Did The Plaintiff Ask For Relief In His Individual Or Representative Capacity?
Brooks v. Amerihome Mortgage Company, B298132 (2/6 4/9/20) (Tangeman, Gilbert, Perren), is one more case upholding the rule that employers cannot compel the arbitration of a Private Attorneys General Act of 2004 (PAGA) claim. The employer acknowledged that PAGA claims are not arbitrable, and argued that the employee had agreed to final and binding arbitration because he had made individual claims for wages, rest breaks, and meal periods concerning his employment, rather than purely representative claims. Representative PAGA claims are treated as claim brought by a private attorney general on behalf of California, and the state, which is not a party to the arbitration agreement, cannot be compelled to arbitrate. The court rejected the employer's argument because the argument did not rely on Brooks' amended complaint alleging a pure PAGA claim -- and the court had to look to the operative pleadings rather than to a notice to the Labor and Workforce Development Agency or to a superseded pleading.
There is one procedural twist to the case. Brooks sought a preliminary injunction to prevent arbitration. This is an uncommon procedure. because usually the employee files suit, and the employer files a motion to compel arbitration. Here, the employer filed a demand with the American Arbitration Association to initiate arbitration, and that explains why the employee sought injunctive relief.
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