Arbitration/Employment/PAGA: Second Dist Div 2 Reverses Itself In Light Of Iskanian v. CLS Transportation Of Los Angeles

Private Attorneys General Act of 2004 Claims Brought By Parties Suing In Representative Capacity Do Not Have To Be Arbitrated On An Individual Basis.

     I posted on March 16, 2014 about Ybarra v. Apartment Investment and Management Company, B245901 (2nd Dist. Div. 2, March 13, 2014) (Ashmann-Gerst, Boren, Ferns) (Ybarra).  At the time, I quoted the following language from the opinion:

     “Unless and until the California Supreme Court rules otherwise, we determine that the representative waiver provision in the parties’ arbitration agreement is enforceable, and that Aimco’s motion to compel Ybarra’s PAGA claim on an individual basis should have been granted.”

    That was then.  This is now:

    “Per order of the California Supreme Court, we have vacated and reconsidered our prior opinion in this case, filed March 13, 2014, in light of Iskanian v. CLS Transportation of Los Angeles, LLC (2014) 59 Cal.4th 348 (Iskanian).”

    In its unpublished opinion filed October 7, 2014, the Court of Appeal has affirmed the trial court’s order denying Aimco’s motion to compel arbitration.

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