Plows v. Rockwell Collins, Inc.
812 F. Supp. 2d 1063
C.D. Cal.2011Background
- Murphy and Plows are former Rockwell Collins employees bringing California Labor Code, B&P Code §17200, and PAGA claims as a class action representative; arbitration clauses exist in Murphy and Plows contracts but differ in form; Rockwell first sought removal/transfer rather than arbitration; Concepcion (2011) undermined Discover Bank preemption concerns about class waivers; Rockwell moved to compel arbitration after Concepcion; court conducted waiver and merits analysis split by plaintiff; court held Murphy waived arbitration rights due to delay and extensive court-based discovery; court held Plows’ non-PAGA claims potentially subject to arbitration only after further discovery on Gentry framework; PAGA claims in Plows remain non-arbitrable; court ordered discovery on enforceability and denied arbitration for Murphy entirely; court permitted renewed arbitration motion after discovery for Plows’ non-PAGA claims; decision issued August 9, 2011.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Waiver of arbitration as to Murphy | Murphy argues Rockwell waived arbitration rights | Rockwell contends no waiver occurred | Murphy waived arbitration rights; denial of motion granted |
| Arbitrability of Plows’ non-PAGA claims post-Concepcion | Gentry governs enforceability; discovery needed | Concepcion undermines Gentry; arbitration may be warranted | Gentry survives Concepcion; four-month discovery ordered before renewal of motion for non-PAGA claims |
| Arbitrability of Plows’ PAGA claims | PAGA waivers improper; cannot bar representative action | FAA preempts state rule allowing PAGA waivers | PAGA claims not subject to arbitration; denied |
Key Cases Cited
- Fisher v. A.G. Becker Paribas Inc., 791 F.2d 691 (9th Cir. 1986) (waiver factors for arbitration)
- Hoffman Construction Co., 969 F.2d 797 (9th Cir. 1992) (prejudice in waiver of arbitration)
- Van Ness Townhouses, 862 F.2d 754 (9th Cir. 1988) (delayed demand indicates inconsistency with arbitration)
- Brown v. Ralph's Grocery Co., 197 Cal.App.4th 489 (Cal. Ct. App. 2011) (post-Concepcion Brown; Gentry test discussed; discovery directed)
- Discover Bank v. Superior Court, 36 Cal.4th 148 (Cal. 2005) (unconscionability rule for class waivers preemption context)
- Gentry v. Superior Court, 42 Cal.4th 443 (Cal. 2007) (Gentry test for enforceability of class action waivers in employment contracts)
- Arguelles-Romero v. Superior Court, 184 Cal.App.4th 825 (Cal. Ct. App. 2010) (distinguishes Discover Bank from Gentry for FAA preemption)
- Auto Equity Sales v. Superior Court, 57 Cal.2d 450 (Cal. 1962) (principle cited on staying arbitration vs. litigation)
- Moses H. Cone Mem'l Hosp. v. Mercury Constr. Corp., 460 U.S. 1 (Supreme Court 1983) (FAA strong federal policy favoring arbitration)
- Circuit City Stores, Inc. v. Adams, 532 U.S. 105 (Supreme Court 2001) (scope of FAA and interstate commerce)
- Southland Corp. v. Keating, 465 U.S. 1 (Supreme Court 1984) (FAA national policy favoring arbitration)
- AT&T Mobility LLC v. Concepcion, 131 S. Ct. 1740 (2011) (invalidates Discover Bank rule preemption; class waivers enforceable)