Andreza Holt v. Ty Warner Hotels and Resorts, LLC

CourtDistrict Court, C.D. California
DecidedJune 27, 2022
Docket2:22-cv-01839
StatusUnknown

This text of Andreza Holt v. Ty Warner Hotels and Resorts, LLC (Andreza Holt v. Ty Warner Hotels and Resorts, LLC) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Andreza Holt v. Ty Warner Hotels and Resorts, LLC, (C.D. Cal. 2022).

Opinion

Case 2:22-cv-01839-MEMF-E Document 34 Filed 06/27/22 Page 1 of 11 Page ID #:451

1 JS-6 2 O 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 CENTRAL DISTRICT OF CALIFORNIA 10 Case No.: 2:22-cv-01839-MEMF(Ex) 11 ANDREZA HOLT, et al.,

12 Plaintiffs, ORDER GRANTING DEFENDANTS’ MOTION TO COMPEL ARBITRATION, 13 v. DISMISS CLASS CLAIMS, AND STAY PROCEEDINGS [ECF NO. 10] AND 14 DENYING DEFENDANTS’ MOTION TO 15 TY WARNER HOTELS & RESORTS, LLC, et DISMISS FIRST AMENDED COMPLAINT al., AND MOTION TO STRIKE PARAGRAPH 16 68 OF FIRST AMENDED COMPLAINT AS Defendants. MOOT [ECF NOS. 17, 18] 17

19 20

21 Before the Court are Defendants Ty Warner Hotels and Resorts, LLC and Ty Warner’s 22 Motion to Compel Arbitration, Dismiss Class Claims, and Stay Proceedings, Motion to Dismiss the 23 First Amended Complaint, and Motion to Strike Paragraph 68 of the First Amended Complaint. The 24 Court held oral argument on these matters on June 16, 2022. For the reasons stated herein, the Court 25 hereby GRANTS the Motion to Compel Arbitration, Dismiss Class Claims, and Stay Proceedings. 26 The Court further DENIES the Motion to Dismiss the First Amended Complaint and Motion to 27 Strike Paragraph 68 of the First Amended Complaint as MOOT. 28 / / /

1 Case 2:22-cv-01839-MEMF-E Document 34 Filed 06/27/22 Page 2 of 11 Page ID #:452

1 BACKGROUND 2 I. Factual Background1 3 Plaintiffs Andreza Holt and Christopher Martinez (collectively, the “Holt Plaintiffs”) are 4 employed by Four Seasons at The Biltmore Santa Barbara (the “Biltmore”). FAC ¶ 2. Defendant Ty 5 Warner (“Warner”) is the owner, operator, and controller of Defendant Ty Warner Hotels & Resorts, 6 LLC (“Ty Warner Hotels”) (collectively, the “Warner Defendants”). See id. ¶ 20. Ty Warner Hotels 7 owns the Biltmore and has contracted with Four Seasons (“Management Agreement”), who employs 8 and manages the employees working at the Biltmore. See id. ¶ 3. 9 As a condition of their employment with Four Seasons at the Biltmore, the Holt Plaintiffs 10 signed the “Empact Agreement,” which covers rules and conditions of employment, compensation 11 and benefits, standards of conduct, complaint and arbitration procedures, and separation from 12 employment. See id. ¶ 27; see also ECF Nos. 22-3, Ex. A (“Holt Empact Agreement”), ECF No. 22- 13 2, Ex. A (“Martinez Empact Agreement”). Under the Empact Agreement, the Holt Plaintiffs agreed 14 to “us[e] the arbitration procedure described in [the employee handbook] as the exclusive method of 15 resolving any dispute [the Holt Plaintiffs] may have relating to termination of [their] employment 16 (including constructive discharge) and/or claims of employment discrimination or harassment.” Holt 17 Empact Agreement; Martinez Empact Agreement. The Warner Defendants are not a party to the 18 Empact Agreement. See id. ¶ 30. The Empact Agreement also contains a No-Fault Separation Pay 19 Clause, which mandates that the Four Seasons pay employees a pre-calculated amount of Severance 20 Pay in the event of a No-Fault Termination. See id. ¶ 38. The clause provides for exceptions to the 21 severance pay requirement “[i]n the event of the sale of the [Biltmore], a change in ownership 22 resulting from the loss of or change . . . in the [Management Agreement], including but not limited to 23 the relinquishment or loss of control of any portion of [the Biltmore’s] operations, and the new hotel 24 employers offers continuing ‘comparable Employment,’ then [the Holt Plaintiffs] will not be entitled 25 to No-Fault Separation Pay even if [the Holt Plaintiffs] decline the offer of continuing employment.” 26 Id. ¶ 39. 27 28 1 The facts described herein are taken from the First Amended Complaint. See generally ECF No. 14 (“FAC” or “First Amended Complaint”).

2 Case 2:22-cv-01839-MEMF-E Document 34 Filed 06/27/22 Page 3 of 11 Page ID #:453

1 On March 20, 2020, the Biltmore closed due to country-wide restrictions caused by the 2 spread of the COVID-19 virus. See id. ¶ 44. That day, Four Seasons issued a memo informing the 3 Biltmore’s employees that they were being immediately placed on a furlough due to the COVID-19 4 restrictions. See id. ¶ 45. On June 12, 2020, authorities in Santa Barbara County cleared businesses, 5 including hotels, to reopen; however, the Biltmore remained closed. See id. ¶ 46. 6 As of the filing of the First Amended Complaint on April 14, 2022, the Biltmore had not yet 7 reopened, and Four Seasons continues to consider Biltmore employees, including the Holt Plaintiffs, 8 “furloughed.” See id. ¶ 69. Because they are classified as being on temporary furlough but not 9 terminated for no-fault, the Holt Plaintiffs are unable to recover No-Fault Separation Pay. See id. ¶ 10 72. Moreover, resignation by the Holt Plaintiffs would result in forfeiture of any potential Separation 11 Pay, among other benefits. See id. 12 II. Procedural History 13 On January 26, 2022, the Holt Plaintiffs filed the instant action against the Warner 14 Defendants in the California Superior Court for the County of Santa Barbara. ECF No. 1-1. On 15 March 21, 2022, the case was removed to federal court. ECF No. 1. On March 28, 2022, the Warner 16 Defendants filed the instant Motion to Compel Arbitration, Dismiss Class Claims, and Stay 17 Proceedings. ECF No. 10 (“Mot.” or “Motion” or “Motion to Compel Arbitration”). On April 14, 18 2022, the Holt Plaintiffs filed a First Amended Complaint, alleging five causes of action: (1) 19 intentional interference with contract; (2) intentional interference with prospective economic 20 advantage; (3) negligent interference with prospective economic advantage; (4) intentional 21 misrepresentation; and (5) unjust enrichment. See generally FAC. The FAC was also filed on behalf 22 of a class of “approximately 450 other similarly-situated individuals” employed by Four Seasons at 23 the Biltmore. Id. ¶ 2. On April 28, 2022, the Warner Defendants filed a Motion to Dismiss the First 24 Amended Complaint (ECF No. 17) and Motion to Strike Paragraph 68 of the First Amended 25 Complaint (ECF No. 18). All three motions were fully briefed on June 1, 2022. ECF Nos. 22 26 (“Opp’n”), 23–26, 27 (“Reply”). With their Opposition, the Holt Plaintiffs filed Evidentiary 27 Objections to the Declaration of James Cathcart filed in support of the Motion to Compel 28

3 Case 2:22-cv-01839-MEMF-E Document 34 Filed 06/27/22 Page 4 of 11 Page ID #:454

1 Arbitration. ECF No. 22-4.2 On June 2, 2022, the Warner Defendants filed Evidentiary Objections to 2 the Declarations of Andreza Holt, Christopher Martinez, and Nicole K. Ricotta filed in support of the 3 Holt Plaintiffs’ Opposition. ECF No. 28.3 4 MOTION TO COMPEL ARBITRATION, DISMISS CLASS CLAIMS, AND STAY 5 PROCEEDINGS 6 I. Legal Standard 7 Under Section 2 of the Federal Arbitration Act (“FAA”), arbitration clauses in contracts 8 “shall be valid, irrevocable, and enforceable, save upon such grounds as exist at law or in equity for 9 the revocation of any contract.” 9 U.S.C. § 2. The FAA reflects the “fundamental principle that 10 arbitration is a matter of contract.” AT&T Mobility LLC v. Concepcion, 563 U.S. 333, 339 (2011) 11 (quoting Rent-A-Center, West, Inc. v. Jackson, 561 U.S. 63, 67 (2010)). 12 In determining whether to compel arbitration, the court must consider two gateway factors: 13 (1) whether there is an agreement to arbitrate between the parties; and (2) whether the agreement 14 covers the dispute. Brennan v. Opus Bank, 796 F.3d 1125, 1130 (9th Cir. 2015) (quoting Howsam v. 15 Dean Witter Reynolds, Inc., 537 U.S. 79, 84 (2002)).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Grigson v. Creative Artists Agency, L.L.C.
210 F.3d 524 (Fifth Circuit, 2000)
Dean Witter Reynolds Inc. v. Byrd
470 U.S. 213 (Supreme Court, 1985)
At&T Technologies, Inc. v. Communications Workers
475 U.S. 643 (Supreme Court, 1986)
Doctor's Associates, Inc. v. Casarotto
517 U.S. 681 (Supreme Court, 1996)
Howsam v. Dean Witter Reynolds, Inc.
537 U.S. 79 (Supreme Court, 2002)
Jessica Kramer v. Toyota Motor Corporation
705 F.3d 1122 (Ninth Circuit, 2013)
John Murphy v. Directv, Inc.
724 F.3d 1218 (Ninth Circuit, 2013)
Chapman v. Skype, Inc.
220 Cal. App. 4th 217 (California Court of Appeal, 2013)
Mundi v. Union Security Life Insurance
555 F.3d 1042 (Ninth Circuit, 2009)
Comedy Club, Inc. v. Improv West Associates
553 F.3d 1277 (Ninth Circuit, 2009)
Goldman v. KPMG, LLP
173 Cal. App. 4th 209 (California Court of Appeal, 2009)
Peterson v. Cellco Partnership
164 Cal. App. 4th 1583 (California Court of Appeal, 2008)
ALLIANCE TITLE COMPANY, INC. v. Boucher
25 Cal. Rptr. 3d 440 (California Court of Appeal, 2005)
Lectrodryer v. SeoulBank
91 Cal. Rptr. 2d 881 (California Court of Appeal, 2000)
Carey Brennan v. Opus Bank
796 F.3d 1125 (Ninth Circuit, 2015)
Isabelle Franklin v. Cmty. Regl Med. Ctr.
998 F.3d 867 (Ninth Circuit, 2021)

Cite This Page — Counsel Stack

Bluebook (online)
Andreza Holt v. Ty Warner Hotels and Resorts, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/andreza-holt-v-ty-warner-hotels-and-resorts-llc-cacd-2022.