Conciliation and arbitration of fees – Questions and answers

There are several reasons:

• the account does not reflect the hourly rate, agreed percentage or estimate quoted by the lawyer;
• you do not understand the account or it is not sufficiently detailed and you need an explanation;
• you consider the amount exaggerated given the services provided.

Note that inability to pay is not a valid reason by itself to ask for conciliation. If you are unable to pay, try to discuss it with your lawyer. 

When a settlement is reached between you and the lawyer or when the conciliator ascertains that there is no possibility of an agreement between the parties. In the latter case, you may move to the following step, which is arbitration.

When the conciliator ascertains that the conciliation has failed, he or she sends the client a conciliation report together with a form to apply for arbitration. 

The client then has 30  days from the date the report is sent to take advantage of the arbitration procedure by filling out the form and sending it to the Barreau du Quebec’s registry office for the arbitration of invoices. Note that this is a strict time limit. The deadline to apply for arbitration will be indicated in the conciliation report sent to the parties.

The arbitration registry has the task of ensuring that the process functions in accordance with the Regulation respecting the conciliation and arbitration procedure for the accounts of advocates. It ensures that all necessary documents are served on the parties throughout the process.

When the contested amount is $7,000 or more, the arbitration is entrusted to an arbitration council consisting of three arbitrators. If the amount is less than $7,000, it is entrusted to a single arbitrator.

Although less formal, the arbitration procedure is similar to a court proceeding. The parties are entitled to be represented or assisted by a lawyer. The arbitrator or the arbitration council, as the case may be, listens to the parties (clients and lawyers) and witnesses and receives any documents the parties wish to submit. During the hearing, the client provides a detailed explanation of his or her arguments and the reasons for contesting the lawyer’s account(s)

The arbitrator or the arbitration council may render a decision from the bench (i.e. immediately after the hearing) but in most cases, the matter is taken under advisement for a few weeks and a decision, referred to as an arbitration award, is then rendered. The arbitration award can order the reimbursement of an amount to which a party is entitled or reduce an invoice or maintain it, all with or without interest. In addition, the arbitrator or the arbitration council can order one or both of the parties to pay the costs of arbitration, i.e. the expenses incurred by the Barreau to hold the arbitration. Under no circumstances can these costs exceed 15% of the amount of the contested invoice.

The decision is final and cannot be appealed. It is therefore enforceable.

The arbitrators are lawyers who are members of the Barreau and have been selected by the Barreau based on their integrity and professional qualities.

You have 30  days following the date the conciliation report is sent to apply for arbitration. The deadline to apply for arbitration is indicated in the conciliation report sent to the parties. This is a strict time limit.

Once the time limit has passed, the lawyer will be able to go to court to claim the amount of his or her fees from you.

A few days later, the Barreau will send you a notice of hearing telling you where, when (day and time) and before whom the arbitration will take place. You will receive the notice at least 10 days before the hearing date. You must be present at the hearing, which is generally held online.

If you have serious reasons to apply for a postponement, the arbitrators may postpone your hearing to a later date.

To request a change of date or time, you must send your request to the arbitrators and explain why you will not be able to attend the hearing on the day and at the time scheduled. You must send this request to the arbitration registry, which will forward your request to the arbitrators. Provided the arbitrators receive your letter before the hearing -and only on this condition-, they will decide whether or not to grant your request. Their decision is final.

Hearings are generally held online.

You and the lawyer whose account(s) you are contesting must be present at the hearing, as well as your lawyer if you have chosen to be represented by a lawyer. There will also be an arbitrator (if the contested amount is less than $7,000) or an arbitration council comprised of three arbitrators (if the contested amount is $7,000 or more).

First, the arbitrator introduces him or herself and then swears in the parties. The arbitrator will ask you what you want: a reduction of the fees, reimbursement of an advance paid to the lawyer, etc. It is important to explain in detail why you are contesting the account(s) and all the reasons why you have applied for arbitration. Next, the arbitrator will ask the lawyer whose account(s) you are contesting for his or her version of the facts.

The arbitration process is less formal than a trial in a court of law.

The arbitrator will undoubtedly ask you a few questions. It is also possible that the lawyer whose account(s) you are contesting will ask you some questions.

The arbitrators may render their decision at the hearing but in most cases they prefer to do so after the hearing.

No, their decision is final and cannot be appealed.

You must pay the entire amount to the lawyer (not to the Barreau).

If you do not pay this amount as soon as the arbitration award is rendered, the lawyer will be entitled to go to court to have it enforced and take all appropriate steps (garnish your wages, seize your movable property, etc.).

If you have previously acknowledged that you owe the lawyer an amount that has not yet been paid at the conciliation stage, you must send a cheque to the Barreau payable to the order of the “Directeur général du Barreau en fidéicommis”. The Barreau will cash the cheque and immediately remit the amount to the lawyer whose account(s) is/are being contested.

Arbitrators generally charge for certain costs, such as the expenses incurred: room rental, where applicable, bailiff, photocopies, etc. These costs must not exceed 15% of the amount of the contested invoice. Arbitrators also grant interest on the amount owed as of the application for conciliation.