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News & Press: Sacramento Report

Arbitration Bill Introduced

Tuesday, February 21, 2017  
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Arbitration Bill Introduced

On the first official day of the 2017-2018 Legislative Session, newly elected Senator Bill Dodd introduced SB 33, a bill addressing contractual arbitration. This bill has become one of the most controversial bills of the session, and it hasn’t even had a hearing yet. SB 33 prohibits arbitration agreements made as a condition of a contract for claims involving fraud, identity theft, and wrongful use of personal identifying information. This bill was introduced as a result of the recent Wells Fargo scandal and claims that customers waived their right to sue and agreed to arbitrate all disputes, even fraud, when opening up their initial and legitimate accounts.

A large coalition led by the California Chamber of Commerce believes the bill applies broadly to all contracts for goods and services and has tagged this bill as a Job Killer. The issue is whether the bill can be drafted to address a very specific problem without jeopardizing all arbitration. The bill has been referred to the Senate Judiciary Committee, but a hearing date has not yet been set.  

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