Alberto v. Cambrian Homecare

CourtCalifornia Court of Appeal
DecidedMay 11, 2023
DocketB314192
StatusPublished

This text of Alberto v. Cambrian Homecare (Alberto v. Cambrian Homecare) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alberto v. Cambrian Homecare, (Cal. Ct. App. 2023).

Opinion

Filed 4/19/23; Certified for Publication 5/10/23 (order attached)

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION FOUR

JENNIFER PLAYU ALBERTO, B314192

Plaintiff and Respondent, (Los Angeles County Super. Ct. No. 20STCV41466) v.

CAMBRIAN HOMECARE,

Defendant and Appellant.

APPEAL from an order of the Superior Court of Los Angeles County, Elihu M. Berle, Judge. Affirmed. Atkinson, Andelson, Loya, Ruud & Romo, Amber S. Healy, Neil M. Katsuyama, and Lauren D. Fierro, for Defendant and Appellant. Bibiyan Law Group, David D. Bibiyan, and Diego Aviles, for Plaintiff and Respondent. INTRODUCTION Jennifer Playu Alberto, the respondent, is a former employee of appellant Cambrian Homecare. When she was hired, Alberto signed a written arbitration agreement. Alberto brought wage-and-hour claims against Cambrian. Cambrian petitioned for arbitration. The trial court denied the petition. The trial court found that even if the parties had formed an arbitration agreement, the agreement had unconscionable terms, terms that so permeated the agreement they could not be severed. We affirm. The agreement, read together—as it must be—with other contracts signed as part of Alberto’s hiring, contained unconscionable terms. The trial court had discretion to not sever the unconscionable terms, and to refuse to enforce the agreement.

FACTUAL AND PROCEDURAL BACKGROUND1

A.Cambrian Hires Alberto; Alberto Signs Agreements Cambrian hired Alberto on or about September 17, 2019. That same day, as part of her orientation, a Cambrian representative gave her agreements to sign. Three of those agreements relate to resolution of potential disputes: a “Dispute Resolution Process—Arbitration Agreement,” a

1 The parties do not materially dispute the facts we describe here.

2 “Confidentiality Agreement,” and a “Confidentiality Agreement Addendum.”

1. Arbitration Agreement The Arbitration Agreement states that “[a]ny and all claims or controversies arising out of Employee’s . . . employment . . . or cessation of employment with Cambrian shall be resolved through final and binding arbitration.” The parties agreed not to “join or consolidate claims submitted for arbitration under this Agreement with those of any other persons, and that no form of class, collective, or representative action” would be maintained without the parties’ mutual consent. They “agree[d] that by signing this Agreement[,] they have entered into a binding legal agreement.” The agreement states that “[t]his Agreement is entered into under the Federal Arbitration Act, and shall be interpreted and construed in accordance with the law and procedures developed under that statute.” The Arbitration Agreement contains two signature blocks, one for “Employee Name Printed” and one for “Paul J. Quiroz” as “Managing Director.” Alberto signed the Arbitration Agreement in the signature block allotted for her. But the signature block for Mr. Quiroz, as “Managing Director,” was left blank.

2. Confidentiality Agreement and Addendum Alberto signed the Confidentiality Agreement and Addendum on the same day and as part of the same process

3 in which she signed the Arbitration Agreement. The Confidentiality Agreement states that Alberto may not disclose what that agreement calls “trade secrets.” It defines such “trade secrets” broadly to include “information of a confidential, proprietary or secret nature.” Notably, “[s]uch trade secret information includes, but is not limited to, compensation and salary data and other employee information.” The Confidentiality Agreement required Alberto to “acknowledge” that unauthorized use or disclosure of Cambrian’s proprietary information “would cause irreparable injury to the Company,” and to “consent to the order of an immediate injunction, without bond, from any court of competent jurisdiction, enjoining and restraining” Alberto from “violating or threatening to violate” the agreement. The agreement also states that if a dispute arises “and a lawsuit is filed, the prevailing party shall be entitled to reasonable attorney’s fees and costs.” The Confidentiality Agreement Addendum requires Alberto to keep confidential “[a]ll . . . employee information,” including, without limitation, their “names . . . , addresses and phone numbers.” The Addendum reiterates that disclosure of such information would cause “irreparable injury” to Cambrian, and that the failure to comply with the agreement would entitle Cambrian “to seek injunctive or equitable relief as well as monetary damages.”

4 B. Alberto Files a Complaint; Cambrian Demands Arbitration On October 27, 2020, Alberto filed a complaint, alleging multiple wage-and-hour causes of action. On January 4, 2021, Cambrian asked Alberto to arbitrate her dispute. She refused and, on January 25, 2021, filed a “First Amended Class Action Complaint,” again alleging wage-and-hour causes of action, and also alleging she was an “‘aggrieved employee’” under the Private Attorneys General Act (PAGA). On March 17, 2021, Cambrian petitioned to compel arbitration. Cambrian also contended that Alberto had waived any class or representative claims. On April 7, 2021, Alberto opposed the petition. She argued that no arbitration agreement had been formed because Cambrian had not signed the agreement. She also argued that the Arbitration Agreement was “infected with both procedural and substantive unconscionability, the taint of which cannot be severed or cured.” On April 19, 2021, Cambrian replied. On April 29, 2021, the trial court considered Cambrian’s petition, and asked for additional briefing on the issue of whether the Arbitration Agreement delegated the determination of the Arbitration Agreement’s validity to an arbitrator, not the court. The parties filed supplemental briefing. Cambrian initially asked the trial court to decide the validity of the waiver of representative action but leave for the arbitrator remaining issues concerning the Arbitration Agreement’s validity. Ultimately, both

5 Cambrian and Alberto agreed that the trial court, not the arbitrator, should decide all issues concerning the validity of the agreement to arbitrate, a stipulation the trial court accepted.

C. The Trial Court Denies Cambrian’s Petition On June 11, 2021, the trial court denied Cambrian’s petition to compel arbitration. The trial court found that Cambrian’s failure to sign the Arbitration Agreement meant that the parties had not formed an agreement to arbitrate. It reasoned that the Arbitration Agreement contained an “express[] provision that the parties need[ed] to sign it in order [for it] to be binding.” The trial court also found the Arbitration Agreement unconscionable and unenforceable, even assuming it had been formed. It found the agreement procedurally unconscionable as a contract of adhesion. Recognizing that both procedural and substantive unconscionability were necessary to avoid enforcing the agreement, the trial court found the agreement substantively unconscionable for three reasons. First, it noted that the Confidentiality Agreement and Addendum, which it found to be part of the “same transaction” as the Arbitration Agreement, allowed Cambrian to obtain injunctive relief in a court to remedy a violation of Cambrian’s confidentiality interests, without the need to post a bond or demonstrate irreparable injury, even as Alberto’s claims against Cambrian were relegated to arbitration. Second, the trial court found unconscionable the

6 Confidentiality Agreement’s prohibition on discussing salary information.

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Cite This Page — Counsel Stack

Bluebook (online)
Alberto v. Cambrian Homecare, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alberto-v-cambrian-homecare-calctapp-2023.