California Appellate Tracker

Weiler v. Marcus & Millichap Real Estate Investment Services, Inc.

May 25, 2018

A party who has participated in good faith in arbitration but can no longer pay the arbitrator’s fees can apply to the court to have the dispute transferred to court unless the opposing party agrees to pay all remaining arbitration costs.

Following Roldan v. Callahan & Blaine (2013) 219 Cal.App.4th 87 and Tillman v. Rheingold, Valet, Rheingold, Shkolnik & McCartney (9th Cir. 2016) 825 F.3d 1069, this decision holds that when a party participates in a court-compelled arbitration in good faith but eventually becomes unable to pay its share of the arbitration costs, that party may apply to the court for relief. If the court finds good faith participation and inability to pay, it should order that (i) the arbitration shall proceed if (a) the opposing party agrees to pay all the cost of the arbitration or (b) the arbitrator orders it to do so, or (ii) if the moving party is not thus relieved of unaffordable arbitration costs, the arbitration shall be deemed terminated and the case will then proceed in court. This rule, the court holds, is needed to assure justice for all.

California Court of Appeal, Fourth District, Division 3 (Thompson, J.); April 30, 2018; 2018 Cal. App. LEXIS 383

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Weiler v. Marcus & Millichap Real Estate Investment Services, Inc.

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