Legal Question in Legal Malpractice in California

I am a Mortgage Broker who entered into a fully executed contract to provide commercial financing for my client's refinance of his office building. I performed my end of the contract and the loan came to fruition and it has closed escrow 9 months ago. My client however refuses to pay my 1% fee ($28,000). I hired an attorney soon after the close of escrow. I have asked her to file suit yet she says that the court would likely remand this to arbitration where I would likely not be able to collect my attorney fees (as per the contract) and the arbitor would greatly reduce my 1% fee, reluctantly I have taken her advice and my attorney's fees continue to climb. I told her that the legal costs will lilely exceed my claim yet she refuses to sue. What are my rights?


Asked on 2/27/14, 11:20 pm

2 Answers from Attorneys

Kristine Karila Law Office of Kristine S. Karila

If you signed a contract that requires arbitration and did not have an attorneys' fees clause in it, she is probably correct about the defendant being able to win a motion requiring arbitration. However, no one can advise you properly without reading the contract and knowing the detailed facts. If no lawsuit or arbitration claim was filed, what is being done by your attorney which is causing you to pay attorneys' fees? Call an attorney to discuss the facts.

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Answered on 2/28/14, 10:59 am
Terry A. Nelson Nelson & Lawless

What are my rights?

Tight now, to consult with another attorney to review the facts and documents, and take over the case if you choose.

Only after reviewing all the facts, evidence, documents, contracts, correspondence, pleadings, expected testimony, etc., can the attorney give an intelligent opinion. That is what you paid your current attorney for. If you are unhappy with your counsel, and if serious about consulting with new counsel to do this, feel free to contact me. Iíll be happy to help fight and get the best outcome possible.

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Answered on 2/28/14, 11:18 am


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