Judge: Randall J. Sherman, Case: 2022-01261880, Date: 2023-08-04 Tentative Ruling

Plaintiff’s unopposed Motion to Vacate Order Compelling Case to Arbitration per C.C.P. §1281.98 is granted.  The court vacates its November 4, 2022 order compelling arbitration of all of plaintiff’s claims other than her PAGA claim on behalf of other employees and staying the action.  The Post-Arbitration Review Hearing set for November 30, 2023 at 9:00 a.m. will be relabeled a Status Conference.

On January 31, 2023, JAMS emailed a deposit request to defendants, requesting fees to initiate the arbitration proceeding, due on receipt and no later than March 2, 2023.  Defendants failed to pay the arbitrator’s invoice by the March 2, 2023 deadline.  On March 8, 2023, JAMS emailed a letter to all parties notifying them that defendants failed to pay the January 31, 2023 deposit request by March 2, 2023.  On March 15, 2023, JAMS sent an email to all parties following up with defendants again concerning the arbitration deposit fee.  On March 25, 2023, JAMS issued a Notice of Administrative Stay to all parties stating, “JAMS has not received the $10,000 necessary to proceed with this arbitration from Respondent.  As a result, this matter is on administrative stay.  If JAMS does not receive the outstanding amount by April 23, 2023, JAMS will close its file.”  On April 26, 2023, JAMS closed its file due to defendants’ failure to pay.

CCP §1281.98(a)(1) provides that an arbitration agreement’s drafting party’s failure to pay fees or costs required to continue an employment arbitration within 30 days after the due date results in the drafting party being in material breach of the arbitration agreement, being in default of the arbitration, and waiving its right to compel the employee to proceed with the arbitration.  Pursuant to CCP §1281.98(b)(1), the employee may withdraw the claim from arbitration and proceed in court.  Because defendants here failed to pay their arbitration fees for more than 30 days, they have waived their right to compel arbitration, and plaintiff may proceed in court.

Plaintiff is ordered to give notice of the ruling unless notice is waived.