group criticized program rules that do not provide lay persons even a token role on arbitration panels unless the amount at issue exceeds $10,000. "Nevada's reliance on lawyers to decide everyday fee disputes between clients and lawyers only furthers the public's perception that the fee arbitration system is of the lawyers, by the lawyers and for the lawyers," explained Blonder.

HALT also chided the Nevada fee arbitration system for being all but invisible to consumers. A recent American Bar Association study found that Nevada is one of the few states that fails to advertise its system in public venues, such as courthouses. "The best fee dispute system in the country is worthless if consumers don't know it exists," stated Blonder. "Nevada officials should publicize this critical program."

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 Georgia 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.

Information about the Fee Arbitration Report Card, including Nevada'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.