Farley v. Bothwell
306 Ga. App. 801
Ga. Ct. App.2010Background
- Farley sought to confirm a State Bar fee arbitration award against Bothwell and his firm in superior court; the trial court dismissed the petition and Farley appealed.
- State Bar arbitration rules distinguish binding versus nonbinding awards depending on whether the respondent agrees to be bound; binding awards may be enforced in superior court or via expedited Rule 6-501 proceedings.
- September 2002 fee agreement provided Bothwell could be paid from a contingency plus hourly fees and any disputes would be resolved by binding arbitration with the State Bar or a neutral party.
- The FCA litigation culminated in a 2007 confidential settlement; Farley received $550,000, Bothwell received $1,450,000, and no public record of underlying facts remained in the fee dispute record.
- Farley initiated a State Bar arbitration in 2009; Bothwell declined to participate in binding arbitration; arbitrators found waiver of additional hourly fees and fixed a refund to Farley of $396,606.
- The trial court dismissed Farley’s petition to confirm the award as nonbinding; the court of appeals affirmed, holding the award was nonbinding under the State Bar Rules and not confirmable in this proceeding.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Is the arbitration award binding under State Bar Rules? | Farley asserts binding arbitration per fee contract. | Bothwell contends award is nonbinding under Rules 6-402/6-502. | Award nonbinding; not subject to confirmation. |
| Can a petition to confirm an arbitration award decide the contract-formation question about binding arbitration? | Argues contract requires binding arbitration; award should be binding. | Breaches of contract questions not addressable in a petition to confirm an arbitration award. | Contract-formation issues not decidable in the confirmation petition. |
Key Cases Cited
- Antinoro v. Browner, 223 Ga.App. 664 (Ga. App. 1996) (nonbinding arbitration can yield evidence and different remedies than binding arbitration)
- Parks v. Anderson, 221 Ga.App. 270 (Ga. App. 1996) (superior court may enforce arbitration awards under the Georgia Arbitration Code)
- Prince v. Bailey Davis, LLC, 306 Ga.App. 59 (Ga. App. 2010) (binding vs. nonbinding arbitration consequences clarified)