Arbitration: Employer’s Failure To Timely Pay Arbitration Fees To JAMS Under CCP § 1281.98 Meant Litigation For The Parties, With JAMS Having No Power To Extend The Deadline Unless All Parties Consent

Dissent Believed That The FAA Preempted Section 1281.98.

            In Hohenshelt v. Superior Court, Case No. B327524 (2d Dist., Div. 8 Feb. 27, 2024) (published), by a 2-1 margin, the majority determined that employer forfeited the ability to arbitrate by not paying arbitration fees and expenses as required under CCP § 1281.98, even though JAMS extended the payment deadline.  It had no power to do so unless all parties consented in writing (which did not happen), meaning the employee was entitled to litigate in court rather than required to arbitrate.  In dissent, Justice Wiley concluded that section 1281.98 was preempted by the FAA.