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Prasad v. Pinnacle Property Management Services, LLC
United States District Court for the Northern District of California
2018 WL 4599645 (2018)
Pinnacle Property Management Services, LLC (defendant) required potential employees to sign an “Issue Resolution Agreement” (IRA) before considering applications for employment. The IRA required arbitration of all individual employment-related disputes or claims, but waived arbitration of class-action claims. The IRA also imposed a one-sided, one-year limitations period on employees only and required employees to pay a $50 arbitration filing fee to a Pinnacle affiliate and half the arbitration costs at up to $100. The IRA also gave Pinnacle a unilateral right to modify or terminate it with respect to future claims with 30 days’ notice. Last, the IRA required employees to keep arbitration proceedings confidential. But Stephanie Prasad (plaintiff) claimed she never read or signed the IRA when she applied. A year after Pinnacle hired her, Prasad brought a putative class action against Pinnacle asserting seven class, collective, or representative claims and four individual claims. Pinnacle moved to compel arbitration of individual claims and stay litigation of the class claims.
Rule of Law
Holding and Reasoning (Demarchi, J.)
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