If an arbitration agreement requires that arbitration of a controversy be demanded or initiated by a party to the arbitration agreement within a period of time, the commencement of a civil action by that party based upon that controversy, within that period of time, shall toll the applicable time limitations contained in the arbitration agreement with respect to that controversy, from the date the civil action is commenced until 30 days after a final determination by the court that the party is required to arbitrate the controversy, or 30 days after the final termination of the civil action that was commenced and initiated the tolling, whichever date occurs first.
§ 1281.12.Time Limitations Contained In Agreement Tolled By Commencement of Civil Action By Party to Agreement
Title 9. Arbitration · Chapter 2. Enforcement of Arbitration Agreements · Enacted 2006 · no amendments on record · Last verified July 29, 2026
In one sentenceSection 1281.12 tolls an arbitration agreement's own deadline for demanding arbitration whenever a party instead files a timely civil action on the same controversy, with the tolling period running until 30 days after a final court ruling compelling arbitration, or 30 days after the civil action's final termination, whichever comes first.
Full Text of § 1281.12
Plain-English Summary
Some arbitration agreements set their own clock for demanding arbitration, separate from any statute of limitations. This section protects a party who files a civil action instead of an arbitration demand within that window, rather than letting the agreement's own deadline quietly expire while the parties argue over whether arbitration applies at all.
When a civil action based on the controversy is commenced within the time the agreement allows for demanding arbitration, that filing tolls the agreement's own time limit. Tolling lasts from the date the civil action is filed until 30 days after a court makes a final determination that the party must arbitrate, or 30 days after the civil action itself reaches final termination -- whichever of those two dates comes first.
Frequently Asked Questions
What happens to an arbitration agreement's demand deadline if a party sues instead?
Filing a timely civil action on the same controversy tolls that deadline, under § 1281.12.
When does the tolling period end?
Thirty days after a court's final determination that the party must arbitrate, or 30 days after the civil action's final termination, whichever happens first.
Why does this rule matter for parties unsure whether their dispute is arbitrable?
It lets a party file suit to protect against a running deadline without forfeiting the arbitration agreement's own time limit for demanding arbitration, if a court later says the dispute belongs in arbitration.
Amendment History
Added by Stats 2006 ch 266 (AB 1553),s 1, eff. 1/1/2007.
Source & verification. Section text is reproduced verbatim from
the Deering's California Codes Annotated / vLex. Enacted by the California Legislature.
Last verified July 29, 2026.
· Official source
Also known as: tolling arbitration deadline californiafiling lawsuit instead of arbitration demand