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David E. Schricker <br />June 8, 2000 <br />Page 4 <br /> <br />it will be necessary for the City to advise us of that request to ensure that the documents are not <br />destroyed. <br /> <br /> 9. Arbitration. We appreciate the opportunity to serve as the City's attorneys and <br />anticipate a productive and harmonious relationship. If you should feel for any reason that there <br />is a problem with the services we have performed or with our charges, we encourage you to <br />bring that to our attention immediately. If we perceive a problem with representing the City, we <br />likewise will endeavor to discuss it with you. Most such problems should be rectified by <br />communication and discussion. However, a dispute might arise between us that could not be <br />resolved by negotiation. We believe that such attorney-client disputes are most satisfactorily <br />resolved through final and binding arbitration rather than by litigation. <br /> <br /> In arbitration, there is no right to a trial by jury and the arbitrator's legal and factual <br />determinations are generally not subject to appellate review. Arbitration rules of evidence and <br />procedure are often less formal and less rigid than the rules that apply in court. Arbitration <br />usually results in a decision much more quickly than proceedings in court, and the attorneys' fees <br />and other costs incurred by both sides may be substantially less. You should feel free to discuss <br />the advisability of arbitration with us, or with other counsel or other advisors, and to ask any <br />questions you may have. <br /> <br /> By signing this engagement agreement, the City and CC&N agree that, in the event of <br />any dispute or claim arising out of or relating to this agreement, our relationship, our charges or <br />our services (including, but not limited to, disputes or claims regarding our charges, professional <br />malpractice, errors or omissions, breach of contract, breach of fiduciary duty, fraud or violation <br />of any statute), SUCH DISPUTE OR CLAIM SHALL BE RESOLVED BY SUBMISSION TO <br />FINAL AND BINDING ARBITRATION IN SAN FRANCISCO COUNTY, CALIFORNIA, <br />BEFORE A RETIRED JUDGE OR JUSTICE. BY AGREEING TO ARBITRATE, THE CITY <br />AND CC&N WAIVE ANY RIGHT TO A COURT OR JURY TRIAL. Venue with regard to <br />any ancillary proceedings arising out of such dispute or claim shall also be in San Francisco <br />County. If we are unable to mutually agree on a retired judge or justice, then each side will <br />name one retired judge or justice and the two named persons will select a neutral judge or justice <br />who will act as the sole arbitrator. The fees of the arbitrator will be paid initially equally by both <br />CC&N and the City. However, the arbitrator shall have the right to order either party to pay all <br />fees and costs as part of his award. <br /> <br /> In arbitration, we shall both be entitled to conduct discovery in accordance with the <br />provisions of the California Code of Civil Procedure, but either of us may request that the <br />arbitrator limit the amount or scope of such discovery and, in determining whether to do so, the <br />arbitrator shall balance the need for the discovery against the parties' mutual desire to resolve <br />disputes expeditiously and inexpensively. <br /> <br /> The City also has the right to request arbitration of any fee dispute before an arbitrator or <br />panel of arbitrators selected by a local bar association in California or the California State Bar. If <br /> <br /> <br />