Esparza

Esparza v. KS Indus., L.P.

Good Law
13 Cal. App. 5th 1228·2017 Cal. App. LEXIS 674·221 Cal. Rptr. 3d 594·2017 WL 3276363
Court of Appeal of CaliforniaAugust 2, 2017F072597California5,243 words

Opinion

Lead Opinion

Franson, J.

*1233 Defendant KS Industries, L.P. appeals from an order denying its motion to compel arbitration of a dispute with a former employee. The employee contends the lawsuit is a representative action under the Private Attorneys General Act of 2004 (PAGA). ( Lab. Code, § 2698 et seq. ) He argues the trial court properly applied the rule adopted in Iskanian v. CLS Transportation Los Angeles, LLC (2014) 59 Cal.4th 348 , 173 Cal.Rptr.3d 289 , 327 P.3d 129 ( Iskanian ) and concluded the lawsuit was a PAGA representative action not subject to arbitration.

KS Industries contends the trial court's failure to order arbitration of some of the claims violated the Federal Arbitration Act ( 9 U.S.C. § 1 et seq. ) because those claims sought individualized (i.e., victim-specific) relief and were covered by the parties' arbitration agreement. KS Industries contends the rule adopted in Iskanian prevents the arbitration of claims only in *1234 representative actions that seek "civil penalties," a term of art that is limited to monetary relief allocated 75 percent to the Labor and Workforce Development Agency and 25 percent to the aggrieved employees. In KS Industries' view, "civil penalties" do not…

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