California Supreme Court Upholds State Law on Arbitration Fee Nonpayment, Challenging Federal Preemption Claims
The California Supreme Court has issued a divided ruling affirming the validity of a state statute that mandates the waiver of arbitration rights for parties failing to pay arbitration fees on time. The court determined that this statute is not preempted by the Federal Arbitration Act (FAA), emphasizing that the law aims to prevent “strategic…