Often said to be a more cost-effective method for litigating cases, many law firms and attorneys are now including arbitration clauses in their attorney-client contracts and engagement letters. A look at recent cases dealing with the enforceability of arbitration clauses shows that while arbitration itself may be cost-effective and straightforward, litigating the legality or applicability of arbitration clauses can prove time-consuming and expensive. Certain considerations, however, can help reduce that cost and time.
Recently, Greenberg Traurig’s attempt to enforce an arbitration clause was rejected by an appellate panel in California. The panel ruled Nov. 25 that Greenberg Traurig can’t compel arbitration of a $10 million malpractice action brought against it by a group of real estate developers alleging a failed sale of a Downtown Los Angeles building. The appellate panel opined that the arbitration provision “on which Greenberg relies is inapplicable.”
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