Justia California Court of Appeals Opinion Summaries

In March 2018, employees of defendant Greystone Ridge Condominium, including plaintiff Victor Franco, were presented with and asked to sign an agreement requiring that each employee agree to submit to final and binding arbitration “[a]ny and all claims . . . relating to any aspect of . . . employment with Employer (pre-hire through post-termination).” About 10 days later, plaintiff filed a complaint against defendants Greystone, C & A Services, John Stokke, and Maher A.A. Azer asserting employment-related claims. Two days after that, plaintiff signed the arbitration agreement and returned it to Greystone. Defendants filed a motion to compel arbitration of plaintiff’s claims which plaintiff opposed on the ground the arbitration agreement failed to expressly state that claims that had already accrued, including the claims asserted in plaintiff’s complaint, were subject to arbitration. The trial court agreed with plaintiff and denied the motion to compel arbitration. The Court of Appeal reversed, finding the parties’ arbitration agreement was "clear, explicit, and unequivocal" with regard to the claims subject to it, and contained no qualifying language limiting its applicability to claims that had yet to accrue. On the contrary, the agreement’s reference to claims relating to “pre-hire” matters expressed an intent to cover all claims, regardless of when they accrued, that are not otherwise expressly excluded by the arbitration agreement. View "Franco v. Greystone Ridge Condominium" on Justia Law

In 1995, Daniel Clifford began working for Quest Software Inc. (Quest). In 2012, Dell Inc. acquired Quest to form its software division, Dell Software Inc., which hired Clifford as an employee. In 2015, Clifford participated in Dell’s online “Code of Conduct” training course. According to Quest, when Clifford completed the training, he acknowledged that he read and agreed to the terms of Dell’s Arbitration Agreement and Dispute Resolution Program. In 2017, Clifford filed a complaint against Quest for: (1) failure to pay overtime; (2) failure to provide meal periods; (3) failure to provide rest periods; (4) failure to provide accurate wage statements; (5) failure to reimburse for business expenses; and (6) unfair business practices under Business and Professions Code section 17200. He based his complaint on his allegation Quest misclassified him as an exempt employee. Quest moved to compel arbitration of Clifford’s claims. The trial court found Quest had established the existence of a binding and enforceable arbitration agreement, and it compelled arbitration of Clifford’s first through fifth causes of action. However, it denied the motion on the sixth cause of action, his UCL claim, citing without discussion the California Supreme Court’s decision in Cruz v. PacifiCare Health Systems, Inc., 30 Cal.4th 303 (2003). The court stayed the prosecution of that cause of action pending the completion of the arbitration. Quest timely appealed. The question posed in this appeal was whether an employee’s claim against his employer for unfair competition under section 172001 was arbitrable. The Court of Appeal reversed that portion of the trial court’s order. "Assuming Cruz remains good law . . . Cruz at most stands for the proposition that UCL claims for 'public' injunctive relief are not arbitrable. Cruz does not bar arbitration of a UCL claim for private injunctive relief or restitution, which is precisely what the UCL claim here seeks. The employee’s UCL claim therefore is subject to arbitration, along with his other causes of action." View "Clifford v. Quest Software Inc." on Justia Law

Defendants Merchants Building Maintenance, LLC and Merchants Building Maintenance Company (the MBM defendants) appeal from an order of the trial court denying their joint motion to compel arbitration. The MBM defendants moved to compel arbitration of a portion of plaintiff Loren Mejia's cause of action brought against them for various violations of the Labor Code under the Private Attorneys General Act of 2004 (PAGA). The MDM defendants moved to compel arbitration of that portion of Mejia's PAGA claim in which she seeks "an amount sufficient to recover underpaid wages." The Court of Appeal reduced the issue presented as whether a court could split a single PAGA claim so as to require a representative employee to arbitrate that aspect of the claim in which the plaintiff sought to recover the portion of the penalty that represented the amount sufficient to recover underpaid wages, where the representative employee has agreed to arbitrate her individual wage claims, while at the same time have a court review that aspect of the employee's claim in which the plaintiff sought to recover the additional $50 or $100 penalties provided for in section 558 of the Labor Code for each violation of the wage requirements. The Court of Appeal concluded that a single PAGA claim seeking to recover section 558 civil penalties could not be "split" between that portion of the claim seeking an "amount sufficient to recover underpaid wages" and that portion of the claim seeking the $50 or $100 per-violation, per-pay-period assessment imposed for each wage violation. The Court affirmed the trial court's order denying the MDM defendants' motion to compel arbitration in this case. View "Mejia v. Merchants Building Maintenance" on Justia Law

California State Teachers’ Retirement System (CalSTRS) manages contributions made by employees and member school districts to the State Teachers’ Retirement Fund. (Ed. Code 22000.) In 2014, the Baxter petitioners, formerly employed by the Salinas Unified High School District sought to prevent CalSTRS from continuing to reduce their monthly retirement benefit payments and to restore prior monies they claimed CalSTRS had wrongfully withheld to recoup overpayments made as a result of a years-long miscalculation by the District. The trial court held that a three-year limitations period barred CalSTRS from recouping the prior overpayments. The court of appeal reversed, finding that the continuous accrual theory applied. A second suit challenged the reductions. Before the court of appeal addressed Baxter, the trial court granted relief in the second suit, finding CalSTRS’s claims time-barred. The court of appeal followed Baxter, holding that the continuous accrual theory applies. CalSTRS was time-barred from pursuing any claim against teachers as to pension benefit overpayments made more than three years before CalSTRS commenced an action but is not time-barred from pursuing any claim concerning periodic overpayments to teachers and adjustments to teachers’ future monthly benefits, where the payment accrued not more than three years prior to commencement of an action. The reduction in benefits made by CalSTRS did not constitute the commencement of an “action.” CalSTRS constructively commenced an “action” when these teachers filed their verified petition and complaint in the superior court on February 1, 2016. View "Blaser v. State Teachers' Retirement System" on Justia Law

Defendants-appellants Catalina Restaurant Group, Inc., Carrows Restaurants, Inc., Carrows Family Restaurants, Inc., Coco’s Bakery Restaurants, Inc. and Coco’s Restaurants, Inc. (collectively, Catalina Defendants) appealed the partial denial of their motion to compel arbitration. Plaintiff-respondent Yalila Lacayo (Lacayo) was an employee of Catalina Defendants, and filed a plaintiff’s class action complaint on behalf of herself and others similarly situated (Class Members) against Catalina Defendants in superior court alleging numerous wage and hour violations under the Labor Code, and an injunctive relief claim under California’s unfair competition law (UCL). Catalina Defendants responded by filing a motion to compel arbitration of Lacayo’s individual claims, including the UCL claim, and dismissal of the class claims (Motion). The trial court granted the Motion as to Lacayo’s individual claims; refused to dismiss the class claims, instead letting the arbitrator decide if the class claims were subject to arbitration or a class action waiver; and denied the Motion as to the UCL claim; and stayed the matter until after arbitration was completed. Catalina Defendants on appeal argued the trial court erred by: (1) refusing to enforce the individual arbitration agreement according to its terms; and (2) refusing to compel arbitration of Lacayo’s UCL claim. In supplemental briefing, both parties addressed whether Catalina Defendants could appeal the trial court’s order granting arbitration of individual claims but refusing to dismiss the classwide claims, leaving the decision for the arbitrator. The Court of Appeal found Catalina Defendants could not appeal the portion of the Motion that granted arbitration for Lacayo’s individual claims and the refusal to dismiss the class claims. The Court of Appeal only addressed the order finding that the UCL claim was not subject to arbitration, and affirmed the trial court's order denying defendants' Motion as to the UCL claim. View "Lacayo v. Catalina Restaurant Group Inc." on Justia Law

In 2015, San Diego Police Department Sergeant Arthur Scott sued the City of San Diego (City), alleging race discrimination and retaliation in violation of the Fair Employment and Housing Act (FEHA). Scott rejected a $7,000 offer to compromise made by the City under Code of Civil Procedure section 9981 and proceeded to trial, where the City prevailed. The trial court awarded the City a total of $51,946.96 in costs incurred after it served its Code of Civil Procedure section 998 offer, even though the trial court had found that plaintiff's FEHA claims were not frivolous. While this appeal was pending, the Legislature amended FEHA's cost provision statute to specifically state that, notwithstanding section 998 of the Code of Civil Procedure, a prevailing defendant may not recover attorney fees and costs against a plaintiff asserting non-frivolous FEHA claims. The Court of Appeal found that with this amendment, the Legislature sought to clarify existing law, rather than to change it: "A statute that merely clarifies, rather than changes, existing law is properly applied to transactions predating its enactment." The Court therefore applied the amended statute in this case and reversed the trial court's award of costs to the City. View "Scott v. City of San Diego" on Justia Law

L’Chaim, which operates residential care homes for seniors, was cited for wage and hour violations by the Division of Labor Standards Enforcement (DLSE). A hearing officer affirmed the citations, which included a total of approximately $89,000 in premium-pay and penalty assessments under Labor Code sections 226.7 and 558 for failure to provide 30-minute meal periods to employees. L’Chaim sought mandamus relief under Code of Civil Procedure section 1094.5, which the trial court denied. L’Chaim claimed that under Industrial Welfare Commission (IWC) Wage Order 5, it may require its employees to work “on-duty” meal periods that, unlike periods when employees are “relieved of all duty,” do not need to be at least 30 minutes long (Cal. Code Regs., tit. 8, 11050). The court of appeal affirmed, holding that L’Chaim must provide meal periods of at least 30 minutes, regardless of whether they are on-duty or off-duty, under Wage Order No. 5. Although L’Chaim was authorized to provide on-duty, as opposed to off-duty, meal periods to its employees, those meal periods still had to be at least 30 minutes long. View "L'Chaim House, Inc. v. Divison of Labor Standards Enforcement" on Justia Law

The law firm filed a Petition for Workplace Violence Restraining Orders, identifying 14 lawsuits in which its employees had been involved with Sepehry-Fard, and citing several incidents involving false allegations and threats. The firm alleged that Sepehry-Fard is a member of the “sovereign citizen movement,” whose members believe they don’t answer to governmental authority; they have been known to commit murder and physical assault. The court granted specific temporary protective orders pending the hearing, without notice to Sepehry-Fard, and set the hearing for September 5. On the Notice of Court Hearing, the court indicated the firm had to have the petition and associated documents personally served on Sepehry-Fard at least five days before the hearing. While the form permitted the firm to ask for less than five days’ notice, the firm left that section blank. The proof of service indicated personal service to Sepehry-Fard on September 1, four days before the hearing date. Sepehry-Fard did not appear. The court conducted a hearing and entered a three-year restraining order with terms nearly identical to those in the temporary order. The court filed the Workplace Violence Restraining Order After Hearing on September 6. A deputy had that order personally served on Sepehry-Fard on September 8. The court of appeal reversed, finding the Code of Civil Procedure section 527.8 requirement of five days’ notice jurisdictional. rendering the order void in the absence of the party who did not receive that notice. View "Severson & Werson v. Sephery-Fard" on Justia Law

The Supreme Court has made clear that when a civil action and a workers' compensation proceeding are concurrently pending, "the tribunal first assuming jurisdiction" should determine exclusive jurisdiction. The Court of Appeal granted plaintiffs' petition for writ of mandate, holding that the superior court exercised jurisdiction first and thus it had jurisdiction to decide which tribunal has exclusive jurisdiction. Therefore, the superior court erred by staying the civil case to allow the WCAB to decide the issue, and the WCAB erred by proceeding without deference to the superior court. View "Hollingsworth v. Superior Court of Los Angeles County" on Justia Law

Plaintiff Nancy Ortiz sued her former employer and former supervisor, Dameron Hospital Association (Dameron) and Doreen Alvarez (collectively defendants), alleging that she was discriminated against and subjected to harassment based on her national origin (Filipino) and age (over 40) at the hands of Alvarez, and that Dameron failed to take action to prevent it in violation of the California Fair Employment and Housing Act (the FEHA). Ortiz claimed she was forced to resign due to the intolerable working conditions created by Alvarez in order to accomplish Alvarez’s goal of getting rid of older, Filipino employees, like Ortiz, who, in Alvarez’s words, “could not speak English,” had “been there too long,” and “ma[d]e too much money.” Defendants moved for summary judgment, or in the alternative summary adjudication. The trial court granted defendants’ motion for summary judgment, finding that Ortiz could not make a prima facie showing of discrimination because she could not show that she suffered an adverse employment action, and could not make a prima facie showing of harassment because she cannot show that any of the complained of conduct was based on her national origin or age. The trial court determined that the remaining causes of action as well as the claims for injunctive relief and punitive damages were derivative of the discrimination and harassment causes of action and thus had no merit. Ortiz appealed, contending there were triable issues of material fact as to each of her causes of action, except retaliation, and her claims for injunctive relief and punitive damages. The Court of Appeal agreed in part, and reversed judgment. The trial court was directed to vacate its order granting summary judgment, and to enter a new order granting summary adjudication of Ortiz’s retaliation cause of action and request for punitive damages as to Dameron but denying summary adjudication of her discrimination, harassment, and failure to take necessary steps to prevent discrimination and harassment causes of action, her claim for injunctive relief, and her request for punitive damages as to Alvarez. View "Ortiz v. Dameron Hospital Assn." on Justia Law