Mohamed v. Uber Technologies

115 F. Supp. 3d 1024, 2015 U.S. Dist. LEXIS 95712, 2015 WL 4483990
CourtDistrict Court, N.D. California
DecidedJuly 22, 2015
DocketNo. C-14-5200 EMC
StatusPublished
Cited by11 cases

This text of 115 F. Supp. 3d 1024 (Mohamed v. Uber Technologies) 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
Mohamed v. Uber Technologies, 115 F. Supp. 3d 1024, 2015 U.S. Dist. LEXIS 95712, 2015 WL 4483990 (N.D. Cal. 2015).

Opinion

ORDER GRANTING IN PART AND DENYING IN PART DEFENDANTS’ MOTION TO STAY PENDING APPEAL

EDWARD M. CHEN, District Judge

I. INTRODUCTION

On June 9, 2015, this Court denied a motion to compel arbitration filed by Defendants Uber Technologies and Rasier LLC (collectively, Uber). See Mohamed v. Uber Techs., Inc., 109 F.Supp.3d 1185, 2015 WL 3749716 (N.D.Cal.2015).1 Uber’s co-defendant in'this action, Hirease, filed a joinder in Uber’s motion to compel arbitration which was also denied'. See id. at 1236-37, 2015 WL 3749716 at *36. Both Uber and Hirease have appealed this Court’s orders to the Ninth Circuit. See Ninth Circuit Case No. 1516178. Currently pending before the Court is Uber’s motion to stay these proceedings, pending appeal.2 Docket No. 76 (Motion). For the reasons explained below and further for the reasons articulated on the record at the hearing for this matter, Uber’s motion for a stay is granted in part and denied in part. While reasonable discovery will not be stayed in this case, adjudication of all [1027]*1027non-discovery issues (i.e., dispositive mo-, tions) is hereby stayed pending the final resolution of Uber’s appeal of this Court’s order denying its motion to compel arbitration.

II. DISCUSSION

A. Procedural History

The Court assumes familiarity with the procedural history of this case, particularly as described it its Order Denying Defendants’ Motions to Compel Arbitration. Mohamed, 109 F.Supp.3d 1185, 2015 WL 3749716. For the purposes of this motion, however, it is important to keep in mind that there are essentially two separate versions of the- arbitration clauses at issue;the arbitration clause contained in the 2013 Agreement between Uber and its drivers, and the arbitration clause in the 2014 Agreements between Uber and its drivers. Id. at 1191-92, 2015 WL 3749716 at *3. While the Court previously found that Plaintiff Mohamed could theoretically be bound to both the 2013 Agreement and 2014 Agreements, the .Court held that “because the 2014 contracts, expressly provide that they ‘replace and supersede all prior agreements’ between the parties regarding the same subject matter, the Court deter-. mines that only the 2014 contracts could actually apply to Mohamed’s claims.” Id. (internal modifications and citations omitted). Accordingly, Uber’s appeal of this Court’s order denying arbitration in Mohamed targets only this Court’s rulings, with respect to the unenforceability of the arbitration provisions in the 2014 Agree-: ments - the 2013 Agreement is not implicated by Uber’s appeal in this case.3

As the Court recognized. in its earlier Order, “there are significant differences between the 2013 Agreement’s arbitration provision and the ones contained in each of the 2014 contracts....” Mohamed, 109 F.Supp.3d at 1193, 2015 WL 3749716, at *4. These differences are particularly relevant to the instant motion to stay because the Court finds that its holdings with respect to the 2014- Agreements raise two “serious” legal questions on appeal that are not material in Gillette: (1) whether the California Supreme Court’s ruling in Iskanian v. CLS Transp. L.A., LLC, 59 Cal.4th 348, 173 Cal.Rptr.3d 289, 327 P.3d 129 (2014), that pre-dispute PAGA waivers are unenforceable as a matter of California. law, is preempted by the Federal Arbitration Act (FAA); and (2) whether an arbitration provision that contains a conspicuous and meaningful opt-out provision may nevertheless' be found at least somewhat procedurally unconscionable under California law, as articulated by the California Supreme Court in Gentry v. Superior Court, 42 Cal.4th 443, 64 Cal.Rptr.3d 773, 165 P.3d 556 (2007), leaving the door open to a general finding' of unconscionability.

B. Legal Standard

Whether to issue a stay pending appeal is “an exercise of judicial discretion ... to be guided by sound legal princi-. pies.” Nken v. Holder, 556 U.S. 418, 433-34, 129 S.Ct. 1749, 173 L.Ed.2d 550 (2009); see also Guifu Li v. A Perfect Franchise, Inc., No. 10-cv-1189-LHK, 2011 WL 2293221, at *2 (N.D.Cal. Jun. 8, 2011). In determining whether a stay should issue, the Court should consider four factors:

[1028]*1028(1) whether the stay applicant has made a strong showing that he is likely to succeed on the merits; (2) whether the applicant will be irreparably injured absent a stay; (3) whether issuance of the stay will substantially injure the other parties interested in the proceeding; and (4) whether the public interest favors a stay.

In re Carrier IQ Consumer Privacy Litig. (In re Carrier IQ), No. C-12-md-2330 EMC, 2014 WL 2922726, at *1 (N.D.Cal. Jun. 13, 2014) (citations omitted); see also Leiva-Perez v. Holder, 640 F.3d 962 (9th Cir.2011).

In order to satisfy the first factor, although the moving party need not show that “success on appeal is more likely than not,” Guifu Li, 2011 WL 2293221, at *3 (citation omitted), it must make a “strong showing” on the merits. Morse v. Servicemaster Global Holdings, Inc., No. C10-628-SI, 2013 WL 123610, at *2 (NJD.Cal. Jan. 8, 2013) (citing Leiva-Perez, 640 F.3d at 964). Alternatively, the moving party can attempt to satisfy the first factor by showing that its appeal raises “serious legal questions,” even if the moving party has only a minimal chance of prevailing on these questions. See In re Carrier IQ, 2014 WL 2922726, at *1 (recognizing that under Ninth Circuit law, the above factors “are considered on a continuum; thus, for example, a stay may be appropriate if the party moving for a stay demonstrates that serious legal questions are raised and the balance of hardships tips sharply in its favor”) (citing Golden Gate Rest. Ass’n v. City and Cnty. of S.F., 512 F.3d 1112, 1115-16 (9th Cir. 2008)). Where only such a lesser showing is made, the appellant must further demonstrate that the balance of the hardships absent a stay tips “sharply” in its favor. See Morse, 2013 WL 123610, at *1-2 (explaining that a party seeking a stay pending appeal must either: (1) make a strong showing it is likely to succeed on the merits and show it will be irreparably harmed absent a stay, or (2) demonstrate that its appeal presents a serious question on the merits and the balance of hardships tilts sharply in its favor). “The party requesting the stay ... bears the burden of showing that the case’s circumstances justify favorable exercise of [the Court’s] discretion.”4 Morse, 2013 WL 123610, at *1 (citing Nken, 556 U.S. at 433-34, 129 S.Ct. 1749).

C. Uber Has Not Made A Strong Showing it is Likely to Succeed on the Merits of its Appeal, But its Appeal Presents Two “Serious” Legal Issues

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