Tuesday, May 06, 2025

Sanders v. Superior Court (Cal. Ct. App. - May 6, 2025)

As God is my witness, I not understand why defense counsel sometimes fail to pay arbitration fees the day the invoice comes in.

It's not strategic behavior. CCP 1281.98 says that you waive arbitration in employment and consumer cases if the party that drafted the arbitration agreement fails to pay the fees within 30 days. The defendant here -- the brokerage firm Edward Jones & Co. -- successfully moved to compel arbitration, so it clearly wanted the arbitration to go forward. Yet when the $54,000 JAMS arbitration invoice came in, with an express statement that the bill was due upon receipt, it didn't pay the thing until JAMS sent a reminder 34 days later. (Despite paying the two prior JAMS invoices when due.)

That's too late. Arbitration waived.

To reiterate: Just pay the thing. Immediately. It's important. Really important.