Johnathon Ervin v. Amazon.com Services, LLC

CourtDistrict Court, C.D. California
DecidedJune 5, 2025
Docket2:24-cv-10311
StatusUnknown

This text of Johnathon Ervin v. Amazon.com Services, LLC (Johnathon Ervin v. Amazon.com Services, LLC) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Johnathon Ervin v. Amazon.com Services, LLC, (C.D. Cal. 2025).

Opinion

O 1

2 3 4 5 6 7

8 United States District Court 9 Central District of California

11 JOHNATHON ERVIN, Case № 2:24-cv-10311-ODW (KSx)

12 Plaintiff, ORDER GRANTING

13 v. DEFENDANTS’ MOTION TO COMPEL ARBITRATION [23] 14 AMAZON.COM SERVICES, LLC et al.,

15 Defendants.

16 17 I. INTRODUCTION 18 Defendants Amazon Services, LLC, Amazon.com, Inc., Amazon Logistics, Inc., 19 Golden State FC, LLC, Amazon Fulfillment Services, Inc., and Kim Herzog 20 (collectively, “Amazon”) move to compel Plaintiff Johnathon Ervin to arbitrate his 21 claims against them and stay this action. (Mot. Compel Arb. (“Mot.” or “Motion”), 22 ECF No. 23.) For the following reasons, the Court GRANTS Amazon’s Motion.1 23 II. BACKGROUND 24 On August 22, 2019, Ervin’s business—Battle Tested Strategies, LLC 25 (“BTS”)—executed a Delivery Service Partner (“DSP”) Agreement with Amazon that 26 governed “the transportation, delivery, and related services . . . performed by [BTS].” 27

28 1 Having carefully considered the papers filed in connection with the Motion, the Court deemed the matter appropriate for decision without oral argument. Fed. R. Civ. P. 78; C.D. Cal. L.R. 7-15. 1 (Mot. 1, 3; Decl. Micah McCabe ISO Mot. (“McCabe Decl.”) ¶¶ 6, 8, Ex. A (“DSP 2 Agreement”), ECF Nos. 23-2 to 23-3.) Ervin signed the agreement on behalf of BTS. 3 (McCabe Decl. ¶ 7.) Thereafter, Ervin managed the drivers that BTS employed who 4 delivered Amazon’s products. (Notice Removal Ex. A (“Compl.”) ¶ 13a, ECF No. 1-1; 5 McCabe Decl. ¶ 9.) Ervin contends that he was Amazon’s employee and that Amazon 6 improperly classified him as an independent contractor. (Compl. ¶ 13a; see Opp’n 8, 7 ECF No. 28 (“[Ervin] was hired to manage [BTS drivers] by [Amazon].”).) 8 Relevant here, the DSP Agreement between Amazon and BTS contains an 9 arbitration provision that states as follows: 10 This Agreement is governed by the United States Federal Arbitration Act, applicable United States federal law, and Washington State law . . . . ANY 11 DISPUTE ARISING OUT OF THIS AGREEMENT WILL BE 12 RESOLVED BY BINDING ARBITRATION, RATHER THAN IN 13 COURT. . . . The arbitration will be conducted by the American Arbitration Association (the “AAA”) under its rules, including the AAA’s 14 Commercial Arbitration Rules. The AAA’s rules are available at 15 www.adr.org or by calling 1-800-778-7879. 16 (DSP Agreement ¶ 13.) The parties revised the DSP Agreement two times, but never 17 altered the arbitration provision. (McCabe Decl. ¶ 8; see also id. Ex. 3 (“Am. DSP 18 Agreement”), ECF No. 23-4.) 19 On September 11, 2019, Ervin and BTS entered into a “Mutual Agreement to 20 Individually Arbitrate Disputes” (the “DA Agreement”) with each other. (Decl. Alexis 21 Cantwell-Badyna ISO Mot. (“Cantwell-Badyna Decl.”) ¶¶ 5, 7, Ex. A (“DA 22 Agreement”), ECF Nos. 23-6 to 23-7.) 23 On April 14, 2023, more than three-and-a-half years after executing the DSP 24 Agreement, Amazon notified Ervin that it was terminating the DSP Agreement. (See 25 Compl. ¶ 17a; McCabe Decl. ¶ 10, Ex. C (“Termination Notice”), ECF No. 23-5.) 26 On October 21, 2024, following the termination, Ervin brought this action against 27 Amazon in Los Angeles County Superior Court asserting claims for violations of 28 California’s Fair Employment and Housing Act (“FEHA”), whistleblower retaliation, 1 wrongful termination in violation of public policy, and intentional infliction of 2 emotional distress. (Compl. ¶¶ 23–70.) On November 27, 2024, Amazon removed the 3 action to this Court based on diversity jurisdiction. (Notice Removal, ECF No. 1.) 4 Amazon now moves to compel arbitration and stay this action on the grounds that 5 Ervin agreed to arbitrate his claims when he signed the DSP Agreement with Amazon 6 in his capacity as owner and agent of BTS. (Mot.; Mem. P. & A. ISO Mot. (“Mem.”) 6– 7 12, ECF No. 23-1.) Amazon also argues that it may compel arbitration under the DA 8 Agreement, as it is a third-party beneficiary of that agreement. (Id. at 12–20.) The 9 Motion is fully briefed. (See Opp’n; Reply, ECF No. 29.) 10 III. LEGAL STANDARD 11 The Federal Arbitration Act (“FAA”) is meant to “ensur[e] that private arbitration 12 agreements are enforced according to their terms.” AT&T Mobility LLC v. Concepcion, 13 563 U.S. 333, 344 (2011) (alteration in original). Section 2 of the FAA creates a policy 14 favoring enforcement, stating that arbitration clauses in contracts “shall be valid, 15 irrevocable, and enforceable, save upon such grounds as exist at law or in equity for the 16 revocation of any contract.” Cox v. Ocean View Hotel Corp., 533 F.3d 1114, 1119 17 (9th Cir. 2008) (quoting 9 U.S.C. § 2). Under the FAA, a party to such an agreement 18 may petition an appropriate federal district court to compel arbitration. 9 U.S.C. § 4. 19 The FAA governs a contract dispute relating to an arbitration provision if the 20 contract affects interstate commerce. Allied-Bruce Terminix Cos., Inc. v. Dobson, 21 513 U.S. 265, 273–74 (1995). When it applies, the FAA restricts a court’s arbitration 22 inquiry to two threshold questions: (1) whether there was an agreement to arbitrate 23 between the parties; and (2) whether the agreement covers the dispute. Cox, 533 F.3d 24 at 1119. A delegation provision further limits a court’s review by assigning these 25 gateway questions to an arbitrator. Bielski v. Coinbase, Inc., 87 F.4th 1003, 1009 26 (9th Cir. 2023). If an arbitration agreement contains a delegation provision, a party 27 opposing arbitration must specifically challenge the delegation provision. Rent-A- 28 Center, West, Inc. v. Jackson, 561 U.S. 63, 72 (2010). If the party fails to do so, a court 1 must treat the provision as valid, order arbitration and leave “any challenge to the 2 validity of the Agreement as a whole for the arbitrator.” Id. 3 IV. DISCUSSION2 4 Amazon seeks to compel Ervin to resolve his claims through arbitration based on 5 the DSP Agreement and the DA Agreement. (See Mem.) Amazon also contends that 6 because the DSP Agreement and the DA Agreement each invoke and incorporate the 7 AAA and its rules, the agreements delegate any arbitrability dispute to an arbitrator. 8 (Id. at 5.) 9 Ervin argues that Amazon cannot compel arbitration under the FAA because 10 Ervin falls within the FAA’s transportation worker exemption pursuant to 9 U.S.C. § 1. 11 (Id. at 5–7.) Ervin also contends that, under California law, the parties’ agreement to 12 arbitrate is unenforceable because Amazon should have classified Ervin as an employee 13 and not as an independent contractor. (Id. at 7–11.) In so arguing, Ervin attacks the 14 DSP Agreement’s arbitration clause as substantively unconscionable, arguing that it 15 would diminish his statutory rights because it contains an overly-burdensome forum 16 selection and choice-of-law provision. (Id. at 9–10.)3 17 A. Whether Ervin is Bound by the DSP Agreement 18 Ervin brings this action against Amazon in his individual capacity and not on 19 behalf of BTS. (See generally Compl.) Even though Ervin did not sign an arbitration 20 agreement with Amazon in his individual capacity, Amazon argues that “principles of 21 agency and estoppel require enforcement of the DSP Agreement” against Ervin, who 22 signed the agreement on behalf of BTS, as its owner. (Mem. 8–9; see DSP Agreement).

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