Tabarrejo

Petitioner Manuel Tabarrejo was employed as a caregiver by real party in interest Princess Retirement Homes, Inc. (PRH). After Tabarrejo left his employment, he filed a claim with the Labor Commissioner for unpaid wages and other wage-related claims. The Labor Commissioner awarded Tabarrejo $131,096.77.

PRH appealed the Labor Commissioner’s order to the Superior Court of Santa Clara County and posted the undertaking required by Labor Code section 98.2. Tabarrejo moved to dismiss the appeal on the ground that PRH was a suspended corporation that lacked the capacity to sue. The trial court granted Tabarrejo’s motion to dismiss. PRH then failed to pay the amount due under the Labor Commissioner’s order within 10 days, so Tabarrejo asked the court to release the undertaking to him. But PRH disputed Tabarrejo’s entitlement to the undertaking on a number of grounds, primarily arguing that since PRH’s corporate powers were suspended, the court lacked jurisdiction over the matter ab initia and should never have accepted the undertaking. The trial court concluded that PRH did not have standing to file the appeal and ordered the release of the undertaking to PRH’s owners, James…