Salgado v. Carrows Rests., Inc.

244 Cal. Rptr. 3d 849, 33 Cal. App. 5th 356
CourtCalifornia Court of Appeal, 5th District
DecidedFebruary 26, 2019
Docket2d Civil No. B285756
StatusPublished
Cited by21 cases

This text of 244 Cal. Rptr. 3d 849 (Salgado v. Carrows Rests., Inc.) is published on Counsel Stack Legal Research, covering California Court of Appeal, 5th District primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Salgado v. Carrows Rests., Inc., 244 Cal. Rptr. 3d 849, 33 Cal. App. 5th 356 (Cal. Ct. App. 2019).

Opinion

GILBERT, P. J.

An employer and its employee sign an agreement to submit all disputes to arbitration. Does the agreement apply to disputes that have occurred prior to the execution of the agreement?

The employee's counsel does not know his client signed the arbitration agreement. Does the employer know or 2. should it have known the employee was *851represented by counsel when the arbitration agreement was signed?

The answer to these questions concerns time. Here time is relevant, but not relative.

Carrows Restaurants Group, Inc. and Catalina Restaurant Group, Inc. (collectively Carrows) appeal an order denying their motion to compel arbitration. We conclude the language of the arbitration agreement is sufficient to apply to the current action. But we remand to determine whether Carrows knew that at the time plaintiff employee signed the arbitration agreement, plaintiff was represented by counsel. We reverse and remand.

FACTS

Salgado began working at Carrows Restaurant in 1984. On November 22, 2016, she filed a lawsuit in the Ventura County Superior Court alleging employment discrimination and violation of civil rights against Food Management Partners dba Carrows Restaurant.

On April 18, 2017, Salgado amended her complaint to add Carrows Restaurants, Inc. and Catalina Restaurant Group, Inc. as defendants.

On September 5, 2017, Carrows filed a motion to compel arbitration. Carrows said Salgado "entered into a binding and enforceable agreement to arbitrate all claims arising out of her employment with Defendants, and all causes of action alleged in her Complaint arise out of such employment." The arbitration agreement attached to the motion indicated that Salgado signed the agreement on December 7, 2016.

The arbitration agreement contained two relevant provisions. The first provision provided, "The Company and I agree and acknowledge that we will utilize binding arbitration as the sole and exclusive means to resolve all disputes which may arise out of or be related in any way to my application for employment and/or employment, including but not limited to the termination of my employment and my compensation."

The second provision provided, in relevant part, "Both the Company and I agree that any claim, dispute, and/or controversy that I may have against the Company ... or the Company may have against me, shall be submitted to and determined exclusively by binding arbitration ...."

Salgado's opposition to the motion said her lawsuit was filed before she signed the arbitration agreement. She contended the agreement was "not retroactive" and was procedurally and substantively unconscionable. (Capitalization omitted.)

Carrows responded that they were not added as defendants in the lawsuit until months after the signing of the arbitration agreement. Carrows claimed that they did not know of the existence of Salgado's lawsuit when the arbitration agreement was signed and that Salgado voluntarily signed it.

The trial court denied the motion. It did not rule on the unconscionability issue. The court said, "Defendants have failed to demonstrate that the arbitration agreement applies to a suit that was filed prior to its signature."

DISCUSSION

The Arbitration Agreement Language

Carrows contends the language of the arbitration agreement applies to the current lawsuit. We agree.

An arbitration clause is a contractual agreement. Courts "interpret a contract to give effect to the parties' intentions at the time of contracting." ( *852Hernandez v. Badger Construction Equipment Co. (1994) 28 Cal.App.4th 1791, 1814, 34 Cal.Rptr.2d 732.) "When language in a contract is clear and explicit, that language governs interpretation." ( Esparza v. Sand & Sea, Inc. (2016) 2 Cal.App.5th 781, 789, 206 Cal.Rptr.3d 474.)

Arbitration is a favored procedure. An " ' "arbitration should be upheld unless it can be said with assurance that an arbitration clause is not susceptible to an interpretation covering the asserted dispute." ' " ( Cruise v. Kroger Co. (2015) 233 Cal.App.4th 390, 397, 183 Cal.Rptr.3d 17.) Doubts about the applicability of the arbitration clause to the dispute should be resolved "in favor of sending the parties to arbitration." ( Cione v. Foresters Equity Services, Inc. (1997) 58 Cal.App.4th 625, 642, 68 Cal.Rptr.2d 167.)

The First Provision

The first provision of the arbitration agreement provides, in relevant part, "The Company and I agree and acknowledge that we will utilize binding arbitration as the sole and exclusive means to resolve all disputes which [1] may arise out of or [2] be related in any way to my application for employment and/or employment ...." (Italics added.)

The trial court ruled, "The language of the agreement suggest[s] that it applies to future disputes not ones that have already resulted in a formal lawsuit."

Salgado contends the trial court was correct because the arbitration agreement applies to all "disputes which may arise." She claims this only applies to future claims.

Carrows notes that the "may arise" language is followed by the second phrase, "or be related in any way to my application for employment and/or employment." (Italics and boldface added.) Carrows contends the "use of the word 'or' means the preceding terms 'may arise' are not exclusive or controlling. So long as [Salgado's] employment dispute is the type of claim that is 'related in any way to [her] employment,' it falls within the terms of the Agreement."

Carrows's interpretation is reasonable. Salgado focuses only on one phrase in the arbitration agreement. But the word "or" shows that there is an alternative. ( Fiorentino v. City of Fresno (2007) 150 Cal.App.4th 596, 603, 59 Cal.Rptr.3d 30 ["the plain and ordinary meaning of the word 'or' is 'to mark an alternative such as "either this or that" ' "].) Each phrase must be considered. " 'Courts must interpret contractual language in a manner which gives force and effect to every provision, and not in a way which renders some clauses nugatory, inoperative or meaningless.' " ( Hemphill v.

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Cite This Page — Counsel Stack

Bluebook (online)
244 Cal. Rptr. 3d 849, 33 Cal. App. 5th 356, Counsel Stack Legal Research, https://law.counselstack.com/opinion/salgado-v-carrows-rests-inc-calctapp5d-2019.