CJAC Asks DOJ to Release Cost Figures for Defending Preempted Arbitration Law

Media Contact:
Nick Mirman
nick@cmpublicaffairs.com

SACRAMENTO, Calif. (May 7, 2025) — Today, the Civil Justice Association of California (CJAC) announced that it has submitted a Public Records Act request with California’s Department of Justice to uncover the amount of taxpayer dollars that were spent to unsuccessfully defend a federally-preempted arbitration law in court. CJAC is renewing its request in light of a new legislative proposal, SB 82 (Umberg), that is likely also federally preempted.

The courts overturned AB 51 (Gonzalez – 2019) last year after a business coalition argued that the bill was preempted by the Federal Arbitration Act. The courts also ruled that the Department of Justice must pay the attorneys’ fees for the plaintiff – an amount that totaled more than $822,000.

The Department of Justice has refused two prior requests by CJAC to release the Department’s own internal cost figures to defend the bill in court, claiming the information is subject to several privileges as the litigation was still pending. Since the litigation closed over a year ago, there is no longer any basis to withhold the information. 

“The public deserves to know how much of their money was wasted attempting to defend a bill obviously preempted by federal law,” said Kyla Christoffersen Powell, CJAC’s President and CEO. “California bills that attempt to rewrite the rules around arbitration will continue to face the same headwinds in the courts, potentially costing taxpayers millions with nothing to show for it. These efforts are a waste of money at a time when Californians want to see legislation that lowers costs.”

Another bill pending this year, SB 82 (Umberg), could face the same fate and generate significant new litigation costs for the state if signed into law. The bill would severely limit the use of arbitration agreements, meaning it would likely be preempted by the Federal Arbitration Act.