In 2003, the Los Angeles Unified School District (LAUSD) entered into a “project stabilization agreement” (Agreement) with various entities and craft unions.
The improvement required certain labor relations policies with respect to LAUSD’s plan to construct and rehabilitate school facilities.
Axxis Network & Telecommunications, Inc. (Axxis) performed services on the project under contract with LAUSD. LAUSD required that Axxis agree to be bound by the Agreement. Sometime later, three employees sued Axxis alleging that Axxis failed to pay proper wages.
Axxis tried to have the dispute over the wage claim of the employees arbitrated. The trial court stated that the Agreement “did not contain a clear and unmistakable waiver of employee’s rights to a judicial forum.” The Appellate Court agreed.
The Appellate Court stated that the agreement in this case requires arbitration of statutory claims only when it is “clear and unmistakable.” If an agreement does not clearly state the intent, arbitration may still be required if the agreement contains a general arbitration clause and is “unmistakably clear” that the statutes at issue are part of the agreement.
The Appellate Court stated that the Agreement contained no express provision clearly requiring arbitration. The arbitration provision applied only to disputes over the contract, and not statutory violations. Therefore, arbitration was not required.
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Attorney Sam Abdulaziz Sam Abdulaziz can be reached at Abdulaziz, Grossbart & Rudman, P.O. Box 15458, North Hollywood, CA 91615-5458; (818) 760-2000, Facsimile (818) 760-3908; or by E-Mail at info@agrlaw.net . On the Internet, visit our Website at www.agrlaw.net