Herrera v. Interlang CA2/3

California Court of Appeal·Decided September 11, 2026·No. B346752·Unpublished

Opinion

Filed 9/11/26 Herrera v. Interlang CA2/3 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION THREE

ALBERT HERRERA, B346752

Plaintiff and Respondent, (Los Angeles County Super. Ct. No.

v. 24STCV06318)

INTERLANG, LLC,

Defendant and Appellant.

APPEAL from an order of the Superior Court of Los Angeles County, Michael Schultz, Judge. Reversed and remanded with directions.

K&L Gates, Ferry E. Lopez and Ricardo E. Diaz for Defendant and Appellant.

Jonathan Lee Borsuk for Plaintiff and Respondent.

Defendant and appellant Interlang, LLC (Interlang)

appeals an order denying its motion to compel its former employee, plaintiff and respondent Albert Herrera, to arbitrate his claims. In support of its motion, Interlang submitted a copy of an arbitration agreement from 2017. Herrera argued the agreement was superseded by an employment agreement the parties executed in 2021. The trial court denied Interlang’s motion. On appeal, Interlang argues the 2021 agreement did not supersede the 2017 agreement. We agree and reverse.

FACTUAL AND PROCEDURAL BACKGROUND 1. The complaint Interlang hired Herrera in 2017 and terminated him in 2023. In March 2024, Herrera filed a complaint against Interlang and eleven other entities and individuals, asserting 16 causes of action. Herrera alleged he witnessed and complained about “many accounting irregularities and improprieties, and fraudulent billing practices, perpetrated by” Interlang. Herrera alleged Interlang terminated him as a “scapegoat for the operational problems caused by [Interlang] and in retaliation for bringing illegal activities to [Interlang’s] attention.” Herrera also alleged Interlang presented him with an illegal severance agreement, sought to defraud him by stealing his securities, refused to pay all compensation owed, refused to provide documents and records, and failed to provide an accounting. 2. Interlang’s motion to compel arbitration Interlang filed a motion to compel Herrera to arbitrate his claims. Interlang asserted Herrera was compelled to arbitrate under an agreement the parties executed in December 2017 (the 2017 Arbitration Agreement).

Interlang attached to its motion a copy of the 2017 Arbitration Agreement. It states the parties agree to utilize binding arbitration under the Federal Arbitration Act to resolve all disputes that Herrera has against Interlang or its agents, and any Interlang disputes against Herrera “arising from, related to, or having any relationship or connection whatsoever with seeking employment with, employment by, or other association with [Interlang].” The 2017 Arbitration Agreement includes an integration clause, which provides “[t]his is the entire agreement” between the parties “regarding dispute resolution, the length of [Herrera’s] employment, and the reasons for termination of employment, and this agreement supersedes any and all prior agreements regarding these issues to the extent that they differ from the foregoing.” The 2017 Arbitration Agreement further states that it is “agreed and understood that any agreement contrary to [it] must be entered into, in writing, by the President” of Interlang, and that no “supervisor or representative of [Interlang], other than the President, has any authority to enter into any agreement for employment for any specified period of time or make any agreement contrary to the foregoing.”

Interlang’s motion to compel arbitration was joined by defendant MDME Holdings, LLC (MDME). MDME contended that “[b]ecause Plaintiff alleges that all Defendants, including MDME Holdings, were acting as the agent, employee, partner, and representative of one another, and Plaintiff agreed to submit claims against such agents, employees, or partners, arising from his employment to arbitration, his disputes with MDME Holdings also are subject to binding arbitration.” MDME additionally joined in all legal arguments made by Interlang.

3. Herrera’s opposition Herrera opposed the motion on a number of grounds, including that the 2017 Arbitration Agreement “does not exist.” According to Herrera, it was “entirely superseded” by an employment agreement the parties executed in July 2021 (the 2021 Employment Agreement). Herrera asserted the 2021 Employment Agreement does not contain an arbitration clause, nor did the parties enter into a separate arbitration agreement.

Herrera attached to his opposition a copy of the 2021 Employment Agreement. Glenn Scolnik signed for Interlang as “Chairman of the Board.” The opening paragraph of the agreement states, “The parties recognize that you have been employed by the Company, and this Agreement is intended to set forth the terms of your employment with the Company effective July 1, 2021.” The four-page document goes on to describe Herrera’s position and duties, compensation, and benefits.

The 2021 Employment Agreement contains a section entitled, “Agreement Contingencies.” That section states: “This offer is made contingent upon you executing the Company’s Arbitration Agreement as well as a Proprietary Information and Trade Secrets Agreement. Refusal to enter into either agreement will result in this offer being withdrawn or your employment with the Company terminated.”

The paragraph that follows establishes the parties’

agreement that Herrera’s employment will be at-will. The next, and penultimate, paragraph includes an integration clause, stating: “By entering into this agreement, you are acknowledging and representing that there are no oral, collateral, or other written statements by any employee or representative of

the Company inconsistent or contrary to the above, and that the at-will nature of your employment relationship with the Company is a condition of this offer and your employment with the Company.”

Herrera submitted a declaration in support of his opposition. He asserted Interlang presented him with the 2021 Employment Agreement when it was “undergoing several pending private equity investment transactions.” Herrera asserted he believed Scolnik was Interlang’s president and chairman of its board at the time. Herrera asked to see a copy of the “ ‘Company’s Arbitration Agreement,’ ” and Scolnik said Interlang “would provide [him that] document[ ] later for [his] consideration.” According to Herrera, Interlang never provided him an arbitration agreement to consider.

Herrera additionally argued that the dispute fell outside of the 2017 Arbitration Agreement. He asserted that Interlang could not seek to compel claims involving the other defendants who were nonparties to the agreement. He additionally asserted that, as to some of the remaining defendants, his claims were not “employment-based” but rather “rooted in extrinsic theft,” and other specific agreements, and therefore were not included in the scope of the 2017 Arbitration Agreement. 4. Interlang’s reply In its reply brief, Interlang argued the 2021 Employment Agreement did not preclude arbitration for three reasons. First, it argued that, to the extent Herrera argued that the 2021 Employment Agreement was a novation, he failed to present clear and convincing evidence that the parties intended the 2021 Employment Agreement to abrogate or extinguish the 2017 Arbitration Agreement.

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Herrera v. Interlang CA2/3, (Cal. Ct. App. 2026).

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