A real estate investment company is embroiled in a legal battle with a former employee over allegations of wrongful termination. The complaint was filed by Dwayne J. Chomyk in the Los Angeles Superior Court on October 16, 2020, against Christina Development Corporation (CDC).
The case revolves around Chomyk's claim that he was wrongfully terminated from his position as Director of Portfolio Management at CDC, where he began working on October 1, 2018, and was terminated less than two months later on November 26, 2018. Chomyk alleges that his termination was retaliatory because he acted as a whistleblower. In response to the lawsuit, CDC successfully moved to compel arbitration based on an arbitration agreement signed by Chomyk on his first day of employment.
The arbitration agreement included a delegation clause granting the arbitrator exclusive authority to resolve disputes regarding the enforceability of the agreement. Following an evidentiary hearing in June 2021, the court found the delegation clause valid and granted CDC’s motion to compel arbitration. However, complications arose when CDC failed to pay required arbitration fees within the stipulated timeframe under California Code of Civil Procedure section 1281.98.
According to court documents, CDC initiated arbitration proceedings and paid an initial deposit but delayed further payments necessary for continuing the arbitration process. Despite multiple reminders from the American Arbitration Association (AAA), CDC failed to pay a $7,200 invoice within the required 30 days. Consequently, Chomyk's counsel argued that this failure constituted a material breach under sections 1281.97 and 1281.98 of the California Code of Civil Procedure, allowing Chomyk to withdraw from arbitration and proceed with his claims in court.
CDC opposed this motion, arguing that these statutes were intended for cases where employees had filed claims against employers in arbitration and not situations like theirs where no claims had been formally asserted by Chomyk in arbitration yet. Nonetheless, Judge Colin P. Leis ruled in favor of Chomyk, allowing him to resume litigating his wrongful termination lawsuit in court.
Chomyk is seeking relief for wrongful termination along with other unspecified damages related to his claim as a whistleblower. He asserts that his dismissal was not only unjust but also executed under deceitful circumstances involving economic duress.
Representing Christina Development Corporation are attorneys Charles N. Shephard, Ricardo P. Cestero, and Ira M. Steinberg from Greenberg Glusker Fields Claman & Machtinger LLP. Jeffrey W. Cowan from The Cowan Law Firm represents Dwayne J. Chomyk.
Judge Colin P. Leis presided over this case at Los Angeles County Superior Court under Super Ct No: 20STCV3986 and the Appellate Court case ID No: B330906.