Litigation & Arbitration,
California Supreme Court
Sep. 4, 2025
California Supreme Court's Hohenshelt ruling injects equity into arbitration fees enforcement
California Supreme Court's Hohenshelt v. Superior Court ruling upholds arbitration fee deadlines while allowing equitable contract defenses, balancing employees' right to prompt arbitration with relief for inadvertent employer nonpayment -- but leaves open questions about how courts will apply those defenses in practice.
The California Supreme Court's recent decision in Hohenshelt v. Superior Court (Aug. 11, 2025) marks a pivotal moment in the state's jurisprudence on arbitration. At issue was Code of Civil Procedure section 1281.98, which allows employees and consumers to terminate arbitration proceedings and proceed in court if the drafting party, which is typically the employer or business, fails to pay arbitration fees within 30 days after the due...
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