Elizabeth Castelo sued her former employer Xceed Financial Credit Union for wrongful termination and age discrimination in violation of FEHA. After the parties stipulated to binding arbitration, the arbitrator granted summary judgment to Xceed based on a release that Castelo signed after she was notified of the termination decision but before her…
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Bel Air Internet, LLC v. Morales, 2018 WL 1045222 (Cal. Ct. App. 2018)
Bel Air Internet sued two of its former employees, Albert Morales and Flavio Delabra, for encouraging their fellow employees to quit and sue the company for alleged employment violations rather than sign a release of claims as Bel Air had requested. Bel Air sued Morales and Delabra for intentional interference with…
On October 22, 2010, the California Court of Appeal in Villacres v. Abm Industries Inc., No. B219584, __ Cal. App. 4th __ (2010) rejected an attempt by a settling class member to use the California Private Attorney Generals Act (PAGA) to bring successive claims for civil penalties against his former employer, from whom he had previously accepted the proceeds from a class action settlement involving similar claims. In so doing, the Court of Appeal affirmed the trial court’s granting of summary judgment for the employer on the ground that the plaintiff’s claims were barred under the doctrine of res judicata. This outcome is a clear victory for employers who purchase costly peace through court-approved class action settlements, and a welcome clarification that PAGA cannot be used to peck an employer to death once such settlements are final.
Chindarah v. Pick Up Stix, Inc., 171 Cal. App. 4th 706 (2009)
Two former employees of Pick Up Stix (a restaurant) filed a complaint seeking unpaid overtime, penalties and interest due to the misclassification of their jobs as exempt from the overtime pay requirements of state law. The putative class included current and former general managers, assistant managers and lead cooks employed during the…
Edwards v. Arthur Andersen LLP, 44 Cal. 4th 937 (2008)
CPA Raymond Edwards II was hired in 1997 as a tax manager for the Los Angeles office of the now defunct accounting firm Arthur Andersen LLP (“Andersen”). As a condition of his employment, Edwards was required to execute a noncompetition agreement that prohibited his (1) “perform[ing] professional services” for 18 months post-termination on behalf…
Perez v. Uline, Inc., 157 Cal. App. 4th 953 (2007)
On the day that Brian Perez, a captain in the United States Marine Corps Reserves, returned to work after duty with the Reserves, his employment with Uline, Inc. was terminated. He was presented with a “Severance Agreement and Release,” offering him severance in the amount of six weeks’ salary in exchange for his execution…
Butler v. The Vons Companies, Inc., 140 Cal. App. 4th 943 (2006)
While working as a stock clerk for Vons, Sheldon Butler signed a “Compromise and Release Settlement Agreement” arising from an altercation that Butler had with a co-employee. Approximately two years later, Butler filed unrelated claims alleging employment discrimination and violation of Business & Professions Code § 17200, and Vons sought to rely…
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