Greenspoon Marder Labor & Employment Team Prevails on a Motion for Summary Judgment on Behalf of B&B Manufacturing, Co., Inc.

Aug 24, 2022

Greenspoon Marder’s Labor and Employment group based in Los Angeles, led by Brian Koegle, attorneys Michael Fostakowsky and Ransom Boynton, along with paralegal Natalia Bonilla, prevailed on a Motion for Summary Judgment for their client B&B Manufacturing, Co., Inc. (“B&B”). B&B is a leading supplier of complex machined parts, assemblies, and kits to the aerospace, military, automotive, and semi-conductor industries.

Plaintiff brought causes of action individually and in a representative capacity on behalf of other “aggrieved employees” for violation of several California Labor Code sections giving rise to penalties under the Private Attorneys General Act (“PAGA”). B&B contended that the Plaintiff lacked individual and representative standing to bring a PAGA claim because he executed a severance agreement and general release at the conclusion of his employment with B&B. Importantly, the severance agreement included a waiver of any and all claims related to his employment under California Civil Code Section 1542. Prior to the instant controversy, both California law and United States Supreme Court (“SCOTUS”) precedent provided that the Plaintiff could not waive his representative standing to pursue PAGA remedies because the Plaintiff “stands in the shoes” of the State of California. Thus, Plaintiff could not validly waive the State of California’s rights via a contractual instrument, to which the State of California was not a signatory.

B&B’s chances of success were slim until June 2022, when SCOTUS held in Viking River Cruises v. Moriana that a plaintiff could waive their individual standing to bring PAGA claims against a defendant through a valid and enforceable arbitration agreement. The Court went one step further, holding that the plaintiff also waived her standing to bring representative PAGA claims in civil court as well. The Court reasoned that “[w]hen an employee’s own dispute is pared away from a PAGA action, the employee is no different than a member of the general public, and PAGA does not allow such persons to maintain suit.” (Viking River Cruises, Inc. v. Moriana(2022) 142 S.Ct. 1906, 1925.)

B&B argued in its MSJ that Viking’s rationale must be extended to include any valid contractual instrument whereby a plaintiff waived their rights to pursue accrued claims, including severance agreements containing a waiver of California Civil Code Section 1542. The Los Angeles County Superior Court Judge hearing the motion agreed and granted B&B’s Motion for Summary Judgment on the grounds that under Viking, the Plaintiff lacked individual and representative standing. This is a huge victory for B&B, and for California employers and small businesses seeking to minimize their exposure against predicate Labor Code claims giving rise to extremely costly PAGA actions against them.

The Greenspoon Marder Labor and Employment Group of Southern California is thrilled to secure such a resounding victory for their client and will continue to vigorously defend their clients’ rights by providing excellent service and legal expertise.

About Greenspoon Marder

Greenspoon Marder LLP is a full-service law firm with over 240 attorneys and more than 20 office locations across the United States. With operations from Miami to New York and from Denver to Los Angeles, our firm attracts some of the nation’s top talent in key markets and innovation hubs. Our core practice areas include Real Estate, Litigation, and Transactional Services, complemented by the capabilities of a full-service firm. Greenspoon Marder has upheld a spot on The American Lawyer’s Am Law 200 as one of the top law firms in the U.S. since 2015, and our goal is to provide exceptional client service by developing a thorough understanding of each client’s business needs and objectives in order to provide strategic, cost-effective solutions.

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Greenspoon Marder Labor & Employment Team Prevails on a Motion for Summary Judgment on Behalf of B&B Manufacturing, Co., Inc.

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