Svetlana Sanfilippo v. Enchant Christmas LLC

Plaintiff alleges that she offered to return to work prior to exhausting all of her available leave. (Complaint, ¶ 9.)

Plaintiff alleges that Enchant Christmas terminated Plaintiff's employment on March 3, 2023, while Plaintiff was out on leave. (Complaint, ¶ 10.)

Plaintiff alleges that Enchant Christmas told Plaintiff that her position was being eliminated, while Enchant Christmas hired a functional replacement. (Complaint, ¶ 10.)

Plaintiff alleges that Enchant Christmas terminated her employment due to Plaintiff's sex, disability, and request for accommodation. (Complaint, ¶ 11.)

LEGAL STANDARD

Code of Civil Procedure Section 1281.97(a)(1) states: "In an employment or consumer arbitration that requires, either expressly or through application of state or federal law or the rules of the arbitration administrator, the drafting party to pay certain fees and costs before the arbitration can proceed, if the fees or costs to initiate an arbitration proceeding are not paid within 30 days after the due date, the drafting party is in material breach of the arbitration agreement, is in default of the arbitration, and waives its right to compel arbitration under Section 1281.2." (Code Civ. Proc. Section 1281.97(a)(1).)

Code of Civil Procedure Section 1281.98(a)(1) states a similar requirement for payment, providing: "In an employment or consumer arbitration that requires, either expressly or through application of state or federal law or the rules of the arbitration provider, that the drafting party pay certain fees and costs during the pendency of an arbitration proceeding, if the fees or costs required to continue the arbitration proceeding are not paid within 30 days after the due date, the drafting party is in material breach of the arbitration agreement, is in default of the arbitration, and waives its right to compel the employee or consumer to proceed with that arbitration as a result of the material breach." (Code Civ. Proc. Section 1281.98(a)(1).)

Both Sections 1281.97(b)(1) and 1281.98(b)(1) state that if the drafting party fails to timely pay the arbitration fees required, then a material breach and waiver have occurred, and the employee may "[w]ithdraw the claim from arbitration and proceed in a court of appropriate jurisdiction."

In addition, Code of Civil Procedure Section 1281.99(a) states that the court "shall impose a monetary sanction against a drafting party that materially breaches an arbitration agreement pursuant to subdivision (a) of Sections 1281.97 or subdivision (a) of Section 1281.98, by ordering the drafting party to pay the reasonable expenses, including attorney's fees and costs, incurred by the employee or consumer because of the material breach."

DISCUSSION

Moving Party's Argument

Plaintiff argues that the parties' arbitration has been terminated due to the failure of Enchant Christmas to timely pay required arbitration fees, constituting a material breach, default, and waiver of the right to compel arbitration.

Plaintiff argues that the arbitration fees were billed to Enchant Christmas on November 13, 2025, yet Enchant Christmas has failed to pay those fees, such that the arbitration was unable to proceed.

Plaintiff states that her counsel requested that the matter be withdrawn from arbitration, after which the American Arbitration Association (the "AAA") issued a written notice confirming that the arbitration matter was closed as withdrawn.

Merits of the Motion

Plaintiff's counsel declares that Enchant Christmas's arbitration fees were billed on November 13, 2025, with payment to be received within 30 days of the invoice date. (Hames Decl., ¶ 3; Exh. 2.)

Plaintiff's counsel further declares that Enchant Christmas has failed to pay the required fees, such that the arbitration has been unable to proceed. (Hames Decl., ¶ 4.)

Next, Plaintiff's counsel declares that on December 17, 2025, she requested that the matter be withdrawn from arbitration. (Hames Decl., ¶ 4; Exh. 3.)

On the same day, the AAA issued a written notice confirming that the parties' arbitration matter was closed as withdrawn, effective December 17, 2025. (Hames Decl., ¶ 5; Exh. 4.)

Because Enchant Christmas has failed to pay the required arbitration fees within the 30-day deadline, pursuant to Code of Civil Procedure Sections 1281.97(a)(1) and 1281.98(a)(1), the court finds that Enchant Christmas is in material breach of the parties' arbitration agreement.

Therefore, pursuant to Code of Civil Procedure Sections 1281.97(b)(1) and 1281.98(b)(1), Plaintiff may "[w]ithdraw the claim from arbitration and proceed in a court of appropriate jurisdiction."

Accordingly, Plaintiff's Motion to Lift Stay and Restore Case to Active Civil Docket is GRANTED.

CONCLUSION

Based on the foregoing, Plaintiff's Motion to Lift Stay and Restore Case to Active Civil Docket is GRANTED.

Prevailing party on motion is ordered to give notice of ruling.