Perez v. U-Haul Co. of California

An arbitration clause excepting “any class or representative suit” from arbitration excludes from arbitration individual, as well as group, claims brought under the Private Attorney General Act (“PAGA”; Labor Code 2698 et seq).  The trial court correctly denied an employer’s motion to compel a plaintiff/employee to individually arbitrate whether the plaintiff was an aggrieved employee with standing to bring the PAGA claim stated in the complaint.  The arbitration clause excluded from arbitration any class or representative suit, and hence excluded even an individual PAGA claim since Iskanian holds that even individual PAGA actions are representative suits.  Furthermore, public policy barred enforcement of the arbitration clause to the extent it required arbitration of the plaintiff’s individual PAGA claim.

California Court of Appeal, Second District, Division 7 (Zelon, Acting P.J.); September 16, 2016; 2016 WL 4938809

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