Judge: Margaret L. Oldendorf, Case: 21GDCV00587, Date: 2023-12-11 Tentative Ruling
Case Number: 21GDCV00587 Hearing Date: December 11, 2023 Dept: P
SUPERIOR COURT OF THE STATE OF CALIFORNIA
FOR THE COUNTY OF LOS ANGELES
NORTHEAST DISTRICT
I. INTRODUCTION
Plaintiff Zakiya Sun Ellis (Ellis)
sues her employer on her own behalf and on behalf of other affected employees,
under the California Private Attorneys General Act (PAGA). Ellis alleges that
her employer, B&V Enterprises, dba Super King Markets, failed to compensate
her and other employees for hours worked, missed meal periods and rest breaks.
Before
the Court is a motion by Ellis to lift the appellate stay currently in place in
these proceedings. Ellis urges that (1) changes to CCP Section 1294 would
support lifting the stay and (2) judicial efficiency and judicial control over
dockets supports early application of CCP Section 1294 changes. Following the
reasoning below, the motion is GRANTED IN PART.
II. LEGAL
STANDARD
CCP
Section 1294 provides that an aggrieved party may appeal from an order denying
a petition to compel arbitration. (CCP § 1294(a).) CCP Section 916(a) provides that
“the perfecting of an appeal stays proceedings in the trial court upon the
judgment or order appealed from or upon the matters embraced therein or
affected thereby, including enforcement of the judgment or order, but the trial
court may proceed upon any other matter embraced in the action and not affected
by the judgment or order.”(CCP § 916(a).)
III. ANALYSIS
On October 10, 2023, California Governor Gavin Newsom
signed Senate Bill 365, which amends CCP Section 1294 to read that “Notwithstanding
Section 916, the perfecting of such an appeal shall not automatically stay any
proceedings in the trial court.” (SB 365, to be codified as CCP § 1294(a).) The
new law takes effect January 1, 2024. Here, Ellis urges that the new law should
be applied to this case before the January 1 effective date. (Motion, p. 2:
19-28.)
However, Government Code Section 9600 provides that the
effective date of a statute enacted at a regular session is January 1 of the
following year. (CGC § 9600(a).) California Government Code Section 9600(b) provides exceptions to the general
rule, but none apply here. (CGC § 9600(b).) The bill does not contain an
urgency clause, which would make it effective immediately. Even assuming
arguendo the truth of Ellis’ arguments that the instant case mirrors the
reasons the Legislature enacted SB 365, the effective date of the law stands. (See
10/20/23 Minute Order [noting that SB 365 is not emergency legislation and
denying Plaintiff’s ex parte application to apply SB 365 before its effective
date], see also Opposition p. 3: 8-18.) The Court declines to apply statutory
law before its effective date.
Secondly, Ellis urges that she does not lose standing to
pursue non-individual PAGA claims even if B&V prevails on appeal and her
individual PAGA claims are compelled to arbitration. (Motion, p. 10: 8-9,
Amended Notice of Motion, p. 3: 22-26.) Ellis urges that CCP Section 916 only stays
litigation on the merits of issues ‘affected by’ the denial of the motion that
is appealed from. (Reply, p. 5: 9-15, citing Varian Medical Systems, Inc. v. Delfino (2005) 35 Cal.4th 180, 189.) Varian Medical
Systems notes that in order to determine if a proceeding is embraced in or
affected by the appeal, “we must consider the appeal and its possible outcomes
in relation to the proceeding and its possible results.” (Id.) Ellis
then cites Adolph v. Uber for the proposition that non-individual (representative)
claims under PAGA are not affected by whether or not individual PAGA claims are
arbitrated. (Adolph v. Uber (2023) 14 Cal.5th 1104, 1114.) The Court is
persuaded that, because the appeal of Judge Rosen’s order denying the motion to
compel arbitration does not affect the non-individual claims, the motion to
lift the stay should now be granted with respect to these claims.[1]
The Court declines to impose sanctions on Plaintiff for
bringing this motion.
IV. CONCLUSION
AND ORDER
The motion to lift the stay is granted in part, with
respect to the non-individual PAGA claims. The Court sets a further status
conference for _____________, 2023.
Plaintiff
is ordered to give notice of this ruling.
Dated: _______________________________
MARGARET L. OLDENDORF
JUDGE
OF THE SUPERIOR COURT