Motion To Compel Arbitration - San Bernardino - 1
Motion To Compel Arbitration - San Bernardino - 1
22
23
24
25
26
27
28
matter may be heard in Department $24 ofthe above-entitled Court located at 247 West Third Street,
San Bernardino, CA 92415-0210, Defendants Pacific Dental Services, LLC (“PDS”), Gerald Lopez,
D.D.S, Inc., and Gerald Lopez (collectively, “Defendants”) will and hereby d0 move the Court
pursuant to section 4 of the Federal Arbitration Act (“FAA”), 9 U.S.C. § 4, section 1281.2 of the
Code of Civil Procedure, and PDS’s Mutual Binding Arbitration Agreement (the “‘Agreement”) for
an order (1) compelling Plaintiff Ashley Phillips to submit her claims t0 binding arbitration as
required by the Agreement and (2) staying all civil court proceedings pending the completion of
10 such arbitration.
12 Plaintiffs claims arise from her employment with PDS and are covered by the Agreement, a valid
13 and binding arbitration agreement. The Agreement, which is governed by the FAA, 9 U.S.C. § 1 et
14 seq., requires bilateral arbitration ofany employment-related claims. The offer letter Plaintiff signed
16 To the filllest extent allowed by law, any controversy, claim, or dispute between
you and the Company (and/or any of its affiliates, owners, shareholders, directors,
17 officers, employees, volunteers or agents) relating to or arising out of your
employment or the cessation of that employment will be submitted t0 a final and
18
binding arbitration before a neutral arbitrator in the county in Which you work(ed)
19 for determination in accordance with the American Arbitration Association’s
(“AAA”) National Rules for the Resolution of Employment Disputes, as the
20 exclusive remedy for such controversy, claim or dispute.
21 (EX. 1 at p. 2.)1 The Agreement Plaintiff signed 0n April 23, 2017, reiterates that:
22 I agree and acknowledge that the Company and I will utilize binding arbitration to
resolve all disputes that may arise out 0f the employment context. Both the
23 Company and I agree that any claim, dispute, and/or controversy that either I may
have against the Company (or its owners, directors, officers, managers, employees,
24
agents, and parties affiliated with its employee benefit and health plans) 0r the
25 Company may have against me, arising from, related to, 0r having any relationship
or connection whatsoever with my seeking employment by, or other association
26 with the Company, shall be submitted to and determined exclusively by binding
arbitration under the Federal Arbitration Act, and following the procedures of the
27 California Arbitration Act (CA. Code Civ. Proc, sec 1280 et seq.).
28
1
Exhibits 1—2 are attached t0 the concurrently filed Declaration of Tricia Sprowell.
Rutan a Tucker. LLP 2
attorneys at law DEFENDANTS' NOTICE OF MOTION AND MOTION TO COMPEL
ARBITRATION AND STAY ACTION
(Ex. 2 at p. 1.)
As discussed in the concurrently filed Declaration of K. Bartlett Jordan, the parties met and
conferred regarding the substance of this motion. Plaintiff refused to submit her claim to binding
arbitration, as required by the Agreement, but declined to explain the basis for her refusal.
This Motion is based on this Notice 0f Motion, the accompanying Memorandum of Points
and Authorities, the concurrently filed Declaration of K. Bartlett Jordan and the exhibit thereto; the
concurrently filed Declaration of Tricia Sprowell and the exhibits thereto; all pleadings, papers, and
records in this action; all matters of which judicial notice may be taken; and any other evidence and
10
13
14
war ?%o
Maria Z. §{earns
Attorneys for Defendants
15 DENTAL SERVICES, LLC,
PACIFIC
GERALD LOPEZ, D.D.S., INC, and
16 GERALD LOPEZ
17
18
19
20
21
22
23
24
25
26
27
28
RELEVANT BACKGROUND
UIAWN
II. ........................................................................................... 7
\OOOQON
III. LEGAL STANDARD ....................................................................................................... 10
ARGUMENT .................................................................................................................... 1 1
17 CONCLUSION ................................................................................................................. 14
18
19
20
21
22
23
24
25
26
27
28
3 Cases
7
AT&TMobility, LLC v. Concepcion
8 (201 1) 563 U.S. 333 ................................................................................................................ 10
12
Circuit City Stores, Inc. v. Adams
13 (2001) 532 U.S. 105 ................................................................................................................ 10
17
Dotson v. Amgen, Inc.
Perry v. Thomas
(1987) 482 U.S. 483 ................................................................................................................ 12
4;
Pinnacle Museum Towers Assn. v. Pinnacle Market Development (U. S), LLC
(2016) 55 Cal.4th 223 .............................................................................................................. 10
Preston v. Ferrer
(2008) 552 U.S. 346 ................................................................................................................ 10
\OOONQUI
Rosenthal v. Great Western Financial Securities Corp.
(1996) 14 Ca1.4th 394 .............................................................................................................. 10
10
Valsan Partners Ltd. Partnership v. Calcor Facility
11 (1994) 25 Ca1.App.4th 809 ...................................................................................................... 12
15
Statutes
16
9 U.S.C. § 2 ................................................................................................................................... 11
17
9 U.S.C. § 3 ................................................................................................................................... 14
18
9 U.S.C. §4 ............................................................................................................................. 13, 14
19
Code CiV. Proc., § 1281.2 ............................................................................................................. 13
20
Code CiV. Proc., § 1281.4 ............................................................................................................. 14
21
22
23
24
25
26
27
28
Arbitration Agreement (the “Agreement”). (Ex. 2.)2 The Agreement, which is governed by the
Federal Arbitration Act (“FAA”), states that “the Company and I will utilize binding arbitration to
resolve all disputes that may arise out of the employment context.” (Id. at p. 1.) The Agreement
applies to any employment-related claim Plaintiff “may have against the Company (0r its owners,
\OOOQON
directors, officers, managers, employees, agents, and parties affiliated with its employee benefit and
health plans),” including California Fair Employment and Housing Act (“FEHA”) claims. (Ibid)
10 Despite having signed a valid, binding arbitration agreement, Plaintiff initiated this action
11 on May 24, 2024, by filing a Complaint alleging 12 employment-related causes of action against
12 Defendants Pacific Dental Services, LLC (“PDS”), Gerald Lopez, D.D.S, Inc., and Gerald Lopez
13 (collectively, “Defendants”). (See generally Compl.) A11 of Plaintiffs claims fall within the scope
14 of the Agreement. Accordingly, Plaintiff should be compelled t0 arbitrate her claims against
15 Defendants consistent with the terms of the Agreement she signed. This Court should therefore
16 enforce the Agreement, compel Plaintiff’s claims to arbitration, and stay all civil court proceedings
20 dental offices across the United States. (Sprowell Decl., 1} 2.) Since January 2013, PDS has
21 purchased over $50,000 in goods and services from businesses located outside of California each
22 year. (Ibid.) In 2020, for example, PDS purchased over $500,000 of general dentistry supplies and
23 products from New York-based Henry Schein, Inc. (Ibid) PDS also spent more than $500,000 0n
24 large-scale dental equipment from Minnesota-based Patterson Dental Supply, Inc., in 2020. (Ibid)
26 Potential PDS employees are interviewed by a recruiter and a hiring manager. (Sprowell
27
2
Exhibits 1—2 are attached to the concurrently filed Declaration of Tricia Sprowell (“Sprowell
28 Decl.”). Exhibit 3 is attached to the concurrently filed Declaration of K. Bartlett Jordan (“Jordan
Decl.”).
Rutan a Tucker. LLP 7
attorneys at law DEFENDANTS' NOTICE OF MOTION AND MOTION TO COMPEL
ARBITRATION AND STAY ACTION
Dec1., 11 4.) If, after the interview, the hiring manager wishes to offer employment to a candidate,
the manager does so by logging into PDS’S recruiting system and instructing the system to issue an
offer letter to the candidate. (Ibid.) The offer letter is auto-generated and is sent to the candidate
using the email address in the candidate’s employment application. (Ibid.) If the candidate wishes
to accept the offer of employment, the candidate electronically signs the offer letter. (Ibid)
On April 20, 2017, Plaintiff received an offer letter from PDS for a position as a Registered
terms 0f the offer, including Plaintiff’ s pay rate and benefits, and noted that:
To the fullest extent allowed by law, any controversy, claim, or dispute between
you and the Company (and/or any of its affiliates, owners, shareholders, directors,
10 officers, employees, volunteers or agents) relating to or arising out of your
employment or the cessation 0f that employment will be submitted t0 a final and
11
binding arbitration before a neutral arbitrator in the county in which you work(ed)
12 for determination in accordance with the American Arbitration Association’s
(“AAA”) National Rules for the Resolution of Employment Disputes, as the
13 exclusive remedy for such controversy, claim or dispute.
14 (EX. 1 at p. 2.) The Offer Letter also stated that “BY AGREEING TO THIS ARBITRATION
15 PROVISION, BOTH YOU AND THE COMPANY GIVE UP ALL RIGHTS TO TRIAL BY
16 JURY.” (Ibid.) Plaintiff signified her acceptance 0f these terms by electronically signing the Offer
18 Once a candidate accepts an offer letter, PDS’s recruiting system notifies PDS’s People
19 Services Center, also known as Workday, Which then generates a link and password for the new
20 employee to complete their initial onboarding. (Sprowell Dec1., 1] 5.) This auto-generated link and
21 password is sent to the new employee at the email address the employee provided with their
22 employment application. (Ibid.) The initial onboarding documents new employees receive include
23 an Agreement. (Ibid.) A11 individuals who received an Agreement are required t0 log into PDS’s
24 People Services Center using the link and password they were sent to review and electronically sign
27 I agree and acknowledge that the Company and I will utilize binding arbitration to
resolve all disputes that may arise out of the employment context. Both the
28 Company and I agree that any claim, dispute, and/or controversy that either I may
Rutan a Tucker. LLP 8
attorneys at law DEFENDANTS' NOTICE OF MOTION AND MOTION TO COMPEL
ARBITRATION AND STAY ACTION
have against the Company (0r its owners, directors, officers, managers, employees,
agents, and parties affiliated with its employee benefit and health plans) 0r the
Company may have against me, arising from, related to, 0r having any relationship
or connection whatsoever with my seeking employment by, or other association
With the Company, shall be submitted to and determined exclusively by binding
arbitration under the Federal Arbitration Act, and following the procedures of the
01th California Arbitration Act (CA. Code Civ. Proc, sec 1280 et seq.).
(Ex. 2 at p. 1.) The Agreement explains, under the header “Included Claims,” that it applies to:
QON
[A]11 disputes, whether they be based on the California Fair Employment and
Housing Act, VII of the Civil Rights Act of 1964, as amended, or any other
Title
state 0r federal law or regulation, equitable law, or otherwise, with exception 0f
claims arising under the National Labor Relations Act Which are brought before the
National Labor Relations Board, claims for medical and disability benefits under
10 the California Workers’ Compensation Act, Employment Development
Department claims, or as otherwise required by state 0r federal law.
11
12 (Ibid.) The Agreement briefly explains the arbitration procedures and contains a severability clause.
13 (Id. at p. 2.) And the Agreement notes that “your agreement is confirmed by your signature below
14 or by your acceptance or continuation of employment upon notice of this policy.” (Id. at p. 1.)
15 On April 23, 2017, Plaintiff electronically signed the Agreement. (Sprowell Decl., 11
9 &
16 Ex. 2 at p. 4.) Only an individual using Plaintiffs unique login and password could have
17 electronically signed the Agreement after reviewing it. (Sprowell Dec1., 1] 9.) The signature date
18 for the CA — Mutual Binding Arbitration Agreement indicates the Agreement was signed on April
21 On May 24, 2024, Plaintiff initiated this action by filing a Complaint alleging 12 causes of
22 action, all 0f Which arose out of and related to her employment with Defendants. (See generally
23 Compl.) Specifically, Plaintiff alleged causes of action for (1) discrimination based on physical
24 disability, (2) discrimination based on race, (3) failure to accommodate actual or perceived
25 disability, (4) failure to engage in good faith interactive process, (5) failure to prevent discriminatory
26 practices, (6) Fair Employment and Housing Act retaliation, (7) retaliation for requesting/taking
27 California Family Rights Act leave, (8) failure to pay minimum wage, (9) failure to pay wages, (10)
28 failure to comply With employment wage statement and record provisions, (1 1) statutory waiting
Defendants filed a timely answer t0 Plaintiff s Complaint 0n August 14, 2024. Defendants
asserted, as their first affirmative defense, that Plaintiff was required to pursue her claims in
10 (Answer at p. 1.)
11 On August 28, 2024, Defendants reminded Plaintiff‘s counsel that Plaintiff had signed the
12 Agreement and that her employment-related claims must therefore be heard in arbitration, and not
13 in court, and resent the previously produced Agreement to Plaintiff” s counsel. (Jordan Decl., 11
3 &
14 Ex. 3.) Plaintiff refused t0 move this action in arbitration as required by the Agreement, and
15 Defendants promptly prepared this motion and scheduled a hearing before this Court. (Id., W 3—4.)
16 III. LEGAL STANDARD
17 A party seeking t0 compel arbitration need only show, by a preponderance of evidence, that
18 a written arbitration agreement exists which covers the disputed issues. (Pinnacle Museum Towers
19 Assn. v. Pinnacle Market Development (U. S.), LLC (2016) 55 Ca1.4th 223, 236 (Pinnacle);
20 Rosenthal v. Great Western Financial Securities Corp. (1996) 14 Cal.4th 394, 413—414; Pagarigan
21 v. Libby CarexCenter, Inc. (2002) 99 Cal.App.4th 298, 301.) Once the party seeking to compel
22 arbitration has shown that an arbitration agreement exists, “the party opposing arbitration bears the
24 The FAA reflects the well—established policy favoring arbitration. (See, e.g., AT&T
25 Mobility, LLC v. Concepcion (2011) 563 U.S. 333, 346; Circuit City Stores, Inc. v. Adams (2001)
26 532 U.S. 105, 1 18, 119.) The FAA preempts all conflicting state laws. (See Preston v. Ferrer (2008)
27 552 U.S. 346, 353.) The public policy favoring arbitration is s0 strong that the U.S. Supreme Court
28 and the California Supreme Court have ruled that any doubts as t0 the existence of an arbitration
460 U.S. 1, 24 (Moses H. Cone); Wagner Constr. C0. v. Pacific Mechanic Corp. (2007) 41 Cal.4th
19, 26.)
IV. ARGUMENT
The exclusive venue for Plaintiffs claims lies in arbitration. Pursuant to the parties’
Agreement, Plaintiff must “resolve all disputes that may arise out of the employment context” in
arbitration. Once Plaintiffs claims are compelled to arbitration, this case should be stayed to
preserve the resources of the parties, promote judicial efficiency, and preclude potentially
10 conflicting results.
12 Plaintiff cannot dispute that the Agreement is governed by the FAA. The Agreement
13 expressly states that any disputes between the parties “shall be submitted to and determined
14 exclusively by binding arbitration under the Federal Arbitration Act.” (EX. 2 at p. 1.) This, alone,
15 is sufficient to bring the Agreement Within the FAA’S ambit. (Victrola 89, LLC v. Jaman Properties
16 8 LLC (2020) 46 Cal.App.5th 337, 346.)
17 In addition, the FAA applies t0 agreements “involving commerce.” (9 U.S.C. § 2.) “[T]he
18 term ‘involving commerce’ is broad and is indeed the functional equivalent of ‘affecting’
19 commerce.” (Basura v. U.S. Home Corp. (2002) 98 Cal.App.4th 1205, 1213; accord Allied—Bruce
20 Terminix Cos. v. Dobson (1995) 513 U.S. 265, 273—274, 281 (Allied—Bruce) [explaining that the
21 FAA’s reach “coincid[es] With that of the Commerce Clause” and encompasses transactions that
22 “‘involve’ interstate commerce, even if the parties did not contemplate an interstate commerce
23 connection”].) Courts have held that the FAA applies t0 employment contracts when the employer
24 engages in business that affects interstate commerce. (See, e.g., Dotson v. Amgen, Inc. (2010) 181
25 Cal.App.4th 975, 979; Allied-Bruce, supra, 513 U.S. at 277; CarMax Auto Superstores Cal. LLC v.
26 Hernandez (C.D. Cal. 2015) 94 F.Supp.3d 1078, 1100—1 101 .) The FAA applies here because PDS
27 provides business support services to dental offices throughout the United States, and Plaintiffs job
28 duties required her to use products that PDS purchased from suppliers outside of California and
Both federal and California law strongly favor the arbitration of disputes. (See, e.g. Perry
v. Thomas (1987) 482 U.S. 483, 489 [interpreting the Federal Arbitration Act as “a congressional
declaration of a liberal federal policy favoring arbitration agreements, notwithstanding any state
substantive or procedural policies to the contrary”]; St. Agnes Med. Center v. PacifiCare 0f Cal.
(2003) 31 Cal.4th 1187, 1195 [ noting that “state law, like [federal law], reflects a strong policy
favoring arbitration agreements”].) California has long favored arbitration of disputes according to
the terms of the parties’ agreement. (Fire Fighters Union Etc. v. Vallejo (1974) 12 Ca1.3d 608, 622
10 [affirming order compelling arbitration, and explaining “[s]uch a result comports with a strong
12 arbitration”].)
13 The California Legislature has enshrined the state’s strong preference for arbitration in the
15 TitleIX of the Code of Civil Procedure (Cal. CiV. Proc. Code § 1280 et seq.) is a
comprehensive statutory scheme regulating private arbitration. Through this
16 detailed scheme, the Legislature has expressed a strong public policy in favor of
arbitration. . . . As a result, courts will indulge every intendment to give effect to
17
such proceedings.
18
19 (Valsan Partners Ltd. Partnership v. Calcor Facility (1994) 25 Cal.App.4th 809, 816.)
20 The policy favoring enforcement of arbitration agreements according to their terms has
21 consistently been emphasized in recent decisions by the nation’s highest court. For example, in
22 American Express C0. v. Italian Colors Restaurant, the U.S. Supreme Court reversed the Court 0f
23 Appeals” refusal t0 grant a motion t0 compel individual arbitration in a putative class—action case,
24 remarking that “courts must ‘rigorously enforce’ arbitration agreements according to their terms.”
25 ((2013) 570 U.S. 228, 233.) Other recent Supreme Court decisions have similarly upheld arbitration
26 agreements. (See, e.g., Marmet Health Care Ctr., Inc. v. Brown (2012) 565 U.S. 530, 530—31
27 [vacating Virginia Supreme Court’s refusal to enforce an arbitration agreement on state public
28 policy ground because “[s]tate and federal courts must enforce the [FAA] . . . with respect to all
When there is an enforceable arbitration agreement, the court “shall make an order directing
the parties to proceed t0 arbitration in accordance with the terms of the agreement.” (9 U.S.C. § 4;
accord Code CiV. Proc., § 1281.2.) In California state court, this result is accomplished pursuant to
Code of Civil Procedure section 1281.2, which provides that a party seeking to compel arbitration
need only show: (1) “the existence of a written agreement to arbitrate a controversy”; and (2) the
opposing party’s refusal “to arbitrate such controversy.” (Code Civ. Proc., § 1281.2.) Where such
a showing is made, “the court shall order the petitioner and the respondent to arbitrate the
10 controversy,” absent waiver or grounds for revocation. (Ibid., emphasis added; see also Coast Plaza
11 Doctors Hospital v. Blue Cross ofCaliform'a (2000) 83 Cal.App.4th 677, 687.) The “party resisting
12 arbitration bears the burden of proving the claims at issue are unsuitable for arbitration.” (Green
15 Plaintiff is bound by the Agreement. Her Offer Letter, Which she signed on April 20, 2017,
16 contained an arbitration provision that expressly stated she would be required to submit “any
17 controversy, claim, 0r dispute between you and the Company . . . relating to or arising out of your
18 employment . . . to a final and binding arbitration before a neutral arbitrator.” (Ex. 1 at p. 2.) The
19 Agreement she signed three days later, on April 23, 2017, reiterated that “the Company and I will
20 utilize binding arbitration to resolve all disputes that may arise out of the employment context.”
21 (Ex. 2 at pp. 1 & 4.) Only Plaintiff could have signed this Agreement, as she was the only individual
22 who received the unique login and password that was issued to Plaintiff by PDS’s People Services
23 Center. (Sprowell Decl., 1] 9.) But even ifPlaintiffhad not signed the Agreement—which she did—
24 she manifested her consent to arbitration by her “acceptance or continuation of employment upon
25 notice ofthis policy.” (Ibid; see, e.g., Esparza v. K S Industries, L.P. (2017) 13 Ca1.App.5th 1228,
26 1238 [“Under California law, consent t0 a written contract may be implied by conduct.”]; Diaz v.
28
Plaintiff s claims are squarely covered by the Agreement. The agreement covers “all
disputes that may arise out of the employment context.” (EX. 2 at p. 1.) Each and every one of
Plaintiffs claims—for alleged discrimination on the basis of race and disability, alleged failure to
accommodate her purported disability and engage in the interactive process, alleged failure to
prevent discrimination, alleged FEHA and California Family Rights Act retaliation, alleged wage
and hour Violations, and alleged wrongful termination in Violation of public policy—arises out of
her employment with Defendants, and thus falls squarely within this rubric. (See generally Compl.)
10 Once Plaintiff” s claims are compelled t0 arbitration, this action should be stayed. The FAA
11 requires that a civil action be stayed pending the outcome of arbitration. (9 U.S.C. § 3; Moses H.
12 Cone, supra, 460 U.S. at p. 22 [“The Act provides two parallel devices for enforcing an arbitration
13 agreement: a stay 0f litigation in any case raising a dispute referable t0 arbitration, 9 U.S.C. § 3, and
14 an affirmative order to engage in arbitration, § 4.”].). California law requires the same. (Code CiV.
15 Proc., § 128 1 .4 [noting that once a court has issued an order compelling arbitration, that court “shall,
16 upon motion of a party to such action or proceeding, stay the action or proceeding until an arbitration
17 is had”].) This is appropriate, as allowing civil court and arbitration proceedings to proceed in
18 parallel would waste the parties’ and judicial resources and could allow contrary results.
19 V. CONCLUSION
20 This Court should issue an order compelling Plaintiff t0 submit her claims t0 binding
21 arbitration in accordance With the Agreement and staying this action pending the completion of
22 arbitration.
25
26
27
Ww/%§
Maria Z. 8&4rns
Attorneys for Defendants
DENTAL SERVICES, LLC,
PACIFIC
GERALD LOPEZ, D.D.S., INC., and
28 GERALD LOPEZ
Rutan a Tucker. LLP 14
attorneys at law DEFENDANTS' NOTICE OF MOTION AND MOTION TO COMPEL
ARBITRATION AND STAY ACTION