Bright Line Still Applies To The Deadline Employers Have To Pay For Arbitration Cost Or Lose Ability To Arbitrate, But Wait For California Supreme Court Ruling.
In Mone Yvette Sanders v. Superior Court, 110 Cal.App.5th 1304 (2/7 5/6/25) (Feuer, Martinez, Stone), the court held Code Civ. Proc. § 1281.98 is not preempted by the FAA; when an employer fails to pay arbitration fees within 30 days, the employee may withdraw and continue in court, and the trial court—not an arbitrator—decides whether default occurred. The court granted Sanders' writ, directing the trial court to allow her to proceed in court and to consider her request for sanctions under § 1281.99.
COMMENT: The decision aligns with established California appellate precedent grappling with fee-default withdrawal under § 1281.98. But wait for a definitive ruling from the California Supreme Court, which is reviewing the issue in Hohenshelt v. Superior Court, docket no. S284498.
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