The agreement of both parties is necessary, since unlike litigation, one party cannot compel the other to arbitrate the dispute. The Committee Secretary will preliminarily review the dispute and confirm or decline the Committee's jurisdiction. The Committee will decline jurisdiction if the fee dispute is pending in court, if there is no connection to Baltimore City, or if a court or administrative agency has jurisdiction to decide the fee for legal services. In addition, when a fee dispute involves conduct that violates the Maryland Rules of Professional Conduct, jurisdiction may be declined or deferred to the Attorney Grievance Commission of Maryland. Additionally, a copy of the Petition is forwarded to a member of BABC's Fee Arbitration Committee to provide mediation between the parties.
Mediation is very often successful in resolving attorney fee disputes.
However, if mediation is not successful, the Respondent is given ample time to answer the Petition, and by doing so consents to the jurisdiction of the Fee Arbitration Committee for binding arbitration. When the executed Respondent's Agreement is filed, the parties become bound by the Maryland Uniform Arbitration Act. Withdrawal is permitted only when both parties agree to discontinue the proceedings. Each party has an opportunity to object for cause to any particular panel member. For larger amounts, a three-member panel is appointed, and a chief arbitrator is designated to preside over the hearing.