Hernandez v. Meridian Management Services, LLC

California Court of Appeal Jan 30, 2023 No. B312814Published

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Holding. The court held that non-signatory defendants could not compel arbitration of an employee's claims against them based on an arbitration agreement the employee signed with a separate, non-party employer. The defendants failed to establish equitable estoppel, agency, or third-party beneficiary status.

Issues

Whether non-signatory defendants may compel arbitration based on an arbitration agreement between a plaintiff and a separate, non-party employer under the doctrine of equitable estoppel.
Whether non-signatory defendants may compel arbitration as agents of the signatory employer.
Whether non-signatory defendants qualify as third-party beneficiaries of an arbitration agreement between a plaintiff and a separate employer.

Disposition. Affirmed

Quotations verified verbatim against the opinion

“The Other Firms cannot equitably estop Hernandez because they do not show she is trying to profit from some unfair action. They have no proof of agency. And they are not third party beneficiaries of Intelex’s contract.”

“The Other Firms give three faulty reasons why they should be able to enforce a contract they did not sign: equitable estoppel, agency, and third party beneficiary.”

“The Other Firms stumble on step two. Nothing shows Intelex and Hernandez sought to benefit the Other Firms.”

Filed 1/30/23 CERTIFIED FOR PUBLICATION

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION EIGHT

JESSICA HERNANDEZ, B312814

Plaintiff and Respondent, Los Angeles County Super. Ct. No. 20STCV28700 v.

MERIDIAN MANAGEMENT SERVICES, LLC, et al.,

Defendants and Appellants.

APPEAL from an order of the Superior Court of Los Angeles County, Terry A. Green, Judge. Affirmed. Lewis Brisbois Bisgaard & Smith, Lann G. McIntyre, Melissa T. Daugherty and Kerri R. Lutfey for Defendants and Appellants. Shegerian & Associates, Carney R. Shegerian, Anthony Nguyen and Leo Livshits for Plaintiff and Respondent. ____________________

Jessica Hernandez signed an arbitration contract with an employer called Intelex Enterprises, LLC. While working for Intelex, Hernandez also worked for other firms (Other Firms). These Other Firms were legally separate from Intelex, but functionally related to it. The Other Firms did not contract for arbitration with Hernandez. After termination, Hernandez sued the Other Firms but not Intelex: Intelex has never been a party to this case. The Other Firms moved to compel arbitration based on Hernandez’s agreement with Intelex. The trial court denied the Other Firms’ motion to enforce a contract they had not signed. The trial court was right. The Other Firms cannot equitably estop Hernandez because they do not show she is trying to profit from some unfair action. They have no proof of agency. And they are not third party beneficiaries of Intelex’s contract. Consequently, we affirm. I Intelex distributed medical supplies to skilled nursing facilities. It hired Hernandez as a customer service representative in 2015. As part of the hiring process, Hernandez signed an arbitration contract with Intelex. Hernandez worked for Intelex until her termination in 2020. At the same time she worked for Intelex, Hernandez also worked for six other companies that shared a building with Intelex. These six firms were Meridian Management Services, LLC; Comfort Care Enterprises, LLC; Office Smart, LLC; Shredpro, LLC; JJMBR Foods, LLC; and Premier Medical Transport, Inc. These six are the Other Firms. Hernandez

Hernandez v. Meridian Management Services, LLC

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IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION EIGHT

JESSICA HERNANDEZ, B312814

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