Younan v. Fleming Distribution Co.
Annotate this CaseYounan worked for Fleming, 2009-2016. In 2017, he filed a complaint with the Labor Commission, seeking $22,000 in commissions, plus penalties and interest. Fleming asserted to the Labor Commissioner that the complaint should be dismissed because the parties signed an (attached) arbitration agreement. The Commissioner did not dismiss the complaint but Fleming did not file a petition to compel arbitration. A hearing was set for August 2018. In July, Fleming filed an Answer that contained affirmative defenses, including that arbitration was the proper forum. On August 7, Fleming moved to vacate the August 13 hearing and dismiss the complaint because Younan’s employment application and agreement required arbitration, again stating that “[Fleming] is prepared to file a motion with the Superior Court seeking to compel arbitration.” Both parties appeared at the August 13 hearing. Fleming’s motion was denied because Fleming had failed to obtain a stay from the superior court. In December, the Labor Commissioner awarded Younan commissions plus interest and liquidated damages. Fleming filed a notice of appeal; a de novo trial was scheduled for March 2019. In February, Fleming filed an unsuccessful petition to compel arbitration, stay proceedings and vacate the order. The court of appeal affirmed, finding that Fleming waived its right to arbitration by taking steps inconsistent with an intent to invoke arbitration, including delaying its request to the superior court until after a full hearing. Fleming also failed to establish an agreement to arbitrate existed.
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