Pembrick v. Loyal Source Government Services, LLC.

CourtDistrict Court, S.D. California
DecidedJuly 28, 2025
Docket3:24-cv-01524
StatusUnknown

This text of Pembrick v. Loyal Source Government Services, LLC. (Pembrick v. Loyal Source Government Services, LLC.) is published on Counsel Stack Legal Research, covering District Court, S.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pembrick v. Loyal Source Government Services, LLC., (S.D. Cal. 2025).

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 SOUTHERN DISTRICT OF CALIFORNIA 10 11 MONIQUE PEMBRICK, on behalf of Case No.: 3:24-cv-01524-RBM-DEB herself and all others similarly situated, 12 ORDER DENYING DEFENDANT’S 13 Plaintiff, MOTION TO COMPEL ARBITRATION 14 v.

15 LOYAL SOURCE GOVERNMENT [Doc. 9] SERVICES, LLC, a Florida Limited 16 Liability Company, et al., 17 Defendants. 18 19 20 On July 22, 2024, Plaintiff Monique Pembrick (“Plaintiff”), on behalf of herself and 21 all others similarly situated, filed a Representative Action Complaint for Civil Penalties 22 Under the Private Attorneys General Act (“PAGA”), California Labor Code § 2698 et seq. 23 (“Complaint”). (Doc. 1-2 [“Compl.”] at 6–17.1) 24 Pending before the Court is Defendant Loyal Source Government Services, LLC’s 25 (“Defendant”) Motion to Compel Arbitration (“Motion”), which was filed on January 24, 26 27 28 1 1 2025. (Doc. 9.) On February 10, 2025, Plaintiff filed an Opposition to Defendant’s Motion 2 (“Opposition”). (Doc. 12.) On February 14, 2025, Defendant filed a Reply in Support of 3 its Motion (“Reply”). (Doc. 13.) 4 The Court finds this matter suitable for determination without oral argument 5 pursuant to Civil Local Rule 7.1(d)(1). For the reasons discussed below, Defendant’s 6 Motion is DENIED. 7 I. BACKGROUND 8 A. Factual Background 9 Defendant identifies several different arbitration agreements executed or transmitted 10 between the Parties. The Court briefly summarizes each agreement here. 11 1. Mutual Arbitration Agreement 12 On April 6, 2022, Plaintiff signed a Mutual Arbitration Agreement, a copy of which 13 was attached to her offer of employment. (Doc. 9-3 at 8–10 [Declaration of Javier 14 Rodriguez (“Rodriguez Decl.”), ¶ 3, Ex. A].) The Mutual Arbitration Agreement provides: 15 The Parties hereby acknowledge and agree that, except for Disputes Not Covered, which is defined below, (i) any and all claims or disputes arising out 16 of, related to, or in connection with my offer of employment letter, as well as 17 (ii) any and all other claims or disputes between the Parties arising out of, related to, or in connection with my employment with or termination from 18 LSGS (collectively, ‘Disputes’) shall be resolved exclusively through final 19 and binding arbitration, and not by way of a court or jury trial, as set forth in this Agreement. 20 21 … 22 Disputes Not Covered by this Agreement shall mean claims for workers’ compensation, unemployment compensation benefits, administrative charges 23 for unfair labor practices brought before the National Labor Relations Board, 24 claims which cannot be waived under applicable law, or any other claims that, as a matter of law, the Parties cannot agree to arbitrate. 25 26 27 (Id. at 8.) The Mutual Arbitration Agreement did not identify PAGA claims as a “Dispute 28 Not Covered.” 1 2. Voluntary Employee Arbitration Agreement 2 On May 18, 2022, Plaintiff signed a Voluntary Employee Arbitration Agreement. 3 (Doc. 9-3 at 12–14 [Rodriguez Decl., ¶ 4, Ex. B].) The Voluntary Employee Arbitration 4 Agreement provides: 5 The Parties agree that, to the fullest extent permitted by law, any and all claims or controversies between them … relating in any manner to the employment 6 or the termination of employment of Employee, including claims or 7 controversies that arose, existed, or accrued prior to the signing of this Agreement … , that are currently pending as of the signing of this Agreement, 8 and that may arise or accrue after the signing of this Agreement, including 9 claims that may arise or accrue during employment with the Company, and including but not limited to the interpretation, applicability, or enforceability 10 of this Agreement, shall be resolved by final and binding arbitration. 11

12 (Id. at 12.) However, the Voluntary Employee Arbitration Agreement provides that 13 “claims under California’s Private Attorney General’s Act (‘PAGA’) … shall not be 14 subject to arbitration (the ‘Excluded Claims’).” (Id.) 15 3. Employee Arbitration Agreement 16 On July 27, 2022, Plaintiff signed an Employee Arbitration Agreement. (Doc. 9-3 17 at 16–18 [Rodriguez Decl., ¶ 5, Ex. C].) The Employee Arbitration Agreement provides: 18 The Parties agree that, to the fullest extent permitted by law, any and all claims or controversies between them … relating in any manner to the employment 19 or the termination of employment of Employee, including claims or 20 controversies that arose, existed, or accrued prior to the signing of this Agreement … , that are currently pending as of the signing of this Agreement, 21 and that may arise or accrue after the signing of this Agreement, including 22 claims that may arise or accrue during employment with the Company, and including but not limited to the interpretation, applicability, or enforceability 23 of this Agreement, shall be resolved by final and binding arbitration. 24

25 (Id. at 16.) Unlike the Voluntary Employee Arbitration Agreement, the Employee 26 Arbitration Agreement did not identify PAGA claims as “Excluded Claims.” (Id.) 27 4. July Voluntary Employee Arbitration Agreement 28 On July 28, 2022, Plaintiff signed a second Voluntary Employee Arbitration 1 Agreement (the “July Voluntary Employee Arbitration Agreement”). (Doc. 9-3 at 20–22 2 [Rodriguez Decl., ¶ 6, Ex. D].) The July Voluntary Employee Arbitration Agreement 3 provides: 4 The Parties agree that, to the fullest extent permitted by law, any and all claims or controversies between them … relating in any manner to the employment 5 or the termination of employment of Employee, including claims or 6 controversies that arose, existed, or accrued prior to the signing of this Agreement … , that are currently pending as of the signing of this Agreement, 7 and that may arise or accrue after the signing of this Agreement, including 8 claims that may arise or accrue during employment with the Company, and including but not limited to the interpretation, applicability, or enforceability 9 of this Agreement, shall be resolved by final and binding arbitration. 10

11 (Id. at 20.) However, the July Voluntary Employee Arbitration Agreement also provides 12 that “claims under California’s Private Attorney General’s Act (‘PAGA’) shall not be 13 subject to arbitration (the ‘Excluded Claims’).” (Id.) 14 The July Voluntary Employee Arbitration Agreement also contains a Class Action 15 Waiver. (Id. at 20–21.) The Class Action Waiver provides: 16 EXCEPT TO THE EXTENT THAT REPRESENTATIVE CLAIMS UNDER PAGA ARE EXCLUDED FROM THIS ARBITRATION AGREEMENT, 17 AND EXCEPT AS PROVIDED OTHERWISE BY LAW AND HEREIN, 18 EMPLOYEE AGREES THAT ALL CLAIMS MUST BE BROUGHT IN HIS OR HER INDIVIDUAL CAPACITY, AND NOT AS A PLAINTIFF OR 19 PARTICIPATING CLASS MEMBER IN ANY PURPORTED CLASS, 20 COLLECTIVE, OR CONSOLIDATED PROCEEDING, AND EMPLOYEE EXPRESSLY WAIVES ANY RIGHT EMPLOYEE HAD OR MAY HAVE 21 HAD TO HAVE ANY DISPUTE BROUGHT, HEARD, OR ARBITRATED 22 AS A CLASS ACTION AND/OR AS A COLLECTIVE ACTION. 23 24 (Id. at 20 (emphasis in original).) 25 Finally, the July Voluntary Employee Arbitration Agreement provides: 26 The Company and Employee understand and agree that this Arbitration Agreement contains a full and complete statement of any agreements and 27 understandings regarding resolution of disputes between the parties, and the 28 parties agree that this Agreement supersedes all previous agreements, whether 1 written or oral, express or implied, relating to the subjects covered in this Agreement. The parties also agree that the terms of this Agreement cannot be 2 revoked or modified except in a written document signed by both Employee 3 and an authorized executive of the Company. 4 5 (Id. at 22 (emphasis added).) 6 5.

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Bluebook (online)
Pembrick v. Loyal Source Government Services, LLC., Counsel Stack Legal Research, https://law.counselstack.com/opinion/pembrick-v-loyal-source-government-services-llc-casd-2025.