(September 22, 2011) California Chamber of Commerce-opposed legislation that would have undermined efficient dispute resolution and inflated legal costs failed to pass the Senate in the final days of the legislative session.
AB 1062 (Dickinson; D-Sacramento), a “job killer,” would have significantly increased litigation costs for employers by eliminating the right to appeal a court order denying or dismissing a petition to compel arbitration if the plaintiff is over the age of 65 or a dependent adult.
The bill undermined enforcement of valid arbitration agreements, which means more cases would have gone to trial, taking four times longer than arbitration, on average.
Furthermore, by driving more nonmeritorious claims into the courts, the bill would actually have increased the length of civil trials, delaying compensation to plaintiffs with legitimate grievances.
Increased Costs
The longer time translates into increased litigation costs for employers, leaving fewer resources to hire and retain employees, and discouraging employers from expanding in the state.
The only people who benefit from sending cases to trial rather than to arbitration are plaintiff’s attorneys, the sponsors of AB 1062. Employers, plaintiffs and taxpayers all benefit from the use of arbitration, as it saves money and provides faster relief while still protecting consumer and employee rights.
Key Vote
AB 1062 failed to pass the Senate on September 8, 15-21.
Ayes: Alquist (D-Santa Clara), Corbett (D-San Leandro), De León (D-Los Angeles), DeSaulnier (D-Concord), Evans (D-Santa Rosa), Hancock (D-Berkeley), Kehoe (D-San Diego), Leno (D-San Francisco), Liu (D-La Cañada Flintridge), A. Lowenthal (D-Long Beach), Padilla (D-Pacoima), Pavley (D-Agoura Hills), Simitian (D-Palo Alto), Steinberg(D-Sacramento), Wolk (D-Davis).
Noes: Anderson (R-El Cajon), T. Berryhill (R-Modesto), Blakeslee (R-San Luis Obispo), Calderon (D-Montebello), Cannella (R-Ceres), Dutton (R-Rancho Cucamonga), Emmerson (R-Hemet), Fuller (R-Bakersfi eld), Gaines (R-Roseville), Harman (R-Huntington Beach), Hernandez (D-West Covina), Huff (R-Diamond Bar), LaMalfa (R-Richvale), Negrete McLeod (D-Chino), Price (D-Los Angeles), Runner (R-Antelope Valley), Strickland (R-Thousand Oaks), Walters (R-Laguna Niguel), Wright (D-Inglewood), Wyland (R-Escondido),Yee (D-San Francisco).
No Vote Recorded: Correa (D-Santa Ana), Lieu (D-Torrance), Rubio (D-East Bakersfield), Vargas (D-San Diego).
Following the vote, the bill was granted reconsideration. On September 9, Senator Noreen Evans requested the bill be placed on the Senate inactive file, which allows the bill to be reconsidered when the legislative session resumes in January.
Staff Contact: Mira Guertin