Are there any restrictions on pre-arbitration discovery requests in securities arbitration?

In California, there are restrictions on pre-arbitration discovery requests in securities arbitration. The California Code of Civil Procedure (CCP) Section 1281.8 governs pre-arbitration discovery in securities arbitrations in California. This statute restricts the scope of pre-arbitration discovery as compared to civil actions and requires that any requests for discovery be “reasonably calculated” to result in sufficient evidence for a party to determine whether a claim or defense is valid. Generally, in securities arbitration proceedings, the parties are allowed to obtain written below-the-line discovery in the form of documents, such as correspondence and account statements. Parties are not allowed to serve interrogatories or requests for admissions, and the scope of depositions is limited to the documents produced. Parties are precluded from using “fishing expeditions” or broad discovery requests that do not have a reasonable probability of leading to evidence of a valid claim or defense. Additionally, California’s Code of Civil Procedure Section 1281.8 also provides that arbitrators may stay or limit discovery, including any pre-arbitration discovery requests, in an effort to prevent discovery from becoming unduly burdensome or oppressive. This shows that the legislature recognizes the limited nature of pre-arbitration discovery requests and encourages parties to move expeditiously towards a hearing.

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Are there any restrictions on pre-arbitration discovery requests in securities arbitration?

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