Clifford v. Quest Software Inc.

The question posed in this appeal is whether an employee’s claim against his employer for unfair competition under Business and Professions Code section 17200 (the UCL) is arbitrable.  The employee brought various wage and hour claims against his employer, and the employer moved to compel arbitration based on the parties’ arbitration agreement.  The trial court granted the motion in part and ordered to arbitration every cause of action except the employee’s UCL claim, which the court concluded was not arbitrable.  In so ruling, the court cited without discussion our Supreme Court’s holding in Cruz v. PacifiCare Health Systems, Inc. (2003) 30 Cal.4th 303 (Cruz).

We reverse that portion of the trial court’s order.  Assuming Cruz remains good law — a question we need not answer here — Cruz at most stands for the proposition that UCL claims for “public” injunctive relief are not arbitrable.  (Cruz, supra, at pp. 315-316.)  Cruz does not bar arbitration of a UCL claim for private injunctive relief or restitution, which is precisely what the UCL claim here seeks.  The employee’s UCL claim therefore is subject to arbitration, along with his other causes of action. 

For more information, go to:

http://www.beverlyhillsemploymentlaw.com