Betancourt v. Prudential Overall Supply

A pre-dispute arbitration clause cannot be enforced to require arbitration of a claim based on the Private Attorney General Act, since the claim is brought on behalf of the state which is not party to the arbitration agreement.  The trial court correctly denied an employer’s motion to compel arbitration of an employee’s suit which alleged a single PAGA claim on his own behalf and on behalf of similarly situated employees.  As Iskanian v. CLS Transportation Los Angeles, LLC (2014) 59 Cal.4th 348, a pre-dispute arbitration clause cannot be enforced to require arbitration of a PAGA claim since the claim is brought on behalf of the state which is not party to the arbitration agreement.  If the employee seeks relief that is not allowable in a PAGA suit, the remedy is not to move to compel arbitration but rather to demur or move to strike the allegations seeking unauthorized remedies.

California Court of Appeal, Fourth District, Division 2 (Miller, J.); March 7, 2017; 2017 WL 895834

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