Grey v. American Management Services

204 Cal. App. 4th 803, 139 Cal. Rptr. 3d 210, 2012 WL 1021450, 2012 Cal. App. LEXIS 355
CourtCalifornia Court of Appeal
DecidedMarch 28, 2012
DocketNo. B233555
StatusPublished
Cited by29 cases

This text of 204 Cal. App. 4th 803 (Grey v. American Management Services) 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
Grey v. American Management Services, 204 Cal. App. 4th 803, 139 Cal. Rptr. 3d 210, 2012 WL 1021450, 2012 Cal. App. LEXIS 355 (Cal. Ct. App. 2012).

Opinion

Opinion

EPSTEIN, P. J.

—Appellant Brandon Grey appeals from a judgment of the trial court confirming an arbitration award in favor of respondents. Grey contends he was not required to submit his claims to arbitration under the terms of his employment contract. We agree. We reverse the judgment and remand with directions for further proceedings.

FACTUAL AND PROCEDURAL SUMMARY

Respondent American Management Services (AMS) is a residential and commercial property management company. In June 2006, Grey applied for a position as an investment manager. AMS provided all applicants with an application packet. This packet contained an issue resolution agreement (IRA), which AMS required all applicants to sign as a condition to having their application considered by AMS. The IRA provided that the applicant agreed to “settle any and all previously unasserted claims, disputes or controversies arising out of or [in] relation to [the] application or candidacy for employment, employment, and/or cessation of employment with [AMS] exclusively by final and binding arbitration before a neutral Arbitrator.” Attached to the IRA were issue resolution rules, which described the arbitration procedure. Grey signed the IRA.

On July 3, Grey accepted employment with AMS. AMS required Grey to sign an employment contract. In the “Remedies” section, this contract provided that “a dispute arising out of the alleged breach of any other provision of this Agreement . . . [f] . . . shall be submitted to final and binding arbitration.” A subsequent provision further stated: “This Agreement is the entire agreement between the parties in connection with Employee’s employment with [AMS], and supersedes all prior and contemporaneous discussions and understandings.” In the next paragraph, the contract provided: “Employee acknowledges that this Agreement is supplemented by such general employment policies and procedures as [AMS] may implement from time to time. Employee agrees that it is his sole responsibility to remain informed about all applicable general employment policies and guidelines of [806]*806[AMS] that may be contained in the Employee Handbook or posted on [AMS’s] Intranet site.” The IRA and the attached issue resolution rules were posted on AMS’s intranet.

On April 30, 2009, Grey filed a complaint in superior court against AMS and its then executive Scott Mencaccy. Grey alleged that Mencaccy harassed and ultimately discharged Grey on the basis of his sexual orientation. The complaint stated causes of action for (1) employment discrimination, harassment, and retaliation on the basis of sexual orientation (Gov. Code, § 12900 et seq.); (2) failure to pay wages (Lab. Code, § 200 et seq.); (3) intentional infliction of emotional distress; (4) defamation and compelled self-defamation; and (5) wrongful termination of employment in violation of public policy.

AMS and Mencaccy petitioned the court to compel Grey to arbitrate his claims under the terms of the IRA. Grey opposed this petition, contending that (1) the contract supersedes the IRA and (2) the IRA is unconscionable.

The court granted the petition and ordered Grey to arbitrate his claims.

Grey petitioned this court for a writ of mandate. (Grey v. Superior Court (Aug. 27, 2009, B217803).) We denied the petition.

The parties proceeded with binding arbitration. The arbitrator found in favor of AMS and awarded AMS its costs. Grey moved to vacate the award. The trial court confirmed the award. This timely appeal followed.

DISCUSSION

I

Appellant argues the contract superseded the IRA. Because the contract has a narrower scope of arbitrable claims than the IRA, he contends the contract does not compel arbitration for his claims against AMS.

“ ‘The basic goal of contract interpretation is to give effect to the parties’ mutual intent at the time of contracting. (Civ. Code, § 1636; Bank of the West v. Superior Court (1992) 2 Cal.4th 1254, 1264 [10 Cal.Rptr.2d 538, 833 P.2d 545].) When a contract is reduced to writing, the parties’ intention is determined from the writing alone, if possible. (Civ. Code, § 1639.)’ (Founding Members of the Newport Beach Country Club v. Newport Beach Country Club, Inc. (2003) 109 Cal.App.4th 944, 955 [135 Cal.Rptr.2d 505] ....[)] ‘The words of a contract are to be understood in their ordinary [807]*807and popular sense . .. .’ (Civ. Code, § 1644.)” (Cedars-Sinai Medical Center v. Shewry (2006) 137 Cal.App.4th 964, 979 [41 Cal.Rptr.3d 48].)

Under state law, the terms of a final, integrated contract “may not be contradicted by evidence of any prior agreement or of a contemporaneous oral agreement.” (Code Civ. Proc., § 1856, subd. (a).) But a written instrument “may be explained or supplemented by evidence of consistent additional terms unless the writing is intended also as a complete and exclusive statement of the terms of the agreement.” (Code Civ. Proc., § 1856, subd. (b).)

The court determines whether the parties intended the contract to be a final and complete expression of their agreement. (Code Civ. Proc., § 1856, subd. (d).) “The crucial issue in determining whether there has been an integration is whether the parties intended their writing to serve as the exclusive embodiment of their agreement. The instrument itself may help to resolve that issue.” (Masterson v. Sine (1968) 68 Cal.2d 222, 225 [65 Cal.Rptr. 545, 436 P.2d 561].) The existence of an integration clause is a key factor in divining that intent. (See Founding Members of the Newport Beach Country Club v. Newport Beach Country Club, Inc., supra, 109 Cal.App.4th at pp. 953-954.) “This type of clause has been held conclusive on the issue of integration, so that parol evidence to show that the parties did not intend the writing to constitute the sole agreement will be excluded. [Citations.]” (2 Witkin, Cal. Evidence (4th ed. 2000) Documentary Evidence, § 70, p. 190, italics omitted.)

The contract contains an integration clause. It provides, in part: “This Agreement is the entire agreement between the parties in connection with Employee’s employment with [AMS], and supersedes all prior and contemporaneous discussions and understandings.”

AMS argues the parties did not intend the contract to be final or to supersede the IRA. It contends the plain meaning of the phrase “discussions and understandings” does not apply to written agreements, but only oral ones.

Construing the clause as a whole, we interpret it to mean the contract is the final expression of the parties’ agreement with respect to Grey’s employment and it supersedes the IRA. The clause says the contract is exclusive as to the parties’ respective rights and obligations related to Grey’s employment. The beginning of the clause provides: “This Agreement is the entire agreement between the parties in connection with Employee’s employment . . . .” Because the contract says it is the entire agreement, common sense dictates that it supersedes other prior agreements related to Grey’s employment. An “understanding” can mean “an agreement.” (Webster’s 3d New Intemat. Diet. [808]*808(2002) p. 2490.) Since the clause then says it supersedes all prior understandings, when read in the context of the clause as a whole, “understandings” means all prior agreements.

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Cite This Page — Counsel Stack

Bluebook (online)
204 Cal. App. 4th 803, 139 Cal. Rptr. 3d 210, 2012 WL 1021450, 2012 Cal. App. LEXIS 355, Counsel Stack Legal Research, https://law.counselstack.com/opinion/grey-v-american-management-services-calctapp-2012.