§ 1281.92.Private Arbitration Company Administering Consumer Arbitration
Title 9. Arbitration · Chapter 2. Enforcement of Arbitration Agreements · Enacted 2002 · no amendments on record · Last verified July 29, 2026
Full Text of § 1281.92
Plain-English Summary
This section polices a specific conflict of interest: an arbitration provider with a financial stake in one side of the dispute it's supposed to administer neutrally. A private arbitration company can't administer a consumer arbitration, or provide any related services, if the company currently has, or has had within the preceding year, a financial interest in a party or the party's attorney.
The same rule runs the other direction. The company also can't administer the arbitration if a party or attorney currently has, or has had within the preceding year, any kind of financial interest in the arbitration company itself.
This prohibition looks forward only, not back. It applies just to consumer arbitrations administered on the basis of financial interests held on or after January 1, 2003, and doesn't reach back to disqualify arbitrations based on interests that existed only before that date. It applies across every consumer arbitration agreement and proceeding covered by this article in California.
Frequently Asked Questions
Can an arbitration company have a financial stake in one of the parties?
No. Section 1281.92 bars administering a consumer arbitration if the company or a party or attorney has held a financial interest in the other within the preceding year.
Does this rule apply retroactively?
No. It operates only prospectively, so it doesn't prohibit administering arbitrations on the basis of financial interests held before January 1, 2003.
Does the rule cover only the arbitration company, or attorneys too?
Both directions are covered -- the company's interest in a party or attorney, and a party's or attorney's interest in the company.
Amendment History
Added by Stats 2002 ch 952 (AB 2574),s 1, eff. 1/1/2003.