Why the Clock Doesn’t Stop: Arbitration Tolling Rules for Uber and Lyft Cases Under California Law

When you’re injured in an accident involving Uber or Lyft, your first thoughts are about recovery, insurance, and justice. Filing a lawsuit may seem like the obvious next step — but for many Californians, that’s only part of the battle. Increasingly, rideshare companies are turning to forced arbitration, creating procedural traps that can quietly erase a personal injury claim — all because of a missed deadline. 

One of the most misunderstood areas of law in these cases involves how arbitration affects the statute of limitations — the legal time window to pursue your claim. Under California Code of Civil Procedure §1281.12, there's a specific rule that tolls (pauses) the statute of limitations when a court compels arbitration, but only temporarily. If you don’t act promptly after that ruling, your right to compensation may vanish — even if you’ve already filed your lawsuit in good faith. 

This post explains how arbitration works in Uber and Lyft injury claims, what CCP §1281.12 really means, and how a single 30-day period could determine whether or not you ever see justice. 

The Rise of Arbitration in Uber & Lyft Injury Cases 

Uber and Lyft have built arbitration clauses into their user agreements for years. Whether you’re a passenger, driver, or even a third-party injured in a rideshare incident, you may have unknowingly agreed to settle legal disputes outside of court — often through private arbitration. 

Here’s why this matters: arbitration is not handled by a judge in a courtroom. Instead, it’s a private, often confidential legal process conducted by a neutral arbitrator. These clauses are written to favor the company, not the consumer. And courts in California have generally upheld their enforceability — especially after the 2019 California Supreme Court ruling in Oto, L.L.C. v. Kho. 

This means that even if you file a lawsuit against Uber or Lyft after a car accident, the company may file a motion to compel arbitration, halting court proceedings. But what does this mean for the statute of limitations — the ticking clock on your right to sue? 

What Is Arbitration — and How Does It Affect Your Claim? 

Arbitration is often seen as a faster, less expensive alternative to litigation. But for personal injury victims, it can introduce a maze of procedural steps, deadlines, and confusion. 

Key differences between arbitration and litigation: 

• No jury — only an arbitrator decides your case 
• Limited discovery — less evidence may be shared 
• Private process — decisions often aren’t made public 
• Company-chosen forums — like JAMS or AAA 

The most dangerous part? Thinking you’ve done everything right by filing in court — and then doing nothing after arbitration is ordered. That’s where CCP §1281.12 becomes critical. 

California Code of Civil Procedure §1281.12 — What It Says and Why It Matters 

California CCP §1281.12 offers a narrow but important protection for plaintiffs: when a lawsuit is filed and a court later compels arbitration, the statute of limitations is tolled (paused) during that time. But only temporarily. 

Here’s what the code provides: 

“If a party to an arbitration agreement files an action in court and the court orders that arbitration be compelled under this title, the statute of limitations is tolled from the time the action is filed until 30 days after the court makes the order compelling arbitration.” 

Translation: the statute of limitations pauses from the date you filed your lawsuit until 30 days after the court orders you into arbitration. After that, it resumes — and the time remaining may be very short. 

If you fail to demand arbitration with the proper arbitration forum (e.g., JAMS, AAA) within those 30 days, your claim could be dismissed as time-barred — even though you originally filed it on time in court. 

The Critical 30-Day Window — What You Must Do After Arbitration Is Ordered 

Once a court compels arbitration, the legal burden is back on you. 

Here's what must happen next: 

• Track the court’s ruling date — You now have a 30-day grace period. 
• Promptly demand arbitration from the designated provider named in the arbitration clause (JAMS, AAA, etc.). 
• Follow their rules — This usually means filing a demand, paying a filing fee, and submitting preliminary information. 
• Document everything — Courts will expect proof you made a timely arbitration demand if challenged. 

Many claimants and even some attorneys mistakenly believe the case is “safe” simply because they filed a lawsuit before the statute ran. But CCP §1281.12 limits tolling to a specific window. 

If arbitration isn’t initiated within that 30-day period, your statute of limitations may expire, and your claim can be dismissed — permanently. 

What Can Go Wrong: Common Pitfalls and Case Examples 

Even strong cases can fall apart due to simple missteps. Here are some of the most common: 

• Failing to track court timelines after arbitration is ordered 
• Misunderstanding who must initiate arbitration 
• Missing the demand deadline by days or weeks 
• Failing to pay arbitration fees or follow forum rules 
• Assuming arbitration will automatically begin once compelled 

Example: A plaintiff injured in a Lyft ride files a lawsuit 18 months after the incident — within the two-year statute of limitations for PI cases in California. The court compels arbitration 4 months later. But the plaintiff’s attorney doesn’t file a demand for arbitration until 45 days after the ruling. Lyft moves to dismiss. The court agrees — the statute expired because the arbitration was not timely initiated. 

How a Personal Injury Lawyer Can Preserve Your Rights 

Navigating these procedural landmines is one of the strongest reasons to retain experienced legal counsel — particularly in complex rideshare injury claims involving arbitration clauses. 

An experienced personal injury lawyer will: 

• Review Uber/Lyft’s user agreement for enforceable arbitration terms 
• Track all tolling deadlines under CCP §1281.12 
• Properly file a timely arbitration demand 
• Comply with all rules of the arbitration provider 

Preserve your rights and build a case even within a non-court forum 

This is not an area for do-it-yourself litigation. Arbitration rules differ drastically from courtroom procedures, and delay is rarely forgiven — even if your injuries are severe. 

Don’t Let a Technicality Derail Your Claim 

In personal injury law, justice delayed can truly be justice denied — especially when arbitration and statutory deadlines intersect. Filing a lawsuit isn’t always enough. If the court orders arbitration under CCP §1281.12, you must act swiftly — because the statute of limitations starts ticking again after just 30 days. 

If you or a loved one has been injured in an Uber or Lyft accident in California, don’t wait. Let our experienced legal team at McGonigle Law guide you through the process, protect your claim, and help you secure the compensation you deserve. Call (800) 713-5260 today for a free consultation!