PAULINE MARY HUFF, Plaintiff and Appellant, v. INTERIOR SPECIALISTS, INC., et al., Defendants and Respondents.
D082036
COURT OF APPEAL, FOURTH APPELLATE DISTRICT DIVISION ONE STATE OF CALIFORNIA
Filed 12/27/24
CERTIFIED FOR PARTIAL PUBLICATION*
(Super. Ct. No. 37-2021-00016138-CU-OE-CTL)
Bibiyan Law Group, David D. Bibiyan, Jeffrey D. Klein and Henry G. Glitz for Plaintiff and Appellant.
Ogletree, Deakins, Nash, Smoak & Stewart, Ryan H. Crosner and Daniel Rojas for Defendants and Respondents.
* Pursuant to
After the class and PAGA actions were consolidated, Interior Specialists filed a separate motion tо compel Huff’s PAGA claims to arbitration. On October 21, 2022, the trial court reiterated its earlier finding that Huff validly signed the agreement. Then, relying on the United States Supreme Court’s then-recent decision in Viking River Cruises, Inc. v. Moriana (2023) 596 U.S. 639 (Viking River), it ordered Huff’s claims brought on her own behalf (her individual PAGA claims) to arbitration, and dismissed the claims brought on behalf of other current or former employees (her nonindividual PAGA claims) without prejudice for lack of standing.
For reasons we explain, we conclude that Huff timely appealed from the October 21 order dismissing her nonindividual PAGA claims. On the merits of that order, we reverse based on the California Supreme Court’s decision in Adolph, supra, 14 Cal.5th 1104, which rejected Viking River’s interpretation of California law on the issue of standing. Because we are reversing based on Adolph, we need not address Huff’s additional arguments concerning the electronic signature.
FACTUAL AND PROCEDURAL BACKGROUND
Huff worked for Interior Specialists in a customer services role between November 2020 and January 2021. In April 2021, she sued Interior Specialists asserting individual and class claims for relief under various wage-and-hour provisions of the
As to the class action, in November 2021 Interior Specialists moved to compel Huff to submit her claims to arbitration. The motion was supported
The arbitration agreement, attached to Lazar’s declaration, generally provided that “any disputes regarding employment with or termination of employment from” Interior Specialists would be submitted to binding arbitration. The agreement limited the parties to pursuing claims “only in their individual capacities” and, conversely, required them to waive their rights “to submit, initiate, or participate in a representative capacity, or as a plaintiff, claimant or member of a class action, collective action or other representative or joint action, regardless of whether the action is filed in arbitratiоn or in court.” Regarding PAGA claims specifically, the agreement stated in relevant part:
“Except to the extent this provision is unenforceable as a matter of law, the parties agree that each may bring and pursue claims against the other only in their individual capacities, and may not bring, pursue, or act as a plaintiff in any purported representative or private attorney general proceeding other than on an individual basis. . . . The parties expressly agree that any representative claims that are found not subject to arbitration under this agreement shall be resolved in court and shall be stayed pending the outcome of the arbitration.” (Capitalization omitted.)
Huff opposed the motion to compel arbitration, primarily arguing that the arbitration agreement was invalid because her “own signature appear[ed] nowhere on the” document “but rather [was] signed by someone else apparently named ‘William’ . . . .” Huff explained that when she opened the agreement in DocuSign, it was “non-interactive”—meaning she was not able to click anywhere or enter any information into the document—and it was already signed by “William.” To corroborate this point, Huff referenced an e-mail she sent to Lazar on December 1, 2020:
“Good morning Brittany. Did you get my I-9? Also, all of the forms I have received from you (Docu-Sign), has someone else’s name inserted when I click on the ‘sign’ button. Could you please check this for me on all documents I have signed in Docu-Sign to see if there are problems with my electronic signatures? Thanks.” (Capitalization omitted.)
Huff received no response to her e-mail.
On May 27, 2022, the trial court granted the motion to compel arbitration. As to the validity of the agreement, the court found sufficient evidence establishing that Huff consented to arbitration. It specifically determined that the agreement must have been interactive since it contained accurate personal information about Huff that only she could have known. Moreover, she admitted in her e-mail that she “click[ed] on the ‘sign’ button” which is all someone can do when signing electronically. In the court’s view, the fact that Huff “did everything [she] could to sign” the agreement evidenced her intent to sign. “[T]hat there was some kind of computer glitch
In the meantime, Interior Specialists filed a separate motion to comрel arbitration of Huff’s PAGA claims.3 Huff opposed the motion, reiterating that the arbitration agreement was invalid because she did not sign it. Based on Iskanian v. CLS Transportation Los Angeles, LLC (2014) 59 Cal.4th 348 (Iskanian), she further contended that insofar as the agreement required her to waive her PAGA action, it was unenforceable as a matter of public policy.
In the event the court found the agreement enforceable as to her individual PAGA claims, she urged the court not to dismiss her nonindividual claims. Huff directed the court’s attention to Adolph, supra, 14 Cal.5th 1104—which was then pending review on the issue of standing to pursue nonindividual claims once individual claims are ordered to arbitration—as well as language in the agreement stating “that any representative claims
Relying on Viking River, supra, 596 U.S. 639—decided shortly after the motion to compel arbitration of the PAGA claims was filed—Interior Specialists maintained that the arbitration agreement was valid to the extent it required Huff to submit her individual claims to arbitration, and that her nonindividual claims should be dismissed for lack of standing. It also argued there was no basis to relitigate the signature issue.
The court agreed with Interior Specialists. On October 21, 2022, it ordered Huff’s individual PAGA claims to arbitration, dismissed her nonindividual claims without prejudice for lack of standing, and otherwise stayed the action pending completion of arbitration. The court considered Viking River “dispositive” of those issues. As to the validity of the agreement, the court explained that issue was already litigated and decided, expressly incorporating by reference its May 27, 2022 order.
Huff filed a petition for writ of mandate in this court, arguing that the trial court erred in dismissing rather than staying the nonindividual PAGA claims and in finding that she signed the arbitration agreement. We summarily denied the writ petition on January 18, 2023 with the following order:
“The petition for writ of mandate and informal response have been read and considered by Justices Irion, Do, and Buchanan. The petition is denied. (See, e.g., Mauro B. v. Superior Court (1991) 230 Cal.App.3d 949, 952–953 [‘It is well settled that a party is not еntitled to obtain review of an appealable judgment or order by means of a petition for an extraordinary writ where he or she failed to timely file an appeal from the ruling.’].)”
Interior Specialists opposed, principally contending that the trial court lacked jurisdiction to reconsider its order because the time to appeal—which Interior Specialists posited was 60 days from October 26, 2022, when the superior court clerk mailed the minute order of the October 21 decision—had passed, rendering the order final. On the merits, Interior Specialists maintained that Viking River controlled. Huff asserted in response that the time to appeal had not passed. In her view, she had 180 days from the October 21, 2022 order—until April 19, 2023—to file a notice of appeal. The 60-day time limit did not apply because she was not served with a Notice of Entry and the minute order mailed by the clerk was not filed-endorsed as required by
Reconsideration was denied on April 14, 2023. With the benefit of published appellate decisions addressing standing to pursue nоnindividual PAGA claims post-Viking River, the trial court appropriately recognized that it wrongly dismissed Huff’s nonindividual claims. It explained that but for this court’s summary denial of the writ petition, it would have granted reconsideration. However, the trial court interpreted our summary denial order to mean: “(1) Huff should have filed an appeal since the court’s order of October 21, 2022, dismissing the non-individual representative PAGA claims,
On April 18, 2023, Huff filed two notices of apрeal—one from the May 27, 2022 order finding the arbitration agreement enforceable, compelling arbitration of her claims, and staying the class action, and another from the October 21, 2022 order. Before briefing began, we asked Huff to file a letter addressing the appealability of these orders. She filed a response, which we deferred to be considered with the appeal itself.
DISCUSSION
On appeal, Huff reasserts her two main arguments: (1) the arbitration agreement is invalid because she did not sign it, and (2) the trial court erred in dismissing her nonindividual PAGA claims. Addressing the second issue first, we conclude that Huff timely appealed the order dismissing her nonindividual claims under the death knell doctrine and, оn the merits, we must reverse in light of Adolph, supra, 14 Cal.5th 1104. Since the signature issue would merely provide an alternative ground for reversing the dismissal order, we decline to reach Huff’s arguments on that point.
A. October 21, 2022 Order Dismissing Nonindividual PAGA Claims
1. Timeliness of the Appeal
The parties agree that the order dismissing the nonindividual PAGA claims is appealable under the death knell doctrine. (See generally Allen v. San Diego Convention Center Corp., Inc. (2022) 86 Cal.App.5th 589, 596 [“An order dismissing a representative PAGA claim is immediately appealable to the extent it effectively rings the ‘death knell’ of that claim”].) They disagree, however, on whether the appeal was timely. Their dispute focuses on whether the 180-day or 60-day deadline applies and, more precisely, whether the trial court’s October 21, 2022 minute order was “filed-endorsed” within the meaning of
“ ‘The time of appeаlability, having jurisdictional consequences, should above all be clear.’ ‘[B]right lines are essential in this area, to avoid both inadvertent forfeiture of the right to appeal and excessive protective appeals by parties afraid they might suffer such a forfeiture.’ ‘ “Neither parties nor appellate courts should be required to speculate about jurisdictional time limits.” ’ ” (Meinhardt v. City of Sunnyvale (2024) 16 Cal.5th 643, 649–650,
Here, it is undisputed that no document entitled “Notice of Entry” was ever served in this case. The only issue is whether the October 21, 2022 minute order, mailed to Huff by the superior court clerk, was “filed-endorsed.” We agree with Huff that it was not.
As explained in
Resisting this conclusion, Interior Specialists contends that we have “already determined that [Huff’s] appeal is untimely” (capitalization omitted), referencing our order summarily denying the writ petition. But it is well established that “[a] summary denial of a writ petition does not establish law of the case whether or not that denial is intended to be on the merits or is based on some other reason.” (Kowis v. Howard (1992) 3 Cal.4th 888, 899.) This is truе even if the summary denial order includes a brief explanatory statement or citation. (
Interior Specialists also emphasizes that the minute order was signed by the trial judge. A judge’s signature may be relevant in assessing the finality of an order. (See, e.g., People v. One Parcel of Land (1991) 235 Cal.App.3d 579, 582, fn. 2 [service of an order that “did not bear the judge’s signature or signature stamp . . . did not give notice that a completed order had been entered” and therefore “did not commence the [60-day] appeal deadline”].)7 But it is not tantamount to a filed-endorsement. Although the
Relatedly, Interior Specialists points out that in 2016 the Judicial Council amended
To the contrary, the 2016 amendment to
In sum, because the minute order did not strictly comply with
2. Standing to Pursue Nonindividual Claims
Turning to the merits, Huff contends that even before the Supreme Court’s decision in Adolph, supra, 14 Cal.5th 1104, the trial court realized that it likely erred in dismissing her nonindividual claims. And now that Adolph has been decided, the law is settled that a plaintiff does not lose standing to pursue nonindividual PAGA claims just because her individual claims are ordered to arbitration. We agree with Huff.
Between Iskanian, Viking River, and Adolph, the arbitrability of PAGA claims has been shaped and reshaped over the last decade. Iskanian first held “that an employee’s right to bring a PAGA action is unwaivable.” (Iskanian, supra, 59 Cal.4th at p. 383.) Since the PAGA was designed to “augment” the LWDA’s enforcement capability “by empowering employees to enforce the Labor Code as representatives of the [a]gency,” waivers of the right to bring a PAGA action would effectively limit employers’ responsibility for Labor Code violations. (Ibid.) Such waivers were therefоre “contrary to public policy and unenforceable as a matter of state law.” (
The United States Supreme Court in Viking River left intact the portion of Iskanian deeming wholesale waivers of the right to bring PAGA claims invalid as a matter of California public policy. (Viking River, supra, 596 U.S. at p. 662.) But to the extent Iskanian suggested that PAGA claims could not be split into individual and nonindividual claims, the high court held the Federal Arbitration Act preempted that rule. (Viking River, at p. 662.) The arbitration agreement in that case “purported to waive ‘representative’ PAGA claims” but also included a severability clause “provid[ing] that if the waiver provision is invalid in some respect, any ‘portion’ of the waiver that remains valid must still be ‘enforced in arbitrаtion.’ ” (Ibid.) The court interpreted this to mean the employer “was entitled to enforce the agreement insofar as it mandated arbitration of [the employee’s] individual PAGA claim.” (Ibid.)
In the wake of Viking River, the California Supreme Court—the final arbiter of California law—rejected this suggestion in Adolph, supra, 14 Cal.5th 1104. Adolph reaffirmed that to have standing under PAGA, “a plaintiff must be an ‘aggrieved employee’—that is, (1) ‘someone “who was employed by the alleged violator” ’ and (2) ‘ “against whom one or more of the alleged violations was committed.” ’ ” (
Here, the trial court ruled on Interior Specialists’ motion to compel arbitration of Huff’s PAGA claims four months after Viking River (before Adolph and the chorus of published appellate cases clarifying the standing
B. May 27, 2022 Order Compelling Arbitration
Huff also attempts to appeal from the May 27, 2022 order compelling arbitration of the claims alleged in her class action. She specifically seeks review of the court’s finding that she signed the arbitration agreement, which she understandably views as a necessary predicate for the court’s decision to compel arbitration of her various individual claims in both the class and PAGA actions. For reasons we explain, even if the factual findings underlying the orders compelling arbitration are reviewable on appeal frоm the order dismissing Huff’s nonindividual PAGA claims, we decline to reach the question regarding the validity of her electronic signature.
The law is clear that “[a]n order granting a petition to compel arbitration is not appealable, but is reviewable on appeal from a subsequent judgment on the award.” (Ashburn v. AIG Financial Advisors, Inc. (2015) 234 Cal.App.4th 79, 94 (Ashburn).) Huff does not suggest that the May 27, 2022 order is an independently appealable order. Instead, she invokes
But the law is less than clear as to whether an appeal from an order dismissing class or representative claims pursuant to the death knell doctrine can encompass an earlier or concurrent order compelling arbitration of individual claims. (See, e.g., Nixon v. AmeriHome Mortgage Company, LLC (2021) 67 Cal.App.5th 934, 943 (Nixon) [“It is far from certain whether the judicially created death knell exception to the one final judgment rule for an order dismissing class claims extends to make appealable an otherwise nonappealable order compelling arbitration when the two orders are issued simultaneously”]; Cortez v. Doty Bros. Equipment Co. (2017) 15 Cal.App.5th 1, 10 (Cortez) [“[E]ven if appellate jurisdiction exists under the death knell doctrine, is [an earlier] оrder compelling arbitration subject to review?”].)
We perceive arguments on both sides of the threshold issue whether an appeal under the death knell doctrine constitutes “an appeal pursuant to
As to whether the May 27, 2022 order is an “intermediate” order “which involves the merits or necessarily affects” the October 21, 2022 order dismissing the nonindividual PAGA claims or “substantially affects the rights of a party” (
Huff also highlights that “the trial court itself explicitly stated in its October 21 ruling that it would simply adopt and incorporate its own prior decisions with rеspect to ‘the validity of the arbitration agreement’ rather than independently reconsidering the issue.” We appreciate that both the May and October orders compelling arbitration of Huff’s individual claims are based on the factual finding that she signed the arbitration agreement.
She principally relies on a footnote from this court’s decision in Wallace v. GEICO General Ins. Co. (2010) 183 Cal.App.4th 1390 (Wallace), which we find distinguishable. In that case, plaintiff Wallace filed a propоsed class action against GEICO essentially claiming that GEICO wrongly refused to pay the full estimated costs for vehicle repairs. (Wallace, supra, 183 Cal.App.4th at pp. 1392–1393.) GEICO moved for summary judgment, arguing that Wallace lost standing to pursue her class claims because it sent her a check to cover the amount that she paid out of pocket for repairs, thus remedying her injuries. (
On appeal from the order striking the class allegations, Wallace’s sole argument was that the trial court erred in finding that she lost standing to procеed as the representative plaintiff when GEICO sent her the check. (Wallace, supra, 183 Cal.App.4th at pp. 1396–1397.) Before addressing the merits of that contention, we observed in a footnote that an order striking class allegations was immediately appealable under the death knell doctrine. (
In Wallace, the appealable order striking the class allegations solely and directly depended on the propriety of the earlier ruling that Wallace lost standing to act as the class representative. (Wallace, supra, 183 Cal.App.4th at p. 1398 [“We now turn to the issue of whether, as a predicate to its order striking the class allegations, the trial court erred in ruling that due to GEICO’s offer to compensate her for her injury, Wallace lost her standing to act as a representative plaintiff” (italics added)].) In this case, the appealable order dismissing the nonindividual claims immediately depends on whether the trial court correctly relied on Viking River in ruling that Huff lost standing to pursue those claims merely because her individual claims were ordered to arbitration. The finding thаt Huff validly signed the agreement is several layers removed from that decision. Huff cites no authority supporting the idea that
It is thus unclear whether, in an appeal under the death knell doctrine,
DISPOSITION
The October 21, 2022 order dismissing Huff’s nonindividual PAGA claims is reversed. The case is remanded to the trial court with directions to stay the nonindividual claims pending the completion of arbitration. Huff shall recover her costs on appeal.
DATO, Acting P. J.
WE CONCUR:
DO, J.
RUBIN, J.
Notes
We deny Interior Specialists’ request for judicial notice. The documents filed in other cases—one declaration and two minute orders—are improper and unnecessary to our resolution of this appeal. The register of actions is already included in the record.
