Judge: Christian R. Gullon, Case: 22PSCV02847, Date: 2023-09-14 Tentative Ruling
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Case Number: 22PSCV02847 Hearing Date: September 14, 2023 Dept: O
Tentative Ruling
DEFENDANT’S MOTION TO COMPEL ARBITRATION OF INDIVIDUAL
PAGA CLAIM AND TO STRIKE OR STAY NONINDIVIDUAL PAGA CLAIM is GRANTED in
part; court grants petition to compel the arbitration of Plaintiff’s
individual PAGA claims and the representative/non-individual PAGA claims are
stayed.[1]
Background
This is a
Private Attorneys General Act of 2004 (PAGA) action brought forth by Plaintiff
(nonexempt nursing assistant of a nursing home) and other employees for various
Labor Code violations.
On December
12, 2022, Plaintiff TIERRA FRANKLIN, individually, and on behalf of
other aggrieved employees pursuant to the California Private Attorneys General
Act filed suit against Defendant POMONA HEALTHCARE & WELLNESS CENTER, LLC.
On February 14, 2023, Defendant filed the instant motion.
On August
30, 2023, Plaintiff filed an opposition to the motion, including evidentiary
objections.
On
September 7, 2023, Defendant filed its Reply, along with its response to
Plaintiff’s evidentiary objections.
Legal
Standard
The governing law is both federal and state in character.
The FAA applies to contracts that involve interstate commerce.
(9 U.S.C. §§ 1, 2.)[2]
Section 2 of the FAA provides in relevant part: “A written
provision in . . . a contract . . . to settle by
arbitration a controversy thereafter arising out of such contract or
transaction . . . shall be valid, irrevocable, and enforceable, save upon such
grounds as exist at law or in equity for the revocation of any contract.” (9 U.S.C. § 2.) Under the FAA, there is a strong policy
favoring arbitration. (Moses H. Cone
Memorial Hospital v. Mercury Construction (1983) 460 U.S. 1, 24; Engalla
v. Permanente Medical Group, Inc. (1997) 15 Cal.4th 951,
971–972.) “The overarching purpose of
the FAA is to ensure the enforcement of arbitration agreements according to
their terms . . . .” (AT&T
Mobility LLC v. Concepcion (2011) 563 U.S. 333, 344 (Concepcion).)
On a motion to compel arbitration, a trial court is posed with
determining two questions: (1) whether an enforceable arbitration
agreement exists between the parties and (2) whether the claims are covered
within the scope of the agreement. (Omar
v. Ralphs Grocery Co. (2004) 118 Cal.App.4th 955, 961.) The party seeking arbitration bears
the burden of proving the existence of an arbitration agreement, and the party
opposing arbitration any defense, such as unconscionability and waiver. (Pinnacle Museum Tower Assn. v. Pinnacle
Market Development (US), LLC (2012) 55 Cal.4th 223, 236 (Pinnacle);
see St. Agnes Medical Center v. PacifiCare of California (2003)
31 Cal.4th 1187, 1195.)
In an answer in the affirmative as to both “leaves no room
for the exercise of discretion by a [] court, but instead mandates that []
court[] shall direct the parties to proceed to
arbitration on issues as to which an arbitration agreement has been signed.” (Dean Witter Reynolds, Inc. v.
Byrd (1985) 470 U.S. 213, 213.)
Discussion
Before
engaging in the merits of the arguments, the court provides the pertinent
provisions of the ‘Alternative Dispute Resolution Policy and Agreement
Acknowledgment’ (“Arbitration Agreement” or occasionally referred to as “ADR
Policy”).
WHO IS COVERED BY THE ADR POLICY
The ADR Policy will be mandatory for ALL DISPUTES ARISING BETWEEN
EMPLOYEES, ON THE ONE HAND, AND [DEFENDANT] AND/OR THEIR RESPECTIVE EMPLOYEES
AND OFFICERS (HEREINAFTER COLLECTIVELY THE “COMPANY”), ON THE OTHER HAND. Any
disputes which arise and which are covered by the ADR Policy must be submitted
to final and binding resolution through the procedures of the Company’s ADR
Policy.
For parties covered by this Alternative Dispute Resolution Policy,
alternative dispute resolution, including final and binding arbitration, is the
exclusive means for resolving covered disputes (as defined below); no other
action may be brought in court or in any other forum. This agreement is a
waiver of all rights to a civil court action for a covered dispute; only an
arbitrator, not a Judge or Jury, will decide the dispute.
[…]
COVERED DISPUTES
[…]
Covered disputes include any dispute arising out of or related to
[Plaintiff’s] employment, the terms and conditions of [Plaintiff’s] employment
and/or the termination of [Plaintiff’s] employment, including, but not limited
to, the following:
• Alleged violations of…state…statutes or regulations;
[…]
• Claims alleging failure to compensate for all hours worked,
failure to pay overtime, failure to pay minimum wage, failure to reimburse
expenses, failure to pay wages upon termination, failure to provide accurate,
itemized wage statements, failure to provide meal and/or rest breaks,
entitlement to waiting time penalties and/or other claims involving employee
wages, including, but not limited to, claims brought under the Fair Labor
Standards Act and any other statutory scheme related to wages or working hours
[…]
CLASS ACTION WAIVER
[Plaintiff] understand[s] and agree[s] this ADR Program prohibits
[Plaintiff] from joining or participating in a class action or representative
action, acting as a representative of others, excluding private attorney general claims, or
otherwise consolidating a covered claim with the claim of others.
[…]
SEVERABILITY
In the event that any provision of this ADR Policy is determined
by a court of competent Jurisdiction to be illegal, invalid or unenforceable to
any extent, such term or provision shall be enforced to the extent permissible
under the law and all remaining terms and provisions of this ADR Policy shall
continue in full force and effect.
(Ko Decl.,
Ex. A, emphasis added.)
The
Arbitration Agreement was signed by Plaintiff on 4/22/2021.
Prong 1: Whether There is a Valid Agreement to Arbitrate
“‘Although the FAA preempts any state law that stands as an
obstacle to its objective of enforcing arbitration agreements according to
their terms, . . . we apply general California contract law to
determine whether the parties formed a valid agreement to arbitrate their
dispute.’” (Vaughn v. Tesla, Inc. (2023)
87 Cal.App.5th 208, 219.) General contract law principles include taking the contract
as a whole, “so as to give effect to every part, if reasonably practicable,
each clause helping to interpret the other.” (Ibid, internal citation
omitted.) With that in mind, whether under state or federal law, “any
ambiguities or doubts about the scope of an arbitration agreement must
be resolved in favor of arbitration.” (Ericksen, Arbuthnot, McCarthy,
Kearney & Walsh, Inc. v. 100 Oak Street (1983) 35 Cal.3d 312, 323,
emphasis added.)
Defendant argues that the arbitration provision requires the arbitration
of disputes include any dispute arising out of or related to Plaintiff’s
employment, the terms and conditions of Plaintiff’s employment and/or the
termination of Plaintiff’s employment, including, but not limited to,
conditions of employment (e.g., working conditions, wages, working hours),
which are the allegations of the complaint. And as the agreement was signed by
Plaintiff, then the agreement, effectively, unambiguously reflects the parties’
intent both to arbitrate disputes arising from Plaintiff’s employment
conditions and to be bound by the arbitration decisions that resolve such
disputes.
In Opposition, Plaintiff heavily takes issue with the lack
of an enforceable arbitration agreement.[3]
1.
The Arbitration Agreement’s Language
Plaintiff’s predominant argument in opposition is that PAGA
claims are exempted from Defendant’s class action waiver clause. Based thereon,
Plaintiff’s single-cause-of-action complaint for civil penalties on behalf of
aggrieved employees under PAGA should not be dismissed.
But, as
noted by Defendant, the Viking River Court held the FAA preempts Iskanian’s prohibition on contractual splitting of PAGA
claims such that Plaintiff’s individual PAGA claims can be split from the
non-individual PAGA claims. (Reply p. 3.)[4]
Specifically, the Court held the following in Viking River:
We hold that the FAA preempts the rule of Iskanian insofar as it precludes
division of PAGA actions into individual and non-individual claims through an
agreement to arbitrate. This holding compels reversal in this case. The
agreement between Viking and Moriana purported to waive “representative” PAGA
claims. Under Iskanian, this provision was invalid if
construed as a wholesale waiver of PAGA claims. And under our holding, that
aspect of Iskanian is not preempted by the FAA,
so the agreement remains invalid insofar as it is interpreted in that manner.
But the severability clause in the agreement provides that if the waiver
provision is invalid in some respect, any “portion” of the waiver that remains
valid must still be “enforced in arbitration.” Based on this clause, Viking was
entitled to enforce the agreement insofar as it mandated arbitration of
Moriana's individual PAGA claim. The lower courts refused to do so based on
the rule that PAGA actions cannot be divided into individual and non-individual
claims. Under our holding, that rule is preempted, so Viking is entitled to
compel arbitration of Moriana's individual claim.
(Viking River, supra, 142 S. Ct. at pp. 1924-1925,
emphasis added.)
With an understanding of Viking River and by reading
the plain language of the Arbitration Agreement, the parties did not exclude
arbitration of Plaintiff’s individual PAGA claims. To read otherwise
(i.e., that Plaintiff’s individual PAGA claims are excluded from
arbitration) would require the court to insert language into the parties’
agreement, which is impermissible as it would not give effect to the mutual intent
of the parties at the time of contract formation. (See Opp. p. 3, citing Vons
Companies, Inc. v. United States Fire Insurance Co. (2000) 78 Cal.App.4th
52, 58-59 [“A contract extends only to those things which it appears the
parties intended to contract. Our function is to determine what, in terms and
substance, is contained in the contract, not to insert what has been
omitted. We do not have the power to create for the parties a contract
that they did not make and cannot insert language that one party now wishes
were there.”].)
To the extent that Plaintiff avers the Arbitration Agreement
is ambiguous such that any ambiguiety to be resolved in favor of the
non-drafting party (Opp. p. 3:13-14, citing Cal. Civ. Code section 1654) Plaintiff’s reliance on Civil
Code section 1654 is misplaced. The statute provides the following: “In cases of
uncertainty not removed by the preceding rules, the language of a contract
should be interpreted most strongly against the party who caused the
uncertainty to exist.” As observed by the appellate court in Kim v. TWA
Construction, Inc. (2022) 78 Cal.App.5th 808, 836, “[t]his interpretive
rule applies only if ambiguity remains after recourse to other rules of
construction. Section 1654 ‘does not stand for the proposition that, in every
case where one of the parties to a contract points out a possible ambiguity,
the interpretation favored by the nondrafting party will prevail.’” Here,
applying the other rules of contract interpretation, the Arbitration Agreement
is not ambiguous as to its requirement that Plaintiff’s individual claims are
subject to arbitration to warrant an inquiry as to the objectively reasonable
expectation of the promisee/Plaintiff. (Id. at p. 832 [“If, after this
second inquiry, the ambiguity remains, ‘the language of a contract should be
interpreted most strongly against the party who caused the uncertainty to
exist.’”].)
Therefore, as Defendant’s request to arbitrate Plaintiff’s
individual PAGA claims does not contradict the express language of the
Arbitration Agreement Defendant seeks to enforce, the court compels arbitration
of Plaintiff’s individual PAGA claims.
2.
Evidence of the Agreement
Next, Plaintiff argues that Defendant has not met its
“factual and evidentiary burden” to establish the existence of a valid agreement,
specifically taking issue with the lack of foundation and personal knowledge of
Teodoro Ko’s declaration. (Opp. pp. 5-6; see also Plaintiff’s Evidentiary
Objections.)
Here, Ko—as the Director of Staff Development for Defendant
who was oversaw and managed the standard onboarding process for
Defendant and who is personally aware of the onboarding process and who personally
reviewed Plaintiff’s personnel file—has adequately laid the foundation for
the statements he set forth in his declaration. To the extent that Ko was to
be physically present at the time of Plaintiff signing the Arbitration
Agreement (see Plaintiff’s Evidenitary Objections, No. 1), that requirement is both
unnecessary and unsupported by law. Ko is attesting to facts based upon his
familiarity with the contents of the file and familiarity with records
presented to Ko in the ordinary course of the performance of Ko’s job
responsibilities, which meets evidentiary requirements. (Ko Decl., p. 3.) To
the extent that Plaintiff in its evidentiary objections cites to cases, none of
the cases are instructive as they pertain to requirements of affidavits in a
summary judgment motion.[5]
Therefore, all
objections to Ko’s declaration are OVERRULED, meaning Defendant has established
that an authentic agreement to arbitrate exists.
3.
Plaintiff Rebuts Any Presumption That an Agreement Exists
Though Defendant has established that an Arbitration
Agreement exists, that as part of its onboarding process Defendant provided
Plaintiff a reasonable opportunity to review the Arbitration Agreement and ask
questions (Ko Decl., ¶¶ 6-7), Plaintiff avers that she “lacked any
understanding” of the arbitration agreement because she “did not feel like
[she] was able to ask any questions during [the] onboarding process.”
(Franklin Decl., ¶9, emphasis added.) (Opp. p. 7, see Franklin Decl., ¶¶3-10.)
Here, the court is unpersuaded by Plaintiff’s attempt to
invalidate the agreement.
For one, Plaintiff does not state she was given no opportunity
to review the material and ask questions; rather, Plaintiff merely did not feel
like she could ask questions. Why couldn’t she ask questions? Plaintiff
does not explain.
Second, to the extent that Plaintiff cites to Gamboa v.
Northeast Community Clinic (2021) 72 Cal.App.5th 158, Gamboa is
inapposite because there the plaintiff filed a declaration that she did “not
remember the[] documents at all.” (Id. at p. 163, emphasis added.)
Here, however, Plaintiff does not state she does not remember the
documents. If anything, Plaintiff declares that she was provided with “numerous
documents to review and sign” (Franklin Decl., ¶5), which contradicts any
argument that Plaintiff was not provided requisite material. To the extent that Plaintiff is
arguing she did not sign the Arbitration Agreement, that would contradict
Plaintiff’s argument that she had no choice but to sign the Arbitration
Agreement as a condition of employment. (Opp. p. 9, see page 9 below.) Accordingly, as
Plaintiff has not declared under penalty of perjury that she never saw nor
remembers signing the agreement, Plaintiff has failed to meet the burden of
producing evidence to challenge the authenticity of the
agreement. Effectively, the burden need not shift again to Defendant.
(Opp. p. 7:9-10; see Id. at p. 165 [On motion to compel arbitration, the
burden of production may shift from the moving party to the non-moving party in
a three-step process].)
Third, as noted by Defendant in Reply, one who signs an
instrument is deemed to assent to its terms. (Reply p. 4, citing Marin
Storage & Trucking, Inc. v. Benco Contracting and Engineering, Inc. (2001)
89 Cal.App.4th 1042, 1049 [“Every contract requires mutual assent or consent
[citation omitted] and ordinarily one who signs an instrument which on its face
is a contract is deemed to assent to all its terms. A party cannot avoid the
terms of a contract on the ground that he or she failed to read it before signing.”].)
Under this general rule, Plaintiff would be deemed to have assented to the
Arbitration Agreement when she signed the agreement. Furthermore, parties
dealing at arm's length do not have a duty to explain to each other the terms
of a written contract, particularly where, as here, the language of the
contract expressly and plainly provides for the arbitration of disputes arising
out of the employment relationship. (Brookwood v. Bank of America (1996)
45 Cal.App.4th 1667, 1674.) “Reasonable diligence requires the reading of a
contract before signing it. A party cannot use his own lack of diligence to
avoid an arbitration agreement.” (Ibid.) Thus, under yet another general rule of contract law,
Plaintiff is bound by the provision of the Arbitration Agreement regardless of
whether she read it or was aware of the arbitration requirement when she signed
the document. (Ibid.)
Therefore, Defendant, through a preponderance of the
evidence, has established an enforceable obligation to arbitrate Plaintiff’s
individual PAGA claims.
4.
Mutual Assent
Next, Plaintiff avers that Defendant is not a party to the
action because “[t]here is no indication that Defendant has any association” Park
Avenue Healthcare & Wellness Center. (Opp. p. 7.)
As explained by Defendant in Reply, Park Avenue Healthcare
Center is the DBA for Defendant. (Reply p. 4, see also Gonzalez Decl.)
Therefore, Defendant is a party to the Arbitration Agreement
such that the Arbitration Agreement does not fail for want of mutual assent.
5.
Unconscionability
The California Supreme Court has stated the following
regarding the general principles of unconscionability.
A contract is unconscionable if one of the
parties lacked a meaningful choice in deciding whether to agree and the
contract contains terms that are unreasonably favorable to the other party.
Under this standard, the unconscionability doctrine has both a procedural and a
substantive element. The procedural element addresses the circumstances of
contract negotiation and formation, focusing on oppression or surprise due to
unequal bargaining power. Substantive unconscionability pertains to the fairness
of an agreement's actual terms and to assessments of whether they are overly
harsh or one-sided. Both procedural and substantive unconscionability must be
shown for the defense to be established, but they need not be present in the
same degree. Instead, they are evaluated on ‘a sliding scale.’ [T]he
more substantively oppressive the contract term, the less evidence of
procedural unconscionability is required to conclude that the term is
unenforceable. Conversely, the more deceptive or coercive the bargaining
tactics employed, the less substantive unfairness is required … The ultimate
issue in every case is whether the terms of the contract are sufficiently
unfair, in view of all relevant circumstances, that a court should withhold
enforcement.
(OTO, L.L.C. v. Kho (2019) 8
Cal.5th 111, 125-126, internal citations omitted, emphasis added.)[6]
a.
Procedural Unconscionability
Plaintiff argues that her inability to thoroughly review the
documents and requirement that she sign the Arbitration Agreement as part of a
“take-it-or -leave it employment condition” (Opp. p. 8) evidences procedural
unconscionability (i.e., unequal bargaining power and lack of meaningful
choice).
But, as noted by Defendant, Plaintiff could have sought
more time to review the documents. In fact, Plaintiff did not immediately
sign her Employee Handbook and At-Will Acknowledgment Form. (Reply p. 5.)
Plaintiff signed those materials on the second day of her onboarding process on
April 23, 2021, suggesting should Plaintiff have sought more time to review
the Arbitration Agreement, the request very well would have been granted.
As for
Plaintiff’s argument that she had no choice to sign the agreement, it is true
that arbitration contracts imposed as a condition of employment are typically
adhesive, hinting at procedural unconscionability (OTO, LLC, supra, 8
Cal.5th at p. 126). But the inquiry does not end there. “The pertinent question, then, is
whether circumstances of the contract's formation created such oppression or
surprise that closer scrutiny of its overall fairness is required. Oppression occurs where a contract involves lack
of negotiation and meaningful choice, surprise where
the allegedly unconscionable provision is hidden within a prolix printed form.”
(Ibid, internal citations omitted, italics original). To determine the
presence of such circumstances, there are five considerations to examine: “(1)
the amount of time the party is given to consider the proposed contract;
(2) the amount and type of pressure exerted on the party to sign the proposed
contract; (3) the length of the proposed contract and the length and complexity
of the challenged provision; (4) the education and experience of the party; and
(5) whether the party's review of the proposed contract was aided by an
attorney.” (Id. at pp. 126-128.)
Here, however, neither Plaintiff’s declaration nor Plaintiff’s
discussion section on procedural unconscionability provide illuminating facts
about the circumstances surrounding the formation and negotiations of
the Arbitration Agreement. For example, neither document sets forth any discussion
Defendant may have had with Plaintiff before Plaintiff was presented with and
signed the Arbitration Agreement. “Absent any evidence, we cannot just
assume there was procedural unconscionability.” (Performance Team Freight
Systems, Inc. v. Aleman (2015) 241 Cal.App.4th 1233, 1248.) Thus, absent
evidence and a thorough analysis, the argument is waived. (Ables v. Ghazale Brothers, Inc. (2022)
74 Cal.App.5th 823, 828 [“The arguments in
Ables's brief are undeveloped, lack sufficient citations to authority and to
the record, and fail to allege any trial court error. Consequently, we consider
them forfeited. [Citations omitted]. It was Ables's burden, not ours, to make
arguments from legal authority….”].)[7]
b.
Substantive Unconscionability
Having established that Plaintiff has not demonstrated
procedural unconscionability, then the Arbitration Agreement cannot be deemed unconscionable because
a contract to arbitrate is unenforceable under the doctrine of
unconscionability when there is both a procedural and substantive
element of unconscionability. (See Armendariz v. Foundation Health
Psychare Services, Inc. (2000) 24 Caal.4th 83, 114 [“The prevailing view is
that [procedural and substantive unconscionability] must both be present
in order for a court to exercise its discretion to refuse to enforce a contract
or clause under the doctrine of unconscionability”], emphasis added.)
Even assuming arguendo that Plaintiff made an adequate
showing of procedural unconscionability, Plaintiff’s arguments to demonstrate
that the Arbitration Agreement is unfair is unavailing.
First, Plaintiff states that the Arbitration Agreement is
unfair because the employment related disputes covered by the Arbitration
Agreement are ones that would be brought by employees against employers (not
vice versa). However, absent an elaboration by Plaintiff, the court is
not entirely certain as to the relevancy of this argument. In any event, as
noted by Defendant, the Arbitration Agreement binds both Plaintiff and
Defendant, not just Plaintiff.
Second, as to Plaintiff’s argument that the Arbitration
Agreement is unfair because she did not have the opportunity to modify the
terms, Plaintiff has not provided authority. Plaintiff cites to Asmus v.
Pac. Bell (2000) 23 Cal.4th 1, but that case is distinguishable on two
fronts: it involved a summary judgment motion (not motion to compel
arbitration) and involved an employment term allowing for unilateral
termination of a policy (not specifically an arbitration provision). As for the
citation to Ingle v. Circuit City Stores, Inc. (9th Cir. 2003) 328 F.3d
1165, that case is distinguishable. While the Ingle court determined
that the employer’s ability to modify or terminate the dispute resolution
agreement unilaterally rendered the contract substantively unconscionable, it
did so based upon (i) inadequate notice and (ii) “[t]he adhesive nature of the
contract and the provisions with respect to coverage of claims, the statute of
limitations, class claims, the filing fee, cost-splitting, remedies.” (Id. at
pp. 1179-1180.) Here, however, as with procedural unconscionability, Plaintiff
has not set forth facts nor evidence (i.e., an analysis) to illustrate
substantive unconscionability.
All in all, as to the issue of unconscionability, the
Arbitration Agreement is not unconscionable, rendering it enforceable.
6.
The Non-Individual PAGA Claims
Relying upon Kim v. Reins International California, Inc. (2020)
9 Cal.5th 73 and Adolph v. Uber Technologies, Inc. (2023) 14 Cal.5th
1104, Plaintiff avers that should the court order arbitration of Plaintiff’s
individual claims, the non-individual PAGA claim should not dismissed.[8]
The court agrees with Plaintiff in so far as Plaintiff
retains standing representative PAGA standing but disagrees that the matter
should be stayed pending arbitration of Plaintiff’s individual claims.
As statutory standing is an issue of state law, state
courts were not bound by the U.S. Supreme Court’s interpretation in Viking
River that a PAGA plaintiff lacks statutory standing to pursue PAGA claims
when her individual claim is pared away to arbitration, which was a point
that Justice Sotomayor flagged in a concurrence.[9]
And working with what may have been a mistaken view of California law, the
California Supreme Court in Adolph clarified the issue: “where a
plaintiff has brought a PAGA action comprising individual and non-individual
claims, an order compelling arbitration of the individual claims does not strip
the plaintiff of standing as an aggrieved employee to litigate claims on behalf
of other employees under PAGA.” (Adolph, supra, 14 Cal.5th at p. 1114).
Thus, applying Adolph,
Plaintiff maintains standing to pursue non-individual PAGA claims in court. As for whether
to stay the proceeding pending arbitration, Adolph provides the
solution:
When a case includes arbitrable and
nonarbitrable issues, the issues may be adjudicated in different forums while
remaining part of the same action. Code of Civil
Procedure section 1281.4 states that upon order[ing] arbitration of a
controversy which is an issue involved in an action, the court should stay the
action …The statute makes clear that the cause remains one action, parts of
which may be stayed pending completion of the arbitration.
(Id. at p. 1125, emphasis
added).
Therefore, as the California Supreme
Court has endorsed the stay of the non-individual claims pending the outcome of
arbitration, the court does so here.
Conclusion
Based on the foregoing, the court GRANTS the motion such that
Plaintiff is compelled to arbitrate her individual PAGA claim and the
non-individual PAGA claim is stayed (not stricken).
[1] The court
requests Defendant submit a new proposed order that eliminates any references
to the striking of the non-individual PAGA allegations.
[2] Here, Defendant asserts that by
transacting business online and with out-of-state entities and purchasing
out-of-state goods, that it clears the low bar for what’s considered
involvement in interstate commerce.
(Motion p. 10) Plus, a review of the arbitration agreement provides that the
FAA applies. (Ko Decl., Ex. A, p. 9 of 10 of PDF [“The parties acknowledge that
this Agreement evidences a transaction involving interstate commerce . . . any
arbitration conducted pursuant to the terms of this Agreement shall be governed
by the Federal Arbitration Act [citation omitted].”].) Plaintiff does not
dispute that the FAA applies. Therefore, the FAA applies.
[3] The court will
address the handful of arguments in the order presented by Plaintiff’s headers.
To the extent that there is an overlap in some of the arguments, it is not the
court’s duty to stich the arguments together to create coherent reasoning.
[4] The Court in Viking
River defined “individual PAGA claim” to refer to claims based on Labor Code violations
suffered by the plaintiff. (Viking River (2022) 142 S. Ct. 1906,
1916.) Non-individual claims are “representative.”
[5] See e.g., Snider
v. Snider (1962) 200 Cal.App.2d 741; see also Southern Pacific Co v.
Fish (1958) 166 Cal.App.2d 353, 362.
[6] OTO, LLC was
cited by Plaintiff in opposition.
[7] Briefly, the
circumstances here do not demonstrate significant oppression because unlike OTO,
LLC wherein neither the contents nor significant of the employment-related documents
were explained (id. at p. 127), here, a review of the Arbitration
Agreement provides in layman’s terms the nature of arbitration agreements.
[8] Defendant’s
motion did not address Adolph, though it was discussed in Reply.
[9] (Viking River,
supra, at p. 1925 (concurrence Sotomayor, J. [“Thus, the Court reasons, based on
available guidance from California courts, that Moriana lacks “statutory
standing” under PAGA to litigate her “non-individual” claims separately in
state court. Of course, if this Court's understanding of state law is wrong,
California courts, in an appropriate case, will have the last word.”].) For
this reason, Defendant’s characterization that Kim is “no longer
persuasive” (Motion p. 16) is inaccurate because Viking River did not redefine
statutory standing under PAGA. (Though the court acknowledges that Kim is
not entirely instructive as it only addressed the standing impact of the
settlement of non-PAGA individual damages (not violations)
claims.)