California Appellate Tracker

Von Becelaere Ventures, LLC v. Zenovic

June 13, 2018

Unless the plaintiff follows steps prescribed in Code of Civil Procedure 1281.5, it's filing of a mechanics lien foreclosure suit waives its right to compel arbitration in that suit or any other action.

Under CCP 1281.5, the filing of a suit to foreclose a mechanics lien claim does not waive the plaintiff’s right to enforce an arbitration agreement with the defendant if, but only if, (a) the complaint alleges that the suit does not waive arbitration and that the plaintiff will move within 30 days to compel arbitration and stay court proceedings, or (b) simultaneously files a motion to compel arbitration and stay proceedings. When the plaintiff takes neither of those steps in the mechanics lien foreclosure action, it waives the right to compel arbitration of any dispute with the defendant, whether alleged in the mechanics lien foreclosure action or in a different suit.

California Court of Appeal, Fourth District, Division 1 (McConnell, P.J.); June 6, 2018; 2018 Cal. App. LEXIS 525

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Von Becelaere Ventures, LLC v. Zenovic

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