Arbitration: California Supreme Court Confirms That CCP § 1281.98 Payment Deadlines Are Not Preempted By The FAA

However, CCP § 473 Principles Can Excuse An Untimely Payment By A Company Or Employer Desiring Arbitration With Respect To Tardy Payment Of Employee’s Or Consumer’s Arbitration Expenses.

               Hohenshelt v. Superior Court, Case No. S284498 (Cal. Supreme Court Aug. 11, 2025) (published) finally resolved an intermediate appellate split in thinking on whether the CCP § 1281.98 30-day deadline for a non-consumer company/employer to pay the other side’s arbitration expenses is preempted by the FAA.  Our state high court answered “no,” but it did indicate that an untimely payment could be excused by a good faith mistake, inadvertence, or other excusable neglect principles (engrafting CCP § 473 constructs into the mix). 

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