The appellant law firm and the respondent client entered into a contingency fee agreement containing an arbitration clause.
A dispute arose over the fee calculation, and the appellant served a notice of arbitration.
The respondent successfully applied to the Superior Court to strike the notice on the basis that the arbitration agreement was unenforceable for public policy reasons under the Solicitors Act.
On appeal, the Court of Appeal held that the application judge did not err in assuming jurisdiction to decide the threshold issue of enforceability.
However, the Court found that the arbitration clause was enforceable, provided the arbitrator conducts the arbitration in accordance with the substantive statutory protections of the Solicitors Act, including assessing whether the fee is fair and reasonable.