Licon v. Wish-I-Ah Skilled Nursing & Wellness Cntr CA5

CourtCalifornia Court of Appeal
DecidedJune 15, 2016
DocketF070304
StatusUnpublished

This text of Licon v. Wish-I-Ah Skilled Nursing & Wellness Cntr CA5 (Licon v. Wish-I-Ah Skilled Nursing & Wellness Cntr CA5) 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
Licon v. Wish-I-Ah Skilled Nursing & Wellness Cntr CA5, (Cal. Ct. App. 2016).

Opinion

Filed 6/15/16 Licon v. Wish-I-Ah Skilled Nursing & Wellness Cntr CA5

NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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

FIFTH APPELLATE DISTRICT

KATHY LICON et al., F070304 Plaintiffs and Respondents, (Super. Ct. No. 13CECG03983) v.

WISH-I-AH SKILLED NURSING & OPINION WELLNESS CENTRE LLC,

Defendant and Appellant.

APPEAL from an order of the Superior Court of Fresno County. Mark W. Snauffer, Judge. Ballard Rosenberg Golper & Savitt, John B. Golper and Jeffrey P. Fuchsman for Defendant and Appellant. Sutton Hague Law Corporation, S. Brett Sutton, Jared Hague, Joseph V. Macias and Wesley Carlson for Plaintiffs and Respondents. -ooOoo- Defendant appeals from the denial of its petition to compel arbitration of plaintiffs’ claims against it. We conclude the arbitration agreement excluded class and collective actions from its scope, so plaintiffs were not required to arbitrate the class claims or the private attorney general claims included in their first amended complaint. FACTUAL AND PROCEDURAL BACKGROUND Plaintiff, Kathy Licon,1 filed an action on behalf of herself and all others similarly situated, alleging causes of action for wage and hour violations against her employer. Plaintiffs filed a first amended complaint, adding Denise as a named plaintiff and adding causes of action alleged by her as a private attorney general, seeking penalties for Labor Code violations on behalf of herself and other employees of defendant. Defendant responded with a petition to compel arbitration of the disputes. It presented evidence plaintiffs had signed various documents agreeing to be bound by defendant’s arbitration program or acknowledging receipt of the booklet that described it and contained its provisions. Plaintiffs opposed the petition, asserting none of the documents presented by defendant constituted an agreement to arbitrate their employment disputes; alternatively, if such an agreement existed, the provisions of the arbitration program were unconscionable and should not be enforced, and the arbitration agreement excluded or did not apply to the class claims or the private attorney general claims. The trial court denied the petition, finding the arbitration agreement expressly excluded class and collective actions. Further, the agreement submitted by defendant was unconscionable, and the unconscionable provisions should not be severed. Defendant appeals from the denial of its petition to compel arbitration.

1 For clarity and convenience, we will refer to plaintiffs by their first names because they share a last name. No disrespect is intended. We note that, in defendant’s papers here and in the trial court, Kathy is referred to as Johnnie. Plaintiffs, in their respondents’ brief, note that Kathy goes by the name Johnnie. There is no dispute Kathy signed the documents that bear the signature “Johnnie Licon.”

2. DISCUSSION I. Appealability and Standard of Review An order denying a petition to compel arbitration is appealable pursuant to Code of Civil Procedure section 1294, subdivision (a).2 “On petition of a party to an arbitration agreement alleging the existence of a written agreement to arbitrate a controversy and that a party thereto refuses to arbitrate such controversy, the court shall order the petitioner and the respondent to arbitrate the controversy if it determines that an agreement to arbitrate the controversy exists, unless it determines that … [g]rounds exist for the revocation of the agreement.” (§ 1281.2.) The party seeking arbitration bears the burden of proving by a preponderance of the evidence the existence of an arbitration agreement; the party opposing arbitration bears the burden of proving by a preponderance of the evidence any defense to enforcement of the agreement. (Pinnacle Museum Tower Assn. v. Pinnacle Market Development (US), LLC (2012) 55 Cal.4th 223, 236 (Pinnacle); Engalla v. Permanente Medical Group, Inc. (1997) 15 Cal.4th 951, 972.) “There is no uniform standard of review for evaluating an order denying a motion to compel arbitration.” (Robertson v. Health Net of California, Inc. (2005) 132 Cal.App.4th 1419, 1425.) When the facts are undisputed, the existence and enforceability of an agreement to arbitrate are questions of law subject to de novo review. (Sparks v. Vista Del Mar Child & Family Services (2012) 207 Cal.App.4th 1511, 1519 (Sparks); Dotson v. Amgen, Inc. (2010) 181 Cal.App.4th 975, 979.) When the evidence is conflicting, we accept the trial court’s resolution of factual issues if it is supported by substantial evidence. (Nyulassy v. Lockheed Martin Corp. (2004) 120 Cal.App.4th 1267,

2 All further statutory references are to the Code of Civil Procedure unless otherwise indicated.

3. 1277 (Nyulassy).) Plaintiffs presented no conflicting evidence; therefore, our review of the existence and validity of the arbitration agreement is de novo. II. Agreement to Arbitrate The trial court impliedly found both Kathy and Denise entered into an arbitration agreement with defendant. The undisputed facts support that finding. In Cruise v. Kroger Co. (2015) 233 Cal.App.4th 390 (Cruise), the plaintiff signed an application for employment with the defendant, in which she stated she understood and agreed that the defendant’s binding arbitration policy was incorporated by reference into the application and that the policy applied to any employment related disputes between the parties. (Id. at pp. 392–393.) In the application, the plaintiff also acknowledged receipt of a copy of the policy. There was evidence, however, that the arbitration policy was not provided to the plaintiff at the time she applied for employment. (Id. at p. 393.) After her employment was terminated, the plaintiff sued the defendants, and the defendants moved to compel arbitration. (Cruise, supra, 233 Cal.App.4th at p. 394.) They presented the signed employment application and a four-page arbitration policy they contended was the policy referred to in the application. The trial court denied the motion, concluding the four-page document submitted consisted of pages from the employee handbook; the document was undated and there was no evidence it existed in 2007 when the plaintiff applied for employment. There also was no evidence the document was ever given to the plaintiff, and the plaintiff denied ever receiving the employee handbook. (Id. at p. 395.) On appeal the court found the undisputed evidence of the language of the employment application established an agreement to arbitrate employment disputes. (Cruise, supra, 233 Cal.App.4th at p. 396.) The defendants’ inability to establish the contents of the arbitration policy in effect in 2007 did not relieve the plaintiff of the obligation to arbitrate. Its only impact was that the defendants failed to demonstrate the

4. parties agreed to arbitrate by procedures different from those set out in the California Arbitration Act (§ 1280 et seq.; CAA). (Cruise, at p. 399.) “The language of the arbitration clause in the instant employment application, standing alone, was sufficient to establish the existence of an agreement by the parties to arbitrate employment-related disputes. While the parties’ agreement to arbitrate is enforceable, the employer’s inability to establish the contents of its Arbitration Policy precludes the employer from enforcing the provisions of said policy. Instead, the arbitration proceeding is to be conducted in accordance with the procedures set forth in the CAA as well as applicable case law.” (Id. at p. 400.) In Craig v. Brown & Root, Inc.

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Related

Pinnacle Museum Tower Ass'n v. Pinnacle Market Development (US), LLC
282 P.3d 1217 (California Supreme Court, 2012)
Robertson v. Health Net of California, Inc.
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Dotson v. Amgen, Inc.
181 Cal. App. 4th 975 (California Court of Appeal, 2010)
Craig v. Brown & Root, Inc.
100 Cal. Rptr. 2d 818 (California Court of Appeal, 2000)
Nyulassy v. Lockheed Martin Corp.
16 Cal. Rptr. 3d 296 (California Court of Appeal, 2004)
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AIU Insurance v. Superior Court
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Iskanian v. CLS Transportation Los Angeles, LLC
327 P.3d 129 (California Supreme Court, 2014)
Cruise v. Kroger Co.
233 Cal. App. 4th 390 (California Court of Appeal, 2015)
Auto Equity Sales, Inc. v. Superior Court
369 P.2d 937 (California Supreme Court, 1962)
Engalla v. Permanente Medical Group, Inc.
938 P.2d 903 (California Supreme Court, 1997)
Sparks v. Vista Del Mar Child & Family Services
207 Cal. App. 4th 1511 (California Court of Appeal, 2012)

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Licon v. Wish-I-Ah Skilled Nursing & Wellness Cntr CA5, Counsel Stack Legal Research, https://law.counselstack.com/opinion/licon-v-wish-i-ah-skilled-nursing-wellness-cntr-ca5-calctapp-2016.