Credit: momius/Adobe Stock New Law Expands Ethical Rules for California Neutrals
SB 940, signed into law by Gov. Gavin Newsom, will create a voluntary, state bar-run program to certify ADR firms and neutrals found to be in compliance with ethics rules.
October 03, 2024 at 09:40 AM
3 minute read
Arbitration companies and the neutrals who work there will have new ethical requirements to comply with in 2025 after Gov. Gavin Newsom signed plaintiffs-bar-backed legislation on Sunday.
SB 940 will force arbitrators to announce whether their firm over the past two years solicited work from a party, or a lawyer to that party, currently in a consumer case before them. So-called repeat-player provisions will also bar an arbitration firm or neutral from offering future services to a party or lawyer while their case is pending.
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