Bravo v. Charter Communications CA2/4 ( 2021 )


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  • Filed 3/23/21 Bravo v. Charter Communications CA2/4
    NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS
    California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying
    on opinions not certified for publication or ordered published, except as specified by rule 8.1115(a).
    This opinion has not been certified for publication or ordered published for purposes of rule
    8.1115(a).
    IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA
    SECOND APPELLATE DISTRICT
    DIVISION FOUR
    BRAVO et. al.,                                                 B303179
    Plaintiffs and Respondents,                              Los Angeles County
    Super. Ct. No.
    v.                                                       19STCV28846
    CHARTER
    COMMUNICATIONS, LLC et.
    al.,
    Defendants and Appellants.
    APPEAL from an order of the Superior Court of Los
    Angeles County, Gregory Wilson Alarcon, Judge. Reversed and
    remanded with directions.
    Hill, Farrer & Burrill, James A. Bowles and Erika A.
    Silverman, for Defendants and Appellants.
    Guerra & Casillas, Ruben Guerra and Tizoc Perez-Casillas
    for Plaintiffs and Respondents.
    INTRODUCTION
    Charter Communications, LLC (Charter), Noe Florin,
    Debone Markham, and Cheryl Doe (collectively, “Employers”)
    challenge the trial court’s order denying their motion to compel
    arbitration of employment-related claims asserted against them
    by former Charter employees Claudia Bravo, Rhonda Lackey,
    Khaliah Farwell, Crystal Glass, Michael Washington, Angelica
    Gomez, and Tamekia Newman (collectively, “Employees”). The
    trial court determined no valid arbitration agreements existed
    between the parties, having found: (1) the Employees did not
    assent to their enrollment into Charter’s arbitration program;
    and (2) the purported arbitration agreements failed for lack of
    consideration. On appeal, the Employers contend both findings
    were error. We agree and reverse.
    BACKGROUND
    Charter provides cable television, telephone, and internet
    services to customers throughout the United States. As of
    October 6, 2017, the Employees were employed by Charter as
    telephone service representatives. Glass was on medical leave at
    the time. She returned to work on November 20, 2017.
    On October 6, 2017, Paul Marchland, Charter’s Executive
    Vice President of Human Resources, sent an e-mail to all active
    Charter employees’ work e-mail addresses announcing the
    company’s establishment of an “employment-based legal dispute
    resolution program” called “Solution Channel.” The e-mail
    described Solution Channel as a “program that allows [the
    recipient] and the company to efficiently resolve covered
    employment-related legal disputes through binding arbitration.”
    The e-mail also stated: “By participating in Solution Channel,
    2
    you and Charter both waive the right to initiate or participate in
    court litigation (including class, collective and representative
    actions) involving a covered claim and/or the right to a jury trial
    involving any such claim. More detailed information about
    Solution Channel is located on Panorama. Unless you opt out of
    participating in Solution Channel within the next 30 days, you
    will be enrolled. Instructions for opting out of Solution Channel
    are also located on Panorama.” (Italics omitted.) Marchland’s e-
    mail contained a link to a webpage located on Panorama,
    Charter’s “intranet site accessible to [its] [e]mployees,” which
    provided more information about Solution Channel (“Solution
    Channel Webpage”).
    The Solution Channel Webpage provided additional
    information about the program’s purpose, the “tangible benefits”
    employees would enjoy by participating in the program, and how
    employees could submit a claim to invoke the dispute-resolution
    process. The Solution Channel Webpage also stated the following:
    “Participation in Solution Channel means that you and Charter
    agree to waive any right to participate in court litigation
    involving covered disputes and to arbitrate those disputes that
    are not successfully resolved following the internal review phase
    of the process.” Employees could access Solution Channel’s
    Program Guidelines and the Mutual Arbitration Agreement
    setting forth the program’s terms via links on the Solution
    Channel Webpage.
    The Solution Channel Webpage also told employees how to
    opt-out of the program, stating: “Opting Out of Solution
    Channel. [¶] If you do not opt out of Solution Channel within the
    designated time, you will automatically be enrolled in Solution
    Channel and considered to have consented to the terms of the
    3
    Mutual Arbitration Agreement at that time. To opt-out of
    Solution Channel, please click here. In the new window that
    will open, click Main Menu -> Self-Service -> Solution Channel.”
    Employees who clicked on the link embedded in the passage
    above and followed the specified steps were directed to the
    webpage where they could opt out of Solution Channel. (“Opt Out
    Webpage”).
    Upon landing on the Opt Out Webpage, employees could
    check a box next to the following phrase: “I want to opt out of
    Solution Channel[.]”After doing so, employees could enter their
    name into an adjacent text field and click “SAVE.” Those who
    completed these steps received an e-mail confirming they had
    opted out of Solution Channel.
    Employees who were on a leave of absence on October 6,
    2017, such as Glass, were sent an e-mail informing them of
    Charter’s implementation of Solution Channel 10 days after they
    returned from leave. This e-mail described Solution Channel as
    “an arbitration program that allows you to efficiently resolve
    employment-related legal disputes by submitting a written claim
    for internal review and, if necessary, to binding arbitration,
    where claims can be heard by a neutral arbitrator that you and
    Charter select.” The e-mail informed returning employees they
    could access Solution Channel’s Program Guidelines and the
    Mutual Arbitration Agreement governing the program’s terms on
    Panorama, and contained a link to the Solution Channel
    Webpage.1 The e-mail further stated: “You will be automatically
    1     The record is unclear whether, like the version of the
    Solution Channel Webpage accessible to employees who were
    active when Marchland initially announced Charter’s adoption of
    Solution Channel, the version of the Solution Channel Webpage
    4
    enrolled in Solution Channel unless you choose to opt out of the
    program within the next 30 days. You can learn more about
    opting out of Solution Channel by clicking here. By agreeing to
    arbitrate disputes under this Program, you and Charter are
    giving up any right to a jury trial and any right to bring covered
    claims in a court of law. You should review the Mutual
    Arbitration Agreement and Program Guidelines carefully.”
    (Bolding omitted.) Those who clicked on the link embedded in the
    passage above were directed to a webpage where they were asked
    to “sign[ ] in using their regular network credentials.” From
    there, the employee could access the Opt Out Webpage.
    None of the Employees opted out of Solution Channel
    during the 30-day timeframe provided. Consequently, the
    Employees were enrolled in Solution Channel the day after their
    opt-out period expired.
    On August 16, 2019, the Employees filed a complaint
    against the Employers, asserting nine claims for relief based
    upon the Employers’ alleged violations of the Fair Employment
    and Housing Act and the California Family Rights Act during the
    course of their employment.
    In response, on October 2, 2019, the Employers filed a
    motion to compel arbitration and stay the action pursuant to the
    Federal Arbitration Act (FAA). The Employees opposed the
    motion, arguing the Employers failed to demonstrate the
    existence of valid arbitration agreements between the parties
    because: (1) the purported arbitration agreements were invalid
    available to employees returning from leave also contained a link
    to the Opt Out Webpage and/or reiterated they would be
    automatically enrolled in Solution Channel if they did not opt out
    in the time provided.
    5
    under California’s Uniform Electronic Transactions Act (UETA),
    as the Employees did not consent to transact by electronic means
    as required by statute; and (2) the Employers could not
    demonstrate the Employees received or reviewed the e-mails
    notifying them of their enrollment in Solution Channel, and
    therefore could not prove they received notice of Charter’s
    incorporation of an agreement to arbitrate into the terms of their
    employment contracts.
    The trial court denied the Employers’ motion to compel on
    November 27, 2019. In issuing its ruling, the court first noted the
    parties did not dispute the FAA’s applicability, and therefore
    found that the FAA governs.2
    Subsequently, the trial court rejected both of the
    arguments raised in the Employees’ opposition. First, regarding
    the Employees’ UETA argument, the trial court determined the
    statute and the case on which the Employees relied, J.B.B.
    Investment Partners, Ltd. v. Fair (2014) 
    232 Cal.App.4th 974
    (J.B.B.), were inapposite.
    With respect to the Employees’ second argument, the trial
    court found the Employers’ evidence was insufficient to
    demonstrate the Employees clicked on and read the e-mails
    announcing Charter’s implementation of Solution Channel.
    Ultimately, however, the trial court found the Employees “did in
    fact receive the emails,” and that “[w]hether [they] chose to read
    the emails or not is not of importance in finding whether an
    implied-in-fact agreement to arbitrate exists.” Nevertheless, the
    2     The trial court also found, for purposes of the Employers’
    motion, the arbitration agreements were not unconscionable, as
    the parties did not appear to dispute the matter.
    6
    court determined “no valid agreement to arbitrate exists,”
    because “acceptance of the arbitration agreement was voluntary.”
    Specifically, the court emphasized the Employees “could continue
    to be employed without agreeing to the arbitration agreement,”
    and therefore found “an absence of acceptance and
    consideration.”
    Charter timely appealed.
    DISCUSSION
    I.    General Principles and Standard of Review
    Pursuant to section 2 of the FAA, an agreement to arbitrate
    is “valid, irrevocable, and enforceable, save upon such grounds as
    exist at law or in equity for the revocation of any contract.” (
    9 U.S.C. § 2
    .) “This statute stands as a ‘congressional declaration of
    a liberal federal policy favoring arbitration agreements,
    notwithstanding any state substantive or procedural policies to
    the contrary.’ [Citation.]” (Pinnacle Museum Tower Assn. v.
    Pinnacle Market Development (US), LLC (2012) 
    55 Cal.4th 223
    ,
    235 (Pinnacle), fn. omitted.) “Nonetheless, it is a cardinal
    principle that arbitration under the FAA ‘is a matter of consent,
    not coercion.’ [Citation.] Thus, ‘“a party cannot be required to
    submit to arbitration any dispute which he has not agreed so to
    submit.”’ [Citations.]” (Id. at p. 236.)
    Accordingly, “‘[w]hen considering a motion to compel
    arbitration, the court must initially “determine whether the
    parties agreed to arbitrate the dispute in question.” [Citation.]
    “This determination involves two considerations: (1) whether
    there is a valid agreement to arbitrate between the parties; and
    (2) whether the dispute in question falls within the scope of that
    7
    arbitration agreement.” [Citation.]’ [Citations.]” (Bruni v. Didion
    (2008) 
    160 Cal.App.4th 1272
    , 1283.)
    “In determining the rights of parties to enforce an
    arbitration agreement within the FAA’s scope, courts apply state
    contract law while giving due regard to the federal policy favoring
    arbitration. [Citations.] [¶] In California, ‘[g]eneral principles of
    contract law determine whether the parties have entered a
    binding agreement to arbitrate.’ [Citations.]” (Pinnacle, supra, 55
    Cal.4th at p. 236.)
    “There is no uniform standard of review for evaluating an
    order denying a motion to compel arbitration. [Citation.] If the
    court’s order is based on a decision of fact, then we adopt a
    substantial evidence standard. [Citations.] Alternatively, if the
    court’s denial rests solely on a decision of law, then a de novo
    standard of review is employed. [Citations.]” (Robertson v. Health
    Net of California, Inc. (2005) 
    132 Cal.App.4th 1419
    , 1425.)
    II.   Analysis3
    The Employers contend the trial court erred by finding: (1)
    the Employees did not impliedly assent to their enrollment into
    Solution Channel by continuing to work for Charter and failing to
    opt out of the program after receiving notice of its establishment;
    and (2) the agreements to arbitrate were unsupported by
    consideration. In response, the Employees largely rely on the
    same arguments they raised before the trial court. Specifically,
    3     The Employers’ Request for Judicial Notice in Support of
    their Reply Brief, filed on December 21, 2020 and corrected as of
    that date, is granted. (See Evid. Code, §§ 452, subd. (a); 459,
    subd. (a).)
    8
    they: (1) maintain the arbitration agreements were invalid
    because the UETA’s requirements had not been satisfied; (2)
    continue to “deny ever having received or reviewed the e-mail[s]”
    informing them that they would be enrolled in Solution Channel;
    and (3) assert the trial court correctly found that they “failed to
    provide the adequate consideration in that their acceptance was
    voluntary.”
    As discussed below, we agree with the Employers, and
    conclude the Employees’ arguments are unavailing.
    A.    Applicability of UETA
    The Employees “maintain that the UETA applies” in this
    case because “the purported arbitration agreement was an
    electronic transaction.” Accordingly, relying on J.B.B., supra, 
    232 Cal.App.4th 974
    , the Employees contend the agreements were
    invalid because the Employees did not “consent to transact
    electronically [with Charter] prior to the electronic transaction,”
    as required by the statute. We disagree.
    The UETA concerns “electronic records and electronic
    signatures relating to a transaction.” (Civ. Code, § 1633.3, subd.
    (a).) Under the UETA, “[i]f a law requires a record to be in
    writing, an electronic record satisfies the law[,]” and “[i]f a law
    requires a signature, an electronic signature satisfies the law.”
    (§ 1633.7, subds. (c) & (d).) The UETA further provides that “[a]
    record or signature may not be denied legal effect or
    enforceability solely because it is in electronic form[,]” and “[a]
    contract may not be denied legal effect or enforceability solely
    because an electronic record was used in its formation.” (§ 1633.7
    subds. (a) & (b).) The UETA, however, “applies only to a
    9
    transaction between parties each of which has agreed to conduct
    the transaction by electronic means.” (§ 1633.5, subd. (b).)
    In J.B.B., the Court of Appeal held the parties’ written
    settlement agreement failed to satisfy the “strict signature
    requirements” of Code of Civil Procedure section 664.6,4 and
    therefore was not enforceable under that statute. (J.B.B., supra,
    232 Cal.App.4th at pp. 990-993.) In support of its holding, the
    Court of Appeal emphasized that “an agreement to settle cannot
    be enforced under [the statute] unless it is signed by all of the
    litigating parties. [Citations.]” (Id. at p. 985.) The Court of Appeal
    then determined the trial court erred by finding the plaintiff’s
    printed name on the bottom of an e-mail expressing agreement to
    the proposed settlement was a valid signature under the UETA
    for purposes of satisfying this requirement, because the record
    did not “demonstrate . . . that the parties ever agreed to conduct
    transactions by electronic means [as required by Civil Code
    section 1633.5, subdivision (b)], or that [the plaintiff] intended
    with his printed name at the end of his e-mail to sign
    electronically . . . the [settlement] offer.” (Id. at p. 989)
    As the trial court aptly observed, this case does not involve
    the enforceability of a settlement agreement under Code of Civil
    Procedure section 664.6. Nor does it require us to evaluate the
    validity of an electronic signature, or whether an electronic
    record satisfies any law requiring a written instrument. Rather,
    4     Code of Civil Procedure section 664.6, subdivision (a)
    provides, in pertinent part: “If parties to pending litigation
    stipulate, in a writing signed by the parties outside of the
    presence of the court or orally before the court, for settlement of
    the case, or part thereof, the court, upon motion, may enter
    judgment pursuant to the terms of the settlement.”
    10
    we must address: (1) whether the Employees’ conduct manifested
    implied assent to their participation in Charter’s arbitration
    program; and (2) whether their agreements to arbitrate were
    supported by consideration. Accordingly, we agree with the trial
    court that the UETA and J.B.B. do not apply.
    B.    Implied Assent
    As noted above, “[g]eneral principles of contract law
    determine whether the parties have entered a binding agreement
    to arbitrate. [Citation.]” (Craig v. Brown & Root (2000) 
    84 Cal.App.4th 416
    , 420 (Craig).) “Under California’s law of
    contracts, a contract may be express (that is, either written or
    oral) or implied in fact (that is, one whose ‘existence and terms
    . . . are manifested by conduct’). [Citations.]” (Douglass v.
    Serenivision, Inc. (2018) 
    20 Cal.App.5th 376
    , 387.) Thus, “parties
    may enter into an implied in fact agreement to arbitrate through
    their conduct . . . . [Citation.]” (Ibid.) “Whether a party’s conduct
    constitutes consent is necessarily fact specific[.]” (Id. at p. 388.)
    “[I]t is settled that an employer may unilaterally alter the
    terms of an employment agreement, provided such alteration
    does not run afoul of the Labor Code[,]” or any other statute or
    contractual agreement. (Schachter v. Citigroup, Inc. (2009) 
    47 Cal.4th 610
    , 619-620 (Schachter).) “An ‘employee who continues
    in the employ of the employer after the employer has given notice
    of changed terms or conditions of employment has accepted the
    changed terms and conditions.’ [Citation.]” (Id. at p. 620.)
    Accordingly, an employee’s continued employment may constitute
    implied-in-fact acceptance of an arbitration agreement proposed
    by his or her employer as a new term or condition of employment.
    11
    (See Harris v. TAP Worldwide, LLC (2016) 
    248 Cal.App.4th 373
    ,
    383-384 (Harris); see also Craig, supra, 84 Cal.App.4th at p. 420.)
    The Employees contend they could not have impliedly
    accepted Charter’s proposed arbitration agreement because they
    were not given prior notice of its intention to incorporate the
    agreement into the terms of their employment. Specifically, they
    argue that they did not receive the e-mails informing them they
    would be enrolled in Solution Channel unless they opted out
    within the 30-day period provided. In so doing, the Employees
    essentially challenge the trial court’s factual finding that they
    “did in fact receive the e-mails.” We review this finding for
    substantial evidence. (See Avery v. Integrated Healthcare
    Holdings, Inc. (2013) 
    218 Cal.App.4th 50
    , 63-65 (Avery)
    [reviewing trial court’s finding regarding employee’s receipt of
    employee handbook containing arbitration agreement for
    substantial evidence].)
    “Under the substantial evidence standard of review, ‘we
    must consider all of the evidence in the light most favorable to
    the [trial court’s findings], giving [it] the benefit of every
    reasonable inference, and resolving conflicts in support of the
    [findings]. [Citations.] [¶] It is not our task to weigh conflicts and
    disputes in the evidence; that is the province of the trier of fact.
    Our authority begins and ends with a determination as to
    whether, on the entire record, there is any substantial evidence,
    contradicted or uncontradicted, in support of the [findings at
    issue]. . . . [Citations.]’ [Citation.]” (ASP Properties Group, L.P. v.
    Fard, Inc. (2005) 
    133 Cal.App.4th 1257
    , 1266 (ASP Properties).)
    The Employers submitted the following evidence: (1)
    declarations by John Fries, Charter’s Vice President of HR
    Technology, in which he states each of the Employees, except
    12
    Glass, was on the distribution list for the e-mail sent by
    Marchland on October 6, 2017 regarding Charter’s
    implementation of Solution Channel; (2) copies of the e-mails
    Marchland sent to each of those Employees, which showed their
    names in the recipient field; and (3) a declaration by Fries, in
    which he stated Glass was on the list of employees who were sent
    the e-mail regarding Charter’s adoption of Solution Channel
    following their return from leave, and that he confirmed the e-
    mail was sent on December 2, 2017. On this record, the trial
    court could reasonably infer the Employees received the e-mails
    above. Thus, the trial court could appropriately conclude the
    Employees were given notice of Charter’s implementation of
    Solution Channel, their ability to opt-out of the program if they
    so desired within 30 days, and the consequences of their failure to
    do so.5
    To the extent the Employees suggest evidence of the e-
    mails being sent cannot constitute evidence of their receipt
    because Evidence Code section 641 is inapplicable to e-mail, we
    are not persuaded. Pursuant to that statute: “A letter correctly
    addressed and properly mailed is presumed to have been received
    5       As noted above, although the trial court found the
    Employees received the e-mails, it determined the Employers’
    evidence was insufficient to support a finding that they had
    clicked on or opened the e-mails. The Employers did not contend
    this finding was error in their opening brief. Instead, they
    present the argument for the first time in their reply brief via
    footnote. It is well-settled, however, that “‘[p]oints raised for the
    first time in a reply brief will ordinarily not be considered,
    because such consideration would deprive the respondent of an
    opportunity to counter the argument.’ [Citation.]” (Reichardt v.
    Hoffman (1997) 
    52 Cal.App.4th 754
    , 764.)
    13
    in the ordinary course of mail.” (Evid. Code, § 641.) As an initial
    matter, we note the Employees did not cite, and we could not
    find, any California appellate court decisions holding this
    presumption does not apply to e-mail correspondence. In any
    event, the trial court did not rely on Evidence Code section 641 in
    making the factual finding at issue; rather, the record reflects the
    court “[f]ollow[ed] logic” to infer the e-mails were received based
    on the evidence above showing they had been sent. Giving the
    Employer’s evidence “‘the benefit of every reasonable inference,’”
    as we must (ASP Properties, 133 Cal.App.4th at p. 1266), we
    discern no error in the court’s analysis on this point.
    In addition, we reject the Employees’ contention that, even
    if they received the e-mails, they lacked requisite notice of
    Charter’s adoption of Solution Channel because they did not read
    or review them. As the trial court correctly acknowledged, the
    fact that the Employees “either chose not to read or take the time
    to understand [the e-mails] is legally irrelevant. [Citations.]”
    (Harris, 248 Cal.App.4th at p. 383.) This is so because “an
    employee may [not] avoid an employer’s arbitration policy
    imposed as a condition of employment by remaining willfully, or
    even negligently, ignorant of the policy[,]” such as by “failing to
    read a notice the employer sent to notify the employee about the
    employer’s arbitration policy. [Citation.]” (Avery, supra, 218
    Cal.App.4th at pp. 65-66; see also 24 Hour Fitness, Inc. v.
    Superior Court (1998) 
    66 Cal.App.4th 1199
    , 1215.)
    The question therefore remains whether the Employees’
    conduct constituted implied assent to their enrollment into
    Solution Channel and, consequently, their agreement to arbitrate
    employment-related claims per the program’s terms. On this
    point, we find Craig, supra, 
    84 Cal.App.4th 416
    , instructive.
    14
    In Craig, the plaintiff had been employed by the defendant
    for 12 years, when the defendant implemented an arbitration
    program “to resolve ‘all employee disputes.’” (Craig, supra, 84
    Cal.App.4th at pp. 418-419.) The defendant mailed the plaintiff a
    memorandum announcing the arbitration program, which stated
    the purpose of its establishment, and that it applied to the
    plaintiff. (Id. at p. 419.) The memorandum was accompanied by a
    brochure containing further information about the program’s
    terms, process, and logistics. (Ibid.) The defendant mailed copies
    of these materials to the plaintiff a second time a few months
    later, and then a third time in the following year. (Id. at p. 421.)
    Following the arbitration program’s implementation, the plaintiff
    worked for the defendant for another four years, at which point
    she was terminated. (Id. at p. 419.)
    The plaintiff sued, asserting her termination was improper
    based on “a variety of tort and contract theories[.]” (Craig, supra,
    84 Cal.App.4th at p. 419.) In response, the defendant filed a
    petition to compel arbitration. (Id. at pp. 419-420 ) The plaintiff
    opposed, arguing the defendant failed to show she agreed to
    arbitrate her claims because it did not present evidence
    demonstrating the plaintiff received or had knowledge of the
    arbitration program, such as a signed acknowledgment of the
    materials’ receipt. (Id. at p. 420.) The trial court granted the
    motion, and subsequently confirmed the arbitration award in
    favor of the defendant. (Ibid.)
    The Court of Appeal affirmed the judgment. (Craig, supra,
    84 Cal.App.4th at p. 423.) In support of its holding, the Court of
    Appeal first determined substantial evidence supported the trial
    court’s finding that the plaintiff received the memorandum and
    brochure concerning the defendant’s implementation of the
    15
    arbitration program, which informed her the program applied to
    her. (Id. at p. 422.) Accordingly, because the evidence also
    established the plaintiff continued to work for the defendant after
    receiving those materials, the Court of Appeal determined she
    impliedly agreed to be bound by program’s terms, including the
    provision for binding arbitration. (See id. at pp. 420, 422)
    As discussed above, here, as in Craig, the record contains
    substantial evidence to support the trial court’s finding that the
    Employees received the e-mails announcing Charter’s adoption of
    Solution Channel. Those e-mails informed the Employees that
    they would be automatically enrolled in Solution Channel, and
    thereby agreed to resolve employment-related disputes through
    binding arbitration under the program’s terms, unless they opted
    out within 30 days. Further, the e-mails provided the Employees
    access to webpages where they could find more information about
    opting out, and do so if they so desired. Similar to the Craig
    defendant’s inclusion of an informational brochure alongside the
    memorandum, Charter’s e-mails also gave the Employees direct
    access to a webpage containing more details about the program’s
    terms, logistics, and processes, which reiterated the consequences
    of their participation in the program. In effect, by providing these
    materials to the Employees, Charter notified them it was
    unilaterally modifying the terms of their employment agreements
    by requiring their participation in an arbitration program to
    resolve employment-related disputes, which would become
    effective and apply to them in 30 days unless they took
    appropriate steps to opt out.
    As noted above, however, none of the Employees opted out
    within the time provided. Consequently, when the 30-day period
    expired, Charter’s changes to the terms of their employment
    16
    agreements took effect. At that point, the Employees were
    enrolled in Solution Channel and, consequently, agreed to
    arbitrate their employment-related disputes under the program’s
    terms. Subsequently, like the plaintiff in Craig, the Employees
    continued to work for Charter after receiving notice of, and
    becoming participants in, their employer’s arbitration program.
    On these facts, we conclude the Employees’ conduct (i.e., failing
    to opt out of Solution Channel and continuing to work for Charter
    after their enrollment in the program), constituted implied
    acceptance of Charter’s addition of an agreement to arbitrate as a
    new term of their employment contracts, and the trial court erred
    by concluding otherwise.
    C.    Consideration
    Next, the Employers contend the trial court erred by
    finding the arbitration agreements were not supported by
    adequate consideration. We agree. The e-mails announcing
    Charter’s implementation of Solution Channel and the Solution
    Channel Webpage provide that, by virtue of the Employees’
    participation in Solution Channel, both they and Charter agreed
    to resolve employment-related disputes through binding
    arbitration, and to waive their rights to resolve those types of
    disputes by court litigation. “Where an agreement to arbitrate
    exists, the parties’ mutual promises to forego a judicial
    determination and to arbitrate their disputes provide
    consideration for each other.” (Strotz v. Dean Witter Reynolds
    (1990) 
    223 Cal.App.3d 208
    , 216, overruled on other grounds by
    Rosenthal v. Great Western Fin. Securities Corp. (1996) 
    14 Cal.4th 394
    , 407.)
    17
    DISPOSITION
    The order denying the motion to compel arbitration is
    reversed. The trial court shall vacate its order denying the
    motion to compel arbitration and enter a new order granting that
    motion. Appellants shall recover their costs on appeal.
    NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS
    CURREY, J.
    We concur:
    MANELLA, P.J.
    WILLHITE, J.
    18
    

Document Info

Docket Number: B303179

Filed Date: 3/23/2021

Precedential Status: Non-Precedential

Modified Date: 3/24/2021