Sonico v. Charter Communications, LLC

CourtDistrict Court, S.D. California
DecidedApril 20, 2020
Docket3:19-cv-01842
StatusUnknown

This text of Sonico v. Charter Communications, LLC (Sonico v. Charter Communications, LLC) is published on Counsel Stack Legal Research, covering District Court, S.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sonico v. Charter Communications, LLC, (S.D. Cal. 2020).

Opinion

7 8 UNITED STATES DISTRICT COURT 9 FOR THE SOUTHERN DISTRICT OF CALIFORNIA 10 JUSTIN M. SONICO, individually Case No. 19-cv-01842-BAS-LL 11 and on behalf of all other persons similarly situated, ORDER: 12 Plaintiff, (1) DENYING WITHOUT PREJUDICE 13 DEFENDANTS’ MOTION TO v. COMPEL ARBITRATION AND 14 STAY PROCEEDINGS CHARTER COMMUNICATIONS, [ECF No. 19]; 15 LLC, et al., AND 16 Defendants. (2) GRANTING LEAVE TO TAKE 17 LIMITED DISCOVERY 18 19 Plaintiff Justin M. Sonico (“Plaintiff”) filed the instant wage-and-hour class action in 20 state court on August 21, 2019. After removing the action to this Court, Defendants filed 21 a Motion to Compel Arbitration and Stay Proceedings (“Motion”). For the reasons stated 22 below, the Court DENIES WITHOUT PREJUDICE the Motion and GRANTS the 23 parties’ leave to conduct further discovery to aid the Court in the resolution of the Motion. 24 I. BACKGROUND 25 Plaintiff filed this putative class action in state court alleging violations of various 26 California wage-and-hour laws, which was then removed to this Court on September 25, 27 2019. (Notice of Removal, ECF No. 1; Compl., Ex A. to Notice of Removal, ECF No. 1- 28 2.) Defendants Charter Communications, LLC and Charter Communications, Inc. 1 (collectively, “Defendants” or “Charter”) subsequently filed the instant Motion alleging 2 that Plaintiff agreed to arbitrate the underlying claims when he was hired by Time Warner 3 Cable (“TWC”) in 2014, which later merged with Charter. (Mot. to Compel Arbitration 4 (“Mot.”), ECF No. 19; Mem. of P. & A. in supp. of Mot. (“Mem. of P. & A.”) at 1 n.1, ECF 5 No. 19-1.) Below, the Court summarizes the arbitration agreements central to this dispute 6 and both parties’ arguments regarding the Motion. 7 A. The JAMS Agreement 8 Defendants claim that Plaintiff signed an arbitration agreement as part of his 9 onboarding process with TWC in December 2016 that requires the claims in his class action 10 lawsuit to proceed to arbitration. (Mot. at 1.) As part of its hiring practices, TWC required 11 applicants for employment to complete an online “onboarding” process. (Decl. of Chance 12 Cassidy (“Cassidy Decl.”) ¶ 8, ECF No. 19-2.)1 This system required applicants to log into 13 TWC’s Onboarding System (“OBS”) using a unique login identification and a temporary 14 confidential access code available to only the applicant. (Id. ¶ 10.) 15 Once logged in, the applicant was asked to review various policies, including a 16 Mutual Agreement to Arbitrate (“JAMS Agreement”) which stated that 17 any and all claims, disputes, and/or controversies between you and TWC arising from or related to your employment with TWC shall be submitted 18 exclusively to and determined exclusively by binding arbitration before a single Judicial Arbitration and Mediations Services, Inc. (“JAMS”) arbitrator 19 under the Federal Arbitration Act, 9 U.S.C. § 1 et seq. (“FAA”). 20 (Id. ¶ 11; JAMS Agreement at 4, Ex. B to Cassidy Decl., ECF No. 19-3.) The JAMS 21 Agreement specifically applies to claims 22 (3) under any state law governing Charter’s obligation to provide meal, rest, or other breaks, (4) alleging that you were paid improperly or paid insufficient 23 wages, overtime, compensation, or that Charter failed to comply with any law relating to the payment of wages, (5) under any other state law related to your 24 employment with Charter[.] 25 (JAMS Agreement at 4.) It further included a waiver of all representative, collective, and 26 class actions, allowing employees to pursue claims against Charter only in their individual

27 1 Mr. Cassidy has been the Senior Director of Charter’s Human Resources Service Center since 2017, and states that he has personal knowledge of TWC’s personnel recordkeeping and all records maintained in 28 1 capacity. (Id. at 4–5.) It also explained why Charter utilized the JAMS agreement, 2 provided a link to the JAMS alternative dispute resolution website where the applicant 3 could review the JAMS arbitration rules, and allowed the applicant to download a PDF 4 copy of the agreement. (Cassidy Decl. ¶ 12; OBS Webpages at 7–8, Ex. C to Cassidy Decl., 5 ECF No. 19-3.) 6 Each applicant was then prompted to electronically acknowledge and accept the 7 terms of the Agreement. (Cassidy Decl. ¶ 13; OBS Webpages at 10.)2 The OBS 8 automatically recorded the date and time of each applicant’s acceptance of the Agreement’s 9 terms. (Cassidy Decl. ¶ 16.) 10 Plaintiff completed the onboarding process and accepted an online offer for 11 employment with TWC on December 24, 2014. (Id. ¶ 9.) Plaintiff thereafter accepted the 12 JAMS Agreement on December 28, 2014 at 6:45 p.m. using his unique login ID and 13 confidential access code. (Id. ¶ 17; Onboarding Status Details for Justin Sonico, Ex. A to 14 Cassidy Decl., ECF No. 19-3.) 15 B. The Solution Channel Agreement 16 In 2016, Charter acquired TWC. (Mem. of P. & A. at 1; Cassidy Decl. ¶ 2.) In 2017, 17 Charter launched Solution Channel, “an updated employment-based legal dispute 18 resolution program.” (Req. to Stip. to Arbitration (“Req.”) at 7, Ex. A to Decl. of Max 19 Fischer in supp. of Reply (“Fischer Decl.”) ¶ 4, ECF No. 27-2.) The Solution Channel 20 Program (“Program”) establishes equal employment opportunity policies and procedures 21 for reporting and resolving workplace issues. (Solution Channel Program Guidelines 22 (“Guidelines”), Ex. A to Decl. of Megan McDonough (“McDonough Decl.”), ECF No. 27- 23 5.) The Guidelines contain an enumerated list of “General Rules” stating that participation 24 in the Program was “a condition of working at Charter” and specifically providing the 25 following:

27 2 Mr. Cassidy attests that the webpages contained in Exhibit C “are identical to the OBS webpages in effect in December 2014, and are therefore identical to the webpages Plaintiff saw when he completed the 28 1 Upon implementation of Solution Channel, current employees will be provided a 30-day opt-out period. Those employees will be covered by 2 Solution Channel unless they opt out. Those employees covered by a collective bargaining agreement or other employment agreement are excluded 3 from Solution Channel unless expressly allowed under those agreements (although nothing in this document shall limit the applicability of any 4 arbitration or other dispute resolution provision contained in those agreements). 5 6 (Id. at 8, 13.) Current employees were enrolled in the Program unless they opted out. (Id. 7 at 13.) The Guidelines do not provide instructions about how to opt out or affirmatively 8 consent to participation in the program. 9 The Mutual Arbitration Agreement—referred to herein as the Solution Channel 10 Agreement (“SCA”)—is included as part of the Guidelines. Like the JAMS Agreement, it 11 requires that claims arising from employment disputes with Charter be submitted to 12 arbitration and bars claims from being brought in a representative, collective, or class 13 action. (SCA §§ B.1, D, Ex. A to McDonough Decl.)3 The SCA states that both the 14 employee and Charter “mutually agree” to these terms as a condition of employment. (Id. 15 § A.) The SCA also states that it constitutes “the complete agreement of the parties on the 16 subject of resolution of the covered disputes, and supersedes any prior or contemporaneous 17 oral or written understanding on this subject[.]” (Id. § P.) Finally, the SCA establishes that 18 it is effective “as of the date of [the employee’s] consent to participate in Solution Channel.” 19 (Id. § V.) The SCA has no place for an employee to sign or otherwise indicate his or her 20 mutual assent to its terms.

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Sonico v. Charter Communications, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sonico-v-charter-communications-llc-casd-2020.