Amended IN Assembly July 03, 2017 Amended IN Assembly June 13, 2017 Amended IN Senate May 16, 2017 Amended IN Senate May 09, 2017 Amended IN Senate April 24, 2017 Amended IN Senate March 23, 2017 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Senate Bill No. 33Introduced by Senator Dodd(Principal coauthor: Senator Wieckowski)(Principal coauthor: Assembly Member Dababneh)(Coauthor: Senator Hertzberg)(Coauthor: Assembly Member Chiu)December 05, 2016An act to amend Section 1281.2 of the Code of Civil Procedure, relating to arbitration.LEGISLATIVE COUNSEL'S DIGESTSB 33, as amended, Dodd. Arbitration agreements.Existing law requires a court, on petition of a party to an arbitration agreement alleging (1) the existence of a written agreement to arbitrate a controversy and (2) that a party to the agreement refuses to arbitrate the controversy, to order the petitioner and the respondent to arbitrate the controversy if the court determines that an agreement to arbitrate exists, unless the court makes other determinations.This bill would add to these determinations instances in which a financial institution, as defined, seeks is seeking to apply a written agreement to arbitrate, contained in a contract consented to by a consumer, to a purported contractual relationship with that consumer that was created fraudulently by the petitioner fraudulently without the consumers consent and by unlawfully using the consumers personal identifying information, as defined.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 1281.2 of the Code of Civil Procedure is amended to read:1281.2. On petition of a party to an arbitration agreement alleging the existence of a written agreement to arbitrate a controversy and that a party thereto refuses to arbitrate such controversy, the court shall order the petitioner and the respondent to arbitrate the controversy if it determines that an agreement to arbitrate the controversy exists, unless it determines that:(a) The right to compel arbitration has been waived by the petitioner; or(b) Grounds exist for the revocation of the agreement.(c) A party to the arbitration agreement is also a party to a pending court action or special proceeding with a third party, arising out of the same transaction or series of related transactions and there is a possibility of conflicting rulings on a common issue of law or fact. For purposes of this section, a pending court action or special proceeding includes an action or proceeding initiated by the party refusing to arbitrate after the petition to compel arbitration has been filed, but on or before the date of the hearing on the petition. This subdivision shall not be applicable to an agreement to arbitrate disputes as to the professional negligence of a health care provider made pursuant to Section 1295.(d) The petitioner is a financial institution that, on or after January 1, 2018, seeks is seeking to apply a written agreement to arbitrate, contained in a contract consented to by a consumer, to a purported contractual relationship with that consumer that was created fraudulently by the petitioner fraudulently without the consumers consent and by unlawfully using the consumers personal identifying information, as defined in Section 1798.92 of the Civil Code. For purposes of this subdivision, financial institution means a person who is licensed pursuant to Division 1.1 (commencing with Section 1000), Division 5 (commencing with Section 14000), or Division 7 (commencing with Section 18000) of the Financial Code, or Division 1 (commencing with Section 25000) of Title 4 of the Corporations Code; is a federally chartered depository institution; or is a broker, dealer, or investment advisor required to register with the Securities and Exchange Commission.If the court determines that a written agreement to arbitrate a controversy exists, an order to arbitrate such controversy may not be refused on the ground that the petitioners contentions lack substantive merit.If the court determines that there are other issues between the petitioner and the respondent which are not subject to arbitration and which are the subject of a pending action or special proceeding between the petitioner and the respondent and that a determination of such issues may make the arbitration unnecessary, the court may delay its order to arbitrate until the determination of such other issues or until such earlier time as the court specifies.If the court determines that a party to the arbitration is also a party to litigation in a pending court action or special proceeding with a third party as set forth under subdivision (c) herein, the court (1) may refuse to enforce the arbitration agreement and may order intervention or joinder of all parties in a single action or special proceeding; (2) may order intervention or joinder as to all or only certain issues; (3) may order arbitration among the parties who have agreed to arbitration and stay the pending court action or special proceeding pending the outcome of the arbitration proceeding; or (4) may stay arbitration pending the outcome of the court action or special proceeding.
Amended IN Assembly July 03, 2017 Amended IN Assembly June 13, 2017 Amended IN Senate May 16, 2017 Amended IN Senate May 09, 2017 Amended IN Senate April 24, 2017 Amended IN Senate March 23, 2017 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Senate Bill No. 33Introduced by Senator Dodd(Principal coauthor: Senator Wieckowski)(Principal coauthor: Assembly Member Dababneh)(Coauthor: Senator Hertzberg)(Coauthor: Assembly Member Chiu)December 05, 2016An act to amend Section 1281.2 of the Code of Civil Procedure, relating to arbitration.LEGISLATIVE COUNSEL'S DIGESTSB 33, as amended, Dodd. Arbitration agreements.Existing law requires a court, on petition of a party to an arbitration agreement alleging (1) the existence of a written agreement to arbitrate a controversy and (2) that a party to the agreement refuses to arbitrate the controversy, to order the petitioner and the respondent to arbitrate the controversy if the court determines that an agreement to arbitrate exists, unless the court makes other determinations.This bill would add to these determinations instances in which a financial institution, as defined, seeks is seeking to apply a written agreement to arbitrate, contained in a contract consented to by a consumer, to a purported contractual relationship with that consumer that was created fraudulently by the petitioner fraudulently without the consumers consent and by unlawfully using the consumers personal identifying information, as defined.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO
Amended IN Assembly July 03, 2017 Amended IN Assembly June 13, 2017 Amended IN Senate May 16, 2017 Amended IN Senate May 09, 2017 Amended IN Senate April 24, 2017 Amended IN Senate March 23, 2017
Amended IN Assembly July 03, 2017
Amended IN Assembly June 13, 2017
Amended IN Senate May 16, 2017
Amended IN Senate May 09, 2017
Amended IN Senate April 24, 2017
Amended IN Senate March 23, 2017
CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION
Senate Bill No. 33
Introduced by Senator Dodd(Principal coauthor: Senator Wieckowski)(Principal coauthor: Assembly Member Dababneh)(Coauthor: Senator Hertzberg)(Coauthor: Assembly Member Chiu)December 05, 2016
Introduced by Senator Dodd(Principal coauthor: Senator Wieckowski)(Principal coauthor: Assembly Member Dababneh)(Coauthor: Senator Hertzberg)(Coauthor: Assembly Member Chiu)
December 05, 2016
An act to amend Section 1281.2 of the Code of Civil Procedure, relating to arbitration.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
SB 33, as amended, Dodd. Arbitration agreements.
Existing law requires a court, on petition of a party to an arbitration agreement alleging (1) the existence of a written agreement to arbitrate a controversy and (2) that a party to the agreement refuses to arbitrate the controversy, to order the petitioner and the respondent to arbitrate the controversy if the court determines that an agreement to arbitrate exists, unless the court makes other determinations.This bill would add to these determinations instances in which a financial institution, as defined, seeks is seeking to apply a written agreement to arbitrate, contained in a contract consented to by a consumer, to a purported contractual relationship with that consumer that was created fraudulently by the petitioner fraudulently without the consumers consent and by unlawfully using the consumers personal identifying information, as defined.
Existing law requires a court, on petition of a party to an arbitration agreement alleging (1) the existence of a written agreement to arbitrate a controversy and (2) that a party to the agreement refuses to arbitrate the controversy, to order the petitioner and the respondent to arbitrate the controversy if the court determines that an agreement to arbitrate exists, unless the court makes other determinations.
This bill would add to these determinations instances in which a financial institution, as defined, seeks is seeking to apply a written agreement to arbitrate, contained in a contract consented to by a consumer, to a purported contractual relationship with that consumer that was created fraudulently by the petitioner fraudulently without the consumers consent and by unlawfully using the consumers personal identifying information, as defined.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 1281.2 of the Code of Civil Procedure is amended to read:1281.2. On petition of a party to an arbitration agreement alleging the existence of a written agreement to arbitrate a controversy and that a party thereto refuses to arbitrate such controversy, the court shall order the petitioner and the respondent to arbitrate the controversy if it determines that an agreement to arbitrate the controversy exists, unless it determines that:(a) The right to compel arbitration has been waived by the petitioner; or(b) Grounds exist for the revocation of the agreement.(c) A party to the arbitration agreement is also a party to a pending court action or special proceeding with a third party, arising out of the same transaction or series of related transactions and there is a possibility of conflicting rulings on a common issue of law or fact. For purposes of this section, a pending court action or special proceeding includes an action or proceeding initiated by the party refusing to arbitrate after the petition to compel arbitration has been filed, but on or before the date of the hearing on the petition. This subdivision shall not be applicable to an agreement to arbitrate disputes as to the professional negligence of a health care provider made pursuant to Section 1295.(d) The petitioner is a financial institution that, on or after January 1, 2018, seeks is seeking to apply a written agreement to arbitrate, contained in a contract consented to by a consumer, to a purported contractual relationship with that consumer that was created fraudulently by the petitioner fraudulently without the consumers consent and by unlawfully using the consumers personal identifying information, as defined in Section 1798.92 of the Civil Code. For purposes of this subdivision, financial institution means a person who is licensed pursuant to Division 1.1 (commencing with Section 1000), Division 5 (commencing with Section 14000), or Division 7 (commencing with Section 18000) of the Financial Code, or Division 1 (commencing with Section 25000) of Title 4 of the Corporations Code; is a federally chartered depository institution; or is a broker, dealer, or investment advisor required to register with the Securities and Exchange Commission.If the court determines that a written agreement to arbitrate a controversy exists, an order to arbitrate such controversy may not be refused on the ground that the petitioners contentions lack substantive merit.If the court determines that there are other issues between the petitioner and the respondent which are not subject to arbitration and which are the subject of a pending action or special proceeding between the petitioner and the respondent and that a determination of such issues may make the arbitration unnecessary, the court may delay its order to arbitrate until the determination of such other issues or until such earlier time as the court specifies.If the court determines that a party to the arbitration is also a party to litigation in a pending court action or special proceeding with a third party as set forth under subdivision (c) herein, the court (1) may refuse to enforce the arbitration agreement and may order intervention or joinder of all parties in a single action or special proceeding; (2) may order intervention or joinder as to all or only certain issues; (3) may order arbitration among the parties who have agreed to arbitration and stay the pending court action or special proceeding pending the outcome of the arbitration proceeding; or (4) may stay arbitration pending the outcome of the court action or special proceeding.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 1281.2 of the Code of Civil Procedure is amended to read:1281.2. On petition of a party to an arbitration agreement alleging the existence of a written agreement to arbitrate a controversy and that a party thereto refuses to arbitrate such controversy, the court shall order the petitioner and the respondent to arbitrate the controversy if it determines that an agreement to arbitrate the controversy exists, unless it determines that:(a) The right to compel arbitration has been waived by the petitioner; or(b) Grounds exist for the revocation of the agreement.(c) A party to the arbitration agreement is also a party to a pending court action or special proceeding with a third party, arising out of the same transaction or series of related transactions and there is a possibility of conflicting rulings on a common issue of law or fact. For purposes of this section, a pending court action or special proceeding includes an action or proceeding initiated by the party refusing to arbitrate after the petition to compel arbitration has been filed, but on or before the date of the hearing on the petition. This subdivision shall not be applicable to an agreement to arbitrate disputes as to the professional negligence of a health care provider made pursuant to Section 1295.(d) The petitioner is a financial institution that, on or after January 1, 2018, seeks is seeking to apply a written agreement to arbitrate, contained in a contract consented to by a consumer, to a purported contractual relationship with that consumer that was created fraudulently by the petitioner fraudulently without the consumers consent and by unlawfully using the consumers personal identifying information, as defined in Section 1798.92 of the Civil Code. For purposes of this subdivision, financial institution means a person who is licensed pursuant to Division 1.1 (commencing with Section 1000), Division 5 (commencing with Section 14000), or Division 7 (commencing with Section 18000) of the Financial Code, or Division 1 (commencing with Section 25000) of Title 4 of the Corporations Code; is a federally chartered depository institution; or is a broker, dealer, or investment advisor required to register with the Securities and Exchange Commission.If the court determines that a written agreement to arbitrate a controversy exists, an order to arbitrate such controversy may not be refused on the ground that the petitioners contentions lack substantive merit.If the court determines that there are other issues between the petitioner and the respondent which are not subject to arbitration and which are the subject of a pending action or special proceeding between the petitioner and the respondent and that a determination of such issues may make the arbitration unnecessary, the court may delay its order to arbitrate until the determination of such other issues or until such earlier time as the court specifies.If the court determines that a party to the arbitration is also a party to litigation in a pending court action or special proceeding with a third party as set forth under subdivision (c) herein, the court (1) may refuse to enforce the arbitration agreement and may order intervention or joinder of all parties in a single action or special proceeding; (2) may order intervention or joinder as to all or only certain issues; (3) may order arbitration among the parties who have agreed to arbitration and stay the pending court action or special proceeding pending the outcome of the arbitration proceeding; or (4) may stay arbitration pending the outcome of the court action or special proceeding.
SECTION 1. Section 1281.2 of the Code of Civil Procedure is amended to read:
### SECTION 1.
1281.2. On petition of a party to an arbitration agreement alleging the existence of a written agreement to arbitrate a controversy and that a party thereto refuses to arbitrate such controversy, the court shall order the petitioner and the respondent to arbitrate the controversy if it determines that an agreement to arbitrate the controversy exists, unless it determines that:(a) The right to compel arbitration has been waived by the petitioner; or(b) Grounds exist for the revocation of the agreement.(c) A party to the arbitration agreement is also a party to a pending court action or special proceeding with a third party, arising out of the same transaction or series of related transactions and there is a possibility of conflicting rulings on a common issue of law or fact. For purposes of this section, a pending court action or special proceeding includes an action or proceeding initiated by the party refusing to arbitrate after the petition to compel arbitration has been filed, but on or before the date of the hearing on the petition. This subdivision shall not be applicable to an agreement to arbitrate disputes as to the professional negligence of a health care provider made pursuant to Section 1295.(d) The petitioner is a financial institution that, on or after January 1, 2018, seeks is seeking to apply a written agreement to arbitrate, contained in a contract consented to by a consumer, to a purported contractual relationship with that consumer that was created fraudulently by the petitioner fraudulently without the consumers consent and by unlawfully using the consumers personal identifying information, as defined in Section 1798.92 of the Civil Code. For purposes of this subdivision, financial institution means a person who is licensed pursuant to Division 1.1 (commencing with Section 1000), Division 5 (commencing with Section 14000), or Division 7 (commencing with Section 18000) of the Financial Code, or Division 1 (commencing with Section 25000) of Title 4 of the Corporations Code; is a federally chartered depository institution; or is a broker, dealer, or investment advisor required to register with the Securities and Exchange Commission.If the court determines that a written agreement to arbitrate a controversy exists, an order to arbitrate such controversy may not be refused on the ground that the petitioners contentions lack substantive merit.If the court determines that there are other issues between the petitioner and the respondent which are not subject to arbitration and which are the subject of a pending action or special proceeding between the petitioner and the respondent and that a determination of such issues may make the arbitration unnecessary, the court may delay its order to arbitrate until the determination of such other issues or until such earlier time as the court specifies.If the court determines that a party to the arbitration is also a party to litigation in a pending court action or special proceeding with a third party as set forth under subdivision (c) herein, the court (1) may refuse to enforce the arbitration agreement and may order intervention or joinder of all parties in a single action or special proceeding; (2) may order intervention or joinder as to all or only certain issues; (3) may order arbitration among the parties who have agreed to arbitration and stay the pending court action or special proceeding pending the outcome of the arbitration proceeding; or (4) may stay arbitration pending the outcome of the court action or special proceeding.
1281.2. On petition of a party to an arbitration agreement alleging the existence of a written agreement to arbitrate a controversy and that a party thereto refuses to arbitrate such controversy, the court shall order the petitioner and the respondent to arbitrate the controversy if it determines that an agreement to arbitrate the controversy exists, unless it determines that:(a) The right to compel arbitration has been waived by the petitioner; or(b) Grounds exist for the revocation of the agreement.(c) A party to the arbitration agreement is also a party to a pending court action or special proceeding with a third party, arising out of the same transaction or series of related transactions and there is a possibility of conflicting rulings on a common issue of law or fact. For purposes of this section, a pending court action or special proceeding includes an action or proceeding initiated by the party refusing to arbitrate after the petition to compel arbitration has been filed, but on or before the date of the hearing on the petition. This subdivision shall not be applicable to an agreement to arbitrate disputes as to the professional negligence of a health care provider made pursuant to Section 1295.(d) The petitioner is a financial institution that, on or after January 1, 2018, seeks is seeking to apply a written agreement to arbitrate, contained in a contract consented to by a consumer, to a purported contractual relationship with that consumer that was created fraudulently by the petitioner fraudulently without the consumers consent and by unlawfully using the consumers personal identifying information, as defined in Section 1798.92 of the Civil Code. For purposes of this subdivision, financial institution means a person who is licensed pursuant to Division 1.1 (commencing with Section 1000), Division 5 (commencing with Section 14000), or Division 7 (commencing with Section 18000) of the Financial Code, or Division 1 (commencing with Section 25000) of Title 4 of the Corporations Code; is a federally chartered depository institution; or is a broker, dealer, or investment advisor required to register with the Securities and Exchange Commission.If the court determines that a written agreement to arbitrate a controversy exists, an order to arbitrate such controversy may not be refused on the ground that the petitioners contentions lack substantive merit.If the court determines that there are other issues between the petitioner and the respondent which are not subject to arbitration and which are the subject of a pending action or special proceeding between the petitioner and the respondent and that a determination of such issues may make the arbitration unnecessary, the court may delay its order to arbitrate until the determination of such other issues or until such earlier time as the court specifies.If the court determines that a party to the arbitration is also a party to litigation in a pending court action or special proceeding with a third party as set forth under subdivision (c) herein, the court (1) may refuse to enforce the arbitration agreement and may order intervention or joinder of all parties in a single action or special proceeding; (2) may order intervention or joinder as to all or only certain issues; (3) may order arbitration among the parties who have agreed to arbitration and stay the pending court action or special proceeding pending the outcome of the arbitration proceeding; or (4) may stay arbitration pending the outcome of the court action or special proceeding.
1281.2. On petition of a party to an arbitration agreement alleging the existence of a written agreement to arbitrate a controversy and that a party thereto refuses to arbitrate such controversy, the court shall order the petitioner and the respondent to arbitrate the controversy if it determines that an agreement to arbitrate the controversy exists, unless it determines that:(a) The right to compel arbitration has been waived by the petitioner; or(b) Grounds exist for the revocation of the agreement.(c) A party to the arbitration agreement is also a party to a pending court action or special proceeding with a third party, arising out of the same transaction or series of related transactions and there is a possibility of conflicting rulings on a common issue of law or fact. For purposes of this section, a pending court action or special proceeding includes an action or proceeding initiated by the party refusing to arbitrate after the petition to compel arbitration has been filed, but on or before the date of the hearing on the petition. This subdivision shall not be applicable to an agreement to arbitrate disputes as to the professional negligence of a health care provider made pursuant to Section 1295.(d) The petitioner is a financial institution that, on or after January 1, 2018, seeks is seeking to apply a written agreement to arbitrate, contained in a contract consented to by a consumer, to a purported contractual relationship with that consumer that was created fraudulently by the petitioner fraudulently without the consumers consent and by unlawfully using the consumers personal identifying information, as defined in Section 1798.92 of the Civil Code. For purposes of this subdivision, financial institution means a person who is licensed pursuant to Division 1.1 (commencing with Section 1000), Division 5 (commencing with Section 14000), or Division 7 (commencing with Section 18000) of the Financial Code, or Division 1 (commencing with Section 25000) of Title 4 of the Corporations Code; is a federally chartered depository institution; or is a broker, dealer, or investment advisor required to register with the Securities and Exchange Commission.If the court determines that a written agreement to arbitrate a controversy exists, an order to arbitrate such controversy may not be refused on the ground that the petitioners contentions lack substantive merit.If the court determines that there are other issues between the petitioner and the respondent which are not subject to arbitration and which are the subject of a pending action or special proceeding between the petitioner and the respondent and that a determination of such issues may make the arbitration unnecessary, the court may delay its order to arbitrate until the determination of such other issues or until such earlier time as the court specifies.If the court determines that a party to the arbitration is also a party to litigation in a pending court action or special proceeding with a third party as set forth under subdivision (c) herein, the court (1) may refuse to enforce the arbitration agreement and may order intervention or joinder of all parties in a single action or special proceeding; (2) may order intervention or joinder as to all or only certain issues; (3) may order arbitration among the parties who have agreed to arbitration and stay the pending court action or special proceeding pending the outcome of the arbitration proceeding; or (4) may stay arbitration pending the outcome of the court action or special proceeding.
1281.2. On petition of a party to an arbitration agreement alleging the existence of a written agreement to arbitrate a controversy and that a party thereto refuses to arbitrate such controversy, the court shall order the petitioner and the respondent to arbitrate the controversy if it determines that an agreement to arbitrate the controversy exists, unless it determines that:
(a) The right to compel arbitration has been waived by the petitioner; or
(b) Grounds exist for the revocation of the agreement.
(c) A party to the arbitration agreement is also a party to a pending court action or special proceeding with a third party, arising out of the same transaction or series of related transactions and there is a possibility of conflicting rulings on a common issue of law or fact. For purposes of this section, a pending court action or special proceeding includes an action or proceeding initiated by the party refusing to arbitrate after the petition to compel arbitration has been filed, but on or before the date of the hearing on the petition. This subdivision shall not be applicable to an agreement to arbitrate disputes as to the professional negligence of a health care provider made pursuant to Section 1295.
(d) The petitioner is a financial institution that, on or after January 1, 2018, seeks is seeking to apply a written agreement to arbitrate, contained in a contract consented to by a consumer, to a purported contractual relationship with that consumer that was created fraudulently by the petitioner fraudulently without the consumers consent and by unlawfully using the consumers personal identifying information, as defined in Section 1798.92 of the Civil Code. For purposes of this subdivision, financial institution means a person who is licensed pursuant to Division 1.1 (commencing with Section 1000), Division 5 (commencing with Section 14000), or Division 7 (commencing with Section 18000) of the Financial Code, or Division 1 (commencing with Section 25000) of Title 4 of the Corporations Code; is a federally chartered depository institution; or is a broker, dealer, or investment advisor required to register with the Securities and Exchange Commission.
If the court determines that a written agreement to arbitrate a controversy exists, an order to arbitrate such controversy may not be refused on the ground that the petitioners contentions lack substantive merit.
If the court determines that there are other issues between the petitioner and the respondent which are not subject to arbitration and which are the subject of a pending action or special proceeding between the petitioner and the respondent and that a determination of such issues may make the arbitration unnecessary, the court may delay its order to arbitrate until the determination of such other issues or until such earlier time as the court specifies.
If the court determines that a party to the arbitration is also a party to litigation in a pending court action or special proceeding with a third party as set forth under subdivision (c) herein, the court (1) may refuse to enforce the arbitration agreement and may order intervention or joinder of all parties in a single action or special proceeding; (2) may order intervention or joinder as to all or only certain issues; (3) may order arbitration among the parties who have agreed to arbitration and stay the pending court action or special proceeding pending the outcome of the arbitration proceeding; or (4) may stay arbitration pending the outcome of the court action or special proceeding.