Nunez v. Autumn Hills Operating Co. CA2/3

CourtCalifornia Court of Appeal
DecidedMay 24, 2016
DocketB261229
StatusUnpublished

This text of Nunez v. Autumn Hills Operating Co. CA2/3 (Nunez v. Autumn Hills Operating Co. CA2/3) 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
Nunez v. Autumn Hills Operating Co. CA2/3, (Cal. Ct. App. 2016).

Opinion

Filed 5/24/16 Nunez v. Autumn Hills Operating Co. CA2/3 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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

SECOND APPELLATE DISTRICT

DIVISION THREE

RUTH NUNEZ, B261229

Plaintiff and Respondent, (Los Angeles County Super. Ct. No. BC517056) v.

AUTUMN HILLS OPERATING COMPANY, LLC, et. al,

Defendants and Appellants.

APPEAL from an order of the Superior Court of Los Angeles County, John L. Segal, Judge. Affirmed. Jackson Lewis, Bradley W. Kampas, Sherry L. Swieca, and William E. Weiner for Defendants and Appellants. Tafoya & Garcia, Robert N. Tafoya and David A. Garcia for Plaintiff and Respondent.

_______________________________________ INTRODUCTION Defendants Autumn Hills Operating, LLC and Autumn Hills Health Care Center (collectively, Autumn Hills or the company) appeal from the trial court’s denial of the company’s motion to compel arbitration of plaintiff Ruth Nunez’s claims for, among other things, discrimination, retaliation, and failure to accommodate under the Fair Employment and Housing Act (FEHA) (Gov. Code, § 12900 et seq.). The court found Autumn Hills unreasonably delayed pursuing arbitration by waiting more than 14 months after Nunez filed her lawsuit to seek an order compelling arbitration of her claims. The court also found Nunez would be prejudiced if compelled to arbitrate her claims because the delay had deprived her of the benefits of arbitration—a speedy, efficient, and cost-effective means of resolving disputes. We affirm. FACTUAL AND PROCEDURAL SUMMARY 1. Nunez’s Employment with Autumn Hills Autumn Hills hired Nunez as a certified nurse assistant in April 1996. After Nunez began working for Autumn Hills, the company implemented an employment dispute resolution program (EDR Program or the program).1 The program established a four-step process to resolve employment-related disputes between Autumn Hills and its employees, the final step of which is binding arbitration before a neutral third party. On August 17, 2004, Nunez signed an acknowledgment of receipt of the program’s booklet (the acknowledgment), which set forth the program’s material terms, including the four-step dispute resolution process.2

1 The EDR Program was created by Mariner Health Care, of which Autumn Hills is a subsidiary. According to the EDR Program’s information booklet, Mariner Health Care is not an employer, but its subsidiaries are employers. Accordingly, the EDR Program is implemented by Mariner Health Care’s subsidiaries. 2 The program’s booklet provides in relevant part: “Your decision to accept employment or to continue employment with [Autumn Hills] constitutes your agreement to be bound by the EDR Program. Likewise, [Autumn Hills] agrees to be bound by the EDR Program. This mutual agreement to arbitrate claims means that both

2 After signing the acknowledgment, Nunez twice injured herself on the job: first in 2007, and again in 2011. In 2007, Nunez injured her knee while carrying a patient. She underwent surgery and returned to work with disability restrictions imposed by her doctor that were intended to limit the amount of physically demanding tasks she could perform. However, Autumn Hills often refused to acknowledge her restrictions, which she claimed caused her to injure her lower back in 2011. As a result of her back injury, Nunez took two weeks of disability leave in 2012. When she returned to work with new disability restrictions, Autumn Hills continued to assign her physically demanding jobs. When Nunez complained to Autumn Hills’ disability administrator about the company’s failure to acknowledge her restrictions, the administrator made derogatory remarks about her age (Nunez was 60 years old at the time), telling her that people her age sometimes experience physical pain and discomfort and that perhaps she should look for another job. In May 2012, Autumn Hills terminated Nunez’s employment. 2. Nunez’s Lawsuit On August 2, 2013, Nunez filed a lawsuit against Autumn Hills alleging nine causes of action arising out of the termination of her employment, including claims of discrimination, retaliation, and failure to accommodate under FEHA. The next month, Nunez filed a first amended complaint, which she served Autumn Hills with on September 10, 2013. Around the same time, Nunez also propounded discovery requests on Autumn Hills, including special and form interrogatories, requests for admissions,

you and [Autumn Hills] are bound to use the EDR Program as the only means of resolving employment related disputes and to forego any right either may have to a jury trial on issues covered by the EDR Program. However, no remedies that otherwise would be available to you or [Autumn Hills] in a court of law will be forfeited by virtue of the agreement to use and be bound by the EDR Program.” With respect to the type of disputes covered by the EDR Program, the booklet provides: “[T]he EDR Program will become the process for resolving most workplace disputes between you and [Autumn Hills], including, but not limited to, disputes concerning legally protected rights such as freedom from discrimination, retaliation or harassment.”

3 and document requests, and she scheduled depositions of several of Autumn Hills’ employees. On September 18, 2013, counsel for Autumn Hills informed counsel for Nunez that the company believed it was in possession of an arbitration agreement signed by Nunez. However, it could not locate the agreement. Nevertheless, counsel for Autumn Hills asked Nunez if she would agree to submit her claims to arbitration. Nunez refused to do so until Autumn Hills produced a signed arbitration agreement. On October 23, 2013, Autumn Hills filed its answer to Nunez’s complaint. As an affirmative defense, Autumn Hills asserted that Nunez’s entire lawsuit was barred by “a valid and enforceable employment dispute resolution agreement,” which required all of Nunez’s claims to be submitted to binding arbitration. Despite notifying Nunez of its intent to arbitrate and asserting in its answer that Nunez’s claims were barred by a binding arbitration agreement, Autumn Hills did not seek to compel arbitration of Nunez’s lawsuit until more than a year after it filed its answer, or more than 14 months after Nunez commenced her lawsuit. During that period, Autumn Hills continued to engage in litigation with Nunez, participating in mediation sessions and propounding, and responding to, discovery requests. For example, shortly after filing its answer, Autumn Hills responded to over 100 of Nunez’s individual discovery requests and, in December 2013, served Kaiser Permanente with a subpoena requesting production of Nunez’s medical records. On September 30, 2014, Autumn Hills located Nunez’s signed acknowledgment of the EDR Program, but it never found a separate arbitration agreement signed by Nunez. On October 1, 2014, Autumn Hills again approached Nunez about submitting her claims to arbitration, but she continued to refuse to do so. On October 3, 2014, Autumn Hills took Nunez’s deposition. 3. Proceedings to Compel Arbitration On October 28, 2014, Autumn Hills filed an ex-parte application for an order specially setting a hearing on its motion to compel arbitration and for a stay of judicial proceedings, which the trial court denied. About one week later, Autumn Hills filed

4 a regularly-noticed motion to compel arbitration. The court set a hearing on the motion for January 7, 2015. In its motion, Autumn Hills explained why it waited more than a year after Nunez filed her lawsuit to seek an order compelling arbitration.

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