Sky Sports, Inc. v. Superior Court

201 Cal. App. 4th 1363, 11 Cal. Daily Op. Serv. 15, 134 Cal. Rptr. 3d 405, 2011 Cal. App. LEXIS 1570
CourtCalifornia Court of Appeal
DecidedDecember 15, 2011
DocketNo. B233820
StatusPublished
Cited by15 cases

This text of 201 Cal. App. 4th 1363 (Sky Sports, Inc. v. Superior Court) 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
Sky Sports, Inc. v. Superior Court, 201 Cal. App. 4th 1363, 11 Cal. Daily Op. Serv. 15, 134 Cal. Rptr. 3d 405, 2011 Cal. App. LEXIS 1570 (Cal. Ct. App. 2011).

Opinion

Opinion

ALDRICH, J.

Petitioner Sky Sports, Inc., doing business as Sky Security Services (the company), seeks a writ of mandate, directing the respondent court to vacate an order finding that it has waived its right to compel arbitration in this class action lawsuit, which seeks damages and penalties for rest break violations (Lab. Code, §§ 203, 226.7). The company raised the arbitration issue to defeat class certification. The company maintained that the putative class representative, Hector Hogan, was not an adequate class representative because his claims were not typical of the majority of the class who had signed arbitration agreements. Although Hogan had not signed the company’s arbitration agreement, we must determine if the company waived its right to enforce the agreements because it did not move to compel arbitration before certification of a class that included parties to the agreement. We conclude the statutory requirements to compel arbitration under Code of Civil Procedure section 1281.21 were not satisfied until the class was certified. Thus, any purported delay in bringing the motion does not constitute a waiver of the right to move to compel arbitration. We grant the petition for mandate to permit the company to file a motion to compel arbitration.2

FACTUAL AND PROCEDURAL BACKGROUND

Hogan filed a class action complaint against the company seeking damages and penalties for failure to provide rest breaks. (Lab. Code, §§ 203, 226.7.) The putative class was defined to include “employees who worked in [1366]*1366non-exempt positions performing services as licensed security guards . . . .” In its answer to the class action complaint, the company asserted as an affirmative defense that the complaint was barred by a mandatory arbitration agreement. Hogan, however, did not sign an arbitration agreement.

1. Trial Court Determines Company Waived Its Right to Enforce Arbitration Agreements Signed by Putative Class Members

On November 16, 2009, Hogan moved to certify a proposed class of “all current and former licensed security guards” employed by the company from November 14, 2004, to the present. About eight months later, in supplemental briefing, the company first raised the arbitration agreements to defeat class certification. The company maintained that Hogan was not an adequate class representative and could not use the class action procedure to defeat an otherwise enforceable arbitration agreement.

On July 22, 2010, the trial court issued a tentative ruling granting the class certification motion, certifying the class as all “current and former licensed security guards employed by [the company] from November 14, 2004 to the present.” Hogan was appointed the class representative. After oral argument, the trial court took the matter under submission.

Ruling on the submitted matter, the trial court issued an interim order, requesting that the company lodge, under seal, a list that identified those putative class members who signed arbitration agreements. The company’s list revealed that a high percentage of the putative class signed arbitration agreements.

Following the submission of the arbitration agreements, the trial court issued a tentative ruling denying class certification because the “arbitration agreements entered into by the great majority of the class members trump the procedural mechanism by which plaintiff Hogan seeks to consolidate these claims.” The trial court also rejected Hogan’s argument that the company waived the right to compel arbitration. The trial court viewed the company’s one-year delay in raising the issue as unreasonable, but concluded that the delay was not sufficient by itself to waive the right to compel arbitration.

On April 18, 2011, the trial court announced its ruling on the class certification motion and certified a class that included a high percentage of [1367]*1367employees who had signed arbitration agreements. The trial court’s order stated that the company waived its right to arbitration due to the unreasonable delay in bringing the petition to compel arbitration, citing section 1281.2, subdivision (a).

2. Petition for Writ of Mandate

The company sought a writ of mandate, directing the respondent court to vacate its order that the company waived its right to enforce the arbitration agreements. We informed the trial court and parties that we were considering the issuance of a peremptory writ of mandate in the first instance to vacate only the arbitration order and to permit the company to bring a motion to compel arbitration. (Lewis v. Superior Court (1999) 19 Cal.4th 1232, 1239-1240 [82 Cal.Rptr.2d 85, 970 P.2d 872]; Palma v. U.S. Industrial Fasteners, Inc. (1984) 36 Cal.3d 171, 178-180 [203 Cal.Rptr. 626, 681 P.2d 893].) Our order stated that a “motion to compel the named plaintiff Hector Hogan to arbitrate before a ruling on the class certification motion would have been premature because Hogan was not a party to an arbitration agreement.” We stayed the proceedings and asked the parties to brief this issue.

DISCUSSION

Section 1281.2 sets forth the procedure to compel arbitration of parties to an arbitration agreement. “On petition of a party to an arbitration agreement alleging the existence of a written agreement to arbitrate a controversy and that a party thereto refuses to arbitrate such controversy, the court shall order the petitioner and the respondent to arbitrate the controversy . . . unless . . . [f] (a) The right to compel arbitration has been waived by the petitioner . . . .” (§ 1281.2.)3

As stated, we must determine if the company waived its right to compel arbitration because it did not bring the motion before certification of a class that included parties to the arbitration agreement. This is a legal issue, which we consider de novo. (Lee v. Southern California University for Professional Studies (2007) 148 Cal.App.4th 782, 785 [56 Cal.Rptr.3d 134] (Lee).)

Arbitration is a matter of contract, and ordinarily someone not a party to an arbitration agreement cannot be compelled to arbitrate. (§ 1281.) The [1368]*1368company contends none of the limited exceptions to compel a nonsignatory to arbitration apply here, and until the class was certified to include a signatory to the arbitration agreement, it would have been premature to bring a motion to compel. Section 1281.2 supports the company’s position.

To compel arbitration under section 1281.2, there must be a “written agreement to arbitrate a controversy,” and a “party thereto refuses to arbitrate such controversy.” As construed in Mansouri v. Superior Court (2010) 181 Cal.App.4th 633 [104 Cal.Rptr.3d 824], “[t]he Legislature plainly intended section 1281.2 to provide a procedural device for enforcing the parties’ written arbitration agreement if one or more of the parties would not agree to such arbitration.” (Id. at p. 641.) Thus, to bring a motion to compel arbitration, a party must plead and prove: “(1) the parties’ written agreement to arbitrate a controversy . . . ; (2) a request or demand by one party to the other party or parties for arbitration of such controversy

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Bluebook (online)
201 Cal. App. 4th 1363, 11 Cal. Daily Op. Serv. 15, 134 Cal. Rptr. 3d 405, 2011 Cal. App. LEXIS 1570, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sky-sports-inc-v-superior-court-calctapp-2011.