Hohenshelt v. Superior Court

(2025) 18 Cal.5th 310

Five years of strict-liability appellate authority — reversed. Late arbitration fee payment no longer means automatic forfeiture. The 5-2 majority disapproved Gallo, Espinoza, De Leon, Williams, Doe, Colon-Perez, and Sanders.

Holding

CCP § 1281.98 must be harmonized with equitable relief from forfeiture. Late payment of arbitration fees does not automatically forfeit arbitration rights unless the nonpayment was willful, grossly negligent, or fraudulent. Justice Liu's 5-2 majority disapproved Gallo, Espinoza, De Leon, Williams, Doe, Colon-Perez, and Sanders.

Impact on Defense Practice

Reversed five years of strict-liability appellate authority. Wilson v. Tap Worldwide, LLC (2025) 114 Cal.App.5th 1077 — the first published post-Hohenshelt decision — held a one-business-day delay (payment initiated Friday, received Monday) was not willful as a matter of law. On remand, Colon-Perez (Feb. 2026, unpublished) granted relief despite a six-day delay caused by a natural disaster.

Defense Strategy

Pay on time — Hohenshelt is an escape valve, not an excuse. If a payment is late, immediately move for relief under § 473(b), Civil Code § 3275, and Civil Code § 1511. Document the reasons exhaustively. Consider whether expressly adopting FAA procedures (per Justice Groban's concurrence) could take the case outside § 1281.98 entirely.

This analysis is for informational purposes only. Case law is current as of Q1 2026.