Waiver Of Right To Arbitrate Results From Delay After Agreeing To Mediate And Not Mentioning Arb Agreement

Waiver Results From Delaying Bringing Motion To Compel Arbitration Without Adequate Explanation.

        Britnee Campbell, a former employee of Sunshine Behavioral Health, LLC, filed a class action lawsuit in May 2022 for wage and hour violations. Sunshine entered into litigation and mediation discussions, without mentioning an arbitration agreement allegedly signed by Campbell. In November 2022, Sunshine claimed it discovered the arbitration agreement but continued to engage in mediation discussions. In March 2023, Sunshine announced it would not mediate and instead sought to compel arbitration. The court ruled that Sunshine had waived its right to arbitration by delaying its motion and engaging in mediation efforts, leading to Campbell’s motions to compel discovery responses. The Court of Appeal affirmed the trial court’s decision that Sunshine’s actions constituted a waiver of arbitration. Campbell v. Sunshine Behavioral Health, LLC, G062886 (4/3  9/25/24) (Moore, J.).