The First Appellate District reversed a judgment as well as an order denying an award of attorney fees. The court held that an arbitrator who regularly represented major law firms in fee disputes with former clients had a duty to disclose that fact upon being appointed chief arbitrator in a fee dispute case, despite his lack of a relationship with any of the parties directly involved in the case; the court also held the trial court erred in not awarding fees incurred in connection with the defendant’s successful petition to compel arbitration.
Nancy Kors retained the law firm of Benjamin, Weill & Mazer (BWM) to represent her in what turned out to be protracted litigation. By the time the case was dismissed, Kors owed BWM a significant sum. BWM sued Kors for the outstanding fees. Relying on an arbitration clause in the parties’ retainer agreement, Kors asked BWM to dismiss or stay the action and proceed to binding arbitration under the fee agreement. After BWM refused, Kors moved to compel arbitration under the California Arbitration Act (CAA).
