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Arbitration Clauses May Not Be Enforceable Against Poor Plaintiffs! See Aronow v. Superior Court (Emergent)

By Michael Simkin on March 29, 2022
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A trial court that granted a defendant’s petition to compel arbitration has jurisdiction to lift the stay of trial court proceedings where a plaintiff demonstrates financial inability to pay the anticipated arbitration costs; in such a situation, the court may require the defendant either to pay the plaintiff’s share of arbitration costs or to waive the right to arbitration. Plaintiff filed a peremptory writ of mandate was filed, it is rare that the appellate court even hears these writs.  See Aronow v. Superior Court (Emergent) March 28, 2022

We have recently seen that the right to contract, may not mean much in various situations.  White are are other cases concerning inability to pay the arbitration fees, e.g. Weiler v. Marcus
& Millichap Real Estate Investment Services, Inc. (2018) 22 Cal.App.5th 970.  I guess now it is possible for a party to get free cake eat it too!

P.S. the facts ALWAYS MATTER!  The Aronow case was about A plaintiff suing his lawyers for malpractice, and the Weiler was a poor elderly lady ripped off by a huge brokerage.

  • Posted in:
    Arbitration and ADR
  • Blog:
    Legal Secrets
  • Organization:
    Simkin & Associates
  • Article: View Original Source

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