Does the length of delay in bringing a claim against defendants in an arbitration proceeding affect the fairness of the arbitration process?

California, United States of America


The following excerpt is from White v. Dupont Residential Care, Inc., G048204 (Cal. App. 2014):

Defendants' argument is again contrary to the trial court's findings. While "'courts will not find prejudice where the party opposing arbitration shows only that it incurred court costs and legal expenses[,]' . . . courts '"may consider . . . the expense incurred by that party from participating in the litigation process"' and the length of delay as factors bearing on whether the opposing party has been prejudiced. [Citation.] '[T]he critical factor in demonstrating prejudice is whether the party opposing arbitration has been substantially deprived of the advantages of arbitration . . . .'" (Lewis v. Fletcher Jones Motor Cars, Inc. (2012) 205 Cal.App.4th 436, 452.) Here, the trial court expressly found the 14-month delay, plus "extensive litigation engaged in" to the point where the case was "close to being ready for trial," resulted in "defeat[ing] the 'strong policy in favor of arbitration as a speedy and relatively inexpensive means of dispute resolution.'"

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