The California Supreme Court’s recent decision in Hohenshelt v. Superior Court addressed whether California’s Code of Civil Procedure section 1281.98, which requires the party that drafted the arbitration agreement to pay arbitration fees within 30 days of the due date or face consequences such as forfeiting arbitration rights, is preempted by the Federal Arbitration Act
Arbitration Fees
California Court of Appeal Holds California’s Law Regarding Payment of Arbitration Fees Preempted by FAA
By Scott P. Jang on
Posted in Arbitration Agreements
In 2019, California enacted Senate (SB) Bill 707, a law codified as California Code of Civil Procedure sections 1281.98 and 1281.99, that automatically deems an employer’s failure to pay fees required for the commencement or continuation of arbitration within 30 days of the payment’s due date a material breach of the arbitration agreement. A…
Pay the Piper – California Employers Pressed to Pay Arbitration Fees or Risk Harsh Consequences
By Scott P. Jang & Samia M. Kirmani on
Posted in Arbitration Agreements
California employers may face harsh consequences for failing to pay arbitration fees on time under a bill (Senate Bill 707) signed by Governor Gavin Newsom on October 13, 2019. The new law go into effect on January 1, 2020.
Under the new law, if an employer fails to pay fees required for the commencement or…