Tesla Must Face Suit in Court After Late Arbitration Fee Payment

Tesla Inc. must face a worker’s discrimination lawsuit in open court after failing to pay arbitration fees on time, a California appeals court ruled, rejecting the company’s argument that federal law preempted the deadline.

California’s 30-day deadline for a drafting party to pay fees at penalty of breaching an agreement is consistent with the Federal Arbitration Act because it encourages speedy and efficient resolution, Justice Monique S. Langhorne Wilson wrote in a partially published Wednesday opinion for California’s First District Court of Appeal.

The state law should be considered akin to a statute of limitations, rather than a prohibition or ...