What is the difference between arbitration and mediation?
Both arbitration and mediation involve a neutral third party. In arbitration, the arbitrator hears evidence and arguments, and then issues a decision that may be binding or nonbinding. In mediation, the mediator helps the parties reach their own voluntary agreement.
Can my attorney require me to participate in fee mediation?
No. Both sides must agree to mediation. The State Bar will notify the opposing party if mediation is requested.
What is the deadline for requesting fee arbitration and mediation?
If you received a Notice of Client’s Right to Fee Arbitration form from the attorney, you have 30 days from the date you received it to submit your arbitration request form to the program. You must also submit your arbitration request if you first wish to mediate the fee dispute.
If you do not file the request form within 30 days of receiving the notice, you will lose your right to arbitrate your fee dispute. A telephone call or letter to the program requesting arbitration will not protect that right. You must be sure that the request form is complete and submitted with any required filing fee.
If the attorney has already filed a lawsuit against you for unpaid fees, you may elect either to respond to the lawsuit or request fee arbitration. If you file a response to the lawsuit, you will lose your right to arbitrate the fee dispute. If you request arbitration, the lawsuit will be stayed, but you should file the appropriate notice of automatic stay with the court. To preserve your right to arbitrate, you should file a request for arbitration promptly.
Your request for mediation is part of the State Bar request for arbitration, so it will follow the same timelines listed above.
If I think an attorney has engaged in misconduct or malpractice, will fee mediation help me?
No. The mediator will not decide any issues related to attorney misconduct and/or malpractice and has no authority to make any determinations regarding the attorney’s conduct or to discipline attorneys for professional misconduct.
If you wish to file a disciplinary complaint with the State Bar of California about your attorney’s conduct, you may do so online. Please keep in mind that a discipline complaint and a request to arbitrate and mediate a fee dispute are separate matters. Filing a complaint may result in disciplinary action against the attorney; however, the result may or may not require the attorney to refund fees.
If you think you have a separate claim for legal malpractice, you should seek legal counsel.
May I ask for fee mediation if I want a refund of fees I have already paid to an attorney?
If you are seeking a refund of attorney’s fees that you have already paid, you may request fee mediation as a preliminary option along with arbitration as long as you are still within the legal time limit for filing a lawsuit about the fee dispute. To preserve your right to arbitrate, and to potentially mediate a fee dispute, you should file a request for arbitration promptly.
How do I request fee mediation?
For disputes filed with the State Bar, simply check the box agreeing to mediate on the request for fee arbitration form. Some local bar associations offer fee mediation in addition to fee arbitration. Find local fee arbitration programs.
Can an attorney refuse to mediate a disputed fee?
Yes. Mediation is voluntary and either side can decline to mediate. All parties must agree for a mediation to go forward.
What happens at a fee mediation?
Mediations will take place by videoconference. Usually, the parties are in separate areas to start but may be brought together later in the process. The mediator will typically meet separately with one party, and then the other, to understand their perspectives and to identify areas of potential agreement. This “shuttle diplomacy” will take place until an agreement is reached, or until it is clear to the mediator that it is not possible for the parties to reach an agreement. If an agreement is reached, it will be memorialized in a writing called a settlement agreement.
You may be represented by an attorney, but it is not required. You can arrange for an interpreter to attend the mediation with you.
The mediation is confidential. This means that nothing said in a mediation can be used as evidence in any later proceeding by any party at the mediation.
Should I agree to mediation?
The decision to agree to mediate is entirely up to you, but the attorney will also have to agree in order for the mediation to occur.
How does the Fee Mediation Program work?
If the dispute is eligible to be filed with the State Bar for fee arbitration, you will have the option of agreeing to mediation as part of the request for arbitration. Some local bars also offer fee mediation, but most local programs only offer fee arbitration.
When you complete the Request for Arbitration with the State Bar, you will be asked to indicate whether you are interested in mediating the fee dispute. Once your request is accepted, including receipt of payment of the applicable fee arbitration filing fee, the State Bar will serve your request to the opposing party. As part of the opposing party’s written reply to the request, they will indicate whether they agree to mediate the fee dispute prior to arbitration.
If both parties agree to mediation, a mediator will be assigned to help you and attorney try to reach a settlement of your dispute, and you will receive further instructions at that time.
IOLTA is a primary source of funding for civil legal aid in California. Civil legal aid provides free legal services to those who would not otherwise be able to afford them. On average low-income Californians report experiencing twice as many civil legal problems in a year as nonindigent Californians. Approximately 20 percent of Californians live in poverty and rely on these services for their civil legal needs.
Currently, almost 100 organizations receive IOLTA grants from the State Bar. In 2018 the State Bar distributed over $51 million to support civil legal aid. (This includes other funds besides IOLTA, such as the Equal Access Fund and the Greg E. Knoll Justice Gap Fund.) Top areas where these organizations provided legal assistance included housing, immigration, and family law/domestic violence cases. In 2017, almost 5,000 families were able to stay in their homes, over $16 million in unpaid wages were recovered, and over 2,000 individuals were able to obtain or maintain their health insurance as a result of civil legal aid.
When is the deadline to submit my audit packet? What happens if I miss the deadline?
The deadline to show proof of compliance is stated on your MCLE Audit Notice. If you fail to submit adequate proof of compliance by the deadline, you will be assessed a $103 penalty for late compliance, and you will receive a Non-Compliance Notice that gives you 60 days to comply. If you do not submit adequate proof of compliance and pay the late fee within that time period, you will be placed on Not Eligible to Practice status until you submit the required proof of compliance, pay the $103 non-compliance fee, and pay an additional $308 reinstatement fee.
I can’t find all of my certificates. What can I do?
If you are unable to locate your certificates or proof of course completion, please contact your provider immediately to request a copy of the attendance certificate or a printout. Many providers are happy to assist. However, please note that California MCLE course providers are not required to issue replacement certificates. The State Bar only mandates that they provide the original certificate received upon course completion.
Do I have to participate in the Fresh Start Settlement Program?
Your participation in this program is voluntary to resolve the debt that is owed to the State Bar. If you choose not to take advantage of the Fresh Start Settlement Program, the State Bar reserves all rights to pursue, or continue to pursue, any and all available legal remedies to recover the total owed debt, including without limitation reporting the debt to FTB, credit reporting agencies, entry of a Superior Court money judgment and/or pursuing legal actions.
If you were an active or voluntarily inactive licensee as of January 1, 2025 and do not participate in the Fresh Start Settlement Program, or are not able to reach a settlement, you are required to pay your outstanding discipline costs, monetary sanctions and/or Client Security Fund reimbursements as originally ordered by the Supreme Court of California, State Bar Court and/or the Client Security Fund. If you were granted an extension of time to pay costs, your extension order will still be valid.
I am not allowed to practice law as of January 1, 2025, and am experiencing extreme financial hardship, and cannot settle for the amount offered. What can I do?
If you reject the settlement offer and are experiencing extreme financial hardship, please enter an amount you would be able to pay on the feedback form or indicate in the comments that you are experiencing financial hardship. You will receive an email with a link to a questionnaire about your financial situation. All information and attachments will be kept securely and confidentially. The State Bar will review the answers in your questionnaire and email a response from eConciliador.
What happens to my installment plan granted by State Bar Court, if I settle through the Fresh Start Settlement Program?
Settlements made through the Fresh Start Settlement Program will supersede any existing installment order from State Bar Court.
How will settling through Fresh Start affect my potential for reinstatement? What is the process for reinstatement?
If you reach a settlement and complete payment through the Fresh Start Settlement Program, the State Bar will thereafter consider the eligible debt as itemized on your Fresh Start Settlement Program account paid in full for all purposes, including petitioning for reinstatement to the practice of law. This is not to imply reinstatement is automatic or guaranteed; standard reinstatement petition procedures would be required. Further, settlement through Fresh Start will not resolve outstanding probationary obligations or other outstanding costs, such as unpaid annual licensee fees and penalties, unpaid compliance fee and penalties, payments due to LAP, restitution due directly to individuals, etc. The program's settlement authority is limited to debt; we do not have legal authority to change other legal requirements for reinstatement to the practice of law.
For further information regarding reinstatement, please visit the State Bar Court website and see the FAQs. If you have a specific question about the court's reinstatement procedures that is not answered on the website, please call the court's main lines: 213-765-1400 in Los Angeles and 415-538-2050 in San Francisco. However, the court cannot provide specific advice on whether you are eligible for reinstatement.
Can employers with offices both in and out of California (such as national or international law firms) participate in the program?
Yes. Employers may choose to commit to and implement the Action Items for either their entire firm or only their California offices. If an employer commits to and implements the Action Items for specific offices, only those offices would be listed as participating employers and eligible to use the DEI Leadership Seal on their materials.
My employer is already a seal recipient, but we have implemented more Action Items and want to move up to a higher tier. What are the next steps? What documentation is required?
DEI Leadership Seal recipients who want to advance tiers must complete and submit a DEI Leadership Seal Tier Advancement Application and supporting documentation. The State Bar will provide several opportunities throughout the year for seal recipients to submit this documentation and advance tiers. Seal recipients that want to advance tiers must still submit an attestation form to affirm implementation of the Action Items for which their materials have already been reviewed and approved.
2.2 Who is required to complete the CTAPP reporting requirements?
With very few exceptions (see FAQ 2.3 below), all licensees who held an active license status at ANY time during the reporting period must complete the CTAPP reporting requirements. For 2026, the reporting period is January 1–December 31, 2025. This includes those licensees whose status changed to voluntary inactive at any time during the reporting period.
2.10 I do not maintain my own trust account, but I work for a firm that has a trust account. How do I know if the firm trust account is maintained “on my behalf”?
Rule 1.15 requires attorneys who handle trust funds to hold those funds in one or more interest-bearing bank accounts labeled as a “Trust Account,” or words of similar import. If, at any point in the reporting period, you were responsible for complying with any of the requirements or prohibitions in rule 1.15—other than the disclosure and agreement requirements in rule 1.15(b) pertaining to depositing a flat fee paid in advance into a lawyer’s or law firm’s operating account—(e.g., responsibilities for the safekeeping of funds, identifying and discharging of liens, notifying clients that funds have been received, etc.), regardless of whether someone else ultimately performed this function, you are required to have a trust account. If the firm’s trust account(s) are available funds for the deposit of your client’s funds, then that trust account/those trust accounts are maintained, at least in part, on your behalf.
Therefore, if at any point in the reporting period, you were responsible for complying with any of the requirements or prohibitions in rule 1.15—other than the disclosure and agreement requirements in rule 1.15(b) pertaining to depositing a flat fee paid in advance into a lawyer’s or law firm’s operating account—you should answer, “Yes, a firm or organization I am currently employed by or in practice with …,” “Yes, however, I am no longer employed by or in practice with the firm or organization …,” or both to at least one of the questions in CTAPP Step 1 (Annual Client Trust Account Reporting) and thereafter complete the remaining CTAPP requirements. If your firm administrator will register the IOLTA and/or non-IOLTA account details on your behalf through the State Bar’s Agency Billing application, you may check the checkbox to indicate that in Step 2 (Account Registration).
If you have further questions about trust accounts, including whether you are responsible for complying with rule 1.15, whether you need a trust account, the rules of trust accounting, the recent changes to the rules regarding the safekeeping of funds, etc., please contact the State Bar’s Ethics Hotline research service at 800-238-4427 (toll-free in California). The Ethics Hotline cannot provide legal advice, nor tell you how to comply with any of the CTAPP requirements, including whether to answer “yes” or “no” in any portion of the CTAPP reporting requirements.
3.2.2 How do I choose which answer to select for questions 1 (IOLTAs) and 2 (non-IOLTAs) in Step 1?
If you answer “Yes” to the Screening Question indicating that you are responsible for complying with any of the requirements or prohibitions governing the safekeeping of funds of clients and other persons under rule 1.15 of the California Rules of Professional Conduct, you must maintain a trust account—or have one maintained on your behalf—to receive and hold the entrusted funds. Therefore, you must answer “Yes …” to at least one Step 1 question. The answer you choose depends on who will be registering the account with the State Bar.
For example, if you select “Yes, I will provide or update IOLTA/non-IOLTA account information, including the balance as of December 31, 2025, via My State Bar Profile …” in response to either question 1 and/or question 2, you must complete all CTAPP reporting requirements and register a corresponding IOLTA, non-IOLTA, or both, depending on the question(s) to which you select this answer, in Step 2 (Account Registration) in My State Bar Profile.
If you select “Yes, a firm or organization I am currently employed by or in practice with will provide or update the account information via Agency Billing, including the balance as of December 31, 2025” in response to either question 1 and/or question 2, you must complete all CTAPP reporting requirements. A firm or organization can only register a corresponding IOLTA, non-IOLTA, or both, depending on the question(s) to which you select this answer, via the State Bar’s Agency Billing platform. Regardless of whether you select this answer, it remains your responsibility to ensure that all necessary account details are registered, including the December 31 balance. You should be sure to confirm with your firm or organization administrator that they will register the required information via the State Bar’s Agency Billing platform by the deadline.
If you select “Yes, however, I am no longer employed by or in practice with the firm or organization. I understand that I am not required to register trust accounts that are maintained by a firm or organization that I am no longer employed by or in practice with as of December 31, 2025” and you did NOT also select any of the other “Yes …” answers, you do not have to register any accounts in Step 2 (Account Registration). You are not required to register accounts that are maintained by a firm or organization that you are no longer in practice with as of December 31, 2025. If there are no other accounts that you maintained or were maintained on your behalf, you may proceed to Step 3 (Self-Assessment).
You may choose as many “Yes” answers to the same question as are applicable to your situation. You may not simultaneously select a “Yes” and “No” answer to the same question. If you choose multiple “Yes” answers requiring trust account registration, you must have multiple trust accounts registered in Step 2. For example, if you choose “Yes, I will provide or update IOLTA account information, including the balance as of December 31, 2025, via My State Bar Profile …” and “Yes, a firm or organization I am currently employed by or in practice with will provide or update the IOLTA account information, including the balance as of December 31, 2025, via Agency Billing …” in response to question 1, you must have two IOLTA accounts registered in Step 2, one registered via My State Bar Profile and one registered via Agency Billing.
Your responses to questions 1 (IOLTA) and 2 (non-IOLTA) in Step 1 should never be “No …” and “No …” because you answered “Yes” to the Screening Question indicating that you were responsible for complying with any of the requirements or prohibitions governing the safekeeping of funds of clients and other persons under rule 1.15 of the California Rules of Professional Conduct.
Please see the tables, below, to see the Account Type and the Application Type (the application through which the account must be registered) (see Image 1) for each response to the Step 1 questions.
Image 1. My State Bar Profile Step 2 Account Registration Grid
Image
Step 1 Question 1 (IOLTA) Responses
Account Type Required in Step 2
Application Type (Registered Through)
“Yes, I will provide or update IOLTA (or similar pooled) account information, including the balance as of December 31, 2025, via My State Bar Profile …”
CA IOLTA or non-CA IOLTA
My State Bar Profile
“Yes, a firm or organization I am currently employed by or in practice with will provide or update IOLTA (or similar pooled) account information, including the balance as of December 31, 2025, via Agency Billing …”
CA IOLTA or non-CA IOLTA
Agency Billing
“Yes, however, I am no longer employed by or in practice with the firm or organization. I understand that I am not required to register trust accounts that are maintained by a firm or organization that I am no longer employed by or in practice with as of December 31, 2025.”
No account registration required.
-
“No, I did not maintain an IOLTA or similar pooled trust account in another jurisdiction, and no firm maintained one on my behalf, but I did maintain a non-IOLTA trust account or a non-IOLTA trust account was maintained on my behalf.”
No account registration required.
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Step 1 Question 2 (Non-IOLTA) Responses
Account Type Required in Step 2
Application Type (Registered Through
“Yes, I will provide or update non-IOLTA account information, including the balance as of December 31, 2025, via My State Bar Profile …”
Non-IOLTA
My State Bar Profile
“Yes, a firm or organization I am currently employed by or in practice with will provide or update the non-IOLTA account information via Agency Billing …”
Non-IOLTA
Agency Billing
“Yes, however, I am no longer employed by or in practice with the firm or organization. I understand that I am not required to register trust accounts that are maintained by a firm or organization that I am no longer employed by or in practice with as of December 31, 2025.”
No account registration required.
-
“No, I did not maintain a non-IOLTA or similar trust account in another jurisdiction, and no firm maintained one on my behalf, but I did maintain an IOLTA or an IOLTA was maintained on my behalf.”
No account registration required.
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