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CA SB707
Bill
AI Summary
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Establishes that if a drafting party fails to pay arbitration initiation fees within 30 days of the due date, it constitutes material breach of the arbitration agreement and waives the right to compel arbitration, allowing employees or consumers to either withdraw and proceed in court or compel arbitration with the drafting party paying attorney's fees and costs.
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Provides that failure to pay arbitration fees during a proceeding within 30 days of the due date is material breach, and allows employees or consumers to withdraw and proceed in court, continue arbitration, petition for fee payment, or pay fees themselves and recover them in the award.
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Requires courts to impose mandatory monetary sanctions (reasonable expenses and attorney's fees) against drafting parties for material breach, and authorizes additional sanctions including evidence sanctions, terminating sanctions (striking pleadings or default judgment), and contempt sanctions.
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Tolls the statute of limitations for all claims brought or relating back to claims in arbitration when an employee or consumer withdraws from arbitration due to drafting party's fee non-payment and proceeds in court.
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Requires private arbitration companies to collect and report demographic data in the aggregate regarding ethnicity, race, disability, veteran status, gender, gender identity, and sexual orientation of all arbitrators in consumer arbitration cases.
Legislative Description
Arbitration agreements: enforcement.
Last Action
Chaptered by Secretary of State. Chapter 870, Statutes of 2019.
10/13/2019