Former Clients Say Tax Firm’s Bid to Arbitrate Is Unenforceable

A Florida-based tax law firm facing malpractice allegations can’t enforce an arbitration agreement under state law, its former clients told a federal court.

The arbitration clause drafted by J. David Tax Law Firm LLC for its retention letters “is limited to use ‘in a collection action,’ not a class action for recovery of illegal fees, malpractice, and statutory misrepresentation,” the clients said Monday. They seek damages and an order to disgorge attorneys’ fees paid to J. David.

“At best, the scope of the arbitration provision J. David drafted is ambiguous,” the clients said in their brief to the US District ...