Appellate Win Reduces Class Action Threat to Fast Food Restaurant Chain

Court: California Courts of Appeal, 2nd District Court of Appeal

In a class action threat to our client, a Fortune 1000 fast-food restaurant chain, we obtained dismissal of the plaintiff’s appeal to a trial court motion granting us a motion to compel arbitration of individual claims and stay the putative class action. CDF established that the class action waiver was enforceable because it applied to a putative class of exempt managerial employees who were proficient in English, whose claims were substantial and thus more likely to be individually litigated, and who were informed of their legal rights. CDF also established that the class action waiver in that action applied to claims brought by both defendant and defendant's employees, and that although admittedly rare, employers have asserted claims against their employees. Lastly, CDF established that there was no potential for retaliation against the putative class members and no real world obstacles to the vindication of putative class members' rights.