Section 1281.98 Was Inapplicable Because The Arbitration Agreement Was Governed By The Provisions Of The Federal Arbitration Act.
In Howitson v. Evans Hotels, Case No. D085078 (4th Dist., Div. 1 October 20, 2025) (unpublished), defendant employer failed to pay an arbitration retainer within 30 days, leading Plaintiff to successfully move under CCP section 1281.98 of the California Arbitration Act to have her claims returned to court. Additionally, Plaintiff was awarded fees and costs under section 1281.99(a) as a monetary sanction. Defendant appealed.
Finding section 1281.98 inapplicable based on its determination that the parties’ arbitration agreement was broad and unconditional in designating that it be governed by the substantive and procedural provisions of the Federal Arbitration Act, not the California Arbitration Act, the 4/1 DCA reversed both the trial court’s grant of the 1281.98 motion and related monetary sanctions award.