Garcia Valencia v. SBM Management Services, LP

CourtDistrict Court, D. Oregon
DecidedDecember 11, 2024
Docket3:24-cv-00427
StatusUnknown

This text of Garcia Valencia v. SBM Management Services, LP (Garcia Valencia v. SBM Management Services, LP) is published on Counsel Stack Legal Research, covering District Court, D. Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Garcia Valencia v. SBM Management Services, LP, (D. Or. 2024).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF OREGON

SOLEDAD GARCIA VALENCIA, Case No. 3:24-cv-00427-IM

Plaintiff, OPINION AND ORDER GRANTING DEFENDANT’S MOTION TO v. COMPEL ARBITRATION

SBM MANAGEMENT SERVICES, LP, a foreign limited partnership,

Defendant.

Grace Badik, Cassandra Blake, and David Henretty, Oregon Law Center, Hillsboro Regional Office, 230 NE Second Avenue, Suite F, Hillsboro, OR 97124. Attorneys for Plaintiff.

Jessie L. Harris, Williams, Kastner & Gibbs PLLC, 601 Union Street, Suite 4100, Seattle, WA 98101, and Jackson Brannon, Williams, Kastner & Gibbs PLLC, 1515 SW Fifth Avenue, Suite 600, Portland, OR 97201. Attorneys for Defendant.

IMMERGUT, District Judge.

Before this Court is a Motion to Compel Arbitration (“Mot.”) filed by Defendant SBM Management Services, LP (“SBM” or “Defendant”), ECF 22. Plaintiff Soledad Garcia Valencia opposes arbitration. Plaintiff’s Response in Opposition to Defendant’s Motion to Compel Arbitration (“Resp.”), ECF 30 at 1. Because the parties entered into a valid agreement containing a binding arbitration clause, and this clause is not unconscionable under Oregon law, Defendant’s Motion to Compel Arbitration is GRANTED. This action shall be stayed pending arbitration of Plaintiff’s claims pursuant to 9 U.S.C. § 3. LEGAL STANDARDS The Federal Arbitration Act (“FAA”) provides that arbitration agreements “shall be valid,

irrevocable, and enforceable.” 9 U.S.C. § 2. Courts strongly favor arbitration. See Mitsubishi Motors Corp. v. Soler Chrysler-Plymouth, Inc., 473 U.S. 614, 626 (1985)). “On a motion to compel arbitration, the court applies a standard similar to the summary judgment standard applied under Rule 56 of the Federal Rules of Civil Procedure.” Stover-Davis v. Aetna Life Ins. Co., No. 15-CV-1938, 2016 WL 2756848, at *3 (E.D. Cal. May 12, 2016). As long as the evidence presented could be made admissible at trial, this Court can consider it for purposes of resolving the motion to compel arbitration. Id. If the court determines there are unresolved issues of material fact as to the formation of the arbitration agreement, the court must “proceed summarily” to a jury trial on the merits. 9. U.S.C. § 4. Alternatively, if the court grants a motion to compel arbitration, it must stay the proceeding. Id. § 3; Smith v. Spizzirri, 144 S. Ct.

1173, 1177–78 (2024). When evaluating a motion to compel arbitration, courts should determine: “(1) whether a valid agreement to arbitrate exists and, if it does, (2) whether the agreement encompasses the dispute at issue.” Chiron Corp. v. Ortho Diagnostic Sys., Inc., 207 F.3d 1126, 1130 (9th Cir. 2000). “The federal policy favoring arbitration does not apply to the determination of whether there is a valid agreement to arbitrate between the parties.” Comer v. Micor, Inc., 436 F.3d 1098, 1104 n.11 (9th Cir. 2006) (brackets omitted). Instead, courts “should apply ordinary state-law principles that govern the formation of contracts.” First Options of Chi., Inc. v. Kaplan, 514 U.S. 938, 944 (1995). The party seeking to compel arbitration has the burden of proving the existence of an arbitration agreement by a preponderance of the evidence. Knutson v. Sirius XM Radio Inc., 771 F.3d 559, 565 (9th Cir. 2014). Arbitration agreements may be invalidated by generally applicable contract defenses, such as unconscionability. 9 U.S.C. § 2; AT&T Mobility LLC v. Concepcion, 563 U.S. 333, 339 (2011). BACKGROUND1

Plaintiff is a former SBM employee. Declaration of Soledad Garcia Valencia (“Garcia Valencia Decl.”), ECF 31 ¶ 10. She attests that she is a native Spanish speaker and that Spanish is her primary language. Id. ¶ 2. Plaintiff states that she attended one year of high school. Id. Plaintiff declares that Spanish is the primary language of many SBM employees. Id. ¶ 12. She states that SBM offers trainings in Spanish. Id. On September 1, 2008, Plaintiff went to SBM’s Beaverton office to apply for a job. Id. ¶¶ 3–4. Plaintiff states that, at the time, she “had very limited ability to read or write in English.”2 Id. ¶ 4. Plaintiff attests that she communicated with the SBM front desk employee in Spanish and told them that she did not read English. Id. ¶ 5. Plaintiff states that the job application was only offered in English and the SBM employee helped her fill it out. Id. Plaintiff

declares that the SBM employee did not translate the application into Spanish but instead

1 The facts for this Section are derived from the Complaint, ECF 1, and the exhibits provided by the parties, ECF 23, 31, 36, and 41–42. This Court will construe all facts and reasonable inferences that can be drawn from those facts in a light most favorable to Plaintiff. 2 Defendant argues that Plaintiff was proficient in English at the time she signed the arbitration clause. Reply, ECF 35 at 11 & n.2; Declaration of Jackson Brannon, ECF 36, Exs. A– D. In response, Plaintiff provided further evidence of her limited English. See Surreply, ECF 40; Declaration of Soledad Garcia Valencia, ECF 41; Declaration of Hector Tellez, ECF 42. Defendant filed a Response in Opposition to Plaintiff’s Surreply. ECF 43. This Court agrees with Defendant that this factual dispute is ultimately inconsequential. Id. at 4. As discussed below, even if Plaintiff speaks little English, she still cannot establish unconscionability or that the parties did not agree to arbitration. instructed Plaintiff where to sign and initial and what to write. Id. Plaintiff did not understand the application. See id. For example, she states that she answered “no” to the question asking for proof of work authorization, even though she had such authorization, because she did not know what the question asked. Id. Plaintiff states that she “asked questions about the application, but

the SBM employee did not answer them directly.” Id. ¶ 8. Plaintiff’s employment application included an arbitration clause. Declaration of Janice Periolat (“Periolat Decl.”), ECF 23 ¶ 4 (filed under seal); Employment Application, ECF 23-1 at 3–4. The arbitration clause states in relevant part: To resolve disputes arising from the application process or from the employment relationship (if I am offered employment) in an efficient and cost-effective manner, I and Company agree that any and all such claims that could be filed in a court of law, including but not limited to, claims of unlawful harassment or discrimination, wrongful failure to hire, wrongful demotion, defamation, wrongful discharge, breach of contract or invasion of privacy, shall be submitted to final and binding arbitration, and not to any other forum. . . .This Arbitration Agreement Is A Waiver Of All Rights To A Civil Jury Trial For A Claim Of Harassment, Discrimination, Wrongful Termination, Or Any Other Claim Arising Out Of My Application For Employment and Employment (If Any). Employment Application, ECF 23-1 at 3–4 (emphasis in original).

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