Arbitrator Need To Make Decisions; Party Opposing Arbitration For Lack Of Funds Needs To Make Showing Before Superior Court Or Arbitrator.
In Lew-Williams v. Petrosian, Case No. B330387 (2d Dist., Div. 7 Apr. 2, 2024) (published), a trial court dismissed state law claims for failure to prosecute after the matter was ordered to arbitration upon defendant’s request and after plaintiff claimed to lack funds to arbitrate. The 2/7 DCA reversed, determining that the lower court had vestigial jurisdiction only (losing the power to dismiss claims) and that the opposing party had to seek relief from the arbitrator, who could even terminate the arbitration if no funds were paid by plaintiff (in which the case returned to superior court).
The appellate court also observed that the party opposing arbitration based on the lack of funds needs to make a showing before the trial court at the outset, because that court could condition arbitration upon a reallocation of costs or having the party seeking arbitration to advance the costs for the opponent.
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