Franklin v. Community Regional Medical Center, FKA, No. 19-17570 (9th Cir. 2021)
Annotate this Case
Franklin, a nurse, was employed by a staffing agency, USSI, and had signed an Arbitration Agreement. USSI assigned Franklin to work at the Hospital. Franklin signed a Travel Nurse Assignment Contract that also includes an arbitration provision. The Hospital is not a signatory to either the Arbitration Agreement or the Assignment Contract. There is no contract between Franklin and the Hospital nor between the Hospital and USSI. The Hospital contracts with RightSourcing, which contracts with USSI to provide the contingent nursing staff. The Hospital retains supervision over the provision of clinical services. RightSourcing bills the Hospital and remits payment to USSI.
Franklin brought a class and collective action against the Hospital, alleging violations of the Fair Labor Standards Act, the California Labor Code, and the California Business and Professions Code, alleging that the Hospital required Franklin to work during meal breaks and off the clock but failed to pay her for that work and failed to provide accurate itemized wage statements or reimburse travel expenses.
The district court granted the Hospital’s motion to compel arbitration. The Ninth Circuit affirmed. The Hospital, a nonsignatory, could compel arbitration because Franklin’s claims were intimately founded in and intertwined with her contracts with USSI; under California law, she was equitably estopped from avoiding the arbitration provisions.
Court Description: Arbitration The panel affirmed the district court’s order granting defendant’s motion to compel arbitration of wage-and-hour claims brought by a nurse under the Fair Labor Standards Act and California law. Plaintiff signed a Mediation and Arbitration Policy and Agreement with the staffing agency for which she worked. She also signed a Travel Nurse Assignment Contract with the staffing agency, establishing the terms of her assignment to work at defendant Community Regional Medical Center’s hospital. The Assignment Contract also included an arbitration provision. The panel held that the defendant Hospital, a nonsignatory, could compel arbitration because plaintiff’s claims against the Hospital were intimately founded in and intertwined with her contracts with the staffing agency. Thus, under California law, plaintiff was equitably estopped from avoiding the arbitration provisions of her employment contracts. FRANKLIN V. CMTY. REG’L MED. CTR. 3
Some case metadata and case summaries were written with the help of AI, which can produce inaccuracies. You should read the full case before relying on it for legal research purposes.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.