Judge Michael Small, Case Number: 24STCV09655, Date: 2025-05-07 Tentative Ruling

Inform the clerk if you submit on the tentative ruling. If moving and opposing parties submit, no appearance is necessary.

The Plaintiffs were employed by Defendant Legacy Management, Inc. ("Legacy"). They both executed identical arbitration agreements, albeit at different times. Martinez executed the arbitration agreement on September 16, 2021. Monzon started working for Legacy that day, but she did not execute the arbitration agreement until October 8, 2022. Legacy requested that Monzon resign on October 1, 2022, but he continued to work for Legacy until January 19, 2023 when both he and Monzon were terminated. Martinez did not execute another arbitration agreement following his resignation from Legacy on October 1, 2022. A representative of Legacy executed the arbitration agreement that Martinez executed. The parties dispute whether a Legacy representative executed the arbitration agreement that Monzon executed. In fact, the Plaintiffs contend that Legacy fabricated the signature of a Legacy representative, Sherri Wilson ("Wilson"), on the copy of the agreement that Monzon executed that was filed along with the Defendants' reply brief in support of their motion.

The Court has concluded that the arbitration agreements encompass all of the claims that the Plaintiffs have asserted in this action at least as to claims that arose during the periods in which the Plaintiffs were working for Legacy after having signed arbitration agreements. For Martinez, that period is September 16, 2021 through October 1, 2022. For Monzon, that period is October 8, 2022 through January 19, 2023. Further, the Court has concluded that the Plaintiffs failed to carry their burden of demonstrating that the arbitration agreements are both procedurally and substantively unconscionable. Under controlling precedent, they are neither procedurally nor substantively unconscionable.

First, Defendants' supplemental brief is to respond to Plaintiffs' invocation in their supplemental brief in opposition to the motion (which was not authorized but which the Court has considered anyway) of Vasquez v. SaniSure, Inc. (2024) 101 Cal.App.5th 139. The Court of Appeal decision in that case speaks (in this Court's view) to whether (a) the arbitration agreement that Martinez executed encompasses claims against Defendants that arose in the period after he was terminated by Legacy but continued to work for Legacy, and (b) the arbitration agreement that Monzon executed encompasses claims that arose in the period before she executed the arbitration agreement but was working for Legacy.

Second, Defendants' supplemental brief is to respond to Plaintiffs' charge that the Defendants fabricated the signature of Wilson on the copy of the arbitration agreement that Monzon signed that was filed along with the Defendants' reply brief. If neither Wilson nor anyone else on Legacy's behalf executed the Monzon arbitration agreement, then in this Court's view that agreement would be unenforceable under Cruise v. Kroger Co. (2015) 233 Cal.App.4th 390, 397-398, and Serafin v. Balco Properties Ltd.(2015) 235 Cal.App.4th 165, 177. The decisions in both of those cases address whether and under circumstances arbitration can be compelled when the party seeking that result did not actually execute the arbitration agreement on which the effort to get to arbitration rests. In addition to responding to the fabrication charge, Defendants' supplemental brief shall address the implications of Cruise and Serafin in the event the Court concludes that a Legacy representative did not execute the Monzon arbitration agreement. Obviously, if the Wilson signature was fabricated, that may result in more serious consequences for Legacy and its counsel than just a ruling that the Monzon arbitration agreement is unenforceable. The Court is, not, however, at this time granting Plaintiffs' request that the Court set an order to show cause as to whether sanctions should be imposed on Legacy and its counsel regarding the asserted fabricated Wilson signature on the Monzon agreement.