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Legislative Update: AB 692 (Arbitration of Attorney’s Fees)

On June 26, Governor Newsom approved Assembly Bill 692, which amended the Mandatory Fee Arbitration Act to toll the statute of limitations governing a client’s action for malpractice or professional misconduct while an arbitration over a fee dispute is pending.  Specifically, the legislation amended sections 6206 of the Business and Professions Code (governing the MFAA) and 340.6 of the Code of Civil Procedure (governing the statute of limitations for professional misconduct).  The bill was supported by the Conference of California Bar Associations, and passed unanimously by both houses of the Legislature.  More information about the MFAA is available at http://www.calbar.ca.gov/Attorneys/Attorney-Regulation/Mandatory-Fee-Arbitration.

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