In the News: Steve Katz Quoted in Law360 on California Arbitration Fee Ruling
Constangy partner Steve Katz shared his insights with Law360 on the California Supreme Court’s recent decision in Hohenshelt v. Superior Court of Los Angeles County, a case stemming from a worker’s wage and hour suit against Golden State Foods Corp. The court upheld California’s rule penalizing late payment of arbitration fees, requiring payment within 30 days while also adopting, for the first time, a standard that allows relief when nonpayment results from “good faith mistake, inadvertence, or other excusable neglect.”
The court found that the Federal Arbitration Act does not preempt the 30-day payment provision, but clarified that the Legislature’s intent was to deter strategic nonpayment, not to strip employers of their contractual right to arbitrate for inadvertent errors. Steve noted that under the prior strict interpretation, “even a one-day delay in payment could result in dismissal of arbitration,” adding, “Now, the court had to essentially defang the statute.”
Under the new standard, Steve explained, if a missed payment is inadvertent, counsel can file a declaration taking responsibility—saying, “'It’s my fault and it was inadvertent'”—making it “very tough to punch through one of those declarations and get the court to deny relief.”
To read the full article on Law360’s website, click here.
Steve Katz chairs Constangy’s Appellate practice group and is a state bar–certified appellate specialist with two decades of experience. He has handled more than 130 appeals and writs nationwide, including before the U.S. and California Supreme Courts, and has defended employers in over 150 class, representative, and collective actions. Steve focuses on wage and hour litigation across a wide range of industries and is a Fellow of the College of Labor and Employment Lawyers.
