Ralph v. Hosseini

CourtDistrict Court, S.D. California
DecidedMarch 29, 2021
Docket3:17-cv-01332
StatusUnknown

This text of Ralph v. Hosseini (Ralph v. Hosseini) 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
Ralph v. Hosseini, (S.D. Cal. 2021).

Opinion

1 2 3 4 5 6 7 UNITED STATES DISTRICT COURT 8 SOUTHERN DISTRICT OF CALIFORNIA 9 JOHN RALPH, Case No.: 17cv1332 JM(LL)

10 Plaintiff, ORDER ON: (1) PLAINTIFF’S 11 HAJ, INC., et al., CORRECTED MOTION TO REOPEN CASE AND CONFIRM 12 Defendants. ARBITRATION AWARD; AND 13 (2) DEFENDANT D.O.S. PIZZA INC’S MOTION TO VACATE OR 14 MODIFY FINAL ARBITRATION 15 AWARD

16 Presently before the court is Plaintiff John Ralph’s Corrected Motion to Reopen Case 17 and Confirm Arbitration Awards (Doc. No. 88), and Defendant D.O.S. Pizza Inc.’s 18 (“D.O.S. Pizza” or “Defendant”) Motion to Vacate or Modify Final Arbitration Award, 19 (Doc. No. 96). The motions have been fully briefed and the court finds them suitable for 20 submission on the papers and without oral argument in accordance with Civil Local Rule 21 7.1(d)(1). For the reasons set forth below, Plaintiff’s motion is granted and Defendant’s 22 cross- motion is denied. 23 I. Background 24 On June 19, 2017, Plaintiff filed suit in this court alleging violations of the Fair 25 Labor Standards Act (“FLSA”), 29 U.S.C. § 216(b), California Labor Code sections 2802 26 and 1194, and California Business and Professions Code section 17204, to recover 27 28 1 allegedly unreimbursed vehicle costs and unpaid minimum wages. (Doc. No. 1 at ¶ 2.) On 2 May 31, 2018, this court compelled the claims to arbitration. (Doc. No. 51.) 3 Between November 12-14, 2019, the parties attended an arbitration hearing before 4 arbitrator Harvey C. Berger. (Doc. No. 88-2 at 3.) Both parties were represented by 5 counsel and submitted comprehensive post-hearing briefs regarding the merits of the 6 claims, damages, fees and costs. (Doc. Nos. 88 – 4 – 86-7.1) The parties jointly requested 7 an Interim Award be issued. The arbitrator issued a Revised Interim Award2 on May 5, 8 2020. (Doc. No. 88-1.) The arbitrator’s final award ruled that Plaintiff was entitled to 9 $6,941.41 in unreimbursed business expenses under California Labor Code section 2802; 10 $6,941.41 in liquidated damages under California Labor Code section 1194; $1,538.67 11 interest on unpaid expense reimbursement; and $2,198.30 interest on liquidated damages; 12 for a total award of $17,619.79. (Doc. No. 88-2 at 16.) The arbitrator also awarded 13 Plaintiff’s counsel fees totaling $275,973.24 and awarded costs of $9,753.06. (Id. at 29.) 14 On September 15, 2020, Plaintiff filed a Corrected Motion to Reopen Case and 15 Confirm Arbitration Award, (Do. No. 88.) The motion had a noticed hearing date of 16 October 19, 2020. 17 On October 5, 2020, Defendants filed a one-page response to the motion, seeking 18 “an opportunity to review and comment on any proposed order” and that the action be 19 dismissed with prejudice as to Defendant D.O.S. Pizza, Inc. on the grounds that “the 20 governing arbitration agreement contains a binding class action waiver, and there remain 21 no other claims alleged against” it. (Doc. No. 89 at 2.) Asserting Plaintiff waived any 22 23 24 1 Plaintiff’s exhibits include two post-hearing rely briefs rather than the post-hearing brief 25 and a post-hearing reply brief indicated on the docket. (Compare Doc. No. 88-4 with Doc. No. 88-6.) 26

27 2 The Revised Interim Report was drafted due to a typographical error. After D.O.S. Pizza objected to the Revised Interim Award, the parties were asked to brief procedural and 28 1 claims against them by failing to pursue any joint employers claims in arbitration, 2 Defendants HAJ, Inc. and North County Pizza, Inc., sought dismissal of the first amended 3 complaint. (Id.) 4 On October 6, 2020, Plaintiff filed a reply which stated “[t]he parties agree that this 5 case should be reopened to confirm the arbitration award. Further, they agree that, after 6 confirmation, the action should be dismissed with prejudice.” (Doc. No. 90 at 1.) Plaintiff 7 also sought fees for his counsel’s efforts to obtain confirmation. (Id. at 2.) 8 On October 8, 2020, Defendants filed an Addendum to Defense Response to 9 Plaintiff’s Request to Reopen Case and Confirm Arbitration Award. (Doc. No. 91.) This 10 response was filed without leave of court. The addendum “request[ed] the court set dates 11 for briefing on modifying and/or vacating the award that is in line with the statutory 12 deadlines.” (Id at 2.) Defendants’ addendum overlooked the fact that by setting a hearing 13 date, a briefing schedule was already set, and also failed to demonstrate good cause. 14 On October 8, 2020, Plaintiff filed an Objection to Defendants’ Sur-Reply on the 15 grounds that it was filed after the close of briefing. (Doc. No. 92.) 16 In light of these circumstances, the court vacated the October 19, 2020, hearing date 17 and issued a briefing schedule giving Defendants until October 23, 2020 to file an 18 opposition and Plaintiff until October 30, 2020 to file a reply. The court cautioned 19 Defendants that the response “must show GOOD CAUSE why the court should not rely 20 on the Arbitrator’s Award as originally agreed by Defendants.” (Doc. No. 93.) 21 On October 30, 2020, Defendants filed Notice of Motion to Vacate or Modify 22 Arbitration Award. (Doc. No. 96.) The notice stated that Defendant D.O.S. Pizza was 23 moving to vacate or modify the award on the grounds that the arbitrator “exceeded his 24 powers and/or manifestly disregarded the law by creating a new cause of action for failure 25 to pay minimum wages based solely on a theory of under reimbursement of business 26 27 28 1 expenses.” Separately, Defendant D.O.S filed a Memorandum of Points and Authorities 2 in Support of Motion to Vacate or Modify Arbitration Award, and collectively all 3 Defendants also “responded” a to Plaintiff’s Motion to Confirm Award.4 (Doc. No. 97.) 4 On November 2, 2020, Plaintiff filed his Reply in Support of Motion to Reopen Case 5 and Confirm Arbitration Award and in Opposition to Defendants’ Motion to Vacate or 6 Modify Arbitration Award. (Doc. No. 98.) 7 On November 23, 2020, Defendant D.O.S Pizza filed its reply. (Doc. No. 100.) 8 II. Legal Standards 9 “[T]he F[ederal A[rbitration] A[ct] provides no authorization for a merits review” of 10 an arbitration award. Biller v. Toyota Motor Corp., 668 F.3d 655, 664 (9th Cir. 2012). 11 Thus, judicial review of an award is “‘both limited and highly deferential’ and the 12 arbitration award ‘may be vacated only if it is ‘completely irrational’ or ‘constitutes 13 manifest disregard of the law.’” Comedy Club, Inc. v. Improv. W. Assocs., 553 F.3d 1277, 14 1288 (9th Cir. 2009) (quoting Poweragent Inc. v. Elec. Data Sys. Corp., 358 F.3d 1187, 15 1193 (9th Cir. 2004)); see also Aspic Eng’g & Const. Co. v. ECC Centcom Constructors 16 LLC, 913 F.3d 1162, 1166 (9th Cir. 2019) ([The Ninth Circuit has] held that arbitrators 17 ‘exceed their powers’ when the award is ‘completely irrational’ or exhibits a ‘manifest 18 disregard of the law.’”). Under the Federal Arbitration Act (“FAA”), a court must confirm 19 an arbitration award unless it finds specific grounds to vacate, modify, or correct it. 20 9 U.S.C. §§9-11; see also Hall St. Assocs., L.L.C. v. Mattel, Inc., 552 U.S. 576, 582 (2008).

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Ralph v. Hosseini, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ralph-v-hosseini-casd-2021.