Reyes v. Point Loma Rehabilitation Center CA4/1

CourtCalifornia Court of Appeal
DecidedAugust 23, 2024
DocketD082714
StatusUnpublished

This text of Reyes v. Point Loma Rehabilitation Center CA4/1 (Reyes v. Point Loma Rehabilitation Center CA4/1) 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
Reyes v. Point Loma Rehabilitation Center CA4/1, (Cal. Ct. App. 2024).

Opinion

Filed 8/23/24 Reyes v. Point Loma Rehabilitation Center CA4/1 NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

COURT OF APPEAL, FOURTH APPELLATE DISTRICT

DIVISION ONE

STATE OF CALIFORNIA

JAVIER REYES, D082714

Plaintiff and Respondent,

v. (Super. Ct. No. 37-2021-00047620- CU-OE-CTL) POINT LOMA REHABILITATION CENTER, LLC,

Defendant and Appellant.

APPEAL from an order of the Superior Court of San Diego County, Timothy B. Taylor, Judge. Affirmed. Musick, Peeler & Garrett, Cheryl A. Orr; Fisher & Phillips and Grace Y. Horoupian for Defendant and Appellant. Singleton Schreiber, Benjamin I. Siminou, Jonna D. Lothyan; Gruenberg Law, Joshua D. Gruenberg, Pamela Vallero and Catharine McGlynn for Plaintiff and Respondent. Fifteen months after plaintiff Javier Reyes filed suit against his employer, Point Loma Rehabilitation Center, LLC (the Center), and one month before the scheduled trial date, the Center moved to compel arbitration. Prior to that, the Center filed a case management statement and attended a case management conference; in neither instance did it indicate any intent or desire to arbitrate the dispute. Instead, it requested a trial, agreed to motion and discovery deadlines, propounded written discovery, and indicated it planned to file a motion for summary judgment. In short, for months it demonstrated an unequivocal intent to litigate the controversy with Reyes. Only belatedly did it begin to assert a desire to arbitrate the matter. The trial court denied the motion to compel arbitration, applying the rule announced in the United States Supreme Court’s decision Morgan v. Sundance, Inc. (2022) 596 U.S. 411, pp. 413–414 (Morgan) that courts employing the Federal Arbitration Act (FAA) may not condition waiver of the right to arbitration on a finding of prejudice to the party opposing the motion to compel. Under the facts, the court concluded that the Center waived its right to arbitrate by unreasonably delaying its arbitration demand and by acting inconsistently with an intent to arbitrate. On appeal, the Center’s briefs argued that (1) California procedural law applies and the court erred by finding waiver in the absence of any evidence of prejudice to Reyes and (2) even if prejudice is not required, the court erred by finding waiver. Since the trial court’s decision and the completion of briefing here, the California Supreme Court issued its decision in Quach v. California Commerce Club, Inc. (2024) 16 Cal.5th 562 (Quach), relying on Morgan and holding that prejudice is not required to establish waiver of the right to

2 arbitration under the California Arbitration Act (CAA). Finding waiver based on the principles articulated in Quach, we affirm.

FACTUAL AND PROCEDURAL BACKGROUND

The Center is a skilled nursing facility that hired Reyes as a Certified Nursing Assistant in September 2019. The following month, Reyes executed a Mutual Agreement to Arbitrate (the Agreement), which applied to all disputes with the Center including employment related disputes. The Agreement provided that the FAA “shall govern the interpretation and enforcement of this Agreement and the arbitration proceedings,” and that the arbitration would “be conducted in accordance with the JAMS Employment Arbitration Rules and Procedures,” including those governing discovery. On November 9, 2021, Reyes filed a complaint against the Center alleging causes of action for retaliation (Labor Code, § 1102.5), disability or medical condition discrimination (Govt. Code, § 12940, subd. (a)), negligent supervision, and intentional infliction of emotional distress. The Center filed an answer, which included an affirmative defense that all of Reyes’s claims were subject to binding arbitration. In April 2022, the Center served written discovery requests on Reyes and noticed his deposition. A few days later, the Center filed a case management statement (CMS) in advance of a case management conference. The CMS included (1) a request for a nonjury trial; (2) a statement that “[t]his case will be ready for trial within 12 months of the date of the filing of the complaint”; (3) a list of many dates on which the Center or its attorneys would not be available for trial; and (4) an estimate that the trial would last three days. In the section for alternative dispute resolution, the Center checked the box indicating that it was willing to participate in mediation but left blank the box for arbitration and failed to otherwise note any intention to

3 arbitrate the dispute. Finally, the Center wrote that it expected to file a motion for summary judgment/adjudication before trial. At the case management conference on April 22, 2022, the court set a February 24, 2023 deadline for motions and discovery and scheduled a jury trial for March 17, 2023. The court’s order indicated that the anticipated motion for summary judgment would be heard “pursuant to code.” In May, when it failed to receive timely responses to its discovery requests, the Center sent the first of two e-mail notices advising Reyes that the responses were late. A second e-mail in June impliedly threatened to file a motion to compel if it did not receive responses within the week. Finally, on July 6, 2022, Reyes responded to the interrogatories and request for production. Shortly before Reyes provided those discovery responses, counsel for the Center sent a meet-and-confer letter to Reyes attaching the Agreement, asserting that his claims were subject to the Agreement and requesting a stipulation to arbitrate, but noting it would prefer to resolve the matter informally prior to initiating arbitration. Center’s counsel followed up by e- mail on July 10 and July 22, noting the agreement to arbitrate and requesting an opening settlement demand. In another e-mail on August 3, the Center provided formal notice of its intention to preserve arbitration pending informal negotiations or mediation. In September, the Center’s counsel informed Reyes it wished to move forward with arbitration, setting a September 21 date for Reyes’s response as to whether he would be willing to stipulate to arbitration. A month and a half later, counsel for the Center asked for an update regarding the request for stipulation. Reyes’s counsel responded on November 7, stating,

4 “We will stipulate to arbitration,” and requesting a list of potential arbitrators. The parties scheduled arbitration for February 27, 2023. In response to Reyes’s request, counsel for the Center provided a list of arbitrators on November 21, 2022. Not until January 19, 2023, however, did the Center’s counsel circulate a proposed stipulation. One week later, Reyes informed the Center he would no longer agree to the stipulation and likewise did not wish to participate in mediation. Consequently, on February 14, 2023, the Center filed a motion to compel arbitration (the Motion) seeking

to enforce the Agreement.1 The Motion acknowledged that the FAA (9 U.S.C. § 1 et seq.) applied based on the Center conducting business in interstate commerce, although it did not reference the Agreement’s explicit choice of the FAA. At the same time, the Motion also cited the CAA, noting that “the Agreement expressly

incorporates the CAA to the extent applicable.”2 Reyes opposed the Motion, arguing that (1) the Center waived any right to arbitrate by delaying and

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Reyes v. Point Loma Rehabilitation Center CA4/1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reyes-v-point-loma-rehabilitation-center-ca41-calctapp-2024.