Solis v. Clean Harbors, Inc.

CourtDistrict Court, N.D. California
DecidedMarch 31, 2022
Docket3:20-cv-02660
StatusUnknown

This text of Solis v. Clean Harbors, Inc. (Solis v. Clean Harbors, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Solis v. Clean Harbors, Inc., (N.D. Cal. 2022).

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 7 ABRAHAM SOLIS, Case No. 20-cv-02660-AGT

8 Plaintiff, ORDER GRANTING DEFENDANTS’ 9 v. MOTION FOR ATTORNEYS’ FEES

10 CLEAN HARBORS, INC., et al., Re: Dkt. No. 55 Defendants. 11

12 13 Defendants Aerotek, Inc. and Clean Harbors Industrial Services, Inc. (“Clean Harbors”), as 14 the prevailing parties in this negligence action, move for an award of $75,000 in attorneys’ fees 15 from plaintiff Abraham Solis. Dkt. 55, Mot. Solis opposes, arguing that the contractual attorneys’ 16 fees provision defendants rely on is unenforceable and inapplicable, and the requested amount of 17 fees is unreasonable. Dkt. 56, Opp. For the reasons set forth below, the Court grants defendants’ 18 motion. 19 I. BACKGROUND 20 On December 13, 2018, Solis signed a three-page employment agreement with Aerotek, a 21 staffing agency, for a temporary work assignment with Aerotek’s client, Clean Harbors. See Dkt. 22 36-4, Employment Agreement.1 The Employment Agreement, which was drafted by Aerotek, 23 stated that Solis was an employee of Aerotek, not Clean Harbors, and that his employment with 24 Aerotek would be “co-extensive” with his Clean Harbors assignment—that is, his Aerotek 25 employment would begin on the first day of his Clean Harbors assignment, and end when his 26 1 The Employment Agreement specifically identifies “Clean Harbors Environmental Services 27 Inc.” as the “Client.” Employment Agreement at 1. Clean Harbors Environmental Services is an 1 assignment was ended by Clean Harbors or otherwise. Id. §§ 2, 14. The Employment further 2 provided that Aerotek would supply workers’ compensation coverage “for things such as on-the- 3 job injuries . . . incurred while on Assignment for Aerotek[], and to the extent permitted by law, 4 you agree to look solely to Aerotek, Inc. and/or its insurer for damages and/or expenses for any 5 such claims.” Id. § 17. It also contained an attorneys’ fees provisions as follows:

6 18. Attorneys’ Fees - To the extent permitted by law, you agree that in the event of any dispute or claims: (a) arising out of or relating in 7 any way to your employment or relationship with Aerotek, Inc.; or (b) seeking to enforce the obligations contained in this Agreement, the 8 prevailing party shall be entitled to recover reasonable attorneys’ fees and all costs relating to the dispute or claims and any process through 9 which such a dispute or claims may be resolved. 10 Id. § 18. 11 On January 15, 2019, the first day of his Clean Harbors assignment, Solis’s right thumb 12 was crushed while he was assisting with machine maintenance at Clean Harbors’s facility. Solis 13 was transported to the hospital where he underwent emergency surgery and ultimately lost his 14 right thumb. He did not return to Clean Harbors after the incident. 15 Solis promptly filed a workers’ compensation claim with Aerotek for his on-the-job injury, 16 and he began receiving workers’ compensation benefits through Aerotek on January 18, 2019. 17 Solis then filed a single-count negligence complaint against Aerotek and Clean Harbors in 18 California state court, seeking further recovery for the same injury. Defendants removed the case 19 to this Court based on diversity jurisdiction. Following limited discovery, Aerotek and Clean 20 Harbors moved for summary judgment, arguing that California’s Workers’ Compensation Act 21 provided Solis’s exclusive remedy for his workplace injury. The Court granted defendants’ 22 motion—finding that they were Solis’s joint employers for workers’ compensation purposes and, 23 consequently, both statutorily immune from tort liability for Solis’s workplace injury—and 24 entered judgment in their favor. Dkts. 52, 53. Aerotek and Clean Harbors now move for 25 attorneys’ fees pursuant to the prevailing party attorneys’ fees provision in Solis’s Employment 26 Agreement with Aerotek. 27 II. DISCUSSION 1 incurred in successfully defending against Solis’s negligence claim. They argue they are both 2 entitled to enforce the Employment Agreement’s fees provision—Aerotek as a contracting party 3 and Clean Harbors as a third-party beneficiary—and that the requested award is reasonable. Solis 4 opposes defendants’ motion on the following grounds: (1) the attorneys’ fees provision at issue is 5 not enforceable, and (2) even if it is, it does not apply as to Clean Harbors, a nonsignatory to the 6 Employment Agreement, and (3) even if it does, the amount of fees requested is unreasonable.2 7 A. Enforceability of the Fees Provision 8 Solis contends the attorneys’ fees provision at issue is unenforceable because it is 9 unconscionable, and because Aerotek materially breached the Employment Agreement by failing 10 to pay Solis for his work. Neither argument is persuasive. 11 1. Unconscionability 12 Under California law, a court “may refuse to enforce a provision of a contract if it finds 13 that the provision was ‘unconscionable at the time it was made.’” Tompkins v. 23andMe, Inc., 840 14 F.3d 1016, 1023 (9th Cir. 2016) (quoting Cal. Civ. Code § 1670.5(a)). Unconscionability has 15 “both a procedural and a substantive element, the former focusing on oppression or surprise due to 16 unequal bargaining power, the latter on overly harsh or one-sided results.” Sanchez v. Valencia 17 Holding Co., LLC, 61 Cal. 4th 899, 910 (2015). Both procedural and substantive 18 unconscionability must be shown in order for a provision to be unconscionable, but they need not 19 be present to the same degree: “[T]he more substantively oppressive the contract term, the less 20 evidence of procedural unconscionability is required to come to the conclusion that the term is 21 unenforceable, and vice versa.” Armendariz v. Found. Health Psychcare Servs., Inc., 24 Cal. 4th 22 83, 114 (2000). “The overarching unconscionability question is whether an agreement is imposed 23 in such an unfair fashion and so unfairly one-sided that it should not be enforced.” OTO, L.L.C. v. 24 Kho, 8 Cal. 5th 111, 124 (2019). The party asserting unconscionability has the burden of proving 25 it. Id. at 126. 26

27 2 The parties agree that California law governs these inquiries. See Klopfenstein v. Pargeter, 597 1 Solis claims the fees provision here is procedurally unconscionable because it is part of an 2 adhesion contract. “It is well settled that adhesion contracts in the employment context, that is, 3 those contracts offered to employees on a take-it-or-leave-it basis, typically contain some aspects 4 of procedural unconscionability.” Serpa v. California Sur. Investigations, Inc., 215 Cal. App. 4th 5 695, 704 (2013). While the Court agrees with Solis that the Employment Agreement is 6 adhesive—it is a standardized form contract drafted by Aerotek, the party of superior bargaining 7 power, and offered to Solis on a take-it-or-leave-it basis—“this adhesive aspect of an agreement is 8 not dispositive.” Id. Rather, “[w]hen, as here, there is no other indication of oppression or 9 surprise, ‘the degree of procedural unconscionability of an adhesion agreement is low, and the 10 agreement will be enforceable unless the degree of substantive unconscionability is high.’”3 Id. 11 (citation omitted). 12 Solis argues that the fees provision is substantively unconscionable because it is “one- 13 sided” and “does not constitute a ‘mutual’ attorney fee shifting provision.” Opp. at 12. This 14 contention lacks merit. To start, the fees provision is explicitly mutual, providing that “the 15 prevailing party shall be entitled to recover reasonable attorneys’ fees” relating to a covered 16 dispute. See Employment Agreement § 18. Thus, as defendants point out, Solis “presumably 17 could have sought fees in this matter if he was the prevailing party.” Dkt. 57, Reply at 9.

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Solis v. Clean Harbors, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/solis-v-clean-harbors-inc-cand-2022.