Fee arbitration

Details of ICAEW's Fee Arbitration and Fee Dispute scheme.

One of the features of dispute resolution nowadays is the principle that the courts should be treated as a last resort. People in dispute with each other are encouraged to seek alternative ways to resolve their differences and, in the case of fee disputes, one option is ICAEW's Fee Arbitration Scheme.

The scheme is straightforward. If members and their clients want to put their fee dispute to arbitration, we will appoint an arbitrator. The arbitrator receives submissions from both parties and, when he has heard what they have to say, he will make his award. This is final and binding under the Arbitration Act.

Under ICAEW's scheme, the cost is always fixed in proportion to the amount in dispute and is borne by the 'loser'. If the member's fees are upheld or kept within 5%, the client pays the cost of the arbitration. If the member's fees are reduced by 15% or more, the member pays the cost of the arbitration.

Both parties put the entire cost 'into the pot' at the outset, and ICAEW refunds at the end according to the above formula.

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