Right To Arbitrate Deemed Waived For Nonpayment Of Fees.

Plaintiff brought suit for securities fraud.  One of the defendants moved to compel arbitration pursuant to a term in the private placement memorandum.  The court granted the petition, but only two of the six defendants paid the arbitrators’ fees.  The panel of arbitrators from the American Arbitration Association terminated the matter for nonpayment of fees.  A paying defendant moved to have the trial court confirm the arbitrators’ termination ruling and dismiss the complaint; the court refused.  Thereafter he requested the court to send the matter back to arbitration, which the court agreed to do if he paid the nonpaying defendants’ fees as well as his own.  He refused and appealed the court’s denial of his request to send the case back to arbitration.  The appellate court affirmed, finding “defendants have waived their right to arbitrate by refusing to reach a resolution with [plaintiff] on the fee dispute.”  Cinel v. Barna  (Cal. App. Second Dist., Div. 1; June 15, 2012) 206 Cal.App.4th 1383.