Hohenshelt

DISCUSSION

I. Applicable Law

In 2019, the Legislature enacted section 1281.98 to curb a particular arbitration abuse. (Cvejic v. Skyview Capital, LLC (2023) 92 Cal.App.5th 1073, 1076 (Cvejic).) The abuse was that a defendant could force a case into arbitration but, once there, could refuse to pay the arbitration fees, thus effectively stalling the matter and stymying the plaintiff's effort to obtain relief. (Ibid.) The Legislature called this “ ‘ “procedural limbo.” ’ ”

Further undesignated statutory references are to the Code of Civil Procedure.

3 (Gallo v. Wood Ranch USA, Inc. (2022) 81 Cal.App.5th 621, 634 (Gallo).) Section 1281.98 provides: “In an employment or consumer arbitration that requires . . . the drafting party pay certain fees and costs during the pendency of an arbitration proceeding, if the fees or costs . . . 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 the employee or consumer to proceed with that arbitration as a result of the material breach.” (§ 1281.98, subd. (a)(1), italics added.) Subdivision (b) of…