Vega v. Frandeli Group CA4/3

CourtCalifornia Court of Appeal
DecidedOctober 17, 2013
DocketG047847
StatusUnpublished

This text of Vega v. Frandeli Group CA4/3 (Vega v. Frandeli Group CA4/3) 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
Vega v. Frandeli Group CA4/3, (Cal. Ct. App. 2013).

Opinion

Filed 10/17/13 Vega v. Frandeli Group CA4/3

NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

FOURTH APPELLATE DISTRICT

DIVISION THREE

CHEREE VEGA,

Plaintiff and Respondent, G047847

v. (Super. Ct. No. 30-2012-00590568)

FRANDELI GROUP LLC, OPINION

Defendant and Appellant.

Appeal from an order of the Superior Court of Orange County, William M. Monroe, Judge. Affirmed. Payne & Fears and Daniel F. Fears for Defendant and Appellant. Calderone Law Firm, Vincent Calderone and Megan Hayati for Plaintiff and Respondent. * * * Plaintiff Cheree Vega filed a complaint in Orange County Superior Court alleging retaliation in violation of the Fair Employment and Housing Act (Gov. Code, § 12940 et seq.) (FEHA), wrongful termination in violation of public policy, and violation of Labor Code section 226, subdivision (f), after she was terminated from her employment at Frandeli Group, LLC (Frandeli). Frandeli moved to compel arbitration, arguing that Vega had signed a valid arbitration agreement (the agreement) at the time she was hired. The trial court found the agreement “permeated with unconscionability” and declined to enforce it. We agree with the trial court that the agreement was unconscionable, and therefore affirm. I FACTS From early January to mid-February 2012, Vega worked for Frandeli as an independent human resources consultant. She was then hired as a full-time employee. According to Vega, on the first day of her employment, she was given paperwork to complete, including the agreement, and was told that she “had to sign the agreement as a condition of employment with Frandeli. [Human resources representative Nancy] Caron told me that if I did not sign the Arbitration Agreement, Frandeli could not hire me.” Vega signed the agreement, which is a five-page, stand-alone document. It was signed by Angy Chin, chief financial officer, on Frandeli’s behalf. According to Chin, she met with Vega and “took whatever time was necessary to explain the contents of Ms. Vega’s new hire packet.” Chin does not contradict Vega’s statement that she was told signing the agreement was required as a condition of employment; indeed, she admits signing the agreement was required. The record does not include a declaration by Caron. The first paragraph of the agreement stated: “Except as otherwise mutually agreed in writing, the Parties hereby irrevocably agree to arbitrate in accordance with the terms of this Agreement to Arbitrate (‘Agreement’) any legal disputes, claims,

2 controversies, or disagreements among them . . . whatsoever relating to, arising from, or concerning Employee’s employment with Employer, including . . . wrongful termination or discrimination claims . . . shall be referred to and resolved exclusively by binding arbitration as well as this Agreement itself. . . . [¶] Without limitation, this Agreement shall apply to any legal disputes, claims, controversies, or disagreements among the Parties relating to or arising from harassment or discrimination claims or matters, state law, and federal law (including, without limitation, the Americans with Disabilities Act and the Civil Rights Act of 1964).” In March 2012, Vega was directed to hire a new human resources benefits representative. According to her verified complaint, Vega eventually settled on a candidate named Anthony Walker, who is African-American. She set up an appointment for Walker to meet with Chin, her supervisor. Chin eventually told Vega, who is also African-American, that Vega could not hire Walker, because Frandeli’s CEO, Doug Pak, “did not want to have an African American HR department.” Vega “was appalled and surprised by Chin’s comment. She told Chin that Mr. Walker was the best candidate she had come across in her search. Chin repeated again that because Pak had stated he didn’t want an African American HR [d]epartment, that Ms. Vega should continue her search to interview other candidates and find someone who was not African American.” Vega’s complaint stated she felt uncomfortable about excluding African- Americans from a continued search for no reason other than their race and informed Chin that she did not wish to do so. Chin informed her that she was required to do so. Vega delegated the task to Caron. Vega told Chin and Darci Mangus, Frandeli’s chief operating officer, that she felt it was wrong to exclude Walker because of his race. She said that she still wanted to hire him because she felt he was the best candidate for the job. Ultimately, Vega was asked by Chin and Mangus to hire a Caucasian woman for the position. Vega opposed this decision because this candidate’s qualifications were not as strong as

3 Walker’s. She told Chin and Mangus that she disagreed with the decision to hire a less qualified candidate over a more qualified one because of race. She complained that making hiring decisions based on race “was not right.” Soon after, on June 5, Vega was terminated from her employment at Frandeli. She was told by Mangus that she was “not a ‘good fit’” for the company. She was informed she was being terminated for not participating in a lunchtime “skill building meeting” with other employees. She was also told she was not being let go for work related performance issues. She was told that she could still provide contract work for Frandeli when needed. Vega filed a complaint with the Department of Fair Employment and Housing on August 3, 2012, requesting an immediate right-to-sue notice. The request was granted. On August 13, Vega filed the instant action in superior court, stating causes of action for retaliation under FEHA, wrongful termination in violation of public policy, and a violation of Labor Code section 226, subdivision (f), which pertains to the refusal to allow an employee to copy certain employment records. On September 24, Frandeli filed a motion to compel arbitration, arguing that Vega had signed a valid and enforceable agreement to arbitrate that applied to the instant dispute. Vega opposed, arguing the agreement was permeated by both procedural and substantive unconscionability and that severance of the offending clauses was not an adequate cure. Frandeli’s reply disputed Vega’s unconscionability arguments and also argued that any unconscionable provisions could be severed by the court. The court heard the matter on November 27, 2012. The court found that an arbitration agreement existed, but concluded the agreement was both procedurally and substantively unconscionable. With respect to substantive unconscionability, the court focused on three provisions raised by Vega: a fee-shifting provision, a confidentiality requirement (or “gag order”), and limits on discovery.

4 The court found all three provisions unconscionable, and concluded: “Given the fee/cost shifting provision, the gag order, and the confused discovery rights, this arbitration agreement is permeated with unconscionability, and reflects a systemic effort to impose arbitration on a weaker party. Severance of the offensive provisions is not an adequate cure, and no grounds exist to ‘reform’ the contract by re-writing the fee shifting, discovery and gag order provisions. The interests of justice would not be furthered by severance or ad hoc reformation, and defendant offers no reason to engage in such drastic cure methods.” Accordingly, the motion to compel arbitration was denied. Frandeli now appeals. II DISCUSSION A.

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Vega v. Frandeli Group CA4/3, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vega-v-frandeli-group-ca43-calctapp-2013.