Notice of Right to Arbitration; Stay of

Proceedings; Waiver by Client. (a) Notice Requirement by Attorney to Client. At the time of service of a summons in a civil action against his or her client for the recovery of fees for professional services rendered, an attorney will serve upon the client a written “notice of client’s right to arbitrate or mediate,” which will state: You are notified that you have a right to file a Petition for Arbitration of Fee Dispute or a Request for Mediation and stay this civil action. Forms and instructions for filing a Petition for Arbitration of Fee Dispute or a Request for Mediation and a motion for stay are available from the Alaska Bar Association, P.O. Box 100279, Anchorage, AK 99510-0279, or contact (907) 272-7469 for the Alaska Bar Association’s street address. If you do not file the Petition for Arbitration of Fee Dispute or a Request for Mediation within twenty (20) days after your receipt of this notice, you will waive your right to arbitration or mediation. Failure to give this notice will be grounds for dismissal of the civil action. (b) Stay of Civil Proceedings. If an attorney, or the attorney’s assignee, commences a fee collection action in any court, the client may stay the action by filing notice with the court that the client has requested arbitration of the fee dispute by the Bar within twenty (20) days of receiving the notice of the client’s right to arbitration. This notice will include proof of service on the attorney or the attorney’s assignee. If a civil 40 action has been filed, the Alaska Bar Association must receive an order of stay prior to commencing arbitration. (c) Stay of Non-Judicial Collection Actions. After a client files a petition, the attorney will stay any non-judicial collection actions related to the fee in dispute pending the outcome of the arbitration. (d) Waiver of Right to Request or Maintain Arbitration. A client’s right to request or maintain an arbitration is waived if: (1) the attorney files a civil action relating to the fee dispute, and the client does not file a petition for arbitration of a fee dispute within twenty (20) days of receiving the “client’s notice of right to arbitrate” pursuant to paragraph (a) of this rule; or (2) after the client received notice of the fee dispute resolution program, the client commences or maintains a civil action or files any pleading: (i) seeking judicial resolution of the fee dispute, except an action to compel fee arbitration, or (ii) seeking affirmative relief against the attorney for damages based upon alleged malpractice or professional misconduct. (Old Rule 39, [SCO 176 as amended by SCOs 233(6), 299, 349 and 470] deleted and new Rule 39 added by SCO 780 effective March 15, 1987; amended by SCO 1038 effective January 15, 1991; by SCO 1147 effective July 15, 1994; by SCO 1156 effective July 15, 1994; by SCO 1314 effective July 15, 1998; by SCO 1669 effective April 15, 2008; and by SCO 1756 effective October 14, 2011)