No ifs, ands, or buts: Failure to timely pay arbitration fees waives right to arbitration

Recent case developments in California have placed companies on alert that arbitration fees must be timely paid or else an arbitration agreement is materially breached and the right to arbitration waived. California courts have uniformly held thus far that no relief will be provided even when there was a reasonable excuse for late payment. Upon late payment, the employee may “unilaterally elect” to proceed with their claims in court.

Background

West Coast Hospitals operates the Valley Convalescent Hospital, where Ann Williams was admitted to recover from hip surgery. After three months, she was discharged and sent to an assisted living facility. Unfortunately, she died several days later.

Her son, John Williams, filed a lawsuit against West Coast, alleging claims for elder abuse and wrongful death, among others. West Coast successfully asked the court to compel arbitration and stay (halt) the court proceedings. Counsel for West Coast then opened the arbitration proceeding.

Williams timely paid the portion of the arbitration filing fee for claimants’ side. West Coast, however, failed to timely pay the balance. Williams then asked the court to lift the stay so the case could proceed to trial. The court granted the request, and West Coast appealed.

Untimely payment