Garcia v. Stoneledge Furniture LLC

CourtCalifornia Court of Appeal
DecidedMay 17, 2024
DocketA166785
StatusPublished

This text of Garcia v. Stoneledge Furniture LLC (Garcia v. Stoneledge Furniture LLC) 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
Garcia v. Stoneledge Furniture LLC, (Cal. Ct. App. 2024).

Opinion

Filed 5/17/24 CERTIFIED FOR PUBLICATION

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

FIRST APPELLATE DISTRICT

DIVISION THREE

ISABEL GARCIA, Plaintiff and Respondent, A166785

v. (Sonoma County STONELEDGE FURNITURE LLC Super. Ct. No. SCV269300) et al., Defendants and Appellants.

Stoneledge Furniture LLC (Stoneledge), RAC Acceptance East, LLC (RAC), and Inderjit Singh (collectively, defendants) appeal from the trial court’s denial of their petitions to compel arbitration of Isabel Garcia’s lawsuit against them. We affirm. FACTUAL AND PROCEDURAL BACKGROUND Garcia is employed by RAC, a company that offers financing for purchases. On her first day of work in early 2016, she completed onboarding paperwork using Taleo, a third-party electronic workforce management platform used by RAC. Starting in 2016, Garcia worked at an RAC kiosk located inside an Ashley HomeStore operated by Stoneledge. In 2019, Singh began working as an Ashley HomeStore Sales Manager at that same location; he and Garcia worked in close physical proximity and interacted regularly. In 2020, Garcia reported to Ashley’s Human Resources department that Singh sexually assaulted her in his office, and she took a leave of absence. Singh continued working at the same Ashley HomeStore. Upon returning from the leave of absence, Garcia accepted RAC’s offer to work in a different position and at a different location. Garcia’s Complaint In 2021, Garcia filed a complaint against defendants alleging ten claims related to her allegation that Singh sexually harassed her. The operative second amended complaint asserts causes of action for sexual battery, battery, unlawful sexual violence, intentional infliction of emotional distress, false imprisonment, and gender violence against all defendants; three claims under the California Fair Employment and Housing Act (Gov. Code, § 12900 et seq.) against RAC; and a claim of negligent hiring, training, supervision, and retention against Stoneledge. Petitions to Compel Arbitration RAC petitioned to compel arbitration pursuant to an arbitration agreement it claimed Garcia electronically signed during the onboarding process on her first day of employment. In support of the petition, RAC submitted a declaration by Jared Dale, a Human Resources Information Systems Analyst for RAC, that included the following statements. During Garcia’s onboarding, she created a unique user ID and confidential password using Taleo. Garcia executed an Electronic Signature Acknowledgement and Agreement stating her Taleo password would serve as her electronic signature on new hire documents. Garcia clicked on the link to review a standalone arbitration agreement, and she electronically signed the arbitration agreement. Garcia’s assent was evidenced by an electronic signature block with her name next to an execution date of February 4, 2016, as well as her name separately typed on

2 the arbitration agreement. Upon completion of the new hire paperwork, Garcia exited the Taleo platform, after which neither she nor anyone else could make any changes to the arbitration agreement, except by hand on printed copies. All personnel documents, including completed arbitration agreements, were stored electronically in a confidential and secure manner and were accessible only to management level employees or Human Resources employees who were granted access. Dale’s declaration attached the arbitration agreement. The agreement stated in part: “[RAC] and I mutually consent to the resolution by arbitration of all claims or controversies . . . , past, present or future, including without limitation, claims arising out of or related to my application for employment, assignment/employment, and/or the termination of my assignment/employment that [RAC] may have against me or that I may have against” RAC. The agreement also provided the Federal Arbitration Act (9 U.S.C. § 1 et seq., FAA) “shall govern this Agreement.” A typed signature at the end of the agreement appeared as “Maria Isabel Izzy Garcia” with the typed name “Maria Garcia” printed underneath. A signature by an authorized representative for RAC also appeared on the agreement. The agreement contained no IP address or other data indicating it was executed electronically, nor did it reference using a Taleo password to evince an electronic signature. Stoneledge petitioned to compel arbitration on the same grounds and in reliance on Dale’s declaration. Stoneledge acknowledged it was not a signatory to the arbitration agreement but argued it could enforce it through equitable estoppel. It further contended that, because the agreement contained a delegation clause giving the arbitrator “exclusive authority to resolve any dispute relating to the interpretation, applicability, enforceability

3 or formation” of the arbitration agreement, any such dispute Garcia may raise must be decided by the arbitrator. Singh joined Stoneledge’s petition. Garcia opposed the petitions to compel arbitration. She argued that RAC failed to meet its burden to prove she executed the agreement as Dale was not present when she completed the onboarding paperwork, and he did not attest to having personal knowledge that she electronically signed the agreement. She further argued that, because no agreement existed, the delegation clause relied upon by Stoneledge and Singh was inapplicable. 1 Aside from arguing the inadequacy of Dale’s declaration, Garcia noted the purported arbitration agreement lacked indicia of trustworthiness present in other documents she electronically signed during the onboarding process. Garcia submitted five documents she electronically signed during the onboarding process, all of which differed from the arbitration agreement in several key respects. First, all five documents showed “Maria Garcia” underneath “E Signature.” In contrast, the arbitration agreement showed her name as “Maria Isabel Izzy Garcia,” and Garcia averred she did not include “Izzy” in her electronic or handwritten signature. Second, all five documents indicated Garcia assented to agreement by inputting her Taleo password, while the arbitration agreement contained no such indication. Third, four of the documents contained the same IP address underneath the electronic signatures while the arbitration agreement did not reflect any IP address.

1 Garcia further argued the arbitration agreement was unconscionable; the delegation clause was unenforceable; Stoneledge and Singh could not meet the standard for equitable estoppel; and arbitration could not be compelled because the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021 (9 U.S.C. §§ 401, 402) applied. In denying the petitions to compel arbitration, the trial court did not reach or did not rely on these arguments. Nor do we.

4 Garcia flatly denied signing the arbitration agreement. Her declaration stated she “did not electronically sign” the exhibit representing the arbitration agreement or “recall being asked to sign” it, nor was she given a paper copy of the document. Garcia did not recall receiving any information about “what arbitration is or what it means” during the onboarding process and was never told that by signing any document she would waive her right to sue in court. In addition, she did not recognize the name of the company representative on the arbitration agreement, did not know who Dale was, and stated that no one was present when she electronically signed the new hire documents.

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

Related

First Options of Chicago, Inc. v. Kaplan
514 U.S. 938 (Supreme Court, 1995)
Rosenthal v. Great Western Financial Securities Corp.
926 P.2d 1061 (California Supreme Court, 1996)
JRS Products, Inc. v. Matsushita Electric Corp. of America
8 Cal. Rptr. 3d 840 (California Court of Appeal, 2004)
Lopez v. CHARLES SCHWAB & CO., INC.
13 Cal. Rptr. 3d 544 (California Court of Appeal, 2004)
Tiri v. Lucky Chances, Inc.
226 Cal. App. 4th 231 (California Court of Appeal, 2014)
Ruiz v. Moss Bros. Auto Group
232 Cal. App. 4th 836 (California Court of Appeal, 2014)
Espejo v. Southern California Permanente Medical Group
246 Cal. App. 4th 1047 (California Court of Appeal, 2016)
Engalla v. Permanente Medical Group, Inc.
938 P.2d 903 (California Supreme Court, 1997)
Nielsen Contracting, Inc. v. Applied Underwriters, Inc.
232 Cal. Rptr. 3d 282 (California Court of Appeals, 5th District, 2018)
Rent-A-Center, West, Inc. v. Jackson
177 L. Ed. 2d 403 (Supreme Court, 2010)

Cite This Page — Counsel Stack

Bluebook (online)
Garcia v. Stoneledge Furniture LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/garcia-v-stoneledge-furniture-llc-calctapp-2024.