Yazdi v. San Diego County Credit Union CA4/1, D083835

Plaintiff Shiva Yazdi sued her former employer, San Diego County Credit Union (SDCCU), alleging employment-related claims.
The parties had an arbitration agreement; SDCCU successfully compelled arbitration and the court stayed the action pending arbitration.
JAMS, the arbitration provider, sent an invoice for arbitration fees to SDCCU, explicitly stating that payment was due upon receipt.
SDCCU mailed payment on the 30th day after receiving the invoice; JAMS received the payment one day after the 30-day statutory deadline.
Yazdi moved to vacate the order compelling arbitration, citing California Code of Civil Procedure sections 1281.97 and 1281.98, which provide for a material breach if payment is not made within 30 days.
The trial court found SDCCU’s payment untimely and granted Yazdi’s motion, allowing the matter to return to court. SDCCU appealed.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Does untimely payment of arbitration fees by employer constitute a material breach?	Payment received after 30 days = material breach under strict statutory rule.	Payment was timely because it was mailed by the 30th day.	Court held breach occurs if payment not received within 30 days.
Can defendant raise new arguments (FAA preemption) on appeal?	SDCCU forfeited FAA arguments by not raising them below.	FAA applies, preempts state law; payment should be timely under FAA.	Court found SDCCU forfeited FAA arguments by not raising them earlier.
Should the statute be strictly applied even for minor delay?	Strict application prevents delay and gamesmanship, per Legislature’s intent.	Strict enforcement subverts public policy favoring arbitration.	Court upheld strict rule: any late payment is a breach.
Does mailing (not receipt) within deadline suffice for timeliness?	Statutory language requires receipt, not just mailing, within deadline.	Mailing payment by the deadline satisfies the requirement.	Court ruled deadline requires receipt, not mailing, within 30 days.

Williams v. West Coast Hospitals, Inc., 86 Cal.App.5th 1054 (Cal. Ct. App. 2022) (statutes strictly require timely payment of arbitration fees, with late payment constituting material breach)
Espinoza v. Superior Court, 83 Cal.App.5th 761 (Cal. Ct. App. 2022) (rejects FAA preemption argument, holding California statutes enforce timely payment strictly)
De Leon v. Juanita’s Foods, 85 Cal.App.5th 740 (Cal. Ct. App. 2022) (establishes a bright-line rule for timely arbitration fee payment)
Doe v. Superior Court, 95 Cal.App.5th 346 (Cal. Ct. App. 2023) (strictly enforces statutory fee payment deadlines, regardless of good faith or minor delay)