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Barnett v. First American Home Warranty Corp. CA4/1
D084315
Cal. Ct. App.
Aug 19, 2025
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Background

  • Vernon Barnett worked for First American Home Warranty Corp. from August 2022 to June 2023.
  • Barnett sued First American under California's Private Attorneys General Act (PAGA) for alleged Labor Code violations, initially asserting both individual and representative claims.
  • First American moved to compel arbitration based on an alleged arbitration agreement with Barnett.
  • Before the hearing, Barnett amended his complaint to explicitly state he was pursuing only representative PAGA claims on behalf of the State and aggrieved employees—not in his individual capacity.
  • The trial court denied First American's motion to compel arbitration, finding Barnett's amended complaint did not assert individual claims.
  • First American appealed the denial, contending that PAGA claims are subject to arbitration.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Can an employee pursue a "headless" PAGA action (no individual claim)? Barnett is not asserting individual claims, only representative PAGA claims for the state and others. First American argues PAGA claims involve individual claims, so arbitration should be compelled. A plaintiff may pursue only a nonindividual PAGA action; motion to compel arbitration denied.
Is there any arbitrable dispute when no individual claims are alleged? No individual claim = no arbitrable dispute for arbitration. The complaint still involves Barnett as an aggrieved employee. No individual claim means there is nothing to compel to arbitration.
Does removing individual claims from the FAC prevent future claims by Barnett? Barnett's amended pleading is clear and unambiguous; he is bound by his representation. FAC ambiguities mean Barnett might still pursue individual relief later. Plaintiff’s intent not to pursue individual claims is clear and binding.
Does state or federal law require arbitration of PAGA claims in this context? Only individual claims may be compelled to arbitration under Viking River; nonindividual claims stay in court. PAGA claims, even if styled as headless, should still be arbitrable under employment contract. California law bars forcing arbitration of nonindividual PAGA claims; federal law doesn’t compel otherwise.

Key Cases Cited

  • Balderas v. Fresh Start Harvesting, 101 Cal.App.5th 533 (Cal. Ct. App. 2025) (plaintiff can pursue a representative-only PAGA action without asserting individual claims)
  • Rodriguez v. Packers Sanitation Services LTD., LLC, 109 Cal.App.5th 69 (Cal. Ct. App. 2025) (no arbitration required if plaintiff forgoes individual PAGA claim)
  • Nickson v. Shemran, Inc., 90 Cal.App.5th 121 (Cal. Ct. App. 2023) (addresses division of individual and representative PAGA claims for arbitration)
Read the full case

Case Details

Case Name: Barnett v. First American Home Warranty Corp. CA4/1
Court Name: California Court of Appeal
Date Published: Aug 19, 2025
Citation: D084315
Docket Number: D084315
Court Abbreviation: Cal. Ct. App.