Whitney v. Suburban Propane, L.P.

CourtDistrict Court, E.D. California
DecidedJuly 15, 2022
Docket2:22-cv-00633
StatusUnknown

This text of Whitney v. Suburban Propane, L.P. (Whitney v. Suburban Propane, L.P.) is published on Counsel Stack Legal Research, covering District Court, E.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Whitney v. Suburban Propane, L.P., (E.D. Cal. 2022).

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 EASTERN DISTRICT OF CALIFORNIA 10 ----oo0oo---- 11 12 LINNEA WHITNEY, on behalf of No. 2:22-cv-00633 WBS AC herself and others similarly 13 situated, 14 Plaintiff, ORDER RE: DEFENDANT’S MOTION TO COMPEL ARBITRATION 15 v. 16 SUBURBAN PROPANE, L.P., 17 Defendant. 18 19 ----oo0oo---- 20 Plaintiff Linnea Whitney brought this putative class 21 action against defendant Suburban Propane based on allegations 22 that defendant routinely overcharged plaintiff and members of the 23 putative class for propane defendant supplied. Specifically, the 24 Complaint alleges (1) breach of contract and the implied covenant 25 of good faith and fair dealing; (2) an alternative claim for 26 unjust enrichment/quasi-contract; (3) violation of California’s 27 Rosenthal Fair Debt Collection Practices Act, Cal. Civ. Code 28 § 1788 et seq.; (4) violation of California’s Unfair Competition 1 Law, Cal. Bus. & Prof. Code § 17200 et seq; and (5) negligent 2 infliction of emotional distress. (Compl. (Docket No. 1).) 3 Defendant now moves to compel plaintiff to arbitrate her claims 4 and seeks dismissal of the action. (Mot. (Docket No. 11-1).) 5 I. Facts & Procedural History1 6 Plaintiff is a former resident of Siskiyou County who 7 has maintained an account with defendant for delivery of propane 8 gas to her now-former residence in the County since December of 9 2019. (Compl. at ¶¶ 5, 20.) Many County residents rely on 10 defendant and other propane suppliers for fuel to heat their 11 homes during the winter and for other purposes. (Id. at ¶ 12.) 12 Defendant delivers propane to customers on a monthly basis. (Id. 13 at ¶ 14.) To determine the amount of gas used by a customer, and 14 thus the amount the customer should be billed, a representative 15 of defendant reads the gas meter at a customer’s home or 16 business, which displays the amount of gas used in a given 17 period. (Id. at ¶ 15.) Plaintiff’s service agreement with 18 defendant (the “Contract”) established this procedure for 19 ascertaining payments owed to defendant. (See id. at ¶ 20; 20 Compl., Ex. A (Docket No. 1-1).) 21 “From at least 2020 onward,” however, plaintiff alleges 22 that defendant erroneously billed her and members of the putative 23 class for amounts of gas they did not actually consume. (Compl. 24 at ¶ 16.) For example, plaintiff alleges that defendant charged 25 her over $4,000 for a two-month usage period, billing her for an 26 amount of gas that a residential customer typically uses over the 27 1 All facts recited herein are as alleged in the 28 Complaint, except as otherwise noted. 1 course of two years, which would have been “virtually impossible” 2 for her to do in two months. (Id. at ¶¶ 18-19, 21.) Several 3 months later, defendant issued plaintiff a second bill, this time 4 for over $7,000, based on consumption of an even larger amount of 5 gas. (Id. at ¶ 29.) Plaintiff alleges defendant has repeatedly 6 refused to correct these erroneous bills and has since issued an 7 outstanding balance statement of $9,999.99, which plaintiff 8 alleges is likewise untethered to any actual gas consumption. 9 (See id. at ¶¶ 24-33.) She further alleges that other customers 10 have been subject to similar practices and that they, like her, 11 have been unable to close their accounts with defendant or 12 recover security deposits paid to defendant pending satisfaction 13 of their erroneous billing statements. (Id. at ¶¶ 32-41.) 14 The Contract includes an arbitration agreement (the 15 “Agreement”). (See Compl., Ex. A, at 4.) The Agreement provides 16 that “Customer and Suburban agree that . . . they each are 17 waiving the right to a trial by judge or jury or to participate 18 in a class action with respect to any Dispute.” (Id.) “Dispute” 19 is defined so as to “be broadly interpreted to include, without 20 limitation, any and all claim(s) arising out of or relating in 21 any way to any aspect of the relationship between Suburban and 22 Customer, whether based in contract, tort, statute, fraud, 23 misrepresentation or any other legal theory.” (Id.) The 24 Agreement exempts four categories of claims from this definition, 25 including claims by the customer for physical injury to the 26 customer or their property, and claims by Suburban for payment of 27 amounts allegedly owed to it under the Contract. (Id.) 28 Pursuant to the Agreement, if a Dispute is not resolved 1 informally between the parties, either party may commence an 2 arbitration proceeding. The Agreement includes a clause 3 providing that arbitrations “will be governed by the Commercial 4 Dispute Resolution Procedures and the Supplementary Procedures 5 for Consumer Related Disputes (collectively, ‘AAA Rules’) of the 6 American Arbitration Association” (“AAA”) and noting that “[t]he 7 AAA Rules are available online at www.adr.org” (the 8 “Incorporation Clause”). The Agreement further provides that 9 “[a]ll issues that relate to the Dispute are for the arbitrator 10 to decide” (the “Delegation Clause”). 11 II. Legal Standard 12 The Federal Arbitration Act (“FAA”) provides that a 13 written provision in a “contract evidencing a transaction 14 involving commerce to settle by arbitration a controversy 15 thereafter arising out of such contract . . . shall be valid, 16 irrevocable, and enforceable, save upon such grounds as exist at 17 law or in equity for the revocation of any contract.” 9 U.S.C. 18 § 2. Because arbitration is a matter of contract, “the central 19 . . . purpose of the FAA is to ensure that private agreements to 20 arbitrate are enforced according to their terms.” Stolt-Nielsen 21 S.A. v. AnimalFeeds Int’l Corp., 559 U.S. 662, 682 (2010) 22 (internal quotation marks omitted); see also Perry v. Thomas, 482 23 U.S. 483, 490 (1987) (under the FAA, arbitration agreements “must 24 be rigorously enforced”) (internal quotation marks omitted, 25 alterations adopted). 26 The FAA “leaves no place for the exercise of discretion 27 by a district court, but instead mandates that district courts 28 shall direct the parties to proceed to arbitration on issues as 1 to which an arbitration agreement has been signed.” Dean Witter 2 Reynolds, Inc. v. Byrd, 470 U.S. 213, 218 (1985). “[A]s a matter 3 of federal law, any doubts concerning the scope of arbitrable 4 issues should be resolved in favor of arbitration, whether the 5 problem at hand is a construction of the contract language itself 6 or an allegation of waiver, delay, or like defense to 7 arbitrability.” Moses H. Cone Mem’l Hosp. v. Mercury Const. 8 Corp., 460 U.S. 1, 24–25 (1983); see Poublon v. C.H. Robinson 9 Co., 846 F.3d 1251, 1259 (9th Cir. 2017) (same). 10 Upon a showing that a party has failed to comply with a 11 valid arbitration agreement, the district court must issue an 12 order compelling arbitration. See Cohen v. Wedbush, Noble Cooke, 13 Inc., 841 F.2d 282, 285 (9th Cir. 1988). “[T]he FAA limits 14 courts’ involvement to determining (1) whether a valid agreement 15 to arbitrate exists and, if it does, (2) whether the agreement 16 encompasses the dispute at issue.” Cox v. Ocean View Hotel 17 Corp., 533 F.3d 1114, 1119 (9th Cir.

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Bluebook (online)
Whitney v. Suburban Propane, L.P., Counsel Stack Legal Research, https://law.counselstack.com/opinion/whitney-v-suburban-propane-lp-caed-2022.