Yarnell v. Michael Cadillac, Inc. CA5

CourtCalifornia Court of Appeal
DecidedAugust 8, 2025
DocketF085794
StatusUnpublished

This text of Yarnell v. Michael Cadillac, Inc. CA5 (Yarnell v. Michael Cadillac, Inc. 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
Yarnell v. Michael Cadillac, Inc. CA5, (Cal. Ct. App. 2025).

Opinion

Filed 8/8/25 Yarnell v. Michael Cadillac, Inc. 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NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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

JORDAN YARNELL, F085794 Plaintiff and Respondent, (Super. Ct. No. 20CECG02289) v.

MICHAEL CADILLAC, INC., OPINION Defendant and Appellant.

APPEAL from an order of the Superior Court of Fresno County. D. Tyler Tharpe, Judge. Fine, Boggs & Perkins, John P. Boggs, David J. Reese, Thomas H. Porter, and William D. Wheelock for Defendant and Appellant. Domb & Rauchwerger, Zack I. Domb, Devin E. Rauchwerger, and Melissa N. Avila for Plaintiff and Respondent. -ooOoo- INTRODUCTION This appeal concerns a dispute related to an arbitration agreement between appellant and defendant Michael Cadillac, Inc., and respondent and plaintiff Jordan Yarnell. Respondent was previously employed by appellant and, following the end of his employment, brought claims under the Labor Code against appellant both on his own behalf and on behalf of the state pursuant to the Private Attorneys General Act (PAGA). Following approximately two years of litigation, appellant moved to compel arbitration of respondent’s individual PAGA claims following Viking River Cruises, Inc. v. Moriana (2022) 596 U.S. 639, and sought dismissal of respondent’s representative PAGA claims. The trial court concluded appellant had failed to demonstrate an arbitration agreement between the parties exists; the purported agreement was unconscionable; and appellant had waived its ability to seek arbitration due to unnecessary delay and prejudice to respondent. We conclude the trial court erred both by applying the wrong test to determine whether an arbitration agreement exists and in finding the agreement unconscionable. While the trial court also erred in its analysis of waiver, due to the recent issuance of certain opinions from our Supreme Court, upon reviewing the question de novo, we agree with the trial court that waiver is established under the facts of this case. Accordingly, we affirm the order denying the petition to compel arbitration. BACKGROUND Respondent filed suit against appellant in August 2020, alleging claims under the Labor Code, both individually and on a representative basis as authorized by PAGA. Appellant answered the suit in September 2020, and filed an amended answer in November 2020. Among the affirmative defenses invoked in both of these answers was the existence of an arbitration agreement. Respondent sought to have the case designated as complex in September 2021, which, being unopposed, was granted by order in April 2022. On June 15, 2022, the Supreme Court issued its opinion in Viking River Cruises, Inc. v. Moriana (2022) 596 U.S. 639 (Viking River), overruling Iskanian v. CLS Transportation Los Angeles, LLC (2014) 59 Cal.4th 348, which had prevented courts from separating individual PAGA claims from representative PAGA claims. Approximately eight months later, on January 12, 2023, appellant filed a petition to

2. compel arbitration, asserting Viking River required respondent’s individual claims be sent to arbitration and his representative claims be dismissed. Respondent opposed this motion, arguing that appellant had not made a showing that an agreement to arbitrate exists, the agreement that was asserted to exist was unconscionable, and appellant had waived the ability to arbitrate. The trial court found in favor of respondent on each of his arguments, concluding first that appellant had failed to demonstrate the existence of an agreement to arbitrate, because the purported arbitration agreement was not appropriately authenticated. This conclusion is wrong, based on the opinion we issued just last year in Ramirez v. Golden Queen Mining Co., LLC (2024) 102 Cal.App.5th 821 (Ramirez), which the trial court unfortunately did not have the benefit of when issuing its decision in the current case. However, the court also found both unconscionability and waiver, either of which is sufficient to defeat the enforcement of an arbitration agreement. While we do not agree with the trial court’s unconscionability analysis, we do agree that in the circumstances of this case, appellant has waived its ability to compel arbitration of respondent’s individual claims. ANALYSIS/DISCUSSION I. Standard of Review On appeal, we generally review questions of law de novo, and questions of fact for substantial evidence. (McGhan Medical Corp. v. Superior Court (1992) 11 Cal.App.4th 804, 809.) The question of whether the trial court followed the established test for determining the existence of an agreement to arbitrate is a question of law subject to de novo review. (Cueto v. Dozier (2015) 241 Cal.App.4th 550, 560; Enrique M. v. Angelina V. (2004) 121 Cal.App.4th 1371, 1378.) The standard of review applied in relation to enforceability of a contract depends on the nature of the evidence at issue. “ ‘Absent conflicting extrinsic evidence, the validity of an arbitration clause, including whether it is subject to revocation as

3. unconscionable, is a question of law subject to de novo review.’ ” (Magno v. The College Network, Inc. (2016) 1 Cal.App.5th 277, 283.) “ ‘However, where an unconscionability determination “is based upon the trial court’s resolution of conflicts in the evidence, or on the factual inferences which may be drawn therefrom, we consider the evidence in the light most favorable to the court’s determination and review those aspects of the determination for substantial evidence.” ’ ” (Lhotka v. Geographic Expeditions, Inc. (2010) 181 Cal.App.4th 816, 820–821; see Fisher v. MoneyGram Internat., Inc. (2021) 66 Cal.App.5th 1084, 1094.) Our review of waiver similarly depends on whether the decision is made based on disputed facts or inferences, in which case it is reviewed for substantial evidence. (See Campbell v. Sunshine Behavioral Health, LLC (2024) 105 Cal.App.5th 419, 428.) Because, as explained further below, the trial court did not apply the correct legal standard as articulated in later filed opinions, we will address the question de novo. (Quach v. California Commerce Club, Inc. (2024) 16 Cal.5th 562, 585 (Quach) [“In ruling on Commerce Club’s motion to compel arbitration, the trial court did not have the benefit of Morgan [v. Sundance, Inc. (2022) 596 U.S. 411 (Morgan)] or of our decision today, so in considering Quach’s waiver defense, it did not apply the generally applicable law of waiver. We do so now, reviewing de novo the undisputed record of the trial court proceedings and asking whether Quach has established by clear and convincing evidence that Commerce Club knew of its contractual right to compel arbitration and intentionally relinquished or abandoned that right.”].)

II. The Trial Court Erred in Concluding Appellant Failed to Show the Existence of an Arbitration Agreement The trial court in this case found a dispute of fact concerning the authenticity of the arbitration agreement purportedly existing between the parties based solely on respondent’s failure to remember signing this document. From there, it concluded appellant had failed to adequately authenticate the document, and therefore no evidence

4. was in front of the court establishing an agreement to arbitrate existed.

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Yarnell v. Michael Cadillac, Inc. CA5, Counsel Stack Legal Research, https://law.counselstack.com/opinion/yarnell-v-michael-cadillac-inc-ca5-calctapp-2025.