Unanticipated Consequences To Lawyers Having Arbitration Clause In Retainer Agreements.

Plaintiffs filed suit against their own lawyers based upon the inadequacy of a settlement in an underlying action. The lawyers successfully moved to compel the action to arbitration based upon an arbitration clause in the attorney retainer agreement. Plaintiffs filed a motion in the trial court seeking an order compelling the lawyers to advance the entire upfront cost of the arbitration, which the trial court denied. The appellate court reversed and remanded for the trial court to: 1) calculate the reasonable cost of the arbitration previously ordered; 2) determine whether the plaintiffs are financially able to pay their share of the anticipated costs; and 3) if any of the plaintiffs are unable to pay, issue an order specifying that the lawyers have the option of either paying or else waiving their right to arbitrate.  Roldan v. Callahan & Blaine (Cal. App. Fourth Dist., Div. 3; August 27, 2013) 219 Cal.App.4th 87.