*1 Filed 7/24/23 Walgreen Co. v. Anest CA3
NOT TO BE PUBLISHED Cаlifornia Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.
IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA THIRD APPELLATE DISTRICT
(Butte)
---- WALGREEN CO., C097574 Plaintiff and Respondent, (Super. Ct. No. 21CV00269) v.
CHRISTINA P. ANEST,
Defendant and Appellant. Defendant and appellant Christina P. Anest was employed by plaintiff and respondent Walgreen Co. (Walgreens). 1 When she was hired, she signed an agreement pursuant to which Walgreens would immediately pay her a $35,000 incentive payment, but if she failed to remаin continuously employed for three full years, she had to repay the entire amount. Anest left Walgreens before completing three years of employment, 1 Plaintiff and respondent is identified as “Walgreen Co.” in the papers and as “Walgreens” in the agreement that lies at the heart of this case. We refer to it as Walgreens throughout.
and when she failed to repay the incentive payment, Walgreens sued her for breach of contract. Walgreens then moved for summary judgment and the trial court granted the motion and entered judgment against Anest. Anest appeals and we affirm.
BACKGROUND
Anest was hirеd by Walgreens in May 2016 as a pharmacist. When she was hired, she was offered a $30,000 sign-on bonus incentive payment and a $5,000 relocation incentive payment (she lived in Los Angeles at the time and relocated to the Chico/Redding area for the position), subject to the following terms and conditions:
“1. To avoid any repayment obligation with respect to the incentive payment, Pharmacist must remain continuously employed by Walgreens . . . for a period of 3 full year(s) of actual service (the ‘required employment period’). . . .
“2. If Pharmacist leaves Walgreens (for any reason) before completely fulfilling the required employment period, then Pharmacist must repay Walgreens the entire incentive payment amount (‘repayment obligation’). Partial completion of the required employment period will not reduce Pharmacist’s repayment obligation. . . .
“3. By accepting the incentive payment Pharmacist authorizes Walgreens to satisfy Pharmacist’s repayment obligation with any amounts owed by Walgreens to Pharmacist . . . . Any remaining repayment obligation balance must be repaid in full within thirty (30) calendar days after request by Walgreens. If not timely repaid, then the entire unpaid balance shall be increased by a penalty of 8% per year . . . . [¶] . . . [¶]
“5. This Agreement is not a contract or guarantee of employment for a definite period. As always, either Pharmacist or Walgreens may terminate the employment relationship for any reason, at any time, with or without cause or notice (i.e., ‘at-will’).”
In June 2016, Anest accepted the offer by electronically signing the agreement and checking a box attesting she “accepts and agrees to all of the terms and conditions set *3 forth in this Incentive Payment Agreement,” 2 and Walgreens paid her the incentive payment, with payroll taxes deducted.
Anest was terminаted in February 2018 (we are not told why), after 21 months of employment, which triggered her obligation to repay the incentive payment. In March 2018, Walgreens sent her an invoice for $32,322.50 ($35,000 less $2,677.50 for FICA payments that Walgreens was obligated to pay). When Anest failed to pay the invoice in full, Walgreens filed a complaint against her for breach of contract and a common count (money had and received), and it ultimately filed a motion for summary judgment. At the time the summary judgment motion was filed, Anest had made some payments, and Walgreens asserted she still owed it $27,890.51 pursuant to the terms of the agreement.
In opрosition to the motion, Anest, who represented herself, argued: the agreement was void and unenforceable because Walgreens had effectively altered its terms by characterizing the incentive payment as a loan in its motion papers; she did not breach the agreement; Walgreens breached the agreement by terminating her; requiring her to repay the incentive payment would be tantamount to an employer collecting wages previously paid, in violation of Labor Code section 221; and Walgreens could not substantiate the amount it claimed she owed.
The trial court granted the motion, finding the following facts were undisputed and established Walgreens was entitled to judgment: (1) Walgreens hired Anest in May 2016, and her employment was terminated in February 2018; (2) in connection with her employment, Walgreens offered Anest $35,000 in incentive payments subject to the terms and conditions quoted above, and she accepted the offer; (3) a month after she was 2 There were actually two separate agreements—one for the sign-on bonus incentive payment and one for the relocation incentive payment. The terms of both agreements were identical. The pаrties do not discuss the agreements separately, and we thus frequently refer to the “agreement” in the singular and to a single $35,000 incentive payment.
terminated, Walgreens sent her an invoice for the full amount owed; and (4) taking into account amounts she had already repaid, she still owed $27,890.51. On December 1, 2022, judgment was entered in favor of Walgreens against Anest in the sum of $27,890.51. This appeal followed.
DISCUSSION
This case comes to us after the trial court granted Walgreens’ motion for summary
judgment. “We review a grant of summary judgment de novo; we must decide
independently whether the facts not subject to triable dispute warrаnt judgment for the
moving party as a matter of law.” (
Intel Corp. v. Hamidi
(2003)
We begin by noting that Anest is representing herself. A self-represented party,
however, “is to be treated like any other party and is entitled to the same, but no greater
consideration than other litigants and attorneys.” (
Barton v. New United Motor
Manufacturing, Inc.
(1996)
Before turning to Anest’s arguments, we note that written incentive payment plans
that are contingent on an employee remaining with an employer for a specified amount of
time are generally enforceable. In
Neisendorf v. Levi Strauss & Co.
(2006)
Our Supreme Court has also upheld such plans. In
Schachter v. Citigroup, Inc.
(2009)
With this legal background in mind, we address Anest’s arguments in the general order in which they are made.
A. Anest fails to demonstrate any material facts are disputed
Anest first argues she disputed almost all of Walgreens’ proffered undisputed
material facts—which is at least nominally true. It is not enough, however, merely to
state that a particular fact is disputed. Insteаd, for “[e]ach material fact contended by the
opposing party to be disputed,” that fact “shall be followed by a reference to the
supporting evidence” that demonstrates there is a dispute. (Code Civ. Proc., § 437c,
subd. (b)(3); see also
Bacoka v. Best Buy Stores, L.P.
(2021)
Here, the trial court found the critical facts noted above were undisputed, and Anest fails to either discuss or analyze the trial court’s findings, or demonstrate that the trial court erred in finding the critical facts were undisputed. We find the facts relied on by the trial court are effectively undisputed. By way of example, the trial court found it was undisputed that Walgreens offered Anest a $30,000 sign-on bonus incentive payment and a $5,000 relocation incentive payment pursuant to a written agreement, and that Anest accepted the offer by electronically signing the agreement. Walgreens supported this fact by copies of the agreements themselvеs, which show they were electronically signed by Anest on June 14 and 15, 2016. Anest did not dispute either the terms of the agreements or her acceptance of those terms. Indeed, she cited the agreements with her opposition papers, and acknowledged she entered into the agreements. Instead, the only *8 thing Anest disputed was the way Walgreens referred to the incentive payments in its moving papers—namely, as loans, which we address below.
B . The provision requiring Anest to repay the incentive payments does not violate Labor Code section 221
Anest suggests (albeit with no discussion or analysis) that requiring her to repay the incentive payments would violate Labor Code section 221, which provides, “It shall be unlawful for any employer to collect or receive from an employee any part of wages theretofore paid by said employer to said employee.” We disagree. To see why, we analogize the incentive payments in this case to advances on commissions, which courts have held may be recouped by the employer if the conditions for payment are ultimately not met. Steinhebel v. Los Angeles Times Communications, LLC (2005) 126 Cal.App.4th 696 provides a good example. The plaintiffs in that cаse worked for the Los Angeles Times newspaper as telesales employees. Telesales employees telephoned prospective customers to sell them newspaper subscriptions, and they were paid a commission for each new subscription they sold. ( Id . at p. 700.) In order to earn the commission, the customer had to keep the paper for a minimum of 28 days, and if the customer did not keep the paper for 28 days, no commission was earned. Rather than waiting the full 28 days to pay the commission, however, the newspaper paid commissions in advanсe. The employment agreement provided, “ ‘Even though an order is not commissionable until the customer keeps it 28 days, The Times will pay you two weeks in advance for the order.’ ” ( Id . at pp. 702-703.) If the customer ended up cancelling the subscription before 28 days, the agreement provided “ ‘the amount advanced in respect to [that] subscription will be deducted from your compensation payable subsequent to the date of such rejection . . . and you hereby authorize such deductions.’ ” ( Id . at p. 702.) A group of employees sued the newspaper, arguing that this charge-back or recoupment provision violated Labor Code section 221. The trial court disagreed and granted the newspaper’s motion for summary judgment, and the appellate court affirmed.
As relevant here, the court agreed that while commissions are wages, the right to a
commission “must be governed by the provisions of the Agreement” and those “terms
must be met before an employee is entitled to a commission.” (
Steinhebel v. Los Angeles
Times Communications, LLC, supra
,
Although this case involves an incentive payment rather than a commission, we find Steinhebel ’s reasoning equally applicable here. Walgreens essentially agreed to pay Anest her bonus in advance. Anest’s right to that bonus, however, was conditioned on her remaining continuously employed for three years. If she failed to remain employed for three years, she never earned the bonus, and, pursuant to the terms of the agreement, she was required to repay it. As in Steinhebel , we find the agreement in this case does not run afoul of Labor Code section 221.
C. Referencing the incentive payments as “loans” did not render the agreement unenforceable
As previously mentioned, Anest also complains thаt Walgreens referred to the incentive payment as a “loan” in its motion papers. She contends that Walgreens effectively changed the terms of the agreement when it referred to the incentive payment as a loan. We disagree. The actual terms of the agreement remained unchanged, and Walgreens merely sought to enforce the agreement according to its terms. As relevant here, those terms required Anest to repay the entire incentive payment if she failed to remain continuously employed by Walgreens for a period of three full years. Particularly with no cogent argument from Anest on this issue, we find that, regardless of how Walgreens characterized the payment in its motion papers, the relevant issue in this case is whether Walgreens was entitled to enforce the agreement according to its terms. For the reasons explained herein, we find that it was.
Anest also argues the agreement is unenforceable. To support this argument, she
cites Civil Code sections 1550 and 1572, but she does not discuss either section or
explain how they apply here.
3
She also cites
Yoo v. Jho
(2007)
it to be without foundation and need not discuss it].)
D.
The circumstances of Anest’s termination are not before us
Anest cites
Kelecheva v. Multivision Cable T.V. Corp.
(1993)
Anest appears to suggest that because Walgreens terminated her employment, it caused or initiated any breach of the agreement, and it thus should not be able to recoup the incentive payment. She cites no legal authority to support this suggestion, and the agreement provides she is obligated to repay the entire incentive payment amount if she “leaves Walgreens (for any reason)” before completing three years of employment. Leaving because she was terminated by Walgreens is “any” reason.
E. Anest has not proven a violation of Labor Code 970
Anest cites Labor Code section 970, which provides, “No person . . . shall
influence, persuade, or engage any person to change from one place or another in this
State . . . for the purpose of working in any branch of labor, through or by means of
knowingly false representations . . . concerning . . . [¶] . . . [t]he kind, character, or
existence of such work . . . [or] [¶] . . . [t]he length of time such work will last, or the
compensation therefore.” This section “prohibits employers from inducing employees to
relocate and accept employment by way of knowingly false representations regarding the
kind, character, or existence of work, or the length of time such work will last.” (
White v.
Smule, Inc.
(2022)
F. Whether the repayment portion of the agreement is an unenforceable liquidated damages clause is not before us
Anest cites Civil Code section 1671, subdivision (b), which provides “a provision
in a contract liquidating the damages for the breach of the contract is valid unless the
party seeking to invalidate the provision establishes that the provision was unreasonable
*13
under the circumstances existing at the time the contract was made.” Anest argues the
provision in the agreement requiring her repay the incentive payment if she did not fulfill
the required three years of employment is an unenforceable liquidated damages
provision. We need not consider this argument because Anest did not raise it in
opposition to the motion for summary judgment, and as a general rule, an appellant
cannot raise a new argument for the first time on appeal. (See
Christina C. v. County of
Orange
(2013)
G.
Anest’s argument regarding damages is not before us
Anest cites
Schachter v. Citigroup, Inc., supra
,
“1. A bonus plan may provide payments to be made only to those plan participants who are actively employed on a bonus payment date. However, there are always questions of substantial performance and questions relating to the services required to earn the bonus. The Division accepts on a case- by-case basis claims for bonus, or a partial bonus, on the basis of substantial performance when termination takes place before the bonus is paid out. Each case is analyzed on its own facts to determine if a bonus or partial bonus is appropriate.
“2. The cause of termination may be a factor even though the main question is whether the employee earned the bonus or a portion of it. There are situatiоns where the employee terminates a relationship when he/she may have good cause for resigning or when there are factors beyond his/her control which may affect his/her eligibility for the bonus.
“I am aware that the above answers are not definitive; however, as bonus plans have so many variables as to qualifying performance and how amounts are calculated, I can only give you answers in general terms. It is our policy to look at disputed claims for bonuses on a case-by-case *15 basis; each claim must be reviewed on its merits.” (DLSE Opn. Letter No. 1987.06.03 (June 3, 1987) p. 1 <https://www.dir.ca.gov/dlse/opinions/1987-06-03.pdf [as of July 24, 2023], archived at < https://perma.cc/Y5EN- PUX7>.)
As this letter shows, the issue of whether an employee might be entitled to a pro rata share of a bonus is fact intensive and must be decided on a case-by-case basis, and is thus particularly inappropriate to raise for the first time on appeal.
Anest’s final argument has something to do with the fact that Walgreens withheld $2,677.50 from her incentive payment to make FICA payments, and deducted this from the $35,000 she owed, resulting in a balance due of $32,322.50. Because she fails to explain how or why this fact demonstrates the trial court erred in granting Walgreens’ motion for summary judgmеnt, we disregard this argument.
The bottom line is that it is undisputed Anest signed an agreement pursuant to which Walgreens would immediately pay her a $35,000 incentive payment, but if she did not remain continuously employed by Walgreens for three years, she was required to repay the full amount. It is also undisputed Anest did not remain continuously employed by Walgreens for three years, and was thus required by the terms of the agreement to repay the incentive payment. We find the agreement is enforceable according to its terms, and we thus also find the trial court properly granted Walgreens’ motion for summary judgment.
DISPOSITION
The judgment is affirmed, and each side will bear its costs on appeal. (Cal. Rules of Court, rule 8.278(a)(5).)
/s/ EARL, P. J.
We concur:
/s/
HULL, J.
/s/
RENNER, J.
