Garcia v. Pacific Sunwear Stores CA2/7
B331888
Cal. Ct. App.Apr 11, 2025Background
- Ruby Garcia sued Pacific Sunwear Stores (PACSUN) for disability discrimination, retaliation, and wage/hour violations, alleging wrongful termination after taking medical leave.
- PACSUN moved to compel arbitration, asserting Garcia electronically signed an arbitration agreement at her employment start in 2016.
- Garcia denied ever signing any arbitration agreement, asserted the onboarding system was insecure, and noted HR staff could and did access employee accounts without authorization.
- PACSUN’s evidence consisted chiefly of HR VP Milligan’s declaration (employed since 2019), employment records, and documents showing a purported electronic signature on the arbitration agreement for Garcia.
- The trial court excluded most of Milligan’s declaration for lack of personal knowledge and denied the motion to compel arbitration, finding PACSUN failed to sufficiently authenticate Garcia’s electronic signature.
- PACSUN appealed, arguing the trial court erred in its evidentiary rulings and finding on authenticity.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Authentication of Electronic Signature | Garcia never signed the agreement; HR staff could impersonate employees and alter documents. | PACSUN argued system was secure and records showed Garcia signed. | PACSUN did not sufficiently authenticate Garcia's electronic signature; evidence properly excluded. |
| Personal Knowledge of Declarant | Milligan lacked first-hand knowledge of the 2016 processes. | Milligan’s HR role and document review sufficed. | Milligan lacked requisite personal knowledge; declaration was inadmissible. |
| Burden-Shifting in Arbitration Motions | Denial of signature shifted burden to PACSUN. | Garcia’s denial insufficient to create factual dispute. | Garcia’s denial was sufficient to shift burden; PACSUN failed to meet it. |
| Sufficiency of Employer’s Evidence | HR records and signature could be fabricated/inauthentic. | Business records and quasi-PMQ declaration were enough. | Evidence was conclusory and speculative; not sufficient to require arbitration. |
Key Cases Cited
- Engalla v. Permanente Medical Group, Inc., 15 Cal.4th 951 (Cal. 1997) (burden on party seeking arbitration to prove existence of valid agreement)
- Pinnacle Museum Tower Assn. v. Pinnacle Market Development (US), LLC, 55 Cal.4th 223 (Cal. 2012) (burden-shifting framework in arbitration)
- West v. Solar Mosaic LLC, 105 Cal.App.5th 985 (Cal. Ct. App. 2024) (authentication of electronic signatures; burden-shifting)
- Espejo v. Southern California Permanente Medical Group, 246 Cal.App.4th 1047 (Cal. Ct. App. 2016) (requirements for authenticating an electronic signature)
- Ruiz v. Moss Bros. Auto Group, Inc., 232 Cal.App.4th 836 (Cal. Ct. App. 2014) (conclusory evidence is insufficient for signature authentication)
