Ramos v. Superior Court

An arbitration provision in an employment agreement was procedurally and substantively unconscionable as applied to the worker’s claims to vindicate her statutory rights and for wrongful termination. If a worker’s claims have their “roots in the relationship” created by the agreement that required arbitration of claims “arising under or related to” the agreement, then the claims fall within the scope of the agreement. The law remains that mandatory employment contracts that require employees to waive their rights to bring statutory discrimination claims under the Fair Employment and Housing Act and related claims for wrongful termination in violation of public policy are unlawful.

Ramos v. Superior Court (Winston & Strawn) - filed Nov. 2, 2018, First District, Div. One 

Cite as 2018 S.O.S. 5302 

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Quiles v. Parent

In this latest chapter in what originated as a wage and hour class action, defendant Arthur J. Parent, Jr. (Parent) appeals from the amended judgment entered in favor of plaintiff Amanda Quiles on her individual claim for wrongful employment termination in violation of the federal Fair Labor Standards Act of 1938 (FLSA; 29 U.S.C. § 201 et seq.).  (All further statutory references are to title 29 of the United States Code unless otherwise specified.)  In addition to the damages awarded by the jury, the amended judgment awarded Quiles $689,310.04 in attorney fees and $50,591.69 in costs of litigation. 

Parent challenges the attorney fees and costs awards of the amended judgment only, arguing the trial court erred by awarding costs that were not statutorily authorized and by awarding attorney fees and costs that were jointly incurred by Quiles with her coplaintiffs for whom litigation remains pending.  He also argues the trial court otherwise abused its discretion by awarding attorney fees and costs that were unrelated and unnecessary to Quiles’s successful FLSA claim. 

We affirm.  We hold, in this case of first impression, that federal law applies to the determination of what type of costs are recoverable by a prevailing party in an FLSA action filed in state court.  Section 216(b) provides that any employer who wrongfully terminates the employment of an employee in retaliation for filing an FLSA action shall be liable for legal or equitable relief and shall pay the employee’s reasonable attorney fees and costs of the action.  Federal courts have construed section 216(b) to authorize awarding a prevailing employee a broad measure of costs, which include copying, postage, and mediation expenses. 

We reject Parent’s argument that the trial court erred by awarding Quiles mediation costs because the parties had contractually agreed to mediate the matter and divide the costs between them.  The record shows that the parties agreed to each pay the mediation services provider half the costs of mediation, but Parent did not go through with any agreement to mediate, having failed to personally appear at the mediation or otherwise be available to participate in the mediation.  Parent forfeited his argument that the trial court awarded expert witness fees that were unauthorized by the FLSA.  He failed to raise that argument in the trial court which resulted in the issue not having been fully briefed and in depriving the trial court the opportunity to make that determination in the first instance.

We also reject Parent’s claim that the trial court erred by awarding Quiles costs she jointly incurred with other plaintiffs who continue to litigate their claims.  The trial court painstakingly reviewed the lengthy record regarding Quiles’s requests for attorney fees and costs and awarded her what the court determined she reasonably incurred on her own behalf and in relation to her successful claim.  Contrary to Parent’s argument, the trial court did not err by awarding Quiles attorney fees and costs she incurred in connection with the trial as to the joint employer issue.  Having proven Parent’s status as her joint employer enabled Quiles to avail herself of the opportunity to pursue damages, penalties, attorney fees and costs against Parent for violating the FLSA by wrongfully terminating Quiles’s employment.

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Ramos v. Super. Ct.

Constance Ramos, an experienced litigator and patent practitioner with a doctorate in biophysics, was hired as an “Income Partner” at the law firm Winston & Strawn, LLP (Winston).  After allegedly being denied recognition for her work, excluded from opportunities for career advancement, evaluated based on the success of her male colleagues, and denied compensation and bonuses to which she was entitled, Ramos sued Winston, asserting various causes of action under state law for discrimination, retaliation, wrongful termination, and anti-fair-pay practices. 

Winston moved to compel arbitration pursuant to the partnership agreement Ramos signed shortly after joining the firm.  In opposing the motion, Ramos argued she was an “employee” of Winston, not a partner, and therefore Armendariz v. Foundation Health Psychcare Services, Inc. (2000) 24 Cal.4th 83 (Armendariz) applied to the arbitration agreement.  Ramos further argued the arbitration provision in the partnership agreement failed to meet the minimum requirements set forth in Armendariz for arbitration of unwaivable statutory claims.  The trial court disagreed, finding Ramos was “in a partnership relationship” for purposes of the motion to compel.  The trial court severed provisions of the arbitration agreement related to venue and cost-sharing, and granted Winston’s motion.  Ramos sought a writ of mandate, and we granted review.            

We conclude the trial court erred in compelling Ramos to submit her claims to arbitration.  Under the framework set forth by our Supreme Court in Armendariz, we find the parties’ arbitration agreement is unconscionable.  Further, because we cannot remove the taint of illegality by severing the unlawful provisions without altering the nature of the parties’ agreement, we must void the entire agreement to arbitrate.  Accordingly, we reverse and remand for Ramos to proceed with her claims in superior court.

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AMN Healthcare, Inc. v. Aya Healthcare Services, Inc.

Plaintiff AMN Healthcare, Inc. (AMN) appeals (1) the judgment in favor of defendants Kylie Stein, Robin Wallace, Katherine Hernandez, Alexis Ogilvie (sometimes collectively, individual defendants) and Aya Healthcare, Inc. (Aya) (sometimes individual defendants and Aya are collectively referred to as defendants); (2) the injunction preventing AMN from enforcing its nonsolicitation of employee provision against individual defendants and its other former employees; and (3) the award of attorney fees in favor of defendants. 

AMN and Aya are competitors in the business of providing on a temporary basis healthcare professionals, in particular "travel nurses," to medical care facilities throughout the country.  Individual defendants were former "travel nurse recruiters" of AMN who, for different reasons and at different times, left AMN and joined Aya, where they also worked as travel nurse recruiters. 

As a condition of employment with AMN, individual defendants each signed a Confidentiality and Non-Disclosure Agreement (CNDA), which, as discussed post, included a provision preventing individual defendants from soliciting any employee of AMN to leave the service of AMN for at least a one-year period.  Significant in the instant case, a travel nurse was deemed to be an employee of AMN while on temporary assignment through AMN.            

AMN sued defendants, asserting various causes of action including breach of contract and misappropriation of confidential information, including trade secrets as set forth in the Uniform Trade Secrets Act, Civil Code sections 3426 et seq. (UTSA).  Defendants filed a cross-complaint for declaratory relief and unfair business competition.

Defendants moved for summary judgment of AMN's operative complaint and of their own cross-complaint.  Defendants claimed that the nonsolicitation of employee provision in the CNDA was an improper restraint on individual defendants' ability to engage in their profession, in violation of Business and Professions Code section 16600; that as such, AMN's contract-based causes of action failed as a matter of law; and that AMN's tort-based causes of action also failed as a matter of law because the information allegedly used by defendants to recruit travel nurses was not protected. 

The trial court agreed with defendants, granted summary judgment against AMN, and granted summary adjudication of defendants' declaratory relief cause of action in their cross-complaint.  After granting such relief, the court subsequently enjoined AMN from enforcing the nonsolicitation of employee provision in the CNDA as to any former (California) AMN employee and awarded defendants attorney fees.           

As we explain, we independently conclude the court properly granted summary judgment of AMN's operative complaint and of defendants' declaratory relief cause of action in their cross-complaint.  We further conclude the court properly exercised its discretion when it enjoined AMN from attempting to enforce its nonsolicitation of employee provision with respect to its former employees, including individual defendants, and when it awarded defendants their reasonable attorney fees.

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Sali v. Corona Regional Med. Ctr.

The panel filed an order denying a petition for panel rehearing and a petition for rehearing en banc, in a case in which the panel reversed the district court’s denial of class certification in a putative class action.

Judge Bea, joined by Judges Bybee, Callahan, Ikuta, and Bennett, dissented from the denial of rehearing en banc because he would hold that the panel erred in concluding that expert opinion testimony need not be admissible evidence in order to be considered at the class certification stage. Judge Bea wrote that the panel’s decision goes against the court’s own binding precedent, the law of four other circuits, and the Supreme Court’s clear guidance on the issue.

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Nunies v. HIE Holdings, Inc.

The Americans with Disabilities Act Amendments Act expanded the scope of the Americans with Disabilities Act's "regarded-as" definition of disability. Prior to the ADAAA, to sustain a regarded-as claim, the plaintiff had to provide evidence that the employer subjectively believed the plaintiff was substantially limited in a major life activity, but under the ADAAA the plaintiff must show that he has been subjected to a prohibited action "because of an actual or perceived physical or mental impairment whether or not the impairment limits or is perceived to limit a major life activity."

Nunies v. HIE Holdings, Inc. - filed Nov. 1, 2018 

Cite as 2018 S.O.S. 16-16494 

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Brown v. Ralphs Grocery Company

A plaintiff bringing a wage and hour claim under the Private Attorneys General Act must state facts and theories supporting the alleged violations not implied by reference to the Labor Code and give the employer sufficient information to assess the seriousness of the alleged violations. However, a bare allegation of a violation of an employer's duty to maintain accurate and complete wage statements is itself sufficient. A plaintiff does not need to specify Labor Code Sec. 558 in her PAGA notice and can proceed with a claim for remedies under that section so long as she gave adequate notice of a violation for which Sec. 558 provides a remedy.

Brown v. Ralphs Grocery Company - filed Oct. 31, 2018, Second District, Div. Five 

Cite as 2018 S.O.S. 5223 

For more information, go to: 

http://www.beverlyhillsemploymentlaw.com/