Judge: Wesley L. Hsu, Case: 21PSCV00520, Date: 2023-03-27 Tentative Ruling

Case Number: 21PSCV00520    Hearing Date: March 27, 2023    Dept: L

1. Defendant CWD, LLC’s Motion to Seal Exhibit D to Janet C. Shamilian’s Declaration in Support of CWD’S Opposition to Plaintiff Joanna Salazar’s Motion to Compel Defendant to Provide Further Responses to Plaintiff’s Requests for Production of Documents (Set One) Nos. 17-18, 28-29 and 32 is DENIED as not applicable.

 

2. The hearing on Defendant CWD, LLC’s Motion to Strike Plaintiff Joanna Salazar’s PAGA Claim from the Complaint is CONTINUED to June 22, 2023, at 9:30 a.m. [see below].

 

3. The hearing on Defendant CWD, LLC’s Motion to Seal Exhibits G and H to Jeannie Martin’s Declaration in Support of CWD’s Motion to Strike Joanna Salazar’s PAGA Claim from the Complaint is CONTINUED to to June 22, 2023, at 9:30 a.m. [see below].

 

4. The hearing on Plaintiff Joanna Salazar’s Motion to File Records Under Seal is CONTINUED to June 22, 2023, at 9:30 a.m.

 

Background   

 

Plaintiff Joanna Salazar, individually, and on behalf of aggrieved employees pursuant to

the Private Attorneys General Act (“Plaintiff”) alleges as follows: Plaintiff was employed by

CWD, LLC dba Centric Parts and First Brands Group (“Defendant”) as an hourly-paid, non-exempt employee. Defendant, inter alia, failed to compensate Plaintiff and other aggrieved employees for all hours worked, including minimum/ and overtime wages and missed meal periods and/or rest breaks, and failed to provide accurate wage statements. Defendant also failed to pay Plaintiff and other aggrieved employees for all wages due and owing during employment and upon termination of employment and failed to reimburse them for all necessary business expenses.

 

On June 22, 2021, Plaintiff filed a complaint, asserting a cause of action against Defendant and Does 1-100 for:

 

1.      Violation of PAGA

 

A Case Management Conference is set for March 27, 2023.

 

1. Defendant’s Motion to Seal Exhibit D to Shamilian Declaration

 

Legal Standard

 

California Rules of Court “Rules 2.550-2.551 apply to records sealed or proposed to be sealed by court order.” (Cal. Rules of Court, rule 2.550, subd. (a)(1).)

 

These rules do not apply to discovery motions and records filed or lodged in connection with discovery motions or proceedings. However, the rules do apply to discovery materials that are used at trial or submitted as a basis for adjudication of matters other than discovery motions or proceedings.” (Cal. Rules of Court, rule 2.550, subd. (a)(3) [emphasis added].)

 

Discussion

 

Defendant moves the court for an order sealing Exhibit D to the Declaration of Janet C. Shamilian (“Shamilian”) in support of Defendant’s opposition to Plaintiff’s “Motion to Compel Further Responses for Requests for Production Nos. 17-18, 28-29 and 32.

 

Defendant’s motion is denied as not applicable. Exhibit D was submitted in connection with a discovery motion; as such, California Rules of Court Rules 2.550 and 2.551 are simply not implicated.

 

2. Motion to Strike

 

Defendant moves the court for an order striking Plaintiff’s Private Attorneys General Act of 2004 (“PAGA”) cause of action.

 

Defendant moves for the above relief pursuant to the court’s inherent authority and Wesson v. Staples the Office Superstore, LLC (2021) 68 Cal.App.5th 746, 762-763 [i.e., holding that “trial courts have inherent authority to ensure that a PAGA claims will be manageable at trial—including the power to strike the claim, if necessary—and that this authority is not inconsistent with PAGA’s procedures and objectives, or with applicable precedent”].)

 

In Wesson, Plaintiff Fred Wesson (“Wesson”) worked for Defendant Staples the Office Superstore, LLC (“Staples”) as a store general manager. Wesson brought an action against Staples asserting, inter alia, a PAGA representative claim on behalf of himself and 345 other current and former Staples general managers in California, premised on the theory that Staples had misclassified them as exempt. Wesson moved to certify a class of Staples California general managers, but the trial court denied the motion,  ruling that he has not demonstrated that his claims were susceptible to common proof. Staples thereafter moved to strike Wesson’s PAGA claim on the argument that the action would be “unmanageable” and would violate its due process rights, as its intended affirmative defense of proper classification would require individualized proof as to each general manager, such that the claim could not be fairly and efficiently litigated. Wesson, in turn, argued the trial court lacked authority to require that his claim be manageable and that even if the court had such authority, it was enough that his prima facie case was manageable. Wesson moved for summary adjudication of his PAGA claim while Staples’s motion to strike was pending. Before ruling on the merits of Staple’s motion to strike, the trial court concluded that it had inherent authority to strike an unmanageable PAGA claim and invited Wesson to submit a trial plan showing that his PAGA claim would be manageable at trial. The trial court also permitted Wesson to file a supplemental brief in opposition to Staples’s motion to strike. Wesson, in response, continued to argue that the trial court lacked authority to require that his claim be manageable and set forth his plan to prove his prima facie case, but failed to set forth how the parties could litigate Staple’s affirmative defense. The trial court granted Staples’s motion to strike and subsequently denied the MSA on the basis that there was no need to consider same. The Second District Court of Appeal affirmed.

Wesson, however, appears distinguishable from the instant case at the very least procedurally, in that Plaintiff here has not alleged any class claims (let alone filed a motion for class certification which has been denied) and has not been given an opportunity to submit a trial plan.

 

Plaintiff, in turn, urges that the court follow the reasoning in Estrada v. Royalty Carpet Mills, Inc. (2022) 76 Cal.App.5th 685. In that case, the Fourth District Court of Appeal determined, inter alia, that “a court cannot strike a PAGA claim based on manageability.” (Id. at 697.) Estrada, however, is currently under review by the California Supreme Court on the following issue: “Do trial courts have inherent authority to ensure that claims under the Private Attorneys General Act (Lab. Code, § 2698 et seq.) will be manageable at trial, and to strike or narrow such claims if they cannot be managed?”

 

A review of the California Supreme Court’s website reflects that Estrada (Case No. S274340) was fully briefed as of September 26, 2022. No date has been set for oral argument. Based on the above, the court will continue the hearing on the instant motion to June 22, 2023, at 9:30 a.m. The court declines Defendant’s request that the action be stayed pending resolution of Estrada.

 

3-4. Defendant’s Motion to Seal Exhibits G and H to Martin Declaration and Plaintiff’s Motion to Seal

 

The court will likewise continue the hearing on Defendant’s and Plaintiff’s respective motions to seal to June 22, 2023, at 9:30 a.m.