In a recent legal development, Jobanny Garcia has filed an appeal against Universal Molding Co., contesting the dismissal of his nonindividual claims under the Private Attorneys General Act (PAGA). The complaint was initially filed in the Superior Court of Los Angeles County on April 24, 2019, and later amended to include PAGA claims. The case, presided over by Judge Michael L. Stern, saw significant turns following the U.S. Supreme Court's decision in Viking River Cruises, Inc. v. Moriana and its subsequent interpretation by the California Supreme Court in Adolph v. Uber Technologies, Inc.
Garcia's legal journey began with a class action complaint alleging multiple wage and hour violations along with unfair competition claims. By August 1, 2019, Garcia had amended his complaint to include PAGA claims on behalf of himself and other aggrieved employees. However, on November 4, 2019, he requested the dismissal of his individual and class action claims without prejudice, leaving only the PAGA cause of action intact.
The procedural landscape shifted dramatically when the U.S. Supreme Court decided Viking River Cruises in June 2022. This ruling suggested that plaintiffs lose standing for nonindividual PAGA claims if their individual claims are compelled to arbitration. Following this precedent, Universal Molding Co. promptly moved to compel arbitration for Garcia’s individual PAGA claims and sought dismissal of his nonindividual PAGA claims.
Despite these developments, Garcia opposed the motion and requested a stay for his representative PAGA claim pending arbitration of his individual claims. On October 6, 2022, Judge Stern ordered Garcia’s individual PAGA claims to arbitration but dismissed his nonindividual PAGA claims without prejudice.
Garcia's appeal hinges on the "death knell" doctrine which allows exceptions to final judgment rules when representative claims are involved. He cited Adolph v. Uber Technologies as pivotal to his argument that compelling arbitration for individual PAGA claims does not eliminate standing for nonindividual claims—a stance contrary to Viking River’s interpretation but upheld by California's highest court.
The appellate court reversed the trial court’s dismissal of Garcia’s nonindividual PAGA claims and remanded with instructions to consider staying litigation pending arbitration outcomes. This decision aligns with Adolph's clarification that state law does not mandate dismissing nonindividual PAGA claims when individual ones are arbitrated.
Representing Garcia were attorneys Samuel A. Wong, Kashif Haque, Jessica L. Campbell, and Joseph M. Szilagyi from Aegis Law Firm; while James T. Jackson and Jessica A. Crabbe from Jackson & Associates represented Universal Molding Co.
The case is identified as B325071 in Los Angeles County Superior Court under Super Ct No: 19STCV14287.