Colores v. Ray Moles Farms, Inc.

District Court, E.D. California·Decided March 31, 2023·No. 1:21-cv-00101·Unknown

Opinion

FILEMON COLORES, as an individual Case No. 1:21cv-00101-JLT-BAM and on behalf of all others similarly (Consolidated with 1:21-cv-00467-JLT-BAM) situated, ORDER GRANTING IN PART Plaintiff, DEFENDANT’S MOTION TO COMPEL ARBITRATION AND DISMISSING v. PLAINTIFF’S FIRST SEVEN CAUSES OF ACTION WITHOUT PREJUDICE; DENYING RAY MOLES FARMS, INC., a California PLAINTIFF’S MOTION TO STRIKE; AND Corporation; and DOES 1 through 100, STAYING REMAINING MOTIONS Defendant. (Docs. 15, 21, 35, 38, 44)

RAY MOLES FARMS, INC., a California Corporation, Cross-Complainant, v. FILEMON COLORES, as an individual on behalf of all others similarly situated, Cross-Defendants. Filemon Colores brings suit on behalf of himself and similarly situated individuals alleging that Ray Moles Farms, Inc. (“Ray Moles”) engaged in several violations of the California Labor Code and Business and Professional Code. (Doc. 1 at 12–29). Ray Moles contends that Colores’s individual claims must be arbitrated. (Doc. 21-1 at 8–18.) Colores counters that Ray Moles has waived its right to arbitrate. (Doc. 25.) For the reasons below, Defendant Ray Moles’s Motion to Compel Arbitration is GRANTED IN PART. The claims compelled to arbitration are DISMISSED WITHOUT PREJUDICE. The claims not compelled to arbitration, as well as all pending motions regarding those claims, will be STAYED pending the California Supreme Court’s decision in Adolph v. Uber Technologies, Inc., No. G059860, 2022 WL 1073583 (Cal. Ct. App., Apr. 11, 2022), review granted (Cal. July 20, 2022). Filemon Colores was a non-exempt farm labor employee who worked for Ray Moles on a seasonal basis from approximately January 2016 to February 2, 2020. Ray Moles employed workers like Colores to harvest agricultural commodities in the state of California, including Tulare County. (Doc. 1 at 13–14, ¶¶ 3–4.) During different time periods, Colores was paid either hourly or on a piece rate basis for his work at Ray Moles vineyards. (Doc. 1 at 15, ¶ 9.) Colores originally filed this suit as a class action in November 2020 in the Tulare County Superior Court, alleging violations of California’s Labor Code and Unfair Competition Law. (Doc. 1 at 12–29.) According to Colores, Ray Moles failed to: (1) comply with minimum wage requirements; (2) pay overtime wages; (3) provide proper meal periods; (4) provide proper rest periods; (5) provide compliant itemized wage statements; (6) pay wages due at termination; and (7) comply with California’s Unfair Competition Law. (Id.) Ray Moles removed the action to this Court on January 25, 2021 on the basis of the Class Action Fairness Act and immediately filed an answer. (Doc. 1 at 2; Doc 4.) These first seven claims constitute Colores’s “non- PAGA” claims. Colores later filed a related claim (“the PAGA claim”) against Ray Moles under the California Private Attorneys General Act (“PAGA”), California Labor Code §§ 2698, et seq., which Ray Moles removed to this Court and consolidated with the present case. (Doc. 10; see also Colores v. Ray Moles Farms, Inc., No. 1:21-cv-467-NONE-SAB at Doc. 1.) In May 2021, Ray Moles filed: an answer to the consolidated claims; a counterclaim for injunctive and declaratory relief on the grounds that PAGA violates both the California and federal Constitutions (Docs. 12, 13); and a Motion for Judgment on the Pleadings or, in the alternative, Partial Summary Judgment, which argued for dismissal of all Colores’s claims with prejudice for failure to state a claim upon which relief could be granted. (See Doc. 15-1.) The parties then agreed to attend mediation on November 2, 2021. Colores propounded “informal mediation requests” which asked for employees’ timekeeping and payroll data, as well as wage and hour policies, employee handbooks, and Colores’s own personnel file. (Doc. 25-1 at 31, Ex. J.). Colores alleges that, despite the upcoming mediation, Ray Moles did not respond to any communications from May 2021 through August 2021. (Doc. 25-1 at ¶ 23.) Colores alleges that Ray Moles did not bring the arbitration agreement (the “Agreement’) to his attention until September 27, 2021. (Doc. 25-1 at ¶ 24.) As early as September 30, 2021, Colores claims that Ray Moles indicated a forthcoming motion to compel if Colores “did not agree by October 5, 2021 to stipulate to arbitrate his claims.” (Doc. 25-1 at ¶ 24.) And, indeed, Ray Moles moved to compel arbitration on October 6, 2021. (Doc. 21.) The motion to compel included a copy of the Agreement that Colores signed when he was first hired by Ray Moles, dated December 5, 2016. (Doc. 21-2.) The Agreement provides that: Any and all past, present and future disputes between you (the Employee) and the Employer (and/or its agents, supervisors, officers and owners) [including but not limited to disputes about your job application process, your employment, and your compensation, and all disputes related to, resulting from, or arising out of the employment relationship] shall be solely and exclusively resolved by final and arbitration on an individual basis before a neutral retired judge, conducted under the provisions of the Federal Arbitration Act in Fresno, California. Class action lawsuits, and class action arbitrations, and any combining of individual proceedings, without the written consent of all the parties, are waived and shall not be allowed. (Doc. 21-2 at 2.) Based on the Agreement, Ray Moles seeks to compel arbitration of all of Colores’s non- PAGA claims (causes of action 1-7), as well as the individual portion of Colores’s PAGA claim. Colores opposed the motion to compel on November 2, 2021, arguing Ray Moles waived its right to arbitration by “engaging in almost 12 months of active and prolonged litigation.” (Doc. 25 at 9.) Ray Moles filed its Reply on November 9, 2021. (Doc. 28.)1 Both parties submitted supplemental briefing in March 2023 at the Court’s request. (Docs. 60, 61, 62.) After the motion to compel was filed, the Court received several motions related to Ray Moles’s counterclaim challenging the constitutionality of PAGA. Specifically, Colores filed a motion to dismiss Ray Moles’s counterclaim, (Doc. 35), and the California Attorney General requested leave to intervene in defense of PAGA. (Doc. 44.) These motions, still pending, are addressed by this Order. A written provision in any contract evidencing a transaction involving commerce to settle a dispute by arbitration is subject to the Federal Arbitration Act (“FAA”). 9 U.S.C. § 2. The FAA confers on the parties involved the right to obtain an order directing that arbitration proceed in the manner provided for in a contract between them. 9 U.S.C. § 4. In deciding a motion to compel arbitration, the court is “limited to determining (1) whether a valid agreement to arbitrate exists [within the contract] and, if it does, (2) whether the agreement encompasses the dispute at issue.” Boardman v. Pacific Seafood Group, 822 F.3d 1011, 1017 (9th Cir. 2016) (citing Chiron Corp. v. Ortho Diagnostic Sys., Inc., 207 F.3d 1126, 1130 (9th Cir. 2000) (brackets in original)). Because there is an “emphatic federal policy in favor of arbitral dispute resolution,” Mitsubishi Motors Corp. v. Soler Chrysler–Plymouth, 473 U.S. 614, 631 (1985), “‘any doubts concerning the scope of arbitrable issues should be resolved in favor of arbitration, whether the problem at hand is the construction of the contract language itself or an allegation of waiver, delay, or a like defense to arbitrability.’” Id

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Colores v. Ray Moles Farms, Inc., (E.D. Cal. 2023).

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