Lead Attorney Katie Fiester and Hunter Pyle Law Prevail in California Court of Appeal Decision Finding Tesla in Default of Arbitration for Its Failure to Timely Pay Arbitration Fees

June 27, 2024


Hunter Pyle Law filed a lawsuit in Alameda County Superior Court on behalf of a worker who suffered harassment, race-based discrimination, and retaliation throughout her employment with Tesla. Tesla demanded that Plaintiff arbitrate her claims outside of Court pursuant to an arbitration agreement that Tesla drafted and included in Plaintiff’s employment agreement.

Accordingly, Plaintiff, represented by Hunter Pyle Law and lead attorney Katie Fiester, filed her demand for arbitration and paid her filing fee. However, after Plaintiff commenced arbitration, Tesla failed to timely pay its arbitration fees in order for the arbitration to continue, in violation of California law. Pursuant to California Code of Civil Procedure section 1281.98, Telsa had a legal obligation to timely pay the arbitration fees and costs during the pendency of Plaintiff’s arbitration proceeding.

As a result of Tesla’s conduct in arbitration, Plaintiff filed a motion requesting that the Court find Tesla in default of arbitration, and allow her to continue pursuing her claims in Superior Court. The Court granted Plaintiff’s motion. Tesla subsequently appealed. The Court of Appeal of the State of California, First Appellate District, Division One, issued its decision upholding the Superior Court’s Order finding Tesla in default of arbitration. Plaintiff is therefore able to pursue her claims against Tesla in Superior Court.