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On June 28, 2023, the California Second District Court of Appeal issued a decision interpreting the scope of California Code of Civil Procedure section 1281.98(a)(1), a recently amended California statute that requires employers to pay all arbitration costs and fees within 30 days of the due date, or risk being in material breach of the arbitration agreement. In Cvejic v. Skyview Capital, the court held that an arbitrator cannot cure a missed or late arbitration fee payment. Not only does this ruling reaffirm the importance of paying arbitration fees on time, but it also demonstrates the court’s willingness to limit the power of an arbitrator over their own proceedings.
