Ontiveros v. Zamora, No. Civ. S–08–567 LKK/DAD (E.D. Cal. Apr. 25, 2013)
This class action case involved an employment dispute regarding wages, and the employer delayed in asking the court to compel arbitration. The employer first responded to the lawsuit by filing a motion for judgment on the pleadings, and the employer also filed an answer that did not mention arbitration. There was also a pre-trial status conference, and the employer made no mention at the conference of its intent to seek arbitration. Based on these facts, a federal district court in California found a waiver of the employer’s right to pursue arbitration. The employer appealed the denial of its motion to compel arbitration to the Ninth Circuit, and the employer also asked the district court to stay the class action pending the appeal.
In deciding whether to grant a stay of the class action, the district court applied a standard similar to the standard for granting a preliminary injunction. The district court found that irreparable harm would occur to the employer if the lawsuit were not stayed, staying the action would conserve judicial resources, and there was a possibility that the Ninth Circuit would find no waiver occurred. Thus, the district court granted the employer’s request for a stay pending the appeal.