Clifford v. Quest Software Inc.Annotate this Case
In 1995, Daniel Clifford began working for Quest Software Inc. (Quest). In 2012, Dell Inc. acquired Quest to form its software division, Dell Software Inc., which hired Clifford as an employee. In 2015, Clifford participated in Dell’s online “Code of Conduct” training course. According to Quest, when Clifford completed the training, he acknowledged that he read and agreed to the terms of Dell’s Arbitration Agreement and Dispute Resolution Program. In 2017, Clifford filed a complaint against Quest for: (1) failure to pay overtime; (2) failure to provide meal periods; (3) failure to provide rest periods; (4) failure to provide accurate wage statements; (5) failure to reimburse for business expenses; and (6) unfair business practices under Business and Professions Code section 17200. He based his complaint on his allegation Quest misclassified him as an exempt employee. Quest moved to compel arbitration of Clifford’s claims. The trial court found Quest had established the existence of a binding and enforceable arbitration agreement, and it compelled arbitration of Clifford’s first through fifth causes of action. However, it denied the motion on the sixth cause of action, his UCL claim, citing without discussion the California Supreme Court’s decision in Cruz v. PacifiCare Health Systems, Inc., 30 Cal.4th 303 (2003). The court stayed the prosecution of that cause of action pending the completion of the arbitration. Quest timely appealed. The question posed in this appeal was whether an employee’s claim against his employer for unfair competition under section 172001 was arbitrable. The Court of Appeal reversed that portion of the trial court’s order. "Assuming Cruz remains good law . . . Cruz at most stands for the proposition that UCL claims for 'public' injunctive relief are not arbitrable. Cruz does not bar arbitration of a UCL claim for private injunctive relief or restitution, which is precisely what the UCL claim here seeks. The employee’s UCL claim therefore is subject to arbitration, along with his other causes of action."