Judge Bruce G. Iwasaki

Department 58

Hearing Date: February 22, 2024

Case Name: Blanco v. DLF Logistics LLC

Case No.: 22STCV17223

Matter: Motion to Vacate Order Compelling Case to Arbitration pursuant to Code of Civil Procedure section 1281.98 and Request for Sanctions

Moving Party: Plaintiff Leticia Blanco

Responding Party: None

Tentative Ruling: The Request for Sanctions is granted in the amount of $5,910.

On May 25, 2022, Plaintiff Leticia Blanco (Plaintiff) filed the instant action against Defendants DLF Logistics LLC (DLF), Joeana Lugo, And Devan Carez (collectively, Defendants), asserting claims for sexual harassment, discrimination based on sex, disability discrimination, retaliation, wrongful termination, and related claims.

On January 13, 2023, Defendant DLF filed a motion to compel this matter to arbitration and stay all proceedings. On April 17, 2023, the Court granted Defendant DLF’s Motion to Compel Arbitration and ordered this matter to arbitration (except Plaintiff’s sexual harassment claim); the Court stayed the matter pending arbitration.

Plaintiff now moves the Court, pursuant to Code of Civil Procedure section 1281.98, for an Order vacating its April 17, 2023 Order compelling the instant case to arbitration as a result of Defendants’ failure to pay the arbitrator's fees within 30-days of the December 4, 2023 due date. Plaintiff also requests sanctions pursuant to Code of Civil Procedure section 1281.98.

On January 22, 2024, the Court advanced this motion to address the issue of vacating the order to compel arbitration and granted this relief. Only the issue of sanctions remains.

No opposition was filed.

Subdivision (b) of section 1281.98 allows the employee or consumer to “unilaterally elect” any of several options if “the drafting party materially breaches the arbitration agreement and is in default” under subdivision (a). The employee or consumer may “[w]ithdraw the claim from arbitration and proceed in a court of appropriate jurisdiction” (§ 1281.98, subd. (b)(1)), “[c]ontinue the arbitration proceeding, if the arbitration provider agrees to continue administering the proceeding, notwithstanding the drafting party's failure to pay fees or costs” (§ 1281.98, subd. (b)(2)), “[p]etition the court for an order compelling the drafting party to pay all arbitration fees that the drafting party is obligated to pay under the arbitration agreement or the rules of the arbitration provider” (§ 1281.98, subd. (b)(3)), or “[p]ay the drafting party's fees and proceed with the arbitration proceeding” (§ 1281.98, subd. (b)(4)).

Subdivision (c) of section 1281.98 provides that if the employee or consumer withdraws the claim from arbitration and proceeds in court, he or she “may bring a motion, or a separate action, to recover all attorney's fees and all costs associated with the abandoned arbitration proceeding” (§ 1281.98, subd. (c)(1)), and the “court shall impose sanctions on the drafting party” in accordance with section 1281.99 (§ 1281.98, subd. (c)(2)).

Here, Plaintiff requests that sanctions be awarded against Defendant DLF in the amount of $5,910 for attorney’s fees and costs that Plaintiff has incurred as a result of Defendant DLF’s material breach of the arbitration agreement. The amount requested is based on both a reasonable hourly rate and reasonable number of hours incurred, plus necessary costs.. (Ayala Decl., ¶¶ 19-20.)

The motion requesting sanctions is granted in the amount of $5,910. DLF is ordered to pay that sum to Plaintiff’s counsel on or before March 22, 2024.