Judge: Nathan R. Scott, Case: Rowe v. FCA US, Date: 2022-12-16 Tentative Ruling

Status Conference

The status conference re binding arbitration is vacated as the parties are no longer arbitrating (see below).

Sanctions Motion

Plaintiff Michael Rowe’s motion for sanctions is granted.  (See Code Civ. Proc., § 1281.98, subd. (c).)

Defendant FCA US LLC shall pay $8,967.50 in reasonable attorney fees and costs to plaintiff.  (See Code Civ. Proc., §§ 1281.98, subd. (c), 1281.99, subd. (a); Horsford v. Board of Trustees of California State University (2005) 132 Cal. App. 4th 359, 396 (court may credit “[t]ime statements of the attorneys”]; see also Xie Decl., ¶ 14.)

Defendant did not pay the arbitration provider’s $1,400 invoice within 30 days.  (See Code Civ. Proc., § 1281.98, subd. (a)(1) [failure to pay “within 30 days” is a “material breach”]; see also Hanson decl. ¶¶ 8, 11-12 & Exs. E-G [6/14/22 invoice; 7/18/22 payment]; Xie decl. ¶¶ 9-12 & Exs. 4-7 [same].) 

“[T]he Legislature intended the statute to be strictly applied whenever a drafting party failed to pay by the statutory deadline,” regardless of “whether the nonpayment was deliberate or inadvertent, or whether the delay prejudiced the nondrafting party.”  (Espinoza v. Superior Court of Los Angeles County (2022) 83 Cal.App.5th 761, 776 [construing § 1281.97].)

The Federal Arbitration Act does not preempt Section 1281.98.  (Cf. Espinoza, supra, 83 Cal.App.5th at pp. 783-785.)  Section 1281.98 furthers the FAA’s objective to “to preserve arbitration as a speedy and effective alternative forum for resolving disputes.”  (Id. at p. 771.)

Plaintiff shall give notice.