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Arbitration Provisions in Fee Agreements

Daily Report

Increasingly, attorneys and law practices look for ways to limit liability while preserving the ability to collect earned attorney's fees. One approach that continues to emerge in retainer letters and fee contracts is the use of alternative dispute resolution ("ADR") provisions, including mandatory arbitration clauses in retainer agreements with clients.

Most states have yet to specifically address the enforceability of mandatory ADR provisions, including mandatory arbitration clauses. As a result, limited precedent exists on the issue.

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