Rocha v. U-Haul Co. of Cal.
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Appellants (the brothers) appealed following a judgment affirming an arbitration award that resolves an employment dispute between the brothers, their former employer, defendant and respondent U-Haul Co. of California (U-Haul), and their former manager at U-Haul and Respondent. On appeal, the brothers challenge the court’s order compelling their dispute to arbitration, arguing that the arbitration agreement they signed with U-Haul is unconscionable and thus unenforceable.
The Second Appellate District affirmed the order compelling arbitration. The brothers also challenged the court’s order, issued before the court ordered the matter to arbitration, denying them leave to amend their complaint. The proposed amendment includes a Labor Code cause of action against Sandusky for unpaid wages regarding work the brothers allegedly performed at Respondent’s residence solely for his personal benefit. The court saw no basis for which the trial court could deny the brothers leave to assert such a claim. The brothers’ proposed amendment also includes a claim for relief under California’s Private Attorney General Act (the PAGA) based on the Labor Code violations by U-Haul and/or Respondent reflected in the proposed amended complaint. But the brothers cannot establish PAGA standing to bring a claim based on Labor Code violations by U-Haul already alleged in the operative complaint, because the arbitrator found no such violations occurred, and that finding has issue preclusive effect. The arbitrator’s finding does not affect the brothers’ ability to establish PAGA standing based on the proposed alleged Labor Code violation by Respondent involving unpaid wages; however, the court saw no other fatal deficiencies in the proposed PAGA claim against Respondent.
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