Judge Holly J. Fujie, Case Number: 22STCV34558, Date: 2023-11-02 Tentative Ruling

This is a PAGA action. Plaintiff Teresa R. Fleming (“Plaintiff”) was employed by Defendant Data Media Visual Services, LLC (“Defendant”) from September 2021 to December 17, 2021. Defendant allegedly failed to pay Plaintiff all wages at the applicable minimum wage for all hours worked and overtime wages for all overtime hours worked.

On February 10, 2023, the Court issued an order on joint stipulation to stay case pending the California Supreme Court’s decision in Adolph v. Uber Technologies, Inc. (Stipulation 02/10/2023.) On July 17, 2023, the Supreme Court of California issued its decision in Adolph v. Uber Technologies, Inc. (2023) 14 Cal.5th 1104.

On August 31, 2023, Defendant filed a motion for stay of proceedings. On October 24, 2023, Defendant filed a Notice of Non-Opposition.

“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 clear language of section 1281.4 compels the conclusion that any party to a judicial proceeding, whether a party to an arbitration agreement or not, is entitled to a stay of those proceedings whenever (1) the arbitration of a controversy has been ordered, and (2) that controversy is also an issue involved in the pending judicial action. It is irrelevant under the statute whether the movant is a party to the arbitration agreement.¿ As stated in Cook v. Superior Court, 240 Cal.App.2d 880, 885, “Code of Civil Procedure section 1281.4 seems broad enough to vest the court with authority to stay ‘the action or proceeding’ as to all issues, as to all causes of action, and as to all parties, until arbitration is concluded . . . .” (Marcus v. Superior Court (1977) 75 Cal.App.3d 204, 209.)

Defendant moves for a stay of the proceedings pending a resolution of the arbitration of Plaintiff’s individual claims. Plaintiff argues that the statutory mandatory stay under Civil Code section 1281.4 applies to the present action. Plaintiff presents evidence of the Court ordered arbitration of and a stay of Plaintiff’s individual claims in the related case Fleming v. Visual Data Media Services, case no. 22STCV19393. (Northrup Decl. ¶ 4, 5, Ex. C, D.) Plaintiff asserts that the arbitration involves controversies at issue in the present action. Plaintiff cites Adolph, as support that staying Plaintiff’s PAGA action pending arbitration of Plaintiff’s individual claims is proper. Furthermore, Plaintiff argues that the exception to the mandatory stay under section 1281.4 does not apply because the arbitration of Plaintiff’s individual claims does not make those claims severable.

“Nothing in PAGA or any other relevant statute suggests that arbitrating individual claims effects a severance.” (Adolph, 14 Cal.5th at 1125.) The California Supreme Court references section 1281.4 to state that courts should stay actions upon ordering arbitration of an issue in controversy that is an issue in an action. (Id.) Furthermore, the Court’s decision emphasizes that the arbitration of an issue in controversy is not a separate action under section 1281.4 but rather remains one action, parts of which may be stayed pending completion of the arbitration. (Id. at 1125.) Furthermore, “where a plaintiff has filed a PAGA action comprised of individual and non-individual claims, an order compelling arbitration of individual claims does not strip the plaintiff of standing to litigate non-individual claims in court.” (Id. at 1123.)

In this case, the representative PAGA claim is severable from Plaintiff’s individual claims in arbitration. This Court acknowledges that the related case and this action involve the same allegations of Labor Code violations and thus involve substantially the same issues. (Northrup Decl., Ex. A, E.) Because the arbitration of Plaintiff’s individual claims will involve substantially the same issues, the action is stayed pending arbitration of Plaintiff’s individual claims. Plaintiff does not oppose the motion.

Parties who intend to submit on this tentative must send an email to the Court at SMC_DEPT56@lacourt.org as directed by the instructions provided on the court website at www.lacourt.org. If the department does not receive an email and there are no appearances at the hearing, the motion will be placed off calendar.

Hon. Holly J. Fujie

Judge of the Superior Court