Little v. Auto Stiegler, Inc.

112 Cal. Rptr. 2d 56, 92 Cal. App. 4th 329
CourtCalifornia Court of Appeal
DecidedDecember 19, 2001
DocketB147003
StatusPublished

This text of 112 Cal. Rptr. 2d 56 (Little v. Auto Stiegler, Inc.) 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
Little v. Auto Stiegler, Inc., 112 Cal. Rptr. 2d 56, 92 Cal. App. 4th 329 (Cal. Ct. App. 2001).

Opinion

112 Cal.Rptr.2d 56 (2001)
92 Cal.App.4th 329

Alexander M. LITTLE, Plaintiff and Respondent,
v.
AUTO STIEGLER, INC., Defendant and Appellant.

No. B147003.

Court of Appeal, Second District, Division Five.

September 17, 2001.
Review Granted December 19, 2001.

*58 Fisher & Phillips, Irvine, Christopher C. Hoffman, San Diego, and Jeffrey R. Thurrell, for Defendant and Appellant.

Moskowitz, Brestoff, Winston & Blinderman, Nelson E. Brestoff and Dennis A. Winston, Los Angeles, for Plaintiff and Respondent.

Certified for Partial Publication[*]

*57 TURNER, P.J.

I. Introduction

Auto Stiegler, Inc. (defendant) appeals from an order denying its motion to compel arbitration of an action for tortious demotion and termination brought by Alexander M. Little (plaintiff). The trial court held the arbitration agreement was unconscionable and hence unenforceable under Armendariz v. Foundation Health Psychcare Services, Inc. (2000) 24 Cal.4th 83, 113-127, 99 Cal.Rptr.2d 745, 6 P.3d 669 (hereafter Armendariz). The complaint contains no statutory claims as was the case in Armendariz. Based on the language in Armendariz and the Supreme Court's discussion in Brennan v. Tremco Inc. (2001) 25 Cal.4th 310, 317, 105 Cal. Rptr.2d 790, 20 P.3d 1086, we conclude the arbitration clause is enforceable in a case involving no statutory claims and the order under review is reversed.

II. Background

Plaintiff signed three nearly identical arbitration agreements while employed by defendant. The most recent of the three stated as follows: "I agree that any claim, dispute, or controversy (including, but not limited to, any and all claims of discrimination and harassment) which would otherwise require or allow resort to any court or other governmental dispute resolution forum between myself and the Company (or its owners, directors, and officers, and parties affiliated with its employee benefit and health plans) arising from, related to, or having any relationship or connection whatsoever with my seeking employment with, employment by, or other association with, the Company, whether based on tort, contract, statutory, or equitable law, or otherwise, shall be submitted to and determined exclusively by binding arbitration under the Federal Arbitration Act, in conformity with the procedures of the California Arbitration Act (Cal.Code Civ. Proc. Sec 1280 et seq., including section 1283.05 and all of the act's other mandatory and permissive rights to discovery); provided, however, that: In addition to requirements imposed by law, any arbitrator herein shall be a retired California Superior Court Judge and shall be subject to disqualification on the same grounds as would apply to a judge of such court. To the extent applicable in civil actions in California courts, the following shall apply and be observed: all rules of pleading (including the right of demurrer), all rules of evidence, all rights to resolution of the dispute by means of motions for summary judgment, judgment on the pleadings, and judgment under Code of Civil Procedure section 631.8. Resolution of the dispute shall be based solely upon the law governing the claims and defenses pleaded, and the arbitrator may not invoke any basis other than such controlling law, including but not limited to, notions of `just cause.' *59 As reasonably required to allow full use and benefit of this agreement's modifications to the act's procedures, the arbitration shall extend the times set by the act for the giving of notices and setting of hearings. Awards exceeding $50,000.00 shall include the arbitrator's written reasoned opinion and, at either party's written request within 20 days after issuance of the award, shall be subject to reversal and remand, modification, or reduction following review of the record and arguments of the parties by a second arbitrator who shall, as far as practicable, proceed according to the law and procedures applicable to appellate review by the California Court of Appeal of a civil judgment following court trial. I understand by agreeing to this binding arbitration provision, both I and the Company give up our rights to trial by jury."

Plaintiff filed an action against defendant alleging he was demoted and subsequently terminated after he reported that certain employees were engaging in warranty fraud. Plaintiffs causes of action were for: tortious demotion in violation of public policy; tortious termination in violation of public policy; breach of an implied contract of continued employment; and breach of the implied covenant of good faith and fair dealing. In the first through third causes of action, plaintiff sought compensatory and punitive damages. In the fourth cause of action, plaintiff sought only contract breach damages. Plaintiff sought no relief under the Fair Employment and Housing Act (FEHA). (Gov.Code, § 12900 et seq.)

Defendant's initial motion to compel arbitration was granted. Following the Supreme Court's decision in Armendariz, the trial court, upon plaintiffs request for reconsideration, denied defendant's motion to compel arbitration. The trial court ruled: "The court believes that the arbitration clause in issue does not meet the standards set forth by the Supreme Court and it should not be enforced. The clauses of the arbitration agreement that do not comport with the requirements of the Armendariz [decision] include the clauses that: [¶] 1. Require the Plaintiff to share the costs; [¶] 2. Provide for no judicial review. The court deems this fatal, as judicial review of all decisions is not the same as limited review by another arbitrator of only certain awards; [¶] 3. Limit the remedies available to the complaintant [sic] [to] possibly exclude equitable as opposed to legal remedies, to which he might otherwise be entitled, [¶] 4. Lack of mutuality of remedy, in that this clause, unlike the one in Armendariz does not obviously bind the employer to likewise enforce its right in the arbitration forum." Defendant filed a timely notice of appeal.

Discussion

A. Standard of Review

The present case involves the application of the United States Arbitration Act. The arbitration agreement involves an employment contract in commerce and it explicitly indicates that it is to be "submitted to and determined exclusively by binding arbitration under the Federal Arbitration Act" subject to the procedures of the California Arbitration Act. (9 U.S.C. § 2; Circuit City Stores, Inc. v. Adams (2001) 532 U.S. 105, ___, 121 S.Ct. 1302, 1307, 149 L.Ed.2d 234.) As such, subject to defenses applicable in all contract disputes including that of unconscionability, the arbitration agreement must be enforced according to its terms. (Volt Information Sciences, Inc. v. Board of Trustees of the Leland Stanford Junior University (1989) 489 U.S. 468, 477-478, 109 S.Ct. 1248, 103 L.Ed.2d 488; Warren-Guthrie v. Health Net (2000) 84 Cal.App.4th 804, 813, 101 Cal.Rptr.2d 260.)

*60 When, as here, no extrinsic evidence has been introduced, the validity of an arbitration clause is a question of law. (24 Hour Fitness, Inc. v. Superior Court (1998) 66 Cal.App.4th 1199, 1212, 78 Cal. Rptr.2d 533;

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

Related

Green Tree Financial Corp.-Alabama v. Randolph
531 U.S. 79 (Supreme Court, 2000)
Circuit City Stores, Inc. v. Adams
532 U.S. 105 (Supreme Court, 2001)
Rosenthal v. Great Western Financial Securities Corp.
926 P.2d 1061 (California Supreme Court, 1996)
Foley v. Interactive Data Corp.
765 P.2d 373 (California Supreme Court, 1988)
Christensen v. Dewor Developments
661 P.2d 1088 (California Supreme Court, 1983)
Moncharsh v. Heily & Blase
832 P.2d 899 (California Supreme Court, 1992)
Graham v. Scissor-Tail, Inc.
623 P.2d 165 (California Supreme Court, 1981)
Neal v. State Farm Insurance Companies
188 Cal. App. 2d 690 (California Court of Appeal, 1961)
24 Hour Fitness, Inc. v. Superior Court of Sonoma Cty.
78 Cal. Rptr. 2d 533 (California Court of Appeal, 1998)
Stirlen v. Supercuts, Inc.
51 Cal. App. 4th 1519 (California Court of Appeal, 1997)
Warren-Guthrie v. Health Net
101 Cal. Rptr. 2d 260 (California Court of Appeal, 2000)
Kinney v. United Healthcare Services, Inc.
83 Cal. Rptr. 2d 348 (California Court of Appeal, 1999)
Hill v. City of Long Beach
33 Cal. App. 4th 1684 (California Court of Appeal, 1995)
Romo v. Y-3 Holdings, Inc.
105 Cal. Rptr. 2d 208 (California Court of Appeal, 2001)
Camargo v. California Portland Cement Co.
103 Cal. Rptr. 2d 841 (California Court of Appeal, 2001)
Guz v. Bechtel National, Inc.
8 P.3d 1089 (California Supreme Court, 2000)

Cite This Page — Counsel Stack

Bluebook (online)
112 Cal. Rptr. 2d 56, 92 Cal. App. 4th 329, Counsel Stack Legal Research, https://law.counselstack.com/opinion/little-v-auto-stiegler-inc-calctapp-2001.