ar•bi•tra•tion n. 1.
the process by which
the parties to a
dispute submit their
differences to the
judgment of an
STATE LICENSE BOARD
MANDATORY ARBITRATION PROGRAM GUIDE
ar!bi!tra!tion n. 1. The process by which the parties to a dispute submit their
differences to the judgment of an impartial party appointed by statutory provision.
Many disputes between consumers and contractors can be resolved efficiently and
satisfactorily through arbitration. Mandatory arbitration is a process in which an impartial
third person is appointed by the Contractors State License Board (CSLB) or its
representative to make a final decision in a dispute between two or more parties. Because
of the many advantages arbitration can offer, the CSLB offers arbitration for the
resolution of disputes that meet certain criteria. The CSLB will pay for the hearing, the
arbitrator, and the services of one state-appointed expert witness per complaint. Only
contractors with good records will qualify for participation in arbitration. Complaints
involving deceptive or fraudulent practices will continue to be investigated by the CSLB.
A case qualifies for mandatory arbitration under Business and Professions Code Section
The dispute involves present or future damages of $12,500 or less;
The contractor possesses a license that is in good standing, at the time of
the alleged violation;
The contractor does not have a record of prior violations;
The contractor does not currently have a disciplinary action pending
against him or her; and
the parties have not previously agreed to private arbitration of the dispute,
either in their contract or otherwise.
The complaint must be filed within four or ten years after the alleged wrongful act or
omission causing the dispute occurred, or within the duration of any written warranty for
which breach is alleged. The four-year time period applies to disputes involving pa