Proposed Amendments to Rules Governing Mandatory Fee Arbitration Program and Proposed New Fee Mediation Rules

The State Bar seeks public comment on proposed amendments to the rules that govern Mandatory Fee Arbitration (MFA Rules), proposed new rules to govern a new voluntary fee mediation program, and corresponding proposed amendments to the Schedule of Charges and Deadlines.

Deadline: October 24, 2025, 11:59 p.m. (30 days)

Direct comments to

Comments should be submitted using the online Public Comment Form. The online form allows you to input your comments directly and can also be used to upload your comment letter and/or other attachments.

Background

Since the MFA Program’s creation in 1979, the State Bar has historically only offered fee arbitration. The proposed addition of a State Bar fee mediation program, offered as an alternative to parties in a State Bar fee arbitration, is designed to divert attorney misconduct complaints that are in fact fee disputes from the Office of Chief Trial Counsel to the MFA Program early on in the pre-complaint stage to free up resources for complaints more likely to result in discipline. To administer both mandatory fee arbitration and voluntary fee mediation, the MFA Program will introduce an online dispute resolution platform, anticipated to launch in Spring 2026.

Discussion/proposal 

The MFA program’s proposed amendments to the MFA Rules would revise existing rules to increase the efficiency and clarity of the program’s fee arbitration procedures. In addition, new rules for the voluntary fee mediation program are proposed, along with related edits throughout existing fee arbitration rules to ensure compatibility between the two processes.

The State Bar’s Model Rules for Voluntary Fee Mediation (Attachment D under background materials) and the American Bar Association Model Rules for Mediation of Client-Lawyer Disputes were used as a starting point for the proposed new fee mediation rules, with updates and customizations to address the MFA program’s needs. As currently proposed, the arbitration filing fee would include up to four hours of voluntary fee mediation, to take place by phone or videoconference. The parties and mediator may agree to hold one additional mediation session of up to four hours.

There are corresponding proposed amendments to the Schedule of Charges and Deadlines, including a new fee mediator compensation rate, simplifying the MFA program’s filing fee refund schedule, and restructuring the overall filing fee refund schedule to encourage parties to use fee mediation as an alternative to fee arbitration for resolving attorney-client fee disputes.

Lastly, there are several new defined terms proposed and updates to current terms to accommodate the anticipated addition of the rules related to the fee mediation program. All defined terms are capitalized throughout the proposed rules to assist the public in recognizing when a word or phrase is a defined term.

Any fiscal/personnel impact

If the parties to a fee dispute agree to fee mediation, the party who paid the filing fee could potentially be eligible for up to a 75 percent refund of the filing fee paid, if certain criteria are met.

Background material

Source

Board of Trustees, sitting as the Regulation and Discipline Committee

Deadline

October 24, 2025, 11:59 p.m.

Direct comments to

Comments should be submitted using the online Public Comment Form. The online form allows you to input your comments directly and can also be used to upload your comment letter and/or other attachments.