It’s Plaintiff’s Duty

A California court of appeals just settled an age-old question.  Who has the duty to file the arbitration after a Motion to Compel Arbitration has been filed?

The case Arzate v. ACE American Insurance Company is a wage & hour case where a stay was issued pursuant to a MTCA.  However, neither party then initiated the arbitration proceeding.  The court lifted the stay and tried to proceed with the case over ACE’s objection.

The trial court ruled that it was ACE’s duty to initiate the arbitration, but the appellate court did not agree.  The arbitration agreement provided for the Plaintiff to submit its claim to the arbitration.  Accordingly, it was the Plaintiff’s duty to file the arbitration.  “ACE did not breach the arbitration agreements or waive its right to arbitration by failing to submit the plaintiffs’ claims for them.”

To read the case, click here.