Judge Bruce G. Iwasaki, Case Number: 23STCV29581, Date: 2024-05-21 Tentative Ruling

Responding Party: Unopposed

Tentative Ruling: The Court grants the Motion to Compel Arbitration, and stays the case pending completion of the arbitration

This is an employment action for wrongful termination, disability discrimination, and retaliation. On December 4, 2023, Plaintiff Marcus Collins (“Plaintiff”) filed a Complaint against Defendants 1615 Cahuenga LLC dba Beauty & Essex Los Angeles, Tao Group Inc., Tao Hospitality Group (“Defendants”), and DOES 1 through 30, alleging Defendants are joint-employers of Plaintiff who wrongfully terminated him after sustaining a work-related injury.

Defendant 1615 Cahuenga LLC dba Beauty & Essex Los Angeles (“Cahuenga”) moves to compel arbitration of Plaintiff’s claims against it.

The arbitration agreement titled “Dispute Resolution Procedure & Mutual Binding Arbitration Agreement” is signed by Plaintiff and Defendant Cahuenga. The arbitration agreement also contains Plaintiff’s initials on each page. The arbitration agreement states as follows:

I hereby agree that any claims, disputes or controversies arising between me and 1615 Cahuenga LLC [“the Company”], which could give rise to a legal claim relating to my employment with the Company or the termination thereof, including the interpretation or application of this Dispute Resolution Procedure and Mutual Binding Arbitration Agreement [“Agreement"|, shall be addressed in the following manner:

Second, at the Company’s option, through mediation administered by a mediator approved by me and the Company and paid for by the Company.

And third, if still not resolved, by binding arbitration under the Federal Arbitration Act

administered by JAMS pursuant to its Employment Arbitration Rules then in effect, and subject to JAMS Policy on Employment Arbitration Minimum Standards of Procedural Fairness. Both

the Company and I shall be entitled to adequate discovery prior to the arbitration as determinedby the arbitrator, who shall be selected in accordance with the JAMS rules. Both the Companyand I shall have the right to be represented. by counsel of our choice, and I will be responsible for retaining my own attorney. I understand that copies of the JAMS rules and policy are available to me at hitp://www.jamsadr.com and that a hard copy is either attached to this Agreement or will be provided to me upon request at any time. If for any reason JAMS is not available, the arbitration shall be administered by ARC (Alternative Resolution Centers) pursuant to the rules of AAA (American Arbitration Association) then in effect for employment disputes.

I understand and agree that the procedures outlined in this Agreement will be the exclusive means of redress for any disputes relating to or arising from my employment with the Company, whether such disputes are initiated by me or the Company, including disputes over right provided by federal, state, or local statutes, regulations, ordinances, and common law. The types of disputes covered by this agreement that may apply to claims that I could bring include, but are not limited to, claims involving laws prohibiting discrimination and unlawful harassment based on any protected classification, such as Title VII, the Americans with Disabilities Act, the Age Discrimination in Employment Act, the California Fair Employment & Housing Act, and the California Labor Code. However, claims prohibited by law to be arbitrated shall not be subject to this Agreement, including but not limited to claims under California workers’ compensation laws.

I understand and agree that the arbitration will take place in the county where I last worked for the Company, unless another location is mutually agreed upon by me and the Company.

I acknowledge that an arbitration does not involve a jury, and that I will not be entitled to a trial in court with a jury. I agree that the arbitrator’s award will be final and binding on both parties. I understand that each party must pay its own attorneys’ fees in connection with the arbitration, and that the arbitrator may not award attorneys’ fees unless the claims involve a contract or statute that allows for attorneys’ fees to the prevailing party.

Each party will have the right to request that the arbitrator issue a written decision that

memorializes the essential findings of fact and law and the conclusions upon which the

arbitrator's decision and the award, if any, are based. The Company will pay the fees for the arbitrator and the use of the arbitration forum, except that I will contribute towards the fees in an amount consistent with the amount I would have spent to pursue the matter in court.

I understand that any dispute arising out of this Agreement will be determined by the arbitrator. I further understand that the Federal Arbitration Act shall apply when interpreting this Agreement.

If any parts of this Agreement are found to be invalid, illegal or unenforceable, the validity, legality and/or enforceability of the remaining provisions will not be affected or impaired by that determination. If any terms or sections of this Agreement are determined to be unenforceable, they shall be modified so that the unenforceable term or section is enforceable to the greatest extent possible.

In accordance with this Agreement, and to facilitate good faith negotiations to resolve it

promptly, I agree to give written notice to Eileen Barron, Director of Human Resources, staling the nature of my claim in sufficient detail to advise the Company of the nature of the dispute, including the timeframe of the issues involved, the names of anyone at the company with knowledge of the dispute, and my requested relief. ‘The Company agrees to do the same if it initiates any claim against me. I understand that this information will be used to investigate the claim, so that the Company and I can engage in good faith negotiations to resolve it promptly in accordance with the three steps outlined above.

I acknowledge that I have the opportunity to opt-out of the arbitration portion of this Agreement. To do so, I must provide notice in writing to Eileen Barron, Director of Human Resources (either by email to eileen.barron@taogroup.com or otherwise delivered to the Company’s address, which is currently located 1605 Cahuenga Blvd, Hollywood CA 90028) specifically indicating that I have concerns with the arbitration portion of this Agreement, and do not wish to be bound by it. I understand that such notice must be provided within thirty days (30 days) of my receipt of this Agreement in order to opt-out. I further understand that if such notice is not received then

I will be bound by the terms of this Agreement whether I sign it or not. I understand that Eileen Barron (or another designated representative) may contact me to discuss my concerns. And finally, 1 understand that | will not be penalized. for opting out of this Agreement.”

The Court finds that there is a valid arbitration agreement and grants the motion. The case is stayed under Code of Civil Procedure section 1281.4.

Code of Civil Procedure section 1281.2 authorizes the court to order arbitration of a case if it finds the parties agreed to arbitrate that dispute “and that a party to the agreement refuses to arbitrate that controversy.” Arbitration agreements should be liberally interpreted and ordered unless the agreement clearly does not apply to the dispute in question. (Weeks v. Crow (1980) 113 Cal.App.3d 350, 353; Segal v. Silberstein (2007) 156 Cal.App.4th 627, 633.) “ ‘Doubts as to whether an arbitration clause applies to a particular dispute are to be resolved in favor of sending the parties to arbitration. The court should order them to arbitrate unless it is clear that the arbitration clause cannot be interpreted to cover the dispute.’ ” (California Correctional Peace Officers Assn. v. State¿(2006) 142 Cal.App.4th 198, 205.)

The party moving to compel arbitration has the initial burden to (1) affirmatively admit and allege the existence of a written arbitration agreement, and (2) prove the existence of that agreement by a preponderance of the evidence. (Rosenthal v. Great W. Fin. Sec. Corp, 14 Cal. 4th 394, 413.) Once this is met, the burden shifts to the responding party to prove that the agreement is unenforceable by a preponderance of the evidence. (Ibid.)

In establishing the existence of an agreement to arbitrate, it is sufficient for defendant to provide a copy of the arbitration agreement or state the paragraph verbatim. (Baker v. Italian Maple Holdings, LLC, 13 Cal.App.5th 1152, 1160 (2017); Cal. Rules of Court, Rule 3.1330.) Defendant Cahuenga produced the arbitration agreement. (Yun Decl., ¶ 4, Ex. B.)

Defendant Cahuenga has sufficiently demonstrated a valid agreement to arbitrate.

Here, the arbitration agreement covers “any claims, disputes or controversies arising between me and 1615 Cahuenga LLC [“the Company”], which could give rise to a legal claim relating to my employment with the Company or termination thereof…shall be addressed…by binding arbitration under the Federal Arbitration Act administered by JAMS pursuant to its Employment Arbitration Rules then in effect, and subject to JAMS Policy on Employment Arbitration Minimum Standards of Procedural Fairness.” (Yun Decl., ¶ 4, Ex. B.) The arbitration agreement also covers “any disputes relating to or arising from my employment with the Company, whether such disputes are initiated by me or the Company, including disputes over right provided by federal, state, or local statutes, regulations, ordinances, and common law…claims involving laws prohibiting discrimination and unlawful harassment based on any protected classification, such as Title VI, the Americans with Disabilities Act, the Age Discrimination in Employment Act, the California Fair Employment & Housing Act, and the California Labor Code. However, claims prohibited by law to be arbitrated shall not be subject to this Agreement, including but not limited to claims under California workers’ compensation laws.” (Id.) Plaintiff’s claims arise out his employment with Defendant Cahuenga and is therefore under the arbitration agreement. (See Compl., ¶¶ 7-10, 12-24.)

Plaintiff has failed to raise any arguments as to the unconscionability of the arbitration agreement.

Here, Plaintiff did not file an opposition to the instant motion to compel arbitration. Nonetheless, the Court will briefly address the issue of unconscionability. The party resisting arbitration has the burden of proving unconscionability. (Pinnacle Museum Tower Assn. v. Pinnacle Market Development (US), LLC (2012) 55 Cal.4th 223, 247.)

There are generally five minimum requirements for enforceable arbitration agreements: The California Supreme Court set forth five minimum requirements for enforceable arbitration agreements: (1) neutral arbitrator(s), (2) more than minimal discovery, (3) a written award, (4) all types of relief that would otherwise be available in court, and (5) no additional costs for the employee beyond what the employee would incur if bringing the claim in court. (Armendariz v. Foundation Health Psychcare Services, Inc. (2000) 24 Cal.4th 83, 102.)

The arbitration agreement states that the arbitration proceeding would be “administered by JAMS pursuant to its Employment Arbitration Rules then in effect, and subject to JAMS Policy on Employment Arbitration Minimum Standards of Procedural Fairness. Both the Company and I shall be entitled to adequate discovery prior to the arbitration as determined

by the arbitrator, who shall be selected in accordance with the JAMS rules. Both the Company

and I shall have the right to be represented. by counsel of our choice, and I will be responsible for retaining my own attorney. I understand that copies of the JAMS rules and policy are available to me at hitp://www.jamsadr.com and that a hard copy is either attached to this Agreement or will be provided to me upon request at any time. If for any reason JAMS is not available, the arbitration shall be administered by ARC (Alternative Resolution Centers) pursuant to the rules of AAA (American Arbitration Association) then in effect for employment disputes.” (Yun Decl., ¶ 4, Ex. B.) Furthermore, the arbitration agreement provides that each party will be responsible for their own attorney’s fees; the arbitrator will issue a written decision upon request by either party for which the award is based on; Defendant Cahuenga will pay the fees for the arbitrator and use of the arbitration forum; and Plaintiff will only contribute fees in an amount consistent with what he would have paid to pursue the matter in court. (Id.) As such, the arbitration agreement complies with the Armendariz factors and therefore not unconscionable.

The Court grants the Motion to Compel Arbitration. The Court stays this action pursuant to California Code of Civil Procedure, Section 1281.4 pending arbitration pursuant to the arbitration agreement.

Department 58