Court of Appeal clarifies scope of “representative” in PAGA arbitration carve-outs: Ford v. The Silver F, Inc.

In Ford v. The Silver F, Inc.,          Cal.App.5th           (Apr. 10, 2025), the Court of Appeal (Third Appellate District) addressed the definition of “representative” in the context of a PAGA arbitration carve-out.

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The parties’ arbitration agreement excluded representative PAGA claims. Plaintiff then brought a PAGA claim alleging off-the-clock work. Defendant moved to compel arbitration of individual PAGA claims and dismiss the representative portion. The trial court denied the motion, interpreting the parties’ arbitration agreement to exclude Plaintiff’s individual PAGA claims. Defendant appealed.

The Court of Appeal affirmed the denial of Defendant’s motion to compel arbitration. The parties disputed whether “representative” referred to all PAGA claims or just non-individual ones. Defendant argued that the court should apply the FAA’s presumption of arbitrability, while Plaintiff argued that the trial court correctly resolved the ambiguity against the drafter. The court found based on noscitur a sociis that the parties intended a broad construction of the PAGA carve-out. It also noted that when the agreement was executed (pre-Viking River), individual and representative PAGA claims were indivisible. Following Mondragon v. Sunrun Inc. (2024) 101 Cal.App.5th 592, the court held that Plaintiff could not be compelled to arbitrate a dispute he didn’t agree to arbitrate. Finally, the court rejected Defendant’s reliance on Hernandez v. Sohnen Enterprises, Inc. (2024) 102 Cal.App.5th 222 to interpret contract language to avoid surplusage, reasoning that this principle is only a guideline, and similar redundancies are common in PAGA contexts.

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