Walters v. Sensient Natural Ingredients CA5

CourtCalifornia Court of Appeal
DecidedJanuary 26, 2024
DocketF085824
StatusUnpublished

This text of Walters v. Sensient Natural Ingredients CA5 (Walters v. Sensient Natural Ingredients CA5) 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
Walters v. Sensient Natural Ingredients CA5, (Cal. Ct. App. 2024).

Opinion

Filed 1/26/24 Walters v. Sensient Natural Ingredients CA5

NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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

FIFTH APPELLATE DISTRICT

PATRICK WALTERS, F085824 Plaintiff and Appellant, (Super. Ct. No. 21CV-02508) v.

SENSIENT NATURAL INGREDIENTS LLC, OPINION Defendant and Respondent.

APPEAL from a judgment of the Superior Court of Merced County. Mark V. Bacciarini, Judge. Justice Law Corporation, Douglas Han, Shunt Tatavos-Gharajeh, Chris Petersen, and Shelby Miner for Plaintiff and Appellant. Scheppach Bauer, John M. Scheppach and Thorey M. Bauer for Defendant and Respondent. -ooOoo- INTRODUCTION Appellant Patrick Walters brought suit, on behalf of himself and other aggrieved employees, against respondent Sensient Natural Ingredients LLC (Sensient) pursuant to the Labor Code Private Attorneys General Act of 2004 (PAGA) (Lab. Code, § 2698 et seq.). Sensient moved to compel arbitration of the individual PAGA claims and to dismiss the non-individual PAGA claims altogether.1 The trial court granted the motion, ordered the individual claims to arbitration, and dismissed the non-individual claims. On appeal, Walters argues dismissal of the non-individual claims is contrary to our Supreme Court’s recent holding in Adolph, and the dismissal therefore must be reversed. Sensient urges us to dismiss the appeal for lack of jurisdiction. Alternatively, Sensient does not dispute that the dismissal of the non-individual claims must be reversed as contrary to Adolph, but contends the non-individual claims must be stayed pending arbitration of the individual claims. Walters disagrees that the non-individual claims must be stayed. We exercise our discretion to treat the appeal as a petition for writ of mandate and hold that the order dismissing the non-individual PAGA claims is contrary to Adolph. We therefore issue a writ of mandate directing the trial court to vacate the order dismissing the non-individual PAGA claims, at which time the court may consider whether to stay court proceedings on the non-individual PAGA claims.

1 We use the terms “individual” and “non-individual” claims in accordance with our Supreme Court’s usage in Adolph v. Uber Technologies, Inc. (2023) 14 Cal.5th 1104 (Adolph). We use the term “individual” to refer to those claims brought by a plaintiff as a representative of the State and which seek to recover civil penalties under PAGA for Labor Code violations experienced by the plaintiff. (See Galarsa v. Dolgen California, LLC (2023) 88 Cal.App.5th 639, 648 (Galarsa) [referring to these claims as “Type A” claims].) We use the term “non-individual” to refer to those claims brought by a plaintiff as a representative of the State and which seek to recover civil penalties under PAGA for Labor Code violations experienced by employees other than the plaintiff. (Galarsa, at p. 649 [referring to these claims as “Type O” claims].)

2. FACTUAL BACKGROUND Sensient is a manufacturer of dehydrated ingredients. Walters worked as a production employee at one of Sensient’s facilities from 2016 until May 2020, at which time he went out on a leave of absence. He remained on leave of absence through at least December 5, 2022. On June 13, 2018, Walters attended a training at which he signed Sensient’s “Dispute Resolution Agreement” (Agreement). The Agreement provided in relevant part as follows:

“How This Agreement Applies. This Agreement is governed by the Federal Arbitration Act, 9 U.S.C. § 1 et seq. and evidences a transaction involving commerce. This Agreement applies to any dispute arising out of or related to Employee’s employment with Sensient Natural Ingredients, LLC . . . or termination of employment. . . .

“Except as it otherwise provides, this Agreement is intended to apply to the resolution of disputes that otherwise would be resolved in a court of law, and therefore this Agreement requires all such disputes to be resolved only by an arbitrator through final and binding arbitration and not by way of court or jury trial. . . .

“Except as it otherwise provides, this Agreement also applies, without limitation, to disputes with any entity or individual arising out of or relating to . . . compensation, classification, minimum wage, seating, expense reimbursement, overtime, breaks and rest periods . . . and state statutes or regulations, if any, addressing the same or similar subject matters, and all other . . . state legal claims (including without limitation torts) arising out of or relating to Employee’s employment or the termination of employment.” (Boldface omitted.) The Agreement also provided:

“How Arbitration Proceedings Are Conducted And Class, Collective, and Representative Action Waivers. . . .

“You and the Company agree to bring any dispute in arbitration on an individual basis only, and not on a class, collective, or private attorney general basis. Accordingly, [¶] . . . [¶]

3. “(c) There will be no right or authority for any dispute to be brought, heard or arbitrated as a private attorney general action (‘Private Attorney General Waiver’). The Private Attorney General Waiver does not apply to any claim you bring in arbitration as a private attorney general solely on your own behalf and not on behalf of or regarding others. The Private Attorney General Waiver shall be severable from this Agreement in any case in which there is a final judicial determination that the Private Attorney General Waiver is unenforceable. In such instances and where the claim is brought as a private attorney general, such private attorney general claims must be litigated in a civil court of competent jurisdiction.” (Boldface omitted.) Finally, the Agreement contained a general severability clause, stating, “in the event any portion of this Agreement is deemed unenforceable, the remainder of this Agreement will be enforceable. If the Class Action Waiver, Collective Action Waiver or Private Attorney General Waiver is deemed to be unenforceable, the Company and Employee agree that this Agreement is otherwise silent as to any party’s ability to bring a class, collective or representative action in arbitration.” PROCEDURAL BACKGROUND In April 2021, Walters’s attorney mailed a written notice to the Labor and Workforce Development Agency (LWDA) and Sensient pursuant to Labor Code section 2699.3. Over 65 days passed without the agency responding to Walters’s notice. In July 2021, Walters filed a complaint against Sensient seeking civil penalties under PAGA for alleged violations of Labor Code sections 201, 202, 203, 204, 218.5, 221, 226, subdivision (a), 226.3, 226.7, 246, 510, 512, subdivision (a), 558, 1174, subdivision (d), 1194, 1197, 1197.1, 1198, 2800, and 2802. In December 2022, Sensient filed a motion to compel arbitration of the individual PAGA claims and to dismiss the non-individual PAGA allegations. In support of this remedy, Sensient relied on the United States Supreme Court’s then-recent opinion in Viking River Cruises, Inc. v. Moriana (2022) 596 U.S. ___ [142 S.Ct. 1906] (Viking River).

4. In opposition to the motion to compel, Walters pointed out that the California Supreme Court had granted review in Adolph v. Uber Technologies, S274671, to address the holding in Viking River. (See Adolph v. Uber Technologies (Aug. 1, 2022, S274671).) Walters argued Viking River was wrongly decided on state law grounds, and the trial court should deny Sensient’s motion or stay the proceedings pending the decision in Adolph v.

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Walters v. Sensient Natural Ingredients CA5, Counsel Stack Legal Research, https://law.counselstack.com/opinion/walters-v-sensient-natural-ingredients-ca5-calctapp-2024.