Judge: Holly J. Fujie, Case: 24STCV05792, Date: 2024-08-06 Tentative Ruling
Case Number: 24STCV05792 Hearing Date: August 6, 2024 Dept: 56
SUPERIOR
COURT OF THE STATE OF CALIFORNIA
FOR
THE COUNTY OF LOS ANGELES - CENTRAL DISTRICT
MOVING PARTY: Defendants
SIMPLIFIED TRANSPORT LLC (“Simplified”); and ASH WAHI (collectively,
“Defendants”)
RESPONDING PARTY: Plaintiffs
TIMOTHY JOHN EVANS; OMAR ANTONIO CRUZ; EDWIN GUTIERREZ; and WILFREDO FLORES
(“Flores”) (collectively, “Plaintiffs”)[1]
The Court has considered the moving,
opposition and reply papers.
BACKGROUND
This action arises out of an alleged employment
relationship between Simplified and Plaintiffs, who were formerly hired as “flex
drivers” by Simplified. (Compl., ¶¶ 17, 33,
49, 65.) On March 7, 2024, Plaintiffs filed a complaint asserting the following
causes of action: (1) failure to pay minimum wages pursuant to Labor Code §§
1197 and 1198; (2) failure to pay overtime wages pursuant to Labor Code §§ 510
and 1198; (3) failure to provide meal breaks or meal break premium in lieu
thereof pursuant to Labor Code §§ 226.7 and 512; (4) failure to provide rest
breaks or rest break premium pursuant to Labor Code § 226. 7; (5) waiting time
penalties pursuant to Labor Code § 203; (6) failure to provide accurate
itemized wage statements pursuant to Labor Code §§ 226, 1174 and 1198; (7)
failure to reimburse necessary business expenditures pursuant to Labor Code §
2802; (8) failure to pay wages due upon separation pursuant to Labor Code §§
201 and 202; (9) failure to pay timely wages during employment in violation of
Labor Code §§ 2014 and 1198; (10) unfair competition and unfair business
practices in violation of Business & Professions Code § 17200, et seq.;
(11) retaliation in violation of Labor Code § 98.6; (12) retaliation in
violation of Labor Code § 1102.5; (13) retaliation in violation of Labor Code §
6310; and (14) wrongful termination in violation of public policy; (15)
violation of Labor Code §§ 1400 to 1404 in violation of the Cal-WARN Act
(failure to give required written notice).
On May 30, 2024, Defendants filed the instant
petition to compel arbitration (the “Petition”), in lieu of an answer, seeking
an order directing Flores (one of the Defendants) to submit his claims to
binding arbitration. On July 15, 2024,
Simplified filed a Notice of Hearing of Petition to Compel Arbitration and Stay
Action, attaching therewith its memorandum of points and authorities,
supporting declarations and exhibits.
Plaintiffs filed an opposition on July 24, 2024, and
Simplified filed a reply on July 31, 2024.
EVIDENTIARY OBJECTIONS
Plaintiffs’ objections to Maria Diaz and E.
Sean McLoughlin’s individual declarations and the supporting exhibits attached
to their respective declarations are OVERRULED.
Plaintiff’s objections to the Supplemental
Declaration of Maria Diaz and the supporting exhibits attached thereto are
SUSTAINED.
DISCUSSION
Legal Standard
“On petition of a party to an arbitration agreement
alleging the existence of a written agreement to arbitrate a controversy and
that a party thereto refuses to arbitrate a 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….” (Code of Civil Procedure (“CCP”), § 1281.2; Rosenthal
v. Great Western Fin. Securities Corp. (1996) 14 Cal.4th 394, 409-10 [applying
state rules of procedure to arbitration agreements subject to FAA].) “The party seeking arbitration bears the
burden of proving the existence of an arbitration agreement, and the party
opposing arbitration bears the burden of proving any defense, such as
unconscionability.” (Pinnacle Museum
Tower Assn. v. Pinnacle Market Development (US), LLC (2012) 55 Cal.4th 223,
236.)
Under California law, public policy favors
arbitration as an efficient and less expensive means of resolving private
disputes. (Moncharsh v. Heily &
Blase (1992) 3 Cal.4th 1, 8-9; AT&T Mobility LLC v. Concepcion
(2011) 563 U.S. 333, 339. “To further
that policy, [Code of Civil Procedure] section 1281.2 requires a trial court to
enforce a written arbitration agreement unless one of three limited exceptions
applies. Those statutory exceptions
arise where (1) a party waives the right to arbitration; (2) grounds exist for
revoking the arbitration agreement; and (3) pending litigation with a third
party creates the possibility of conflicting rulings on common factual or legal
issues.” (Acquire II, Ltd. v. Colton
Real Estate Group (2013) 213 Cal.App.4th 959, 967, citing Code of Civ.
Proc., § 1281.2, subds. (a)-(c).)
The Federal Arbitration Act (FAA) similarly reflects
a liberal federal policy favoring arbitration and the fundamental principle
that arbitration is a matter of contract.
(Concepcion, supra, at 339.)
In line with these principles, courts must place arbitration agreements
on an equal footing with other contracts and enforce them according to their
terms. (Ibid.) “[U]nder both the FAA and California law,
‘arbitration agreements are valid, irrevocable, and enforceable, save upon such
grounds as exist at law or in equity for the revocation of any contract.’ ” (Higgins v. Sup. Ct. (2006) 140
Cal.App.4th 1238, 1247.)
Accordingly, whether an agreement is governed by the
California Arbitration Act (CAA) or the FAA, courts resolve doubts regarding
the scope of arbitrable issues in favor of arbitration. (Moncharsh, supra, at 9; Comedy
Club, Inc. v. Improv West Assocs. (9th Cir. 2009) 553 F.3d 1277, 1284; Engalla
v. Permanente Med. Grp., Inc. (1997) 15 Cal.4th 951, 971-972 [“California
law incorporates many of the basic policy objectives contained in the Federal
Arbitration Act, including a presumption in favor of arbitrability [citation]
and a requirement that an arbitration agreement must be enforced on the basis
of state law standards that apply to contracts in general [citation]”].) The party moving to compel arbitration bears
the burden of proving the existence of a valid arbitration agreement that
covers the claims, and the opposing party bears the burden of proving any fact
necessary to its defense. (Gatton v.
T-Mobile USA, Inc. (2007) 152 Cal.App.4th 571, 579.)
Applicability of the FAA
Foremost, Flores contends that the FAA is inapplicable in the instant
case because he is a “transportation worker” and, therefore, exempt from the
FAA coverage. Based on this argument, Flores
posits that because the FAA does not apply, the Petition should be denied under
California law, specifically Labor Code section 229, which prohibits
arbitration of claims for unpaid wages.
The question of whether Flores’
claims are arbitrable turns largely on the application of the FAA. If this matter is governed only by California
law, Labor Code section 229 provides an exception to the general rule favoring
arbitrability. Specifically, the statute
states that actions to collect “due and unpaid wages claimed by an individual
may be maintained without regard to the existence of any private agreement to
arbitrate.” (Lab. Code, § 229.)
Section 2 of the FAA (hereafter, “Section 2”)
provides that “[a] written provision in any maritime transaction or a contract
evidencing a transaction involving commerce to settle by arbitration a
controversy thereafter arising out of such contract . . . shall be valid,
irrevocable, and enforceable, save upon such grounds as exist at law or in
equity for the revocation of any contract.” Courts broadly construe Section 2 to “provide
for the enforcement of arbitration agreements within the full reach of the Commerce
Clause.” (Perry v. Thomas (1987)
482 U.S. 483, 490.)
Accordingly, in most cases, the FAA mandates
arbitration when contracts involving interstate commerce contain arbitration
provisions. (Southland Corp. v.
Keating (1984) 465 U.S. 1, 10–11; Cable Connection, Inc. v. DIRECTV,
Inc. (2008) 44 Cal.4th 1334, 1351.) In
matters where the FAA applies, it preempts Labor Code section 229, thus
requiring arbitration of claims that otherwise could be resolved in court. (Perry v. Thomas (1987) 482 U.S. 483,
490–92.)
Here, the Mutual Arbitration Policy (the “MAP”),
which contains the subject arbitration provision at issue, expressly states
that the FAA governs. (Declaration of
Maria Diaz (“Diaz Decl.”), Exh. 1, p. 2 [“The MAP shall be governed solely by
the Federal Arbitration Act (‘FAA’), 9 U.S.C. § 1, et seq. If for any reason the FAA is deemed
inapplicable, only then will the MAP be governed by the applicable state
arbitration statutes.”].) Moreover, Simplified has established that it
is engaged in interstate commerce within the meaning of the FAA. (Diaz Decl, ¶ 2.] Simplified has numerous office locations in
Southern California and also in states other than California. (Id.) Simplified supplies labor and staffing to
customers in California and to customers who are based outside of California. (Id.) In conducting its business operations,
Simplified purchases equipment, goods and services that originate from outside
of California. (Id.)
Thus, under
other circumstances, this ends the inquiry as to the applicability of the FAA. Here, however, Plaintiffs argue that Flores
falls within a narrow exception, found in Section 1 of the FAA (hereafter,
“Section 1”). Section 1 provides a
limited exemption from FAA coverage to “contracts of employment of seamen,
railroad employees, or any other class of workers engaged in foreign or
interstate commerce.” (9 U.S.C. § 1; Circuit
City Stores, Inc. v. Adams (2001) 532 U.S. 105, 109.) In Circuit City, “the United States
Supreme Court concluded Section 1’s catchall phrase ‘any other class of workers
engaged in foreign or interstate commerce’ does not refer to all workers
involved in foreign or interstate commerce, but rather only to ‘transportation
workers’.” (Circuit City, supra, at 119, 121; Muller v. Roy Miller
Freight Lines, LLC (2019) 34 Cal.App.5th 1056, 1062.)
Thus, the inquiry turns on whether Flores was a
“transportation worker” under Section 1—i.e., whether he “actually engaged in
the movement of goods in interstate commerce.” (Circuit City, supra, at 112.) That said, the Supreme Court in Circuit City
“did not elaborate on what type of connection a worker must have to interstate
commerce, to what degree his or her duties must involve transportation, to what
degree the employer’s industry must be related to transportation, or whether
the worker must cross state lines for the exemption to apply.” (Muller, supra, at 1063.)
In the nearly twenty years since the Supreme Court decided Circuit City,
“state and federal courts have grappled with these unresolved issues, but
little consensus has been realized.” (Muller,
supra, at 1063). Some focused on
whether the employer was in the transportation industry; other courts focused
on the nature of the particular employee’s work, e.g., whether the employee
personally traversed state lines. (Ibid.)
Despite these variances, one area of clear common ground
among the courts is that “[when] a truck driver physically transports goods
across state lines, he or she undoubtedly qualifies as a transportation worker
under [S]ection 1.” (Muro v.
Cornerstone Staffing Solutions, Inc. (2018) 20 Cal.App.5th 784, 790-91.) The Court of Appeal concluded, however, in Nieto
v. Fresno Beverage Co., Inc., that interstate travel is not necessary for
Section 1 to apply, and it held that a delivery driver may fall “within the
scope of the exemption even though his deliveries were exclusively to
destinations within California.” (Nieto
v. Fresno Beverage Co., Inc. (2019) 33 Cal.App.5th 274, 282.) The Nieto court came to the conclusion
that the delivery driver was “engaged in interstate commerce during his
employment” in light of the following facts: the employer sold and distributed
beer, wines, and other beverages that originated in other states and countries;
although the employer’s drivers did not transport goods across state lines,
they were nevertheless subject to federal Department of Transportation
regulations and other federal laws and regulations governing motor vehicle
safety; drivers traversed interstate highways and roads; and drivers
transported the items as part of a “practical continuity of movement” in the flow
of interstate commerce. (Nieto, supra,
at 284; Muller, supra, at 1066.) The
Nieto court further explained: “It is apparent from the above
information and concessions that [the driver]’s deliveries, although
intrastate, were essentially the last phase of a continuous journey of the
interstate commerce (i.e., beer and other beverages delivered to [the]
warehouse from out-of-state) being transported until reaching [the]
destination(s) to [the] customers. Accordingly,
as a delivery truck driver [], [he] was engaged in interstate commerce through
his participation in the continuation of the movement of interstate goods to
their destinations.” (Nieto, supra,
at 284.)
Here, the evidence
sufficiently establishes that Flores was “actually engaged in the movement of
goods in interstate commerce.” (Circuit
City, supra, at 112.) That is, Flores
has been transporting goods and/or materials that originated from outside of
California. (Diaz Decl., ¶ 2.) Flores’ job was to transport goods and
merchandise that he picked up from different ports and took them to warehouses in
Los Angeles County and San Bernardino County.
(Declaration of Maya Fonseca, Interpreter/Translator Certifying
Translation of Declaration of Plaintiff Wilfredo Flores (“Fonseca Decl.”), ¶ 20.)
Like Nieto, Flores
likely traversed interstate highways and roads, although remaining intrastate
the entire time, to make deliveries. Accordingly,
the Court finds that Flores is a “transportation worker” engaged in interstate
commerce for purposes of Section 1. Hence,
Flores is exempt from FAA coverage. Because
the FAA is inapplicable, the Court’s analysis is guided by California law, and
more specifically, Labor Code section 229.
As previously mentioned, Section 229 provides that a
cause of action seeking to collect “due and unpaid wages” pursuant to Labor
Code sections 200 through 244 can be maintained in court despite an agreement
to arbitrate. (Khalatian v. Prime
Time Shuttle, Inc. (2015) 237 Cal.App.4th 651, 656.) Even if Flores is a transportation worker engaged
in interstate commerce, however, Labor Code section 229 does not apply to the
types of claims asserted by Flores. Thus, the inapplicability
of the FAA essentially has no bearing on the present lawsuit because Flores —although
he alleges multiple wage and hour claims—does not actually allege a claim for
unpaid wages. This same issue arose in Lane v. Francis Capital Management LLC
(2014) 224 Cal.App.4th 676, where the court held that claims for unpaid
overtime, meal and rest periods violations, waiting time penalties, wage
statement violations, and unfair competition are not subject to Section 229. (Khalatian, supra, at 655 [only 2 of 11
wage and hour causes of action subject to 229].) Because Section 229 does not apply to any of
Plaintiff’s alleged causes of action here, Section 229 is not an impediment to
arbitration of any part of Flores’ action. Although Flores is exempt from the coverage of
the FAA as a “transportation worker”, the California Arbitration Act
nonetheless applies, and arbitration can likewise be compelled thereunder. Accordingly,
the Court continues its analysis on the gateway issues and any defenses to
arbitration.
Existence of an Arbitration Agreement that Covers the
Dispute at Issue
In determining the enforceability of an arbitration
agreement, the court considers “two ‘gateway issues’ of arbitrability: (1)
whether there was an agreement to arbitrate between the parties, and (2)
whether the agreement covered the dispute at issue.” (Omar v. Ralphs Grocery Co. (2004) 118
Cal.App.4th 955, 961.)
In California, “defendants may meet their initial
burden to show an agreement to arbitrate by attaching a copy of the arbitration
agreement purportedly bearing the opposing party’s signature . . . in
compliance with the requirements of [CCP] section 1281.2 and California Rules
of Court, rule 3.1330.” (Espejo v.
Southern California Permanente Medical Group (2016) 246 Cal.App.4th 1047,
1060.)
Here, Simplified presents in evidence a
copy of the MAP containing the arbitration provision as well as the signed Employment
Agreement to Arbitrate (“Agreement”).
Simplified’s Director of Human Resources, Maria Diaz, declares that Flores
received and reviewed the MAP and signed the Agreement on August 22, 2021. (Diaz Decl., ¶ 6.)
In opposition, Flores contends that the
evidence submitted by Simplified to demonstrate the existence of an arbitration
agreement is inadmissible. Specifically,
Flores argues that Diaz’s declaration fails to establish any foundation to
authenticate the document attached to her declaration. The Court has overruled Plaintiffs’
evidentiary objection to the Declaration of Maria Diaz and the Court finds that
Diaz’s declaration is sufficient to authenticate the Agreement. (Ev. Code, §§
1400, 1416; People v. Skiles, (2011) 51 Cal.4th 1178, 1187 [the
means of authenticating a writing are not limited to those specified in the
Evidence Code; a writing can be authenticated by circumstantial evidence and by
its contents].) “For purposes of a
petition to compel arbitration, it is not necessary to follow the normal
procedures of document authentication.” (Id., at 218.) “[T]he court is
only required to make a finding of the agreement’s existence, not an
evidentiary determination of its validity.” (Id., at 219.)
Notably, in spite of Flores claiming that
he does not remember signing the Agreement, he does not deny and actually
admits that the signature on the Agreement is indeed his. (Fonseca Decl. ¶ 14.) Flores also admits to receiving English
documents during orientation for him to sign.
(Fonseca Decl., ¶ 11.) Thus,
Flores fails to controvert the evidence provided by Simplified to prove the
existence of an arbitration agreement.
As for the scope of the arbitration
agreement, the arbitration provision in the MAP broadly covers “all disputes
relating to or arising out of or in connection with employment at the Company” including,
specifically, “wage or overtime claims under the Labor Code.” (Diaz Decl., Exh. 1, p. 1.) Flores also does not dispute that his claims
are covered by the arbitration agreement.
The Court finds that Simplified has met its
burden of establishing (1) the existence of an agreement to arbitrate and (2)
that Flores’ claims fall within the scope of the agreement to arbitrate. Thus, the burden shifts to Flores to prove a
ground for denial.
Unconscionability
An arbitration
agreement must be both procedurally and substantively unconscionable to be
unenforceable. (Armendariz v. Foundation Health Psychcare Services, Inc. (2000) 24
Cal.4th 83, 114; Mission Viejo Emergency
Med. Assocs. v. Beta Healthcare Group (2011) 197 Cal.App.4th 1146, 1159 [unnecessary
to decide whether insurance policy was adhesion contract and procedurally
unconscionable because it was not
substantively unconscionable].)
Procedural unconscionability concerns the manner in which the contract was
negotiated and the parties’
circumstances at that time. It
focuses on the factors of oppression or
surprise. (Kinney v. United HealthCare
Services, Inc. (1999) 70 Cal.App.4th 1322, 1329.) Substantive unconscionability focuses on the
terms of the agreement and whether those terms are “overly harsh or one-sided.”
(Sonic-Calabasas
A, Inc. v. Moreno (2013) 57 Cal.4th 1109, 1145.)
i.
Procedural
Unconscionability
Here, Flores contends that the arbitration agreement
is a contract of adhesion where his signature was “required” as a condition of
employment, and he was never given an opportunity to negotiate any terms of the
agreement. As such, the agreement is
unenforceable.
The Court is not persuaded by Flores’ assertion. Even
if Flores was required to sign the arbitration agreement as a condition of
employment, this alone does not render the Agreement unenforceable. “[The] adhesive aspect of an agreement is not
dispositive. [Citation.] When … there is no other indication of oppression or
surprise, ‘the degree of procedural unconscionability of an adhesion agreement
is low, and the agreement will be enforceable unless the degree of substantive
unconscionability is high.’” (Serpa
v. California Sur. Investigations, Inc. (2013) 215 Cal.App.4th 695, 704; Lagatree
v. Luce, Forward, Hamilton & Scripps (1999) 74 Cal.App.4th 1105, 1127 [“[A]
compulsory predispute arbitration agreement is not rendered unenforceable just
because it is required as a condition of employment or offered on a ‘take it or
leave it’ basis.”]; Graham v.
Scissor-Tail, Inc. (1981) 28 Cal.3d 807, 817-818 [adhesion contracts
are “an inevitable fact of life for all citizens—businessman and consumer
alike”].) Therefore,
the Court does not find the arbitration agreement to be unconscionable purely
on the basis of its adhesive nature.
Flores further contends that the arbitration
agreement involves an element of surprise in that it is entirely in English. Flores attests that his main language is
Spanish, and that he “can’t read, write or speak English, except for a few
words.” (Fonseca Decl., ¶ 2.) He claims that he was not provided with a
Spanish translation of the documents he was asked to sign and that the contents
of the documents he was signing were not explained to him. (Id., ¶ 11.)
Even assuming that Flores did not understand the language of the Agreement,
this alone is not a reason to invalidate it. “Language fluency” arguments generally do not
render an otherwise valid agreement unenforceable. (Randas v. YMCA of Metropolitan Los
Angeles (1993) 17 Cal.App.4th 153, 160; Bolanos v. Khalatian (1991)
231 Cal.App.3d 1596, 1590-1591.) Flores
should not have signed something that he did not understand in the first
place. (Randas, supra, at
163.) “Ordinarily, one who accepts or
signs an instrument, which on its face is a contract, is deemed to assent to
all its terms, and cannot escape liability on the ground that he has not read
it. If he cannot read, he should have it
read or explained to him.” (Ibid.;
Madden v. Kaiser Found. Hosps. (1976) 17 Cal.3d 699, 710 [“one who
assents to a contract is bound by its provisions and cannot complain of
unfamiliarity with the language of the instrument”].) In Ramos v. Westlake Servs. LLC (2015)
242 Cal.App.4th 674, the court observed: “the fact that Ramos signed a contract
in a language he may not have completely understood would not bar enforcement
of the arbitration agreement. If Ramos did not speak or understand English
sufficiently to comprehend the English Contract, he should have had it read or
explained to him.” (Id., at 687.) The court in Ramos ultimately found a
lack of mutual assent, but not because the plaintiff did not understand
English. The court noted: “Ramos is not attempting to avoid the arbitration
agreement because of his limited understanding of the English language. Rather,
he is relying on the fact that Pena’s Motors provided him with what purported
to be a Spanish translation of the English Contract he was being asked to sign,
a Spanish translation which did not contain the arbitration
agreement.” (Id.)
Here, Flores does not claim that Simplified provided a Spanish
translation of the Agreement that differed from the English version. Rather, Flores contends that he did not
understand the terms of the Agreement. Flores,
however, had the opportunity to request and review a Spanish translation, as
stated both in the MAP as well as in the Agreement itself. (Diaz Decl., Exh. 1, p. 3) [“If you would like to receive or review a
copy of the Company’s arbitration policy in Spanish, please request a Spanish
version.”]; Id., p. 4 [“I
acknowledge that I… have been provided an opportunity to request and review a
Spanish translation as well.”].) There
is no indication in Flores’ declaration that he ever requested such a
translation. “A party cannot use his
own lack of diligence to avoid an arbitration agreement.” (24 Hour Fitness, Inc. v. Superior Court
(1998) 66 Cal.App.4th 1199, 1215.)
Thus, the Court finds
no, or at most, an exceedingly low, level of procedural unconscionability.
ii.
Substantive
Unconscionability
“Substantive
unconscionability pertains to the fairness of an agreement’s actual terms and
to assessments of whether they are overly harsh or one-sided. A contract term is not substantively
unconscionable when it merely gives one side a greater benefit; rather, the
term must be so one-sided as to ‘shock the conscience.’” (Carmona, 226 Cal.App.4th 74, 85
(quotations and citations omitted).) “The
paramount consideration in assessing [substantive] unconscionability is
mutuality.” (Id. [brackets in original].)
Flores asserts that the arbitration
agreement fails to meet five of the Armendariz factors because it is (1)
not mutual; (2) does not provide for adequate discovery; (3) is silent on
Statutory
Remedies Available; (4) does not provide for the written decision by the
arbitrator; (5) does not allow for a neutral arbitrator.
To be enforceable, an arbitration agreement in an
employment contract must comply with the requirements of Armendariz. The Armendariz requirements are that:
“(1) the arbitration agreement may not limit the damages normally available
under the statute; (2) there must be discovery sufficient to adequately
arbitrate their statutory claim; (3) there must be a written arbitration
decision and judicial review sufficient to ensure the arbitrators comply with
the requirements of the statute; and (4) the employer must pay all types of
costs that are unique to arbitration.” (Little
v. Auto Stiegler, Inc. (2003) 29 Cal.4th 1064, 1076.)
Here, both the MAP and the Agreement are
mutual and require both parties to arbitrate all claims arising from Flores’
employment with Simplified. The MAP
explicitly states that “[l]ikewise, the Company agrees to be bound by the
MAP. This mutual obligation to arbitrate
claims means that both you and the Company are bound to use the MAP as the only
means of resolving any employment-related disputes covered by the policy.” (Diaz Decl., Exh. 1, p. 1.) The Agreement similarly states that “the
Company also agrees to submit all claims and disputes it may have with [Flores]
to final and binding arbitration.” (Id.,
p.4.)
The Court notes that the Agreement states
that the arbitration agreement shall be governed by the AAA Rules. (Diaz Decl., Exh. 1, p. 4.) The AAA rules provide for discovery necessary
for a full and fair exploration of the issues in dispute. (Declaration of E. Sean McLoughlin
(“McLoughlin Decl.”), Exh. 2 (Rule 9). Under
the AAA Rules, an employee is entitled to recover any remedy he would have
otherwise been entitled to in a court of law, including attorney’s fees and
costs. (Id., (Rule 39(d).) The MAP also states that “[i]f [Flores] wins,
[he] can be awarded anything [he] might individually have received in a
court.” (Diaz Decl., Exh. 1, p. 2.) The
AAA Rules provide for a written decision by the arbitrator. (McLoughlin Decl., Exh. 2 (Rule 39).) The MAP similarly provides that the
“arbitrator shall render a written decision on the matter…” (Diaz Decl., Exh. 1, p. 2.) Finally, the MAP provides for an “impartial
and independent arbitrator” chosen by agreement of both parties (Id.),
and the AAA rules likewise provide for a neutral selection process for the
Arbitrator. (McLoughlin Decl., Exh. 2 (Rule
12).) Thus,
contrary to Flores’ assertion, the arbitration agreement complies with the
requirements of Armendariz.
In sum, the Court finds that Flores has not
met his burden of demonstrating unconscionability.
RULING
Accordingly,
Defendants’ Petition is GRANTED. The
Court STAYS this action pursuant to Code of Civil Procedure section 1281.4
pending arbitration. The Court sets a status conference on February 3,
2025 at 8:30 a.m. in this department. The parties are ordered to file a
joint status report at least seven days prior to the status
conference.
Moving
Party is ordered to give notice of this ruling.
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.
Dated this 6th day of August 2024
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Hon. Holly J.
Fujie Judge of the
Superior Court |
[1] Although the opposition is filed on
behalf of all Plaintiffs, the assertions referenced in the discussion pertain
to Flores as the individual party sought to be compelled to arbitration.