Pembrick v. Loyal Source Government Services, LLC

Summary

The United States District Court for the Southern District of California denied Loyal Source Government Services, LLC’s motion to compel arbitration in a representative PAGA action brought by Monique Pembrick. The court held that the operative July Voluntary Employee Arbitration Agreement clearly and unambiguously excluded PAGA claims from arbitration, and that the general arbitration provision did not override that exclusion. The court also declined to rely on other arbitration agreements or the subsequent unsigned agreement as evidence of a contrary intent.

Holdings

1. The July 2022 Voluntary Employee Arbitration Agreement was the valid and operative agreement to arbitrate because Defendant identified it as the agreement on which it relied and Plaintiff did not dispute its validity.
2. The July 2022 Voluntary Employee Arbitration Agreement unambiguously excluded PAGA claims from arbitration, so it did not encompass Plaintiff's PAGA claims.
3. Defendant was not entitled to compel arbitration of Plaintiff's PAGA claims, and its request to stay the non-individual PAGA claims was moot.

Questions Presented

1. Whether the July 2022 Voluntary Employee Arbitration Agreement was the valid and operative agreement between the parties.
2. Whether the July 2022 agreement encompassed Plaintiff's PAGA claims despite its express exclusion of claims under PAGA.
3. Whether Defendant was entitled to compel arbitration of Plaintiff's individual PAGA claims and stay her non-individual PAGA claims.

Disposition

other