Tanguilig v. Neiman Marcus Grp., Inc.

231 Cal. Rptr. 3d 749, 22 Cal. App. 5th 313
CourtCalifornia Court of Appeal, 5th District
DecidedApril 16, 2018
DocketA141383
StatusPublished
Cited by26 cases

This text of 231 Cal. Rptr. 3d 749 (Tanguilig v. Neiman Marcus Grp., 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
Tanguilig v. Neiman Marcus Grp., Inc., 231 Cal. Rptr. 3d 749, 22 Cal. App. 5th 313 (Cal. Ct. App. 2018).

Opinion

Streeter, Acting P.J.

*753*316I. INTRODUCTION

Appellant Bernadette Tanguilig brought suit against her former employer, Neiman Marcus Group, Inc. (NMG), alleging a combination of individual and class claims for wrongful termination in violation of public policy and multiple violations of the California Labor Code. Early in the trial court proceedings, NMG successfully demurred to Tanguilig's wrongful termination and related claims, and several years later, moved to dismiss the remaining claims pursuant to California's five-year dismissal statute, *317Code of Civil Procedure section 583.310.1 The trial court granted the motion and dismissed the suit. On appeal, Tanguilig urges us to overturn the five-year dismissal order, arguing primarily that the trial court erred in failing to toll the five-year clock under section 583.340, subdivision (c), for the period during which an order compelling co-plaintiff Juan Carlos Pinela to arbitration was in effect. Tanguilig also appeals an order sustaining NMG's demurrer and an award of prevailing-party costs to NMG.

Finding no merit to any of the assigned errors, we affirm.

II. BACKGROUND

Tanguilig was employed by NMG, a Texas-headquartered luxury fashion retailer, at its San Francisco location from 2002 to 2007. At the core of this case is an arbitration agreement (the NMG Agreement or the NMG Arbitration Agreement) which NMG introduced in July 2007. NMG notified its employees that acceptance of the NMG Agreement was a mandatory condition of employment which would be implied for all employees who continued to work at any NMG location beyond July 15, 2007. Tanguilig took the view the NMG Agreement violated California public policy, objected to it, and unsuccessfully tried to negotiate with NMG over its terms. When this attempt at negotiation failed, Tanguilig chose not to return to work after July 15 to avoid being bound by the NMG Agreement, and as a result, NMG treated her failure to show up for work as a voluntary resignation.

Tanguilig sued, originally bringing this action in August 2007. She filed her First Amended Complaint (FAC) on December 19, 2007, alleging 10 causes of action against NMG: (1) wrongful termination in violation of public policy; (2) wrongful retaliation for refusing to consent to the NMG Agreement; (3) wrongfully requiring employees to agree to allegedly illegal terms in violation of Labor Code section 432.5 ; (4) failure to provide 10-minute rest periods in violation of Labor Code section 226.7 ;2 (5) failure to provide 30-minute meal periods in violation of Labor Code section 512 ; (6) failure to pay overtime wages in violation of Labor Code sections 510 and 1198 ; (7) failure to pay minimum wage in violation of Labor Code section 1182.11 ; and (8) failure to pay wages owed at the time of discharge in violation of Labor Code sections 201 and 202. Tanguilig also alleged (9) she was entitled to civil penalties pursuant to Labor Code section 2699 et seq. , the Private Attorney General Act of 2004 (PAGA); and (10) NMG injured her and the general public by putting itself *754in an unfairly advantageous position *318in violation of the Unfair Competition Law (UCL), Business and Professions Code section 17200 et seq. Counts 1 through 8 were individual claims, while count 9 was a representative PAGA claim, and count 10 was something Tanguilig refers to as a "representative" claim under the UCL.

What followed was a long, complex series of procedural events over the next six years, eventually culminating in the dismissal of Tanguilig's claims in February 2014 pursuant to section 583.310. For the sake of clarity, we divide this procedural history into four major periods.

A. Tanguilig's Initial Suit

From August 2007 until March 2011, Tanguilig proceeded as the sole plaintiff in the action,3 which was single-assigned to the Honorable Richard A. Kramer.

In March 2008, NMG demurred to counts 1, 2, 3, 9, and 10 of the FAC, and moved to strike additional portions of that complaint. In June of that year, Judge Kramer granted the relief sought by NMG, sustaining the demurrer as to counts 1, 2, 3, 9, and 10 without leave to amend, and striking substantial portions of the FAC, effectively eliminating claims 4, 5, 6, and 7 subject to amendment. From June to September 2008, Tanguilig sought writ review from this court. We ultimately denied her petition.

Tanguilig filed her SAC in October 2008, adding class action allegations. The SAC revived some of the claims from the FAC, alleging seven causes of action, including a PAGA claim and several other claims she sought to pursue on behalf of a putative class: (1) violation of Labor Code sections 226.7 and 512 ; (2) violation of Labor Code section 226 ; (3) violation of Labor Code sections 510 and 1198 and IWC Wage Order 4; (4) violation of Labor Code section 1194 and IWC Wage Order 4; (5) violation of Labor Code sections 201 and 202 ; (6) violation of Labor Code section 2699 et seq. (PAGA); and (7) violation of Business and Professions Code section 17200 et seq.

To support her class allegations, Tanguilig sought employee records and other information through various discovery requests directed to NMG over the next two years. She says this proved difficult, as NMG was recalcitrant in responding to her discovery, although she eventually received enough information to move for class certification on June 22, 2011. Judge Kramer deferred decision on class certification, however, in part because of Tanguilig's decision to further amend her complaint.

*319B. Tanguilig Adds Pinela as a Co-Plaintiff

In March 2011, Tanguilig added as a co-plaintiff Juan Carlos Pinela, an employee at NMG's Newport Beach store from November 2007 to October 2009, who, unlike Tanguilig, had signed the NMG Agreement. Tanguilig and Pinela together filed a Third Amended Complaint (TAC), which reiterated the claims in the SAC, except it removed all references to the IWC Wage Order and added an additional claim.4 Thus, the final list of claims asserted by Tanguilig and Pinela encompassed seven claims they sought to pursue on behalf of a putative class, as well as the PAGA claim.

*755The addition of Pinela created what would become a lasting roadblock in the case, the effects of which would be felt for years to come. Pinela was a signatory party to the NMG Agreement, and as a result, after he joined as a plaintiff, NMG filed a motion to compel him to arbitrate his claims. Refraining from hearing Tanguilig's and Pinela's class certification motion before resolving the motion to compel arbitration, Judge Kramer issued a ruling (the Arbitration Order) on the motion to compel in November 2011, finding the NMG Agreement enforceable. Judge Kramer thus held Pinela was bound by the terms of the NMG Agreement and could only pursue his non-PAGA claims in arbitration.

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Cite This Page — Counsel Stack

Bluebook (online)
231 Cal. Rptr. 3d 749, 22 Cal. App. 5th 313, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tanguilig-v-neiman-marcus-grp-inc-calctapp5d-2018.