Levin v. Caviar, Inc.

146 F. Supp. 3d 1146, 2015 U.S. Dist. LEXIS 161514, 2015 WL 7529649
CourtDistrict Court, N.D. California
DecidedNovember 16, 2015
DocketCase No. 15-cv-01285-EDL
StatusPublished
Cited by21 cases

This text of 146 F. Supp. 3d 1146 (Levin v. Caviar, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Levin v. Caviar, Inc., 146 F. Supp. 3d 1146, 2015 U.S. Dist. LEXIS 161514, 2015 WL 7529649 (N.D. Cal. 2015).

Opinion

ORDER ON MOTION TO COMPEL INDIVIDUAL ARBITRATION AND . MOTION TO DISMISS

Re: Dkt. No. 24

ELIZABETH D. LAPORTE, United States Magistrate Judge

I. INTRODUCTION

This matter involves a putative class action as well as a representative action under the California Private Attorneys General Act of 2004 (PAGA) (Cal. Lab. Code, § 2698 et seq.) brought by Plaintiff on behalf of himself and others similarly situated against Defendant Caviar, Inc. d/b/a/ Try Caviar. FAC at 1, ¶¶ 34-36. Before the Court is Defendant’s Motion to Compel Individual Arbitration and Motion to Dismiss. For the following reasons, the motion is GRANTED as to Defendant’s individual claims. The Court, however, defers ruling on the issue of whether Plaintiffs PAGA claim is arbitrable until the Court has received additional briefing from the parties.

II. BACKGROUND

The First Amended Complaint alleges that Defendant is a “San Francisco-based food delivery service, which provides food delivery services in cities throughout the country via an on demand dispatch system” (the “Caviar Platform”). FAC ¶8. Customers may request a courier, to pick [1150]*1150up and deliver food from local restaurants using a smartphone application or via Defendant’s website. FAC ¶ 9. Couriers are paid a fee for each delivery they complete as well as a percentage of the cost of the food order and any tip the customer adds. FAC ¶ 10.

The First Amended Complaint alleges that Defendant misclassified Plaintiff and other similarly situated couriers as independent contractors and, in so doing, violated provisions of the California Labor Code that require the employer to pay certain employee expenses (Cal. Labor Code § 2802) and to provide itemized wage statements (Cal. Labor Code § 226(a)). FAC ¶ 2. -

Plaintiff applied to become a courier for Defendant in early December 2014. Velasquez Decl. ¶ 8. The general application process for Plaintiff and other couriers in San Francisco involved a group orientation session called an “onboarding''session.*’ Id. at ¶ 3. Plaintiff attended an onboarding session on December 15, 2014, where, among other things, the Courier Terms and Conditions Agreement was describe-dld. at ¶ 8. The next day, a Caviar Logistics Associate sent Plaintiff an email that informed him that “[a]s noted in our on-boarding session, I need you to please complete our Caviar Onboarding Form, which takes only a few minutes and contains your copy of the ‘Courier Terms and Conditions’ we reviewed during training.” Id., Exh. D, This email provided Plaintiff with a link to the web-baséd Caviar On-boarding form, which in turn contained a hyperlink to the Caviar Courier Terms and Conditions.

Plaintiff was required to and did check a box that “signified] that [he] reviewed, understood] and agree[d] to the Courier Terms and Conditions.” Id. at Exh. A. The Courier Terms and Conditions includes the following language. The first sentence of this paragraph is in the same type as the rest of the agreement, while the rest of the paragraph is in slightly larger type.

15.5 This Agreement is governed by laws of the State of California, without reference to conflicts of laws principles. Cornier and Caviar agree that any disputes between them arising from Courier’s agreement, services, or other relationships with Caviar shall be subject to final and binding arbitration before the American Arbitration Association (“AAA”). Such arbitration shall be conducted before a single, neutral arbitrator, pursuant to the applicable AAA rules but provide for discovery and remedies which would otherwise be available under applicable state or federal law. Such arbitration shall be conducted within the court jurisdiction within which the Courier primarily provides services to Caviar. Caviar shall pay for any arbitration fees, except that Courier shall pay that portion of the arbitration filing fee-which is equal to or less than the amount charged by applicable state court for filing a civil complaint. Each party shall pay their own. attorneys’ fees incurred in the arbitration, except as provided by applicable state or federal law. Courier and Caviar agree that neither will bring any action on behalf of any. party other than themselves, and specifically will bring no collective or class action against each other. This clause expressly precludes Courier and Caviar from bringing a. civil court action against the other , party on behalf ■ of themselves or any other person or entity, except where immediate injunctive relief is necessary to protect property or safety.

Id. at Ex, C.

Plaintiff made his first delivery on the Caviar Platform on December 16, 2014. A [1151]*1151few months later, Plaintiff downloaded an update to the Caviar application on his smartphone and at that time again agreed to the Courier Terms and Conditions, which included an identical arbitration provision. Id. at ¶ 6-8, Reiss Decl. ¶¶ 6-7, 9-12.

On March 19, 2015, Plaintiff filed a putative class action complaint against Defendant. Dkt. No. 1. On May 27, 2015, he amended the Complaint and added a PAGA claim. Dkt. No. 19, FAC at 7. Defendant then filed this Motion to Compel Individual Arbitration and Motion to Dismiss. Defendant argues that all of Plaintiffs claims fall within the mandatory arbitration provision of the Courier Terms and Conditions and, therefore, this Court should compel Plaintiff to individually arbitrate his claims and dismiss this action.

Plaintiff makes four arguments in opposition to the Motion to Compel Arbitration. First, he contends that he is a “transportation worker engaged in interstate commerce” and as such falls under an exception to the Federal Arbitration Act (“FAA”) set out in 9 U.S.C. § 1. Opp’n at 5. Second, he ai’gues that the PAGA waiver in the Courier Terms and Conditions is unenforceable. Opp’n at 19. Third, he contends he did not actually agree to the arbitration provision because it was part of an invalid “clickwrap agreement.” Fourth, he argues the arbitration agreement is unconscionable and therefore unenforceable. Opp’n at 20-21.

III. LEGAL STANDARD

The Federal Arbitration Act (“FAA”) provides that “a contract evidencing a transaction involving commerce to settle by arbitration a controversy thereafter arising out of such contract or transaction ... shall be valid, irrevocable, and enforceable, save upon such grounds as exist at law or in equity for the revocation of any contract.” AT & T Mobility LLC v. Concepcion, 563 U.S. 333, 131 S.Ct. 1740, 1745, 179 L.Ed.2d 742 (2011) (quoting 9 U.S.C. § 2). The FAA thus makes clear that “courts must place arbitration agreements on an equal footing with other contracts.” Id. In deciding whether a dispute is arbitrable, courts must consider: (1) whether a valid agreement to arbitrate exists; and (2) whether the scope of that agreement to arbitrate encompasses the claims at issue. Chiron Corp. v. Ortho Diagnostic Sys., 207 F.3d 1126, 1130 (9th Cir.2000). If a party seeking to compel arbitration establishes these two factors, the court must compel arbitration. Dean Witter Reynolds Inc. v. Byrd,

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Cite This Page — Counsel Stack

Bluebook (online)
146 F. Supp. 3d 1146, 2015 U.S. Dist. LEXIS 161514, 2015 WL 7529649, Counsel Stack Legal Research, https://law.counselstack.com/opinion/levin-v-caviar-inc-cand-2015.