Joseph Biernacki v. Service Corporation International

MEMORANDUM

Plaintiffs, current and former employees of Service Corporation International, appeal the district court’s denial of their motion to compel individual arbitration of their wage and hour claims. The district court determined that by Sling a putative class action and seeking to compel arbitration after class certification was denied, the plaintiffs had waived their rights to compel individual arbitration. Because the defendants have failed to establish that they suffered prejudice from the plaintiffs’ litigation, we reverse the judgment of the district court.

We review de novo a district court’s determination that a party waived his right to arbitrate, Fisher v. AG. Becker Paribas Inc., 791 F.2d 691 , 693 (9th Cir.1986), and its denial of a motion to compel arbitration, Smallwood v. Allied Van Lines, Inc., 660 F.3d 1115, 1120 (9th Cir.2011). Whether the plaintiffs waived their rights to compel individual arbitration is governed by state law. Cox v. Ocean View Hotel Corp., 533 F.3d 1114, 1124 (9th Cir.2008). The defendants bear the burden of establishing waiver. Under California law, they “must demonstrate (1) [the plaintiffs’] knowledge of an existing right to compel…