(a) The court shall impose a monetary sanction against a drafting party that materially breaches an arbitration agreement pursuant to subdivision (a) of Section 1281.97 or subdivision (a) of Section 1281.98, by ordering the drafting party to pay the reasonable expenses, including attorney’s fees and costs, incurred by the employee or consumer as a result of the material breach.
(b) In addition to the monetary sanction described in subdivision (a), the court may order any of the following sanctions against a drafting party that materially breaches an arbitration agreement pursuant to subdivision (a) of Section 1281.97 or subdivision (a) of Section 1281.98, unless the court finds that the one subject to the sanction acted with substantial justification or that other circumstances make the imposition of the sanction unjust.
(1) An evidence sanction by an order prohibiting the drafting party from conducting discovery in the civil action.
(2) A terminating sanction by one of the following orders:
(A) An order striking out the pleadings or parts of the pleadings of the drafting party.
(B) An order rendering a judgment by default against the drafting party.
(3) A contempt sanction by an order treating the drafting party as in contempt of court.
(Added by Stats. 2019, Ch. 870, Sec. 6. (SB 707) Effective January 1, 2020.)
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