Arbitration, Sanctions: $183,304 In Sanctions Relating To Abandoned Arbitration Proceeding Awarded Against Employer Not Timely Paying Arbitration Expenses Under CCP § 1281.98(c)(1)

Sanctions Are Awardable Where Fees Were Expended In Terminated Arbitration Proceedings.

               In an area where there has been a lot of litigation, an employer faces litigating in court and paying sanctions to an employee in a situation where employee wants to arbitrate but employer fails to adhere to the payment deadlines in CCP §§ 1281.97-1281.99.  Employer all too well learned the repercussions of not timely paying in Guffey v. Bokit, Inc., Case No. B333030 et al. (2d Dist., Div. 2 June 26, 2025) (unpublished).  After not timely meeting the required deadlines, the appellate court affirmed a $183,304 attorney’s fees award to employee given that there was extensive discovery activity in the later terminated arbitration proceeding.  Those sanctions were allowable under section 1281.98(c)(1), with the amount of the award being no abuse of discretion.