Justia California Court of Appeals Opinion Summaries

Articles Posted in Labor & Employment Law
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Plaintiff-appellant Steve Ahn was a sales executive for a title insurer who claimed his sales figures were adversely affected when his employer barred him from using a particular sales pitch to solicit customers from a competitor who was also a proposed corporate merger partner. Ahn’s pitch told prospective clients that after the proposed merger was finalized, they would have no choice but to comply with his company’s higher-cost, less flexible underwriting standards. He attempted to use this pitch to convince these clients to abandon the competitor before the merger. The issue this case presented for the Court of Appeals' consideration was whether Ahn had standing under the California antitrust statute, known as the Cartwright Act, to assert a cause of action. To this, the Court found that Ahn did not claim injury from the alleged anticompetitive aspects of the proposed merging entities' agreement, but rather from conduct that emphasized their competitive differences. "A complaint that he could not lure customers with a pitch about their restricted postmerger options does not constitute an antitrust injury, meaning Ahn lacks standing to sue under the Cartwright Act." The Court's conclusion that Ahn could not demonstrate an antitrust violation affected his derivative economic relations tort claims, both of which required independently wrongful conduct. Concluding the trial court did not err in granting summary judgment, the appellate court therefore affirmed the judgment. View "Ahn v. Stewart Title Guaranty Co." on Justia Law

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The trial court granted a motion by the Labor Commissioner to amend a judgment to add Plaintiff as an alter ego judgment debtor. Plaintiff appealed. He contends there was “virtually no evidence” he commingled his assets or operations with those of the judgment debtor; the original judgment was not renewed during the 10-year limitation period; the doctrine of laches bars the alter ego motion; and the denial of an earlier alter ego motion barred the current motion under res judicata principles.   The Second Appellate District affirmed finding no error in the court’s decision to add Plaintiff as an alter ego judgment debtor. The court reasoned that as the trial court observed, “no single factor is determinative, and instead, a Court must examine all the circumstances to determine whether to apply the [alter ego] doctrine.” The court cited Plaintiff’s complete control over Cahuenga, his control of the litigation, his sharing of attorneys, his transfer of the company, and his destruction of relevant records of assets. Further, the court explained that Plaintiff contended in the trial court that the motion to amend the judgment was barred by the doctrine of laches. The trial court implicitly concluded Plaintiff did not carry his burden of proof on that point when it granted the Commissioner’s motion. The evidence does not compel a finding in Plaintiff’s favor as a matter of law. View "Hacker v. Fabe" on Justia Law

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Plaintiff sued the City and several members of the Inglewood City Council (the council), alleging that after she reported concerns about financial improprieties, the City and the individual defendants defamed and retaliated against her. She alleged causes of action for (1) defamation; (2) violation of Labor Code section 1102.5, subdivisions (b) and (c), which prohibit retaliation against an employee based on the employee reporting or refusing to participate in what the employee reasonably believes to be illegal activity by the employer (the section 1102.5 retaliation claim); and (3) intentional infliction of emotional distress (IIED), based both on the alleged retaliation and the alleged defamation. The City and the individual defendants filed a joint special motion to strike the complaint as a strategic lawsuit against public participation, or SLAPP, under the antiSLAPP statute. The court granted the motion in part but denied it as to the section 1102.5 retaliation claim and the retaliation-based IIED claim against all Defendants. Defendants appealed, arguing the court incorrectly denied the anti-SLAPP motion as to the retaliation-based claims against the individual defendants.   The Second Appellate District reversed the trial court’s order on the Defendants’ anti-SLAPP motion to the extent it denies the motion as to Plaintiff’s Section 1102.5 retaliation claim against the individual Defendants and Plaintiff’s retaliation-based IIED claim against the individual Defendants. In all other respects, the order regarding the anti-SLAPP motion is affirmed. The court explained that it agrees with Defendants that the section 1102.5 retaliation claim is not legally sufficient because Plaintiff is not an “employee” for the purposes of that statute. View "Brown v. City of Inglewood" on Justia Law

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In March 2020, O’Brien was censured and suspended for one year from his employment as a professor at the University of California, Berkeley, for violating the Faculty Code of Conduct while attending an overseas conference in 2012 by directing unwanted sexualized conduct at a junior colleague attending the conference, a graduate student at Massachusetts Institute of Technology. Although another student referred to the incident in a 2014 discussion with the administration, it was not until 2017 that the alleged victim made a report.O’Brien challenged the disciplinary decision, raising procedural, substantive, and due process objections. The trial court and court of appeal rejected O’Brien’s petition. The University’s rule requiring it to initiate disciplinary action within three years of receiving a report of misconduct does not bar discipline here. The earlier complaint by a different student only briefly touching on the alleged incident between O’Brien and an unidentified female MIT student was not a report of the wrongdoing for which he was disciplined. Substantial evidence supports a finding by the University and the trial court that the MIT student was a “colleague” of O’Brien’s, as the Faculty Code of Conduct uses that term. The disciplinary proceeding was fair and the committee’s findings supported the ultimate result. View "O'Brien v. The Regents of the University of California" on Justia Law

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The Privette doctrine limits a property owner’s potential liability for on-the-job injuries sustained by employees of an independent contractor. An exception to the Privette doctrine’s rule of nonliability in cases where: “(1) [the property owner] knows or reasonably should know of a concealed, pre-existing hazardous condition on its premises; (2) the contractor does not know and could not reasonably ascertain the condition; and (3) the landowner fails to warn the contractor.” Plaintiff-appellant Travis Blaylock argued the trial court erred by failing to recognize there was a triable issue of fact about whether DMP 250 Newport Center, LLC, the owner of the premises on which he was injured, and DMP Management, LLC, the owner’s property manager (collectively DMP) knew or should have known of the allegedly concealed hazardous condition — an access panel in the floor of the crawl space in which he was working—that he fell through. The Court of Appeal found no error: while the evidence submitted by Blaylock might be sufficient to demonstrate DMP should have known the access panel existed, there was no evidence it knew or should have known the panel was either concealed from a person in the crawl space above, or that it was hazardous. View "Blaylock v. DMP 250 Newport Center" on Justia Law

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Plaintiff was employed from April 2018 to August 2019 by Defendant EmployBridge, LLC, which does business in California as Select Staffing. In March 2018, as part of her employment application, Plaintiff electronically signed an arbitration agreement. The arbitration agreement (1) states it “is governed by the Federal Arbitration Act,” and (2) contains a broad agreement to arbitrate claims. Plaintiff sued EmployBridge Holding Company, a Delaware corporation, solely to recover civil penalties under PAGA for Labor Code violations suffered by her or by other employees. The trial court determined that the agreement to arbitrate specifically excluded PAGA claims. This appeal challenges the denial of a motion to compel arbitration of claims to recover civil penalties.   The Fifth Appellate District affirmed the order denying the motion to compel arbitration. The court concluded that the trial court correctly interpreted the agreement’s carve-out provision stating that “claims under PAGA … are not arbitrable under this Agreement.” This provision is not ambiguous. It is not objectively reasonable to interpret the phrase “claims under PAGA” to include some PAGA claims while excluding others. Thus, the carve-out provision excludes all the PAGA claims from the agreement to arbitrate. View "Duran v. EmployBridge Holding Co." on Justia Law

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Plaintiff obtained a $425,562 jury verdict in his favor on his claim that the California Department of Tax and Fee Administration (the Department) retaliated against him for filing an internal complaint with its Equal Opportunity Office (EEO). The Department appealed, contending that four erroneous evidentiary rulings by the trial court deprived it of a fair trial.   The Second Appellate District reversed. The court agreed that the trial court erred in admitting evidence about activity that occurred before the filing of his EEO complaints. The court also concluded that admission of the first EEO complaint and supplement was prejudicial and prevented the Department from receiving a fair trial. The court explained that there is no doubt that the fact that Plaintiff filed an EEO complaint for age and race discrimination is highly relevant. It is the protected activity needed for his claim; more colloquially, it provides a motive for the retaliation. The details of the discrimination are not relevant. This was not a trial about whether Plaintiff’s co-worker engaged in race or age discrimination; Plaintiff waived those claims in the prior settlement agreement. Accordingly, the court reversed the judgment and remanded for further proceedings. The court wrote that it need not and does not reach the Department’s other claims of error. View "Kourounian v. Cal. Dept. of Tax & Fee Administration" on Justia Law

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In this labor dispute, Petitioner, the employer, filed a statement of disqualification seeking to remove the trial judge based on comments made during oral argument. However, Petitioner waited one year after the judge's comments to file the statement. The trial court determined that Petitioner waived the right to file a statement of disqualification.Finding the order striking Petitioner's statement of disqualification was flawed in several respects, the Fifth Appellate District vacated the trial court's order and provided the judge three days from the date the statement of disqualification is reinstated to respond before being deemed to have consented to disqualification by operation of time. View "North American Title Company v. Super. Ct." on Justia Law

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Plaintiff was employed by Defendant and, as a condition of employment, was required to get a flu vaccine. Plaintiff sought an exemption based on a medically recognized contraindication, presenting a doctor's note that recommended she avoid the vaccine based on her history of cancer and general allergies. However, neither of these was a medically recognized contraindication, and Defendant terminated her employment.Plaintiff filed suit under the FEHA for disability discrimination. The trial court granted summary judgment in Defendnat's favor, plaintiff appealed.The Second Appellate District affirmed, finding that Defendant did not engage in disability discrimination and that Defendant's reason for terminating Plaintiff's employment was legitimate and lacked pretext. Further, the court rejected Plaintifff's retaliation claim. View "Hodges v. Cedars-Sinai Medical Center" on Justia Law

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Plaintiff sued her former employer Xceed Financial Credit Union (Xceed) for wrongful termination and age discrimination in violation of the Fair Employment and Housing Act (FEHA). The case was submitted to binding arbitration pursuant to the stipulation of the parties. The arbitrator granted summary judgment in favor of Xceed on the ground Plaintiff’s claims were barred by a release in her separation agreement. The arbitrator rejected Plaintiff’s assertion that the release violated Civil Code section 1668, which prohibits pre-dispute releases of liability in some circumstances. Plaintiff moved to vacate the arbitration award, arguing the arbitrator exceeded his powers by enforcing an illegal release. The trial court denied the motion to vacate and entered judgment confirming the arbitration award.   The Second Appellate District affirmed. The court held that the arbitrator’s ruling for clear error. The arbitrator correctly ruled the release did not violate Civil Code section 1668. Plaintiff signed the separation agreement after she was informed of the decision to terminate her but before her last day on the job. At the time she signed, she already believed that the decision to terminate her was based on age discrimination and that she had a valid claim for wrongful termination. The alleged violation of FEHA had already occurred, even though the claim had not yet fully accrued. Accordingly, the release did not violate section 1668 because it was not a release of liability for future unknown claims. View "Castelo v. Xceed Financial Credit Union" on Justia Law