Cases: Arbitration

Arbitration:  Returning Case To Court Based On Tardy Employer Payment Of Arbitration Expenses Reversed Because The Error Was An Operational Mistake

Cases: Arbitration

However, CCP Section 1281.99 Sanctions Award Was Affirmed For Employee’s Time Incurred To Pursue Efforts Based On Employer’s Tardiness. We predicted that many decisions under the employer payment deadline of Civil Code sections1281.97 and 1281.98 would be reversed or reversed/remanded under the peculiar circumstances of a matter after the California Supreme Court decided Hohenshelt v. […]

Arbitration: For 30-Day Employer Deadline To Pay Arbitration Expenses, Hohenshelt Decision Causing Remands Or Affirmance Of Trial Court Finding Justification For Later Payment Timing

Cases: Arbitration

We Predict More Remands For Pre-Hohenshelt Rulings. Hohenshelt v. Superior Court, 18 Cal.5th 310 (2025) changed the strict application of CCP sections 1281.97 and 1281.98 in regards to employers paying arbitration expenses within 30 days of an invoice under penalty of having to return to court, finding that tardy payments could be forgiven for good

Arbitration: Where Defendant Paid On Last Day But There Was A Lag Due to Electronic Payment Transmission, Plaintiff Was Not Entitled To CCP Section 1281.98 Late Payment Fees

Cases: Arbitration

Defense Conduct Was Not Willful, Grossly Negligent, or Fraudulent Under Hohenshelt. We have now one of first opinions, although unpublished, which deals with how CCP section 1281.98 tardy payment of fees are dealt with, given the California Supreme Court’s recent opinion in Hohenshelt v. Superior Court, 18 Cal.5th 310 (2025). In Wilson v. TAP Worldwide, Inc.,

Arbitration, Employment, Reasonableness Of Fees: Lower Court Did Not Err By Reducing $17,653.50 Fee Request For CCP § 1281.98 Sanctions Down To A $2,060 Fee Award

Cases: Arbitration, Cases: Employment, Cases: Reasonableness of Fees

Fee Entitlement Still Allowed A Determination Of Reasonableness, With Record Supporting An Excessive Fee Request.                Reasonableness of a fee request is simply an important issue all clients and attorneys must consider when a fee/sanctions petition is filed.  Where an excessive, unreasonable request is made, the lower court has a range of options, from denying

Arbitration: Where Prevailing Party In An Arbitration Failed To Request Attorney’s Fees In An Answering Statement And The Arbitrator Refused to Award Fees, Superior Court Had No Jurisdiction To Award Fees . . .

Cases: Arbitration

Only The Arbitrator Had The Authority.                Claimant prevailed in an arbitration, but it failed to request attorney’s fees as required by AAA rules in claimant’s answering statement.  The arbitrator refused to award fees based on this omission.  Claimant then sought fees from the lower court when petitioning to confirm the award.  The damages award

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

Cases: Arbitration

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

Arbitration, Sanctions: $183,304 In Sanctions Relating To Abandoned Arbitration Proceeding Awarded Against Employer Not Timely Paying Arbitration Expenses Under CCP § 1281.98(c)(1)

Cases: Arbitration, Cases: Sanctions

Sanctions Are Awardable Where Fees Were Expended In Terminated Arbitration Proceedings.                In an area where there has been a lot of litigation, an employer faces litigating in court and paying sanctions to an employee in a situation where employee wants to arbitrate but employer fails to adhere to the payment deadlines in CCP §§

Arbitration, Employment: 30-Day Arbitration Payment Deadline Under CCP § 1281.98 Runs From Invoice Issuance Date By ADR Provider

Cases: Arbitration, Cases: Employment

. . . And It Is Extended By CCP § 12 Extensions If Deadline Falls on a Holiday or Weekend.                We have seen an uptick on decisions considering CCP § 1281.98, the section requiring employers to timely pay arbitration expenses invoiced by an ADR provider within 30 days under penalty of returning the case

Arbitration, Employment: Where Employer Did Not Timely Pay Arbitration Expenses Within 30 Days And Employee Opted To Stay In Arbitration, Employee Can Get Recovery Of All Arbitration Expenses, Including Fees Through The End Of The Arbitration

Cases: Arbitration, Cases: Employment

Although Unpublished, This Is An Important Reminder To Employers On Timely Paying Arbitration Fees, Under Penalties Even If Employee Opts For Arbitration.                Although unpublished, Lehman v. MediaLab.AI, Inc., Case No. B336814 (2d Dist., Div. 5 May 19, 2025) (unpublished), is an opinion that employers need to pay attention to in case they are delinquent

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