Quach v. Cal. Commerce Club
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Plaintiff was a floor supervisor at the Defendant hotel and casino. In 2015, Defendant required all employees to sign a new arbitration policy as a condition of employment. Plaintiff signed the new policy. The following year, Defendant fired Plaintiff after Plaintiff accepted counterfeit $100 bills during his shift. In 2019, Plaintiff obtained a right-to-sue letter from DFEH and brought causes of action under wrongful termination, age discrimination, retaliation and harassment.
In 2020, Defendant responded to Plaintiff's claim, but failed to move to compel arbitration. However, on December 23, 2020, 13 months after Plaintiff filed his lawsuit, Defendant moved to compel arbitration. The trial court denied Defendant's motion, finding that the 13-month wait prejudiced Plaintiff and that Defendant had waived its right to compel arbitration.
The Second Appellate District reversed, finding Plaintiff's allegations of prejudice were insufficient. Waiver does not occur merely by participating in litigation; the case must reach the point of judicial litigation before a court will find a party waived the right to compel arbitration. The court also rejected Plaintiff's claim that the arbitration agreement was unconscionable.
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