Judge: David Sotelo, Case: 22STCV10155, Date: 2022-10-14 Tentative Ruling



Case Number: 22STCV10155    Hearing Date: October 14, 2022    Dept: 40

MOVING PARTY:               Defendant King’s Seafood Company, LLC.

 

Defendant brings an opposed Motion to Compel Warner’s Individual Arbitration and to Dismiss Representative Claims in light of the U.S. Supreme Court’s decision in Viking River Cruises, Inc. v. Moriana (2022) 142 S. Ct. 1906.

 

After review and as discussed infra, the Court GRANTS as to arbitration of Warner’s individual claims and (2) DENIES dismissal the Representative PAGA claims.

 

The latter claims are instead STAYED pending the outcome of arbitration proceedings on Plaintiff Warner’s individual claims against King’s and pending the outcome of the California Supreme Court’s decision in Adolph v. Uber Technologies, Inc.

 

Request for Judicial Notice

 

The Court DECLINES to take Judicial Notice of (1) three unrelated grants of Motions to Compel Arbitration in favor of King’s in this Superior Court and in the San Diego Superior Court and (2) the Court of Appeal for the Fourth Appellate District’s decision in Gavriiloglou v. Prime Healthcare Mgmt. (2022) 2022 WL 3695606:  the outcome of those proceedings is not relevant to the disposition of the instant Motion.

 

Motion to Compel Arbitration: GRANTED

 

In a Limited Opposition, Plaintiff Warner “agree[s] to submit her individual claims to arbitration” but argues that her representative PAGA claims should be stayed pursuant to Kim v. Reins International California, Inc. (2020) 9 Cal.5th 73 and pending the California Supreme Court’s decision in Adolph v. Uber Technologies, Inc. (2022) 2022 Cal. LEXIS 4066 at *1. (Opp’n, 1:7-10 [Warner’s concession to arbitration of her individual PAGA claims], 1:19-4:25 [standing arguments related to whether dismissal is appropriate in relation to Warner’s representative PAGA claims, including discussion of Kim, supra], 4:26-5:9 [request for stay considering Adolph, supra].)

 

On Reply, King’s argues that “SCOTUS concluded that a plaintiff lacks standing to pursue a representative PAGA claim if her individual PAGA claim is compelled to arbitration” and that none of Warner’s Opposition arguments to the contrary are availing. (Reply, 1:10-15 [quoted language], 1:15-4:26 [arguments for why Opposition is incorrect as to dismissal v. stay of representative PAGA claims].)

 

Based on King’s invocation of the parties’ arbitration agreement and Warner’s agreement to submit her individual claims to arbitration, the Court GRANTS this Motion to Compel Arbitration, in Part, insofar as it requests that Warner’s individual PAGA claims be submitted to an arbiter.

 

Regarding dismissal of Warner’s representative PAGA claims, the Court notes that the U.S. Supreme Court’s decision in Viking River Cruises, supra, held that a plaintiff loses standing to assert a representative PAGA claim once her own individual claims are compelled to arbitration. (Viking River Cruises, supra, 142 S.Ct. at p. 1925; see Mot., 9:5-25.) However, as argued by Plaintiff Warner, the California Supreme Court has held that a plaintiff retains standing even after their individual claims are settled. (Kim, supra, 9 Cal.5th at p. 80; see Opp’n, 4:5-23; cf. Reply, 1:26-2:27.)

 

Only an “aggrieved employee” has standing to sue under PAGA. (Lab. Code, § 2699, subd. (a).) An “aggrieved employee” is defined as someone “who was employed by the alleged violator” and “against whom one or more of the alleged violations was committed.” (Lab. Code, § subd. (c).) This does not require an employee to actually maintain a claim against the employer to have standing. “The remedy for a Labor Code violation, through settlement or other means, is distinct from the fact of the violation itself.” (Kim, supra, 9 Cal.5th at p. 84.) “The Legislature defined PAGA standing in terms of violations, not injury. [Plaintiff] became an aggrieved employee, and had PAGA standing, when one or more Labor Code violations were committed against [her]. (See § 2699(c).) Settlement [would] not nullify these violations.” (Ibid.) By the same logic, arbitration of the individual claims would also not nullify those violations.

 

Plaintiff’s Representative—PAGA—claims are STAYED pending the arbitration of Warner’s individual claims.

 

Conclusion

 

King’s Seafood Company, LLC’s Motion to Compel Plaintiff’s Individual Arbitration is GRANTED. However, the request for Dismissal of the Representative PAGA Claims is DENIED and those claims are STAYED pending the outcome of arbitration proceedings on Warner’s individual claims against King’s Seafood and the outcome of the California Supreme Court’s decision in Adolph v. Uber Technologies, Inc.