Judge: H. Jay Ford, III, Case: 23SMCV00672, Date: 2024-06-27 Tentative Ruling

Case Number: 23SMCV00672    Hearing Date: June 27, 2024    Dept: O

Case Name:  Canseven v. Ecolab Inc, et al

SUBJECT:                 MOTION TO COMPEL ARBITRATION

MOVING PARTY:   Defendants Ecolab Inc., Ecosure, and Monica Burris

RESP. PARTY:         No Responsive Party as of 6-17-24

TENTATIVE RULING

            Defendants Ecolab Inc., Ecosure, and Monica Burris’ Motion to Compel Arbitration is GRANTED. Defendants proved the existence of a valid arbitration agreement. Plaintiff did not meet their burden to prove a defense to enforcement of the arbitration agreement. The action is stayed pending resolution of arbitration pursuant to CCP §1281.4.

REASONING

Under both the Title 9 section 2 of the United States Code (known as the Federal Arbitration Act, hereinafter “FAA”) and the Title 9 of Part III of the California Code of Civil Procedure commencing at section 1281 (known as the California Arbitration Act, hereinafter “CAA”), arbitration agreements are valid, irrevocable, and enforceable, except on such grounds that exist at law or equity for voiding a contract.  (Winter v. Window Fashions Professions, Inc. (2008) 166 Cal.App.4th 943, 947.)

“The petitioner bears the burden of proving the existence of a valid arbitration agreement by the preponderance of the evidence, and a party opposing the petition bears the burden of proving by a preponderance of the evidence any fact necessary to its defense. In these summary proceedings, the trial court sits as a trier of fact, weighing all the affidavits, declarations, and other documentary evidence, as well as oral testimony received at the court's discretion, to reach a final determination.” (Giuliano v. Inland Empire Personnel, Inc. (2007) 149 Cal.App.4th 1276, 1284.)   “The party opposing arbitration has the burden of demonstrating that an arbitration clause cannot be interpreted to require arbitration of the dispute.” (Rice v. Downs (2016) 247 Cal.App.4th 1213, 1223, citing Coast Plaza Doctors Hospital v. Blue Cross of California (2000) 83 Cal.App.4th 677, 686-87.)   “On petition of a party to an arbitration agreement alleging the existence of a written agreement to arbitrate a controversy and that a party to the agreement refuses to arbitrate that controversy, the court shall order the petitioner and the respondent to arbitrate the controversy if it determines that an agreement to arbitrate the controversy exists, unless it determines that: (a) The right to compel arbitration has been waived by the petitioner…”  (Code Civ. Proc., § 1281.2.)

“A party opposing the petition bears the burden of proving by a preponderance of evidence any fact necessary to its defense.” (Olvera v. El Pollo Loco, Inc. (2009) 173 Cal.App.4th 447, 453.) CCP §1281.2 only allows the Court to deny enforcement of an applicable arbitration agreement where the party resisting arbitration demonstrates (1) waiver; (2) grounds for rescission of the agreement; or (3) subsection (c) grounds involving third parties to the arbitration agreement and potential for inconsistent rulings of fact or law. (See Code Civ. Proc., § 1281.2.)

If the court determines that a party to the arbitration is also a party to litigation in a pending court action or special proceeding with a third party as set forth under subdivision (c), the court (1) may refuse to enforce the arbitration agreement and may order intervention or joinder of all parties in a single action or special proceeding; (2) may order intervention or joinder as to all or only certain issues; (3) may order arbitration among the parties who have agreed to arbitration and stay the pending court action or special proceeding pending the outcome of the arbitration proceeding; or (4) may stay arbitration pending the outcome of the court action or special proceeding.

(Code Civ. Proc., § 1281.2.)

I.      Ecolab Demonstrates Valid Arbitration Agreement and Plaintiff does not Oppose

Defendant Ecolab Inc., Ecosure, and Monica Burris (“Ecolab Defendants”) move to compel arbitration based on the Arbitration Agreement electronically signed by Plaintiff Venus Canseven (“Canseven”) on 10-18-14. (See Putman Decl., ¶ 22, Ex. D.) The operative sections of the Arbitration Agreement states as follows:

IF YOU UNDERSTAND, ACCEPT AND AGREE TO THE POLICIES, TERMS AND CONDITIONS SET OUT ABOVE, THEN CLICK ON THE “AGREE” BUTTON TO PROCEED TO THE NEXT SECTION OF THE MEDIATION AND ARBITRATION AGREEMENT PROCESS. BY CLICKING ON THE “AGREE” BUTTON, YOU UNDERSTAND THAT THIS ACTION WILL BE RECORDED AS YOUR ELECTRONIC SIGNATURE AND WILL BE RELIED UPON BY THE COMPANY TO THE SAME EXTENT AS IF YOU HAD SIGNED THIS CONSENT IN INK. IF YOU DO NOT UNDERSTAND OR ACCEPT OR AGREE TO THE POLICIES, TERMS AND CONDITIONS SET OUT ABOVE, THEN YOU MAY CLOSE OUT OF THIS MODULE AND EXIT THIS PROCESS.

. . . .

“Dispute” means any and all claims or controversies alleging violations of federal, state, local or common law between an Associate and the Company (and vice versa) arising out of or in any way related to the application for employment, employment or cessation of employment with the Company, including all previously unasserted claims prior to the date of this Agreement. The term “Dispute” includes, without limitation, claims, demands or actions under Title VII of the Civil Rights Act of 1964, the Civil Rights Acts of 1866 and 1991, the Age Discrimination in Employment Act of 1967, the Americans with Disabilities Act of 1990, the Family and Medical Leave Act of 1993, the Fair Labor Standards Act of 1938, the Equal Pay Act of 1963 and all amendments thereto and any other federal, state or local statute, regulation or common law doctrine regarding employment, employment discrimination, the terms and conditions of employment, termination of employment, compensation, overtime, breach of contract, retaliation, whistleblowing, defamation or employment-related tort. “Dispute” does not include claims related to: (i) workers' compensation benefits; (ii) unemployment compensation benefits; (iv) controversies over awards of benefits or incentives under the Company's stock option plans, employee benefits plans or welfare plans that contain an appeal procedure or other procedure for the resolution of such controversies; (v) an alleged violation of the National Labor Relations Act (“NLRA"); (vi) disputes that may not be subject to a predispute arbitration agreement as provided by the Dodd-Frank Wall Street Reform and Consumer Protection Act; and (vii) claims asserted by an Associate in any lawsuit or administrative proceeding pending against the Company prior to the date the Associate signs this Agreement where (a) you are a party to the lawsuit or administrative proceeding; or (b) if the pending lawsuit or administrative proceeding asserts a class or collective action, you are a party, member or putative member of the class or collective action against the Company and have not elected, before or after this Agreement is signed, to include yourself in the pending collective action or exclude yourself from the pending class action. This Agreement does not apply to disputes regarding the enforceability, revocability or validity of the Agreement or any portion of the Agreement. Such disputes can only be resolved by a court of competent jurisdiction. Additionally, nothing in this Agreement shall prevent either party from seeking relief from a court of competent jurisdiction for a temporary or preliminary restraining order or other like injunctive relief to prevent or enjoin the disclosure or use of a trade secret, patent, intellectual property or proprietary information, where such relief is required to permit the dispute to proceed to arbitration without one party incurring irreparable harm. Additionally, nothing in this Agreement precludes an Associate from filing a Charge or complaint with the Equal Employment Opportunity Commission, NLRB, or any other state or federal agency.

            . . . .

I READ, UNDERSTAND, AND ACCEPT THE TERMS OF THE MEDIATION AND ARBITRATION AGREEMENT.

            (See Putman Decl., ¶ 22, Ex. D, pp. 31, 35 at ¶ 2(E), 40.)

            The Ecolab Defendants declare that employees, including Canseven, were asked to enter into the “Consent to Proceed Electronically” prior to electronically agreeing to the Arbitration Agreement, and if employees did not agree to proceed electronically an HR representative would assist in the signing of a hard copy agreement. (Putnam Decl., ¶¶ 14, 15.) The Ecolab Defendants declare “In October of 2014, Ecolab implemented a mandatory Ecolab Associate Resolution Resource (“EARR”) program, which addressed dispute resolution and contained a Mediation and Arbitration Agreement (the “Arbitration Agreement”).” (Putnam Decl., ¶ 5.)  The Ecolab Defendants declare that an email was sent Canseven when she electronically entered into the Arbitration Agreement, and the “email would not have been sent to Venus Canseven unless she has electronically signed the Arbitration Agreement.” (Putman Decl., ¶ 22, Ex. D.)

            The Court finds that the Ecolab Defendants have proven the existence of a valid arbitration agreement, electronically agreed upon by Canseven, as part of the EARR program.

            Canseven has not opposed the motion and thus has not met her burden to prove by a “preponderance of the evidence any fact necessary to its defense.” (Giuliano, supra, 149 Cal.App.4th at p.1284.)

            The Ecolab Defendants Motion to Compel Arbitration is GRANTED.

II.             Stay pending resolution of arbitration pursuant to CCP §1281.4 

            “If a court of competent jurisdiction, whether in this State or not, has ordered arbitration of a controversy which is an issue involved in an action or proceeding pending before a court of this State, the court in which such action or proceeding is pending shall, upon motion of a party to such action or proceeding, stay the action or proceeding until an arbitration is had in accordance with the order to arbitrate or until such earlier time as the court specifies.” (Code Civ. Proc., § 1281.4.)

The action is stayed pending resolution of arbitration pursuant to CCP §1281.4.