Judge: Randall J. Sherman, Case: 2023-01324565, Date: 2023-08-04 Tentative Ruling

Defendant Atlantic Solutions Group, Inc.’s Motion to Compel Arbitration and Stay Action is denied.  Defendant’s Request for Judicial Notice is granted.

Defendant Atlantic Solutions Group, Inc. is not entitled to enforce the arbitration agreement between plaintiff Chartwell Staffing Services Inc. and Jay Guittard, one of its former employees.  That agreement applies “in the event of any controversy, claim, or dispute arising from, related to, or having any relationship or connection whatsoever with the employment of, or the association between, [Guittard] and Chartwell”.  This lawsuit does not involve such a dispute.  The defendants in this action are Atlantic Solutions Group Inc. dba Empire Workforce Solutions, Patrick McKenney, Michelle Rafael, Jasmine Granados, Destiny Gonzalez, Jacqlyn Montoya, Leticia Osoria, Alexa Higdon and Gissell Peralta.  Jay Guittard is not a defendant.  This action is based on the alleged misconduct of the eight former employees named as defendants in this action.  It is not based on Guittard’s past employment or other relationship with plaintiff Chartwell.  The allegations of the Complaint do not depend on Guittard breaching any contract with Chartwell; they are based on Chartwell’s former employees joining a competitor and breaching their contracts with Chartwell, misappropriating trade secrets, soliciting clients, and other such claims.  The doctrine of equitable estoppel does not apply here.  That doctrine applies when plaintiff’s claims against a non-signatory defendant are inherently inseparable from its claims against a signatory and are intimately founded in and intertwined with the underlying contract obligations.  Metalclad Corp. v. Ventana Environmental Organizational Partnership (2003) 109 Cal. App. 4th 1705, 1713.  Defendant has not shown that this test has been met here.  Since plaintiffs’ allegations fall outside the scope of the arbitration agreement between Chartwell and Guittard, Atlantic may not use that agreement to compel arbitration of this lawsuit.

Plaintiffs are ordered to give notice of the ruling unless notice is waived.