Seybert v. CHLN, Inc.

District Court, S.D. California·Decided March 11, 2021·No. 3:20-cv-02529·Unknown

Opinion

KIMBER SEYBERT, individually and on Case No.: 3:20-cv-02529-H-KSC behalf of all others similarly aggrieved, ORDER GRANTING DEFENDANTS’ Plaintiff, v. ARBITRATION AND DISMISS THE ACTION CHLN, INC., LANDRY’S, INC., and LANDRY’S PAYROLL, INC., [Doc. No. 8.] Defendants.

On December 30, 2020, Plaintiff Kimber Seybert (“Plaintiff”) filed a class action complaint against Defendants CHLN, Inc. (“Chart House”), Landry’s, Inc., and Landry’s Payroll, Inc. (collectively, “Defendants”). (Doc. No. 1.) On February 3, 2021, Defendants filed a motion to compel arbitration and dismiss the action, or, in the alternative, to compel arbitration, dismiss Plaintiff’s class claims, and stay the action. (Doc. No. 8.) On February 22, 2021, Plaintiff filed a response in opposition Defendants’ motion. (Doc. No. 9.) On March 1, 2021, Defendants filed a reply. (Doc. No. 11.) The Court currently has a hearing on Defendants’ motion scheduled for March 15, 2021. The Court, pursuant to its discretion under Local Rule 7.1(d)(1), determines that the motion is fit for resolution without oral argument, vacates the hearing, and submits the motion on the parties’ papers. For the following reasons, the Court grants Defendants’ motion. Background Chart House is headquartered in Houston, Texas, and owns and operates twenty-one restaurants nationwide. (Doc. No. 8-1, Jasso Decl. ¶ 1.) Landry’s, Inc. is the parent company of Chart House and Landry’s Payroll, Inc. (Id.) Plaintiff worked as a server in Chart House’s restaurant located in Cardiff, California, from 2007 to around 2019 to 2020.1 (Id.; Doc. No. 9-1, Seybert Decl. ¶ 2.) In April 2015, Plaintiff was presented with a document entitled “Mutual Agreement to Arbitrate Claims” (the “Arbitration Agreement”). (See Jasso Decl. ¶ 2; Seybert Decl. ¶ 4.) The first sentence of the Arbitration Agreement states: In consideration of the at-will employment relationship between the Employer and Employee and the mutual desire of the parties to enter into this Mutual Agreement to Arbitrate Claims (“Agreement”), the parties hereby agree that any and all disputes, claims or controversies between the parties, including but not limited to any dispute arising out of or relating to this Agreement, the employment relationship between the parties, or the formation or termination of the employment relationship, which are not resolved by their mutual agreement shall be resolved by final and binding arbitration by a neutral arbitrator. (Jasso Decl. Ex. A.) The Arbitration Agreement then goes on to state the following: BY SIGNING THIS AGREEMENT, THE PARTIES HEREBY WAIVE THEIR RIGHT TO HAVE ANY DISPUTE, CLAIM OR CONTROVERSY

. . . I ACKNOWLEDGE THAT BEFORE I SIGNED THIS AGREEMENT I IT. I UNDERSTAND THAT I AM PERMITTED TO TAKE THIS MY CHOICE IF I SO DESIRE. I FURTHER UNDERSTAND THAT I 1 Plaintiff contends that she ended her employment in approximately May 2020. (Seybert Decl. ¶ MCOUNSTTI NSUIGE NM YT EHMISP LAOGYRMEEENMTE WNTIT HB TEHFOE REEM PIL OMYAEYR . BEGIN OR

AGREEMENT TO ARBITRATE CLAIMS, THAT I UNDERSTAND ITS TERMS, AND THAT I HAVE ENTERED INTO THIS AGREEMENT VOLUNTARILY, WITHOUT UNDUE PRESSURE AND NOT IN RELIANCE ON ANY PROMISE OR REPRESENTATION BY THE EMPLOYER OR ANY PERSON OTHER THAN THOSE CONTAINED IN (Id.) Additionally, the Arbitration Agreement provides that Chart House “reserves its right to amend or modify this Agreement at any time in its sole and absolute discretion provided that the Employee is provided with written notice.” (Id.) Defendants are unable to locate the specific copy of the Arbitration Agreement that Plaintiff signed. (Id. ¶ 2.) Defendants maintain that Plaintiff nevertheless signed the Arbitration Agreement because every employee was instructed to sign it in 2015 to continue their employment. (Id.) Also, according to Defendants’ “Arbitration Agreement Roster,” Plaintiff signed the Arbitration Agreement in 2015. (Id. Ex. B.) Finally, in her opposition, Plaintiff admits that she signed the Arbitration Agreement in 2015. (Seybert Decl. ¶ 7.) In 2018, Chart House updated its arbitration agreement (the “Updated Arbitration Agreement”). (Jasso Decl. ¶ 3.) The Updated Arbitration Agreement, like its predecessor, also provides that the parties agree to arbitrate “any and all disputes . . . between the parties, including but not limited to any dispute arising out of or relating to this Agreement, the employment relationship between the parties, or the formation or termination” of that relationship. (Id. Ex. C.) It also states that it may be accepted by the employee’s continued employment with Chart House. (Id.) To apprise its employees of the update, Chart House instructed managers to post arbitration notices in their restaurants and provide employees with a copy of the Updated Arbitration Agreement. (Id. ¶¶ 3-4.) Additionally, Chart House gave automated notices to employees when they accessed Chart House’s scheduling system and when they clocked-in with Chart House’s timekeeping system. (Id. ¶¶ 3-7.) In May 2019, Chart House instructed general managers to remind employees of the Updated Arbitration Agreement. (Id. ¶ 8.) Chart House also provided another round of automated notices in its scheduling and timekeeping systems at this time. (Id. ¶¶ 8-10.) Each notice contained a clause stating that an employee’s continued employment constituted his or her approval of the Updated Arbitration Agreement’s terms. (Id. Exs. E, F, H.) Defendants submitted electronic records that indicate Plaintiff viewed the notice posted on the scheduling system four times in 2018 and another four times in 2019. (Id. ¶¶ 6, 9 & Exs. G, K.) Plaintiff also clocked-in a total of twenty-five times while the arbitration notices were posted on the timekeeping system during 2018 and 2019. (Id. ¶¶ 7, 10 & Exs. H, L.) Despite this, Plaintiff maintains that she was unaware of the Updated Arbitration Agreement’s existence during her employment. (Seybert Decl. ¶ 2.) On December 30, 2020, Plaintiff filed a class action complaint against Defendants, alleging various wage and hour claims, as well as claims for intentional interference with prospective economic advantage, conversion, unjust enrichment, and unlawful business practices. (Doc. No. 1.) With the instant motion, Defendants ask the Court to compel Plaintiff to arbitrate her claims on an individual basis and dismiss the case. (Doc. No. 8.) Discussion I. Whether Defendants Can Compel Arbitration A. Legal Standards The Federal Arbitration Act (“FAA”)2 permits “[a] party aggrieved by the alleged failure, neglect, or refusal of another to arbitrate under a written agreement for arbitration

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Seybert v. CHLN, Inc., (S.D. Cal. 2021).

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