Mahogany Lovette v. CCFI Companies LLC

CourtDistrict Court, N.D. California
DecidedMay 13, 2026
Docket3:23-cv-03755
StatusUnknown

This text of Mahogany Lovette v. CCFI Companies LLC (Mahogany Lovette v. CCFI Companies LLC) 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
Mahogany Lovette v. CCFI Companies LLC, (N.D. Cal. 2026).

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 7 MAHOGANY LOVETTE, Case No. 23-cv-03755-JSC

8 Plaintiff, ORDER RE: DEFENDANT’S MOTION 9 v. TO COMPEL ARBITRATION

10 CCFI COMPANIES LLC, Re: Dkt. No. 59, 72 Defendant. 11

12 13 Plaintiff, on behalf of a putative class, sues Defendant for California Labor Code violations 14 and unfair business practices arising from her 2021-2022 employment. (Dkt. No. 4-1.)1 The 15 Court previously held the parties’ 2018 arbitration agreement was valid and delegated to an 16 arbitrator the question whether Plaintiff’s claims were within the scope of that agreement. (Dkt. 17 No. 49.) The arbitrator then found the 2018 arbitration agreement does not encompass Plaintiff’s 18 claims arising from her 2021-2022 employment. (Dkt. No. 59-1.) So, Defendant now moves to 19 compel arbitration pursuant to a purported 2021 arbitration agreement. (Dkt. No. 59.) However, 20 as explained below, the parties’ briefing indicates there are factual disputes regarding contract 21 formation. The Court therefore VACATES the May 19, 2026 hearing and directs the parties to 22 meet and confer and file a joint statement. 23 BACKGROUND 24 I. RELEVANT FACTS 25 Plaintiff first worked for Defendant from July 24, 2017 until her resignation in June 2018. 26 (Dkt. No. 49 at 2 (citing Dkt. No. 19-1 ¶ 2).) In 2018, Defendant re-hired Plaintiff into her 27 1 previous position, and she worked for Defendant until she “abandoned her job by failing to report 2 for her scheduled shift” on September 30, 2019. (Id. (citing Dkt. No. 19-1 ¶ 2).) Plaintiff signed 3 three identical arbitration agreements on June 13, 2017; July 24, 2017; and October 29, 2018. (Id. 4 (citing Dkt. No. 19-1 ¶ 4; Dkt. No. 35-1 ¶¶ 2, 4).) 5 In August 2021, Plaintiff began working for Check Into Cash of California, Inc. (“CIC”). 6 (Id. (citing Dkt. No. 41-1 ¶ 5; Dkt. No. 35-2 ¶ 5).) But Defendant acquired CIC around October 7 2021 and absorbed many of its employees, including Plaintiff. (Id. at 3 (citing Dkt. No. 19-1 ¶ 3; 8 Dkt. No. 41-1 ¶ 11).) So, Plaintiff again became employed by Defendant, where she worked until 9 her resignation on April 22, 2022. (Id. (citing Dkt. No. 41-1 ¶ 11; Dkt. No. 35-1 ¶ 5).) 10 II. PROCEDURAL HISTORY 11 On June 14, 2023, Plaintiff, on behalf of a putative class, sued Defendant in California 12 state court for violating:

13 (1) California Labor Code §§ 510 and 1198; (2) California Labor Code §§ 226.7 and 512(a); 14 (3) California Labor Code § 226.7; (4) California Labor Code §§ 1194, 1197, and 1197.1; 15 (5) California Labor Code §§ 201, 202, and 203; (6) California Labor Code §§ 204 and 210; 16 (7) California Labor Code § 226(a); (8) California Labor Code §§ 2800 and 2802; and 17 (9) California’s Unfair Competition Law (“UCL”), Cal. Bus. & Prof. Code § 17200, based on predicate Labor Code violations. 18 (Dkt. No. 4-1.) Defendant removed the action to this Court, (Dkt. No. 1), and moved to compel 19 arbitration, (Dkt. No. 16). In supplemental briefing, Defendant argued the parties entered into an 20 arbitration agreement in 2018, and the 2018 agreement delegates the question whether it governs 21 Plaintiff’s claims to the arbitrator. (Dkt. No. 35.) The Court agreed with Defendant; specifically, 22 the Court found the parties had formed a valid arbitration agreement in 2018, and held “[w]hether 23 the 2018 agreement applies to claims arising out of [Plaintiff’s] [2021-2022] employment period 24 . . . is a question of the ‘scope of the 2018 arbitration agreement, . . . [which] is delegated to the 25 arbitrator according to the explicit terms of the arbitration agreement.” (Dkt. No. 49 at 5.) So, on 26 December 20, 2023, the Court granted Defendant’s motion to compel arbitration “as to whether 27 the 2018 arbitration agreement governs all claims in this case” and stayed this action pending 1 resolution of arbitration. (Id. at 6.) 2 The parties then proceeded in arbitration. However, on June 9, 2025, the arbitrator ruled 3 “[t]he claims arising from [Plaintiff’s] third period of employment,” i.e., from 2021 to 2022, “are 4 not subject to arbitration under the [agreement] signed by [Plaintiff] in October 2018.” (Dkt. No. 5 59-1 at 8.) Defendant now moves to compel arbitration of Plaintiff’s claims pursuant to a 6 purported 2021 agreement. (Dkt. No. 59.) 7 III. DEFENDANT’S EVIDENCE 8 Defendant presents an Employee Agreement including, among other things, an arbitration 9 provision:

10 Employee agrees that any employment related dispute, controversy, or claim that [] Employee may have with the company and/or any of 11 its parents, affiliates, subsidiaries, employees, officers, directors, clients, customers, or alleged agents, in their capacity as such or 12 otherwise . . . shall be resolved only through binding individual arbitration and not through litigation in federal, state, or local court 13 (‘Arbitration Agreement’).” 14 (Dkt. No. 59-3 at 5.) This Employee Agreement includes the initials “ML” and a checked box by 15 “Employee Signature,” which states “[c]hecking the checkbox above is equivalent to a 16 handwritten signature.” (Id. at 7-8.) Below the checked box is Plaintiff’s name and a time stamp 17 for August 24, 2021 at 5:04 p.m. (Id. at 8.) There is another checked box for a “Witness 18 Signature,” which includes the name Donna Espinoza and a time stamp for August 24, 2021 at 19 5:38 p.m. (Id.) 20 Defendant also includes a declaration from Edgar Bran, who was CIC’s Regional Manager 21 and supervised District Manager Donna Espinoza, Plaintiff’s direct supervisor, in August 2021. 22 (Dkt. No. 59-2 ¶¶ 1-2.) Mr. Bran oversaw the new employee “onboarding process as it related to 23 documents signed by new employees, including employees’ Employment Agreements.” (Id. ¶ 3.) 24 According to Mr. Bran, a new employee would meet with their District Managers, who “provided 25 a laptop on which the employee could review onboarding documents including the Employment 26 Agreement with the arbitration provisions.” (Id. ¶ 6.) While “present in the room,” the District 27 Manager would observe the new employee’s “process of review and affirmation” of the 1 “displayed each document, one at a time, and required the employee to scroll through the entire 2 document before being able to sign it.” (Id. ¶ 7.) In addition, “[t]o electronically sign a document, 3 the employee had to enter their Social Security Number and then click a button to proceed,” at 4 which point RedCarpet recorded the signature, along with “the exact date and time the employee 5 clicked that button.” (Id.) CIC also “required a witness to electronically sign, and that witness 6 role would be filled by the supervisor who sat in-person with the employee while the employee 7 completed the onboarding process.” (Id.) “Once the employee initialed and signed documents on 8 the platform,” no CIC employee “could modify any records.” (Id.) 9 Mr. Bran declares Plaintiff’s “personnel records show that she completed her onboarding 10 paperwork on August 24, 2021.” (Id. ¶ 5.) Specifically, “[a]ccording to [her] personnel records, 11 [Plaintiff] clicked her assent to the Employment Agreement on August 24, 2021 at 5:04 p.m.” and 12 “initialed the bottom of the arbitration section,” and “Donna Espinoza witnessed [Plaintiff’s] 13 signature, which Ms. Espinoza noted on the platform the same day at 5:38 p.m.” (Id. ¶ 8.) 14 Furthermore, “[b]ased on the function of the platform, [Plaintiff] could not have signed any 15 document without first scrolling through the entire document and entering her Social Security 16 Number,” and (Id.) 17 The Employee Agreement also includes an opt-out procedure. (Id. ¶ 10; see also Dkt. No.

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Mahogany Lovette v. CCFI Companies LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mahogany-lovette-v-ccfi-companies-llc-cand-2026.