Plaintiff argued that Defendant’s basis for removal was not applicable because Defendants waived their right to arbitration or because the case is not related to the agreement containing an arbitration provision. Finding the subject matter of the action related to the agreement, the Court looked at whether Defendants waived their right to arbitrate. Looking at the various factors articulated by the Ninth Circuit, the Court found Defendants had not waived their arbitration rights, and was “mindful of the presumption that waiver of the right to arbitrate is disfavored.” The Court’s key inquiry was “whether Plaintiff was prejudiced by Defendants’ action” in delaying bringing arbitration because of ongoing settlement negotiations. “[C]ourts have declined to find waiver in analogous cases where arbitration was not sought immediately, even after years of delay.”
Assad v. Josefsson, 18-cv-02470 (USDC C.D. Cal. June 19, 2018)
This post written by Nora A. Valenza-Frost.
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