California Senate Bill SB1241 Amended / Bill

 BILL NUMBER: SB 1241AMENDED BILL TEXT AMENDED IN SENATE MARCH 29, 2016 INTRODUCED BY Senator Wieckowski FEBRUARY 18, 2016 An act to  amend Section 1286.2 of the Code of Civil Procedure, relating to arbitration.   add Section 1799.208 to the Civil Code, relating to consumer contracts.  LEGISLATIVE COUNSEL'S DIGEST SB 1241, as amended, Wieckowski.  Arbitration awards.   Consumer contracts.   Existing law, the Consumer Contract Awareness Act, defines a consumer contract as a writing prepared by a seller that provides for the sale or lease of goods or services for personal, family, or household purposes, among other provisions. The act require a seller to deliver a copy of a consumer contract to the consumer at the time the contract is signed, and it prohibits the waiver of any provisions of the act.   This bill would, in addition, provide that a provision in a consumer contract that purports to designate the venue in which a controversy arising from the consumer contract is litigated, or the choice of law to be applied, is voidable by the consumer, with respect to a controversy arising in California, if the provision would deprive the consumer of the protection of California law or require the consumer to litigate the controversy out of state.   Existing law establishes standards for arbitration, and requires the court to vacate an arbitration award if it makes certain findings.   This bill would make a technical, nonsubstantive change to that provision.  Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:  SECTION   1.   Section 1799.208 is added to the   Civil Code   , to read:   1799.208. (a) Notwithstanding any other law, a provision in a consumer contract, as defined by subdivision (b) of Section 1799.201, that purports to designate the venue in which a controversy arising from the consumer contract may be litigated, or the choice of law to be applied, is voidable by the consumer if the provision would do either of the following: (1) Deprive the consumer of the protection of California law with respect to a controversy arising in California. (2) Require the consumer to litigate outside of California a claim arising in California. (b) For purposes of this section, litigation includes arbitration.   SECTION 1.   Section 1286.2 of the Code of Civil Procedure is amended to read: 1286.2. (a) Subject to Section 1286.4, the court shall vacate the award if the court determines any of the following: (1) The award was procured by corruption, fraud or other undue means. (2) There was corruption in an arbitrator. (3) The rights of the party were substantially prejudiced by misconduct of a neutral arbitrator. (4) The arbitrators exceeded their powers and the award cannot be corrected without affecting the merits of the decision upon the controversy submitted. (5) The rights of the party were substantially prejudiced by the refusal of the arbitrators to postpone the hearing upon sufficient cause being shown therefor or by the refusal of the arbitrators to hear evidence material to the controversy or by other conduct of the arbitrators contrary to the provisions of this title. (6) An arbitrator making the award either: (A) failed to disclose within the time required for disclosure a ground for disqualification of which the arbitrator was then aware; or (B) was subject to disqualification upon grounds specified in Section 1281.91 but failed upon receipt of timely demand to disqualify himself or herself as required by that provision. However, this subdivision does not apply to arbitration proceedings conducted under a collective bargaining agreement between employers and employees or between their respective representatives. (b) Petitions to vacate an arbitration award pursuant to Section 1285 are subject to the provisions of Section 128.7.