Clifford v. Quest Software Inc.

251 Cal. Rptr. 3d 269, 38 Cal. App. 5th 745
CourtCalifornia Court of Appeal, 5th District
DecidedJuly 23, 2019
DocketG055858
StatusPublished
Cited by31 cases

This text of 251 Cal. Rptr. 3d 269 (Clifford v. Quest Software Inc.) is published on Counsel Stack Legal Research, covering California Court of Appeal, 5th District primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Clifford v. Quest Software Inc., 251 Cal. Rptr. 3d 269, 38 Cal. App. 5th 745 (Cal. Ct. App. 2019).

Opinion

ARONSON, J.

*747The question posed in this appeal is whether an employee's claim against his employer for unfair competition under Business and Professions Code section 172001 (the UCL) is arbitrable. The employee brought various wage and hour claims against his employer, and the employer moved to compel arbitration based on the parties' arbitration agreement. The trial court granted the motion in part and ordered to arbitration every cause of action except the employee's UCL claim, which the court concluded was not arbitrable. In so ruling, the court cited without discussion our Supreme Court's holding in Cruz v. PacifiCare Health Systems, Inc. (2003) 30 Cal.4th 303, 133 Cal.Rptr.2d 58, 66 P.3d 1157 ( Cruz ).

*748We reverse that portion of the trial court's order. Assuming Cruz remains good law - a question we need not answer here - Cruz at most stands for the proposition that UCL claims for "public" injunctive relief are not arbitrable. ( Cruz, supra , at pp. 315-316, 133 Cal.Rptr.2d 58, 66 P.3d 1157.) 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.

*273I.

FACTS

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.2

The arbitration agreement establishes arbitration as the exclusive method for resolving any employment-related disputes Clifford may have with either his employer or his employer's subsidiaries, which includes Quest. The arbitration agreement expressly applies to claims regarding pay, wages, overtime, meal and rest breaks, and expense reimbursements; claims for unfair competition; and requests for "final injunctive ... relief" related to those claims.

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 section 17200. He bases his complaint on his allegation Quest misclassified him as an exempt employee. He did not assert any putative class claims and instead sued Quest solely in an individual capacity.3

Quest moved to compel arbitration of Clifford's claims. The trial court found Quest had established the existence of a binding and enforceable *749arbitration 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 our Supreme Court's decision in Cruz, supra , 30 Cal.4th 303, 133 Cal.Rptr.2d 58, 66 P.3d 1157. The court stayed the prosecution of that cause of action pending the completion of the arbitration. Quest timely appealed.

II.

DISCUSSION

A. Appealability and Standard of Review

Because an order denying a petition to compel arbitration is appealable, we may review the portion of the trial court's order denying Quest's motion to compel arbitration of Clifford's UCL cause of action. ( Code Civ. Proc., § 1294, subd. (a).)

"When a trial court's order [denying a petition to compel arbitration] is based on a question of law, we review the denial de novo. [Citation.] Decisions on issues of fact are reviewed for substantial evidence. [Citation.]" ( Performance Team Freight Systems, Inc. v. Aleman (2015) 241 Cal.App.4th 1233, 1239, 194 Cal.Rptr.3d 530.)

B. The Arbitrability of UCL Claims and the Broughton-Cruz Rule

The UCL addresses "unfair competition," which "mean[s] and include[s]

*274any unlawful, unfair or fraudulent business act or practice and unfair, deceptive, untrue or misleading advertising and any act prohibited by [the false advertising law, section 17500]." ( § 17200.) Although the UCL's "purpose 'is to protect both consumers and competitors by promoting fair competition in commercial markets for goods and services' " ( McGill v. Citibank, N.A. (2017) 2 Cal.5th 945, 954, 216 Cal.Rptr.3d 627, 393 P.3d 85 ( McGill )), it also protects employees. ( Alch v. Superior Court (2004) 122 Cal.App.4th 339, 401, 19 Cal.Rptr.3d 29.) An employer's unlawful employment practices, such as unlawful discrimination or failure to pay wages, may form the basis for a UCL claim. (See Sullivan v. Oracle Corp.

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Cite This Page — Counsel Stack

Bluebook (online)
251 Cal. Rptr. 3d 269, 38 Cal. App. 5th 745, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clifford-v-quest-software-inc-calctapp5d-2019.