Judge: James A. Mangione, Case: 37-2021-00050200-CU-WT-CTL, Date: 2024-04-19 Tentative Ruling

SUPERIOR COURT OF CALIFORNIA,

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HALL OF JUSTICE

TENTATIVE RULINGS - April 18, 2024

04/19/2024  09:00:00 AM  C-75 COUNTY OF SAN DIEGO

JUDICIAL OFFICER:James A Mangione

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Civil - Unlimited  Wrongful Termination Motion Hearing (Civil) 37-2021-00050200-CU-WT-CTL LEE VS RESCUE AGENCY PUBLIC BENEFIT LLC [IMAGED] CAUSAL DOCUMENT/DATE FILED:

Plaintiff Lindsey Lee's Motion to Vacate Court Order Compelling Arbitration and Stay of Action and Award Sanctions is denied.

Code of Civil Procedure Section 1281.97 states: (a)(1) In an employment or consumer arbitration that requires, either expressly or through application of state or federal law or the rules of the arbitration provider, the drafting party to pay certain fees and costs before the arbitration can proceed, if the fees or costs to initiate an arbitration proceeding are not paid within 30 days after the due date the drafting party is in material breach of the arbitration agreement, is in default of the arbitration, and waives its right to compel arbitration under Section 1281.2.

(2) After an employee or consumer meets the filing requirements necessary to initiate an arbitration, the arbitration provider shall immediately provide an invoice for any fees and costs required before the arbitration can proceed to all of the parties to the arbitration. . . . To avoid delay, absent an express provision in the arbitration agreement stating the number of days in which the parties to the arbitration must pay any required fees or costs, the arbitration provider shall issue all invoices to the parties as due upon receipt.

Based on the plain language of the statute, a drafting party is in material breach of an arbitration agreement if the drafting party is 'require[d] . . . to pay certain fees and costs before the arbitration can proceed'. (Id.) Here, the arbitration agreement was silent as to the apportionment of the initial filing fee and included a provision adopting the JAMS Employee Rules and Arbitration Procedures. Those rules state that an employee can only be charged for the initial $400 filing fee (commensurate to the cost of filing a lawsuit), which is permissible under Armendariz v. Found. Health Psychcare Servs., Inc. (2000) 24 Cal. 4th 83. JAMS billed the initial $400 filing fee to Plaintiff and did not send any invoice billed to Defendant. Because the arbitration agreement itself was silent as to the apportionment of fees, JAMS required written confirmation from Defendant that it would pay the entire filing fee. Defense Counsel made this representation to JAMS on November 3, 2023. Consequently, JAMS withdrew the $400 fee billed to Plaintiff and sent a new invoice to Defendant for $2,000 on November 20, 2023. Defendant paid this invoice on December 14, 2023, which is within the timeframe set forth in CCP § 1281.97(a)(1).

Therefore, Defendant did not breach the arbitration agreement.

Plaintiff's request for sanctions is denied.

The minute order is the order of the Court.

Calendar No.: Event ID:  TENTATIVE RULINGS

3074297  12 CASE NUMBER: CASE TITLE:  LEE VS RESCUE AGENCY PUBLIC BENEFIT LLC [IMAGED]  37-2021-00050200-CU-WT-CTL Calendar No.: Event ID:  TENTATIVE RULINGS

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