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Arbitration provider tells CSLB arbitration average award turnaround is 41 days; asks to raise voluntary limits
Summary
The contractors board’s arbitration provider reported a 41-day average turnaround from filing to award, about 410 awards in 2024 and recommended raising voluntary award limits from $50,000 to $100,000 and increasing outreach about the program.
At the April 11, 2025 Contractors State License Board Enforcement Committee meeting, Karen Smith, identified as president of MCC Arbitration Mediation and Affiliation Center, described the CSLB arbitration program, its performance metrics and suggested changes.
Smith said the provider handled about 410 awards in 2024 and that the total amount awarded that year was close to $5 million, noting that arbitration outcomes are not the same as enforcement restitution. "One of the stats we are most proud of is that there is currently a 41 day turnaround ... from when we get the case in our doors and when we turn around an award," Smith said.
She described mandatory arbitration (tied to a bond limit currently set at $25,000) and voluntary arbitration (awards up to $50,000, with both parties' agreement). Smith said the program uses remote hearings, accepts electronic filings and sends evaluation forms after hearings; she reported a 4.8-out-of-5 average evaluation score for the program.
Smith urged the CSLB to consider raising voluntary arbitration limits (currently $50,000) to a higher figure, suggesting a goal of $100,000 to keep more disputes in the arbitration program and reduce litigation costs for homeowners and contractors.
Committee members praised the program and asked staff to consider outreach and education so more consumers learn about arbitration as a lower-cost alternative to court. No formal action was taken during the meeting.
