Legal Question in Legal Ethics in California

The attorney is free to sue, but if the client then elects arbitration the case will be stayed and the attorney and client must particpate in the State Bar fee arbitration program.

Normally, the attorney is supposed to give the client notice of the client's right to engage in what is called Mandatory Fee Arbitration. This is an arbitration conducted by the local bar association. The notice must be given before or at the same time as service of summons in any suit by the attorney against the client for fees and costs. Failure to do so is grounds for dismissal of the action or proceeding. (In my experience, the trial courts ignore this requirement, in favor of the attorney.)

If the client files suit first, such as a malpractice action, the right to Mandatory Fee Arbitration is waived. The client can waive the protections of the Mandatory Fee Arbitration by filing an answer to the attorney's lawsuit, instead of compelling arbitration pursuant to the act.