Ellis v. U.S. Security Associates
224 Cal. App. 4th 1213
Cal. Ct. App.2014Background
- Ashley Ellis was hired by U.S. Security Associates in Sept. 2009, promoted, and supervised by Rick Haynes, who began sexually harassing her in Aug. 2010. Multiple employees complained; Haynes was counseled and later terminated in Dec. 2010. Ellis resigned Jan. 2011 after promised raise was not paid.
- Ellis received a DFEH right-to-sue letter on Dec. 14, 2010 and filed suit Nov. 17, 2011 alleging FEHA claims (sexual harassment/discrimination, failure to prevent, retaliation) and two nonstatutory tort claims.
- U.S. Security moved for judgment on the pleadings based on Ellis’s signed employment application, which contained a clause requiring any claim to be filed within six months of the employment action and waiving contrary statutes of limitation.
- The trial court granted the motion in a short order dismissing the complaint; Ellis appealed.
- The Court of Appeal accepted Ellis’s pleaded facts as true and considered whether the six-month contractual limitation was enforceable against FEHA claims.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether an employment application clause shortening the time to sue to six months is enforceable against FEHA claims | The six-month clause is unreasonable and unenforceable as contrary to FEHA public policy | Parties may contractually shorten statutes of limitations if the shortened period is reasonable; the clause is valid here | The six‑month limitation is unreasonable and unenforceable as applied to FEHA claims; trial court order reversed |
Key Cases Cited
- Armendariz v. Foundation Health Psychcare Servs., 24 Cal.4th 83 (2000) (FEHA statutory rights serve public interests and cannot be waived in ways that undermine statutory protections)
- Fox v. Ethicon Endo-Surgery, 35 Cal.4th 797 (2005) (policies underlying statutes of limitation and public policy favoring disposition on merits and sufficient time to litigate)
- Moreno v. Sanchez, 106 Cal.App.4th 1415 (2003) (contractual shortening of limitations periods upheld only in straightforward transactions with immediate, obvious accruals)
- Martinez v. Master Protection Corp., 118 Cal.App.4th 107 (2004) (six-month arbitration notice/limitations provision unconscionable and unenforceable as to FEHA and related statutory claims)
- Soltani v. Western & Southern Life Ins. Co., 258 F.3d 1038 (9th Cir. 2001) (discusses enforceability and unconscionability of short notice/limitations clauses in employment-related contracts)