Rivera v. Hilton Worldwide CA4/3

CourtCalifornia Court of Appeal
DecidedNovember 26, 2013
DocketG047644
StatusUnpublished

This text of Rivera v. Hilton Worldwide CA4/3 (Rivera v. Hilton Worldwide CA4/3) 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
Rivera v. Hilton Worldwide CA4/3, (Cal. Ct. App. 2013).

Opinion

Filed 11/26/13 Rivera v. Hilton Worldwide CA4/3

NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

FOURTH APPELLATE DISTRICT

DIVISION THREE

PEDRO MEDINA RIVERA,

Plaintiff and Appellant, G047644

v. (Super. Ct. No. 30-2012-00571445)

HILTON WORLDWIDE, INC., OPINION

Defendant and Respondent.

Appeal from an order of the Superior Court of Orange County, Steven L. Perk, Judge. Affirmed. Cohelan Khoury & Singer, Michael D. Singer, Jeff Geraci; Law Offices of Sahag Majarian II and Sahag Majarian II for Plaintiff and Appellant. Jackson Lewis, Cynthia L. Filla, Sherry L. Swieca, Susan E. Groff and Carmen Ruda for Defendant and Respondent.

* * * Plaintiff Pedro Medina Rivera filed a putative class action against defendant Hilton Worldwide, Inc. alleging six causes of action for underpayment and late payment of wages, and unfair competition (Bus. & Prof. Code, § 17200 et seq.; UCL). Upon defendant’s motion, the court ordered plaintiff’s individual claims to arbitration and dismissed the class claims without prejudice. Plaintiff appeals, raising the following issues: 1) the arbitration provision may not be enforced because it is unconscionable; 2) the arbitration agreement applies to class claims; 3) neither the Federal Arbitration Act (9 U.S.C. § 1 et seq.; FAA) nor AT&T Mobility LLC v. Concepcion (2011) 563 U.S. __ [131 S.Ct. 1740] (Concepcion) overrules or preempts California law allowing arbitration of class claims; 4) California law prohibits exclusion of the class claims from arbitration because plaintiff would be unable to enforce his statutory rights; and 5) federal labor laws bar proscription of class claims in the arbitration. We see no error and affirm the order.

FACTS AND PROCEDURAL HISTORY

In 2012 plaintiff filed his putative class action for underpayment of hourly and overtime wages (Lab. Code1, §§ 204, 1194; Wage Order 5-2001), failure to properly calculate meal period payments (§ 226.7), failure to provide accurate itemized wage statements (§§ 226, 1174), failure to timely pay wages upon termination (§§ 201-203), and a claim under the UCL based on those alleged violations. Shortly after answering the complaint, defendant filed a motion compelling arbitration of plaintiff’s individual claims, dismissing all class claims without prejudice, and dismissing plaintiff’s individual

1 All further statutory references are to the Labor Code unless otherwise stated.

2 claims or, alternatively, staying proceedings on plaintiff’s individual claims until arbitration was completed. Defendant relied on a document entitled “Agreement re At-Will Employment and Arbitration” (boldface & capitalization omitted; Agreement) as the basis of the motion. Plaintiff was defined in the Agreement as Employee, I or me and defendant was defined as Company. The Agreement provided: “The Company and I further agree and acknowledge that final and binding arbitration shall be the exclusive forum to hear and decide any dispute between the Company and me, except for claims for Workers’ Compensation, Unemployment Compensation, claims brought to secure rights granted under the terms of a collective bargaining agreement, or any other claim that is non- arbitrable under applicable state or federal law. . . . Except for the claims carved out above, this Agreement includes all common-law and statutory claims, including, but not limited to, any claims for breach of contract, unpaid wages, wrongful termination, unfair competition, [and several other claims]. . . . I understand that I am giving up no substantive rights, and this Agreement simply governs forum.” Just above plaintiff’s signature, the following was set out in boldface and capital letters: “By signing this agreement, the Company and I acknowledge that the right to a court trial and trial by jury is of value, and we knowingly and voluntarily waive such right for any dispute subject to the terms of this agreement.” The court granted the motion and ordered the parties to arbitrate plaintiff’s individual claims; the class claims were dismissed without prejudice. In addition plaintiff’s individual claims were stayed until completion of the arbitration. The court ruled plaintiff’s individual claims were governed by the FAA and subject to arbitration under Concepcion. There is an enforceable arbitration contract, which is neither illusory nor substantively unconscionable. Class arbitration cannot be inferred from the language of the Agreement. Nor did plaintiff sufficiently show

3 arbitration would not be a suitable forum to vindicate his statutory rights under the Labor Code. Finally, the National Labor Relations Act (29 U.S.C. § 151 et seq.; NLRA) does not govern the Agreement. Additional facts are set out in the discussion

DISCUSSION

1. Applicability of the FAA The trial court found the FAA governed the Agreement. The FAA applies to arbitration provisions in contracts “evidencing a transaction involving commerce.” (9 U.S.C. § 2; see Rent-A-Center, West, Inc. v. Jackson (2010) 561 U.S. __ , __ [130 S.Ct. 2772, 2776].) The commercial transaction need only indirectly affect or relate to interstate commerce. (See Prima Paint Corp. v. Flood & Conklin Mfg. Co. (1967) 388 U.S. 395, 401-402, fn. 7.) Defendant has the burden to show the FAA applies (Shepard v. Edward Mackay Enterprises, Inc. (2007) 148 Cal.App.4th 1092, 1101) and met its burden in a declaration submitted in support of the motion to compel arbitration. The declaration states defendant operates hotels throughout the United States and is involved in interstate commerce daily. (Thorup v. Dean Witter Reynolds, Inc. (1986) 180 Cal.App.3d 228, 233 [employment contract between brokerage firm and account executive “indisputabl[y]” involves interstate commerce and governed by FAA].) In his opening brief plaintiff does not challenge the trial court’s finding. Rather, he assumes the applicability of the FAA in making other arguments. It was not until the reply brief that plaintiff argues the FAA does not govern the Agreement. This claim has no merit. Relying on the language of the Agreement, plaintiff maintains there is scant reference to the FAA, the Agreement excludes claims not arbitrable under state or federal law, and highlights a term providing arbitration is to be conducted according to the

4 California Arbitration Act. But parties to an arbitration agreement subject to the FAA are free to agree to use California procedural law. (Cronus Investments, Inc. v. Concierge Services (2005) 35 Cal.4th 376, 383, 384-385.) In that circumstance, there is no conflict between the two statutory schemes. (Id. at pp. 389-390.)

2. Unconscionability Plaintiff contends the Agreement may not be enforced because it is unconscionable. To invalidate an arbitration agreement, it must be both procedurally and substantively unconscionable. (Stirlen v. Supercuts, Inc. (1997) 51 Cal.App.4th 1519, 1533.) “The procedural element focuses on the unequal bargaining positions and hidden terms common in the context of adhesion contracts. [Citation.] . . . [T]he substantive element . . .

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