Gurganus v. IGS Solutions LLC

CourtCalifornia Court of Appeal
DecidedOctober 17, 2025
DocketA170738
StatusPublished

This text of Gurganus v. IGS Solutions LLC (Gurganus v. IGS Solutions 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
Gurganus v. IGS Solutions LLC, (Cal. Ct. App. 2025).

Opinion

Filed 9/25/25 Certified for Publication 10/17/25 (order attached)

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

FIRST APPELLATE DISTRICT

DIVISION THREE

SARAH GURGANUS, Plaintiff and Respondent, A170738 v. IGS SOLUTIONS LLC, (Solano County Super. Ct. No. CU23-04101) Defendant and Appellant.

IGS Solutions LLC (IGS) appeals from the trial court’s denial of its motion to compel arbitration of a lawsuit brought by its former employee, Sarah Gurganus. IGS contends the trial court erred by concluding the arbitration agreement was unconscionable and in refusing to sever the offending provisions. We affirm. FACTUAL AND PROCEDURAL BACKGROUND IGS provides employee management services for various operational entities, including some retail locations. IGS employed Gurganus at a California facility between September 2021 and April 2023. When Gurganus began working for IGS in September 2021, she logged into the company’s online portal and filled out onboarding documents, none of which included an agreement to arbitrate or mention of arbitration.

1 Subsequent Agreements On February 20, 2022, about five months into her employment at IGS, Gurganus electronically signed numerous additional employment documents in the company’s online portal. Among those documents were an agreement to arbitrate (Arbitration Agreement), a “Voluntary Dispute Resolution Policy,” and a “Confidentiality and Non-Disclosure Agreement” (CND). The Arbitration Agreement provides in relevant part: “Employee and the Company . . . mutually agree to resolve by final and binding arbitration any dispute, claim or controversy, including but not limited to those related to Employee’s employment with or termination of employment by the Company, . . . [¶] . . . [¶] [and] give up each of their rights to trial by jury for the claims covered by this Agreement.” The Arbitration Agreement excludes certain claims from arbitration, including those “that, as a matter of law, cannot be resolved by arbitration, such as . . . claims seeking injunctive or declaratory relief regarding use or unauthorized disclosure of confidential information.” Additionally, the Arbitration Agreement contains a confidentiality provision, stating that “[n]o party may disclose any information to any other party not involved in the arbitration hearing unless written approval has been given by the other party.” The eleventh paragraph of the Arbitration Agreement states arbitration is not a required condition of employment and the signor may choose not to sign the agreement or, within 30 days of signing it, may opt out by notifying IGS in writing. It also contains an integration clause stating it is “the entire agreement between the Employee and the Company regarding dispute resolution and

2 this Arbitration Agreement supersedes any and all prior agreements regarding this issue.” The Voluntary Dispute Resolution Policy is a distinct document, which, contrary to the Arbitration Agreement, provides that “any dispute” (italics added) between Gurganus and IGS will be decided by binding arbitration if Gurganus “sign[s] a Dispute Resolution Agreement”; it also states there will be no negative employment consequences or retaliation if Gurganus decides not to sign such an agreement. The CND is another separate document that Gurganus signed the same day as the Arbitration Agreement and Voluntary Dispute Resolution Policy; it prevents her from disclosing certain confidential information disclosed to her for business purposes (such as trade secrets and proprietary information). Relevant here, the CND contains a dispute provision that permits IGS to enforce the CND in court: “Any disputes under this Agreement may be brought in the state courts and the Federal courts for the county in which Company’s principal place of business is located, and the parties hereby consent to the personal jurisdiction and exclusive venue of these courts.” Additionally, the CND provides that, in the event of breach, and among other available remedies, IGS “will be entitled to obtain timely injunctive relief (without the posting of any bond and without proof of actual damages) under this Agreement.” The CND terminates three years after its effective date “or may be terminated by either party at any time upon thirty (30) days written notice to the other party.” Unlike the Arbitration Agreement, the CND does not state the employee may choose not to sign the agreement or may opt out of the CND; it also does not state that signing is not a condition of employment.

3 Both the Arbitration Agreement and CND contain severability provisions stating generally that, if any portions of the agreements were found to be unenforceable or invalid, the offending provisions will be modified or interpreted so as to make them enforceable. Gurganus’s Lawsuit and IGS’s Motion To Compel Arbitration Gurganus’s employment at IGS ended in April 2023. On September 1, 2023, Gurganus filed a complaint alleging eight causes of action against IGS: (1) disability discrimination in violation of the California Fair Employment and Housing Act (Gov. Code, § 12900 et seq.; FEHA); (2) retaliation in violation of FEHA; (3) failure to engage in the interactive process to determine reasonable accommodations; (4) failure to provide reasonable accommodations; (5) retaliation in violation of the California Family Rights Act (Gov. Code, § 12945.2; CFRA); (6) interference with CFRA rights; (7) wrongful termination; and (8) unlawful business practices under the unfair competition law (Bus. & Prof. Code, § 17200 et seq.). On January 23, 2024, IGS filed a motion to compel arbitration and to dismiss or stay Gurganus’s lawsuit. IGS argued all the claims in the lawsuit were subject to the Arbitration Agreement as they arose out of Gurganus’s employment with IGS. IGS asserted the Arbitration Agreement was enforceable and, if the court found any provision unenforceable, that provision should be severed. In support of the motion, IGS submitted a declaration by its director of human resources describing the process by which Gurganus signed the Arbitration Agreement and other employment documents on February 20, 2022. The declaration stated IGS requests that employees sign the agreement but does not require it, and while it allows them to opt out,

4 Gurganus had not done so. The Arbitration Agreement was attached to the declaration, but the declaration did not mention or attach the CND. Gurganus opposed the motion on unconscionability grounds. Gurganus did not contest that she signed the Arbitration Agreement on February 20, 2022, but argued she was required to do so in an oppressive manner as a condition of continued employment, and that there was evidence of surprise in the manner it was presented to her, rendering it procedurally unconscionable. She further contended the confidentiality provision in the Arbitration Agreement and lack of mutuality in the CND—which she asserted should be read together as they were signed on the same day within the same transaction—were substantively unconscionable. Finally, Gurganus contended the unconscionability could not be cured by severance. In support, Gurganus attached a declaration stating she was told to sign various documents as a requirement for employment and that she complied because she was not in a financial position to refuse employment. She further stated no one explained the documents to her or that she was giving up her right to file a lawsuit in court. Gurganus also attached a copy of the CND. The court issued a tentative ruling denying the motion to compel arbitration, finding the Arbitration Agreement was both procedurally and substantively unconscionable and that severance was not warranted.

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Bluebook (online)
Gurganus v. IGS Solutions LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gurganus-v-igs-solutions-llc-calctapp-2025.