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