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In re the Arbitration between McNamee, Lochner, Titus & Williams, P. C. & Killeen
Citations: 235 A.D.2d 17; 663 N.Y.S.2d 356; 1997 N.Y. App. Div. LEXIS 10158
Court: Appellate Division of the Supreme Court of the State of New York; October 16, 1997; New York; State Appellate Court
A law firm (petitioner) sought to recover $5,595 for unpaid legal services rendered to a respondent in a matrimonial action. An arbitration panel found in favor of the respondent, absolving her of this debt. The petitioner then initiated proceedings in Supreme Court to vacate the arbitration decision. The court found that the arbitration panel exceeded its powers and failed to provide a definitive award, as required by CPLR 7511. The court noted that the burden of proof was on the petitioner to demonstrate the reasonableness of the fees, which they did through the retainer agreement signed by the respondent. This agreement stipulated that she was obligated to pay for all legal services rendered, regardless of the outcome or progress of her case, and she did not challenge the reasonableness of the charges during arbitration. The court addressed the respondent's claim that the retainer agreement required the petitioner to adhere to the arbitration panel's decision, determining that it merely allowed for arbitration in fee disputes and did not bind the petitioner to the panel's findings. Consequently, the court reversed the prior order, vacated the arbitration award, and remitted the case for a rehearing and redetermination.