Could a lawyer include a binding arbitration clause for all lawyer-client disputes in a fee agreement?

Plain-English summary

A lawyer asked whether a fee agreement could require binding arbitration of all disputes with a client.

The opinion said the clause could be included without violating Supreme Court Rule 4. Under Rules 4-1.4(b) and 4-1.7(b), the lawyer had to orally draw the client’s attention to it and explain it as needed for that client. Official notes say Rules 4-1.7 and 4-1.8 were amended in 2007 and direct readers to Rule 4-1.8(h) and its comment.

Currency note

This opinion was issued in 1999, before Missouri’s 2007 revisions to the Rules of Professional Conduct. Later amendments or opinions may have changed the analysis. Treat this page as historical context and verify current rules before relying on it. The official Rule 4-1.9 and 4-1.10 reference notes identify July 1, 2007 amendments.

Common questions

Q: Was the clause itself barred?

A: No. The opinion permitted it under the rules in effect then.

Q: What disclosure did the answer require?

A: Oral notice and explanation to the extent needed for that client.

Background and rules framework

The answer applied Rules 4-1.4(b) and 4-1.7(b); official notes identify a later Rule 4-1.8(h) issue.

Citations and references

Missouri Rules of Professional Conduct:

• Rule 4-1.4
• Rule 4-1.7
• Rule 4-1.8

See also

• Missouri Informal Op. 20000090: Mixed Contingent Fee

Source

• Landing page: https://mo-legal-ethics.org/informal-opinion/990130/

• Rule revision reference: Missouri Informal Opinion 20030007

Original opinion text

Reproduced from the official source for research purposes. The linked source is authoritative.

Reference Note: Effective July 1, 2007, Rule 4–1.7 was amended. This opinion is based on Rule 4–1.7 in effect prior to that date.

Reference Note: Effective July 1, 2007, Rule 4–1.8 was amended. This opinion is based on Rule 4–1.8 in effect prior to that date. Rule 4–1.8(h) and its relevant comment should be consulted

QUESTION: Attorney would like to put a binding arbitration provision in Attorney´s fee agreement providing that all disputes between Attorney and Attorney´s client would be arbitrated. Is this prohibited?

ANSWER: Attorney may include a binding arbitration agreement in Attorney´s fee agreements without violating Supreme Court Rule 4. However, under Rules 4–1.4(b) and 4–1.7(b), Attorney has an obligation to orally point out this provision and to explain it, to the extent necessary for the individual client.