What is the test for finding prejudice in a motion to compel a party to attend arbitration?

California, United States of America


The following excerpt is from Burkeen v. Skilled Healthcare Grp., Inc., G050702 (Cal. App. 2015):

"Prejudice typically is found only where the petitioning party's conduct has [(1)] substantially undermined" the "'"public policy in favor of arbitration as a speedy and relatively inexpensive means of dispute resolution,"'" or (2) "substantially impaired the other side's ability to take advantage of the benefits and efficiencies of arbitration." (St. Agnes, supra, 31 Cal.4th at p. 1204.) Although "courts will not find prejudice where the party opposing arbitration shows only that it incurred court costs and legal expenses" (id. at p. 1203), litigation costs are a factor which courts may consider in assessing prejudice (Sobremonte v. Superior Court, supra, 61 Cal.App.4th at p. 995). "[T]he critical factor in demonstrating prejudice is whether the party opposing arbitration has

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