How Does Mandatory Arbitration Work for California Contractors?
When it comes to disputes between a contractor
and a customer in the state of California, there are several options to be
taken. The Contractor’s State Licensing Board (CSLB) offers mandatory
arbitration as one such option for resolution.
Unlock Legal, a professional license defense
firm, helps contractors when issues arise and a licensing board hearing is
required. Our legal team wants to give
you some insight into what mandatory arbitration is, and which cases can be
Arbitration puts a dispute in the hands of a
neutral observer. This impartial
participant makes a ruling between consumers and contractors and renders a
The CSLB will agree to help with the
arbitration in cases that meet certain criteria. Among the resources that the board provides
includes, the hearing, the arbitrator, and a state-appointed expert witness per
It is important to note that only contractors
in good-standing can receive these arbitration benefits from the CSLB. Should a party allege a complaint of
fraudulent or deceptive practices, the board will investigate the case.
What Disputes Qualify for Mandatory Arbitration?
According to the Business and Professions Code
(BPC) 705, a case qualifies if:
The final resolution does not
The contractor’s license is in
good standing, without additional active complaints, at the time of the dispute
The contractor’s record does not
contain a similar allegation or complaint
The parties have not agreed to a
Unlock Legal Can Help
When contractors face a hearing or
arbitration, Unlock Legal’s team can represent the contractor in the case.
While attorneys are not mandatory, it is wise to protect your business and your
credibility by having legal representation.
There are many benefits to arbitration,
including a speedy and resolution, and the dispute is settled in a much less
formal setting. Just a reminder, both parties must abide by the final
If you are a contractor in a dispute and you
elect to take the case to arbitration, Unlock Legal’s team can help. Do you have a question about our work with
contractors? We invite you to give us a
call at 949-239-7061.