Jensen v. U-Haul Co. of Cal.

226 Cal. Rptr. 3d 797, 18 Cal. App. 5th 295
CourtCalifornia Court of Appeal, 5th District
DecidedDecember 11, 2017
DocketE065887
StatusPublished
Cited by44 cases

This text of 226 Cal. Rptr. 3d 797 (Jensen v. U-Haul Co. of Cal.) is published on Counsel Stack Legal Research, covering California Court of Appeal, 5th District primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jensen v. U-Haul Co. of Cal., 226 Cal. Rptr. 3d 797, 18 Cal. App. 5th 295 (Cal. Ct. App. 2017).

Opinion

CODRINGTON, J.

*298I. INTRODUCTION

In this tort action, plaintiffs and respondents Virgil Jensen and Glenda Jensen contend that they suffered damages caused by a negligently maintained rental truck, which blew a tire while Virgil Jensen was driving it. Defendant and appellant U-Haul Co. of California (UHCA) appeals from the trial court's denial of its motion to compel arbitration. UHCA contends that plaintiffs are bound by the arbitration agreement in the rental contract, even though neither plaintiff is a party to that contract. We affirm the trial court's ruling.

II. FACTUAL AND PROCEDURAL BACKGROUND

Plaintiffs brought suit on April 13, 2015, alleging causes of action for negligence and (as to Glenda Jensen only) loss of consortium. UHCA subsequently filed a motion to compel arbitration and to stay further proceedings in the trial court. In relation to UHCA's motion, the parties submitted a stipulation agreeing to the following facts:

"1. On July 11, 2013, Plaintiff Virgil Jensen was an employee of CTS Global Products, USA, Inc. ('CTS').
"2. On July 11, 2013, Charles Scannell, Mr. Jensen's supervisor, rented a truck from UHCA.
"3. Plaintiff Virgil Jensen was hired as a warehouse worker for CTS.
*299"4. On July 11, 2013, Mr. Scannell instructed Plaintiff Virgil Jensen to use the UHCA truck to transport CTS's massage chairs and exercise machines to the Sacramento State Fair. This was allegedly the first time that Mr. Jensen ever drove a truck on behalf of CTS.
"5. On July 11, 2013, Plaintiff followed Mr. Scannell's instructions and transported CTS's massage chairs and exercise machines in the UHCA truck to the California State Fair. During the trip, Plaintiff was allegedly injured when the tire on the UHCA truck blew out ('the Incident').
"6. Plaintiff filed a worker's compensation claim against CTS regarding the Incident alleged in his Complaint arising out of his use of the UHCA truck.
"7. The parties agreed that Plaintiff's alleged injuries occurred during the course and scope of his employment *801with CTS-that at the time of the Incident alleged in the Complaint, Plaintiff Virgil Jensen was acting at the direction of CTS.
"8. At the time of the Incident, Plaintiff Virgil Jensen allegedly had no knowledge of an alleged Agreement to Arbitrate Claims under the UHCA rental agreement, and Mr. Jensen had never signed the UHCA rental agreement."

In support of its motion, UHCA also presented evidence that an arbitration agreement is incorporated into each of its rental contracts, including the one signed by Mr. Scannell. The arbitration agreement provides that "You and U-Haul agree that any and all Claims ... between You and U-Haul relating in any way to your rental ... from U-Haul shall be submitted to binding Arbitration ...." It defines the term " 'You' " to include "You and Your respective ... agents, employees ... [and] all authorized or unauthorized users of the U-Haul equipment ...." The term " 'Claim' " is defined "broadly" to include "any and all legal theories, including but not limited to, all statutory and tort claims, that may be asserted by You."

Additionally, UHCA presented evidence that Mr. Scannell is not only Mr. Jensen's supervisor, but also the owner, chief executive officer, chief financial officer, secretary, and sole director of CTS.

The trial court denied UHCA's motion.

*300III. DISCUSSION

A. Standard of Review.

"In general, '[t]here is no uniform standard of review for evaluating an order denying a motion to compel arbitration. [Citation.] If the court's order is based on a decision of fact, then we adopt a substantial evidence standard. [Citations.] Alternatively, if the court's denial rests solely on a decision of law, then a de novo standard of review is employed.' " ( Laswell v. AG Seal Beach, LLC (2010) 189 Cal.App.4th 1399, 1406, 117 Cal.Rptr.3d 310.) In the absence of conflicting extrinsic evidence, " '[w]hether and to what extent [nonsignatories] can also enforce the arbitration clause is a question of law, which we review de novo.' " ( Molecular Analytical Systems v. Ciphergen Biosystems, Inc. (2010) 186 Cal.App.4th 696, 708, 111 Cal.Rptr.3d 876.)

B. Analysis.

There is no doubt that plaintiffs' claims fall within the extremely broad scope of the arbitration agreement at issue. It is undisputed that Virgil Jensen was a "user" of the UHCA equipment-we need not decide whether he was an "authorized" or "unauthorized" user, since the agreement purports to encompass both-and plaintiffs' claims arise from his use of that equipment. Nevertheless, whatever the breadth of the contractual language, plaintiffs can only be forced to arbitrate their claims if they are bound by the arbitration agreement entered into by Mr. Scannell and UHCA.

"Persons are not normally bound by an agreement entered into by a corporation in which they have an interest or are employees." ( Suh v. Superior Court (2010) 181 Cal.App.4th 1504, 1513, 105 Cal.Rptr.3d 585 ( Suh ).) More specifically, as a general rule, "[t]he right to arbitration depends on a contract, and a party can be compelled to submit a dispute to arbitration only if the party has agreed in writing to do so." ( Matthau v. Superior Court (2007) 151 Cal.App.4th 593, 598, 60 Cal.Rptr.3d 93 ( Matthau ).) "Even the strong public policy in favor of arbitration does not extend to those who are not parties to an arbitration agreement or who have not authorized anyone to act for them in executing *802such an agreement." ( County of Contra Costa v. Kaiser Foundation Health Plan, Inc. (1996) 47 Cal.App.4th 237, 245, 54 Cal.Rptr.2d 628 ( Contra Costa ).)

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

Related

Valentine v. Orthofix Medical CA4/1
California Court of Appeal, 2025
Bender v. Twilio Inc.
N.D. California, 2025
Ballesteros v. Ford Motor Co.
California Court of Appeal, 2025
Lapkass v. Wells Fargo Clearing Services CA3
California Court of Appeal, 2025
Valley Pizza, Inc. v. Herbst
N.D. California, 2024
Pinnacle Fertility Holdings, LP v. John Kumar Jain
Court of Chancery of Delaware, 2024
Robert D. Mabe, Inc. v. OPTUMRX
M.D. Pennsylvania, 2024
Olavarria v. Fluence Corp. CA4/3
California Court of Appeal, 2024
Kaufman v. Adani CA1/3
California Court of Appeal, 2024
Schultz v. Sinav Ltd.
2024 IL App (4th) 230366 (Appellate Court of Illinois, 2024)
Wilson v. Hatch Bank
S.D. California, 2024
Kermani v. Hyundai Motor America CA2/4
California Court of Appeal, 2023
In re Uber Technologies Wage and Hour Cases
California Court of Appeal, 2023
Peterson v. Devita
2023 IL App (1st) 230356 (Appellate Court of Illinois, 2023)
Kielar v. Super. Ct.
California Court of Appeal, 2023
Montemayor v. Ford Motor Co.
California Court of Appeal, 2023

Cite This Page — Counsel Stack

Bluebook (online)
226 Cal. Rptr. 3d 797, 18 Cal. App. 5th 295, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jensen-v-u-haul-co-of-cal-calctapp5d-2017.