Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-casd-3_17-cv-02063/USCOURTS-casd-3_17-cv-02063-0/pdf.json

Nature of Suit Code: 790
Nature of Suit: Other Labor Litigation
Cause of Action: 28:1332nr Diversity-Notice of Removal

---

1 

17-cv-02063-AJB-JLB 

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

UNITED STATES DISTRICT COURT 

SOUTHERN DISTRICT OF CALIFORNIA 

KEVIN NGUYEN, individually and on 

behalf of other persons similarly situated, 

Plaintiff,

MARKETSOURCE, INC. (aka 

MARKETSOURCE, INC., which will do 

business in California as Maryland 

MARKETSOURCE, ICN.), a Maryland 

corporation, et al., 

Defendants.

 Case No.: 17-cv-02063-AJB-JLB 

ORDER GRANTING DEFENDANT’S 

MOTION TO STAY PROCEEDINGS 

(Doc. No. 10) 

 

 Presently before the Court is MarketSource, Inc.’s (“Defendant”) motion to compel 

individual arbitration and to dismiss class claims, or, in the alternative, to stay proceedings 

pending a Supreme Court decision. (Doc. No. 10.) Plaintiff opposes the motion. (Doc. No. 

14.) Having reviewed the parties’ arguments and controlling legal authority, and pursuant 

to Civil Local Rule 7.1.d.1, the Court finds the matter suitable for decision on the papers 

and without oral argument. For the reasons set forth below, the Court GRANTS

Defendant’s motion to stay all proceedings in the instant case. 

/// 

/// 

Case 3:17-cv-02063-AJB-JLB Document 20 Filed 05/11/18 PageID.<pageID> Page 1 of 14
2 

17-cv-02063-AJB-JLB 

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

BACKGROUND 

 Plaintiff, Kevin Nguyen, was employed by Defendant as a Technology Sales 

Specialist from May 22, 2016, through approximately April 5, 2017. (Doc. No. 1-2 ¶ 6.) 

As a Sales Specialist, Plaintiff was paid an hourly rate to travel to various worksites to 

promote Defendant’s products. (Id.) In this present matter, Plaintiff was assigned to 

promote HP branded products, distribute promotional items, and answer questions from 

store employees and customers. (Id.) In sum, Plaintiff alleges that while he was employed 

by Defendant he was not provided mileage reimbursement when driving between work 

sites, was required to use his own personal cellular telephone, and that he earned certain 

monetary “bonuses” that were not factored into the regular rate of pay calculation for 

purposes of determining his overtime wage rate for time worked. (Id. ¶¶ 7–9.) 

 Prior to his employment, on May 14, 2016, Plaintiff electronically signed a mutual 

arbitration agreement with Defendant that states that: 

all disputes, claims, complaints, or controversies (“Claims”) that 

I may have against MarketSource and/or any of its subsidiaries,

affiliates, officers, directors, employees, agents, and/or any of its 

clients or customers (collectively and individually the 

“Company”), or that the Company may have against me, 

including . . . claims for wages, compensation, penalties or 

restitution . . . are subject to confidential arbitration pursuant to 

the terms of this Agreement and will be resolved by Arbitration

and NOT by a court or jury. 

(Doc. No. 10-11 at 2.) This same document also states that: “No Covered Claims may be 

initiated or maintained on a class action, collective action, or representative action basis 

either in court or arbitration[.]” (Id.) 

 Moreover, Plaintiff’s “Consent and Notice Regarding Electronic Signature Form” 

states: 

Electronic Signature Agreement. By checking this box and 

clicking the next screen, I agree that the form that I am submitting 

is correct and I am signing this document electronically . . . I 

consent to be legally bound by the terms, conditions and policies 

Case 3:17-cv-02063-AJB-JLB Document 20 Filed 05/11/18 PageID.<pageID> Page 2 of 14
3 

17-cv-02063-AJB-JLB 

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

contained in these documents and agree to be bound as though I 

had signed these documents in writing . . . By affixing my ESignature to a document, I agree to be bound by the terms and 

conditions of the document. 

(Doc. No. 10-10 at 2.) 

 Plaintiff first filed his complaint in Superior Court on October 6, 2017, alleging 

causes of action for (1) failure to pay straight-time and overtime wages; (2) violation of the 

unfair competition law; (3) failure to reimburse required expenses; (4) failure to pay all 

wages upon termination; and (5) failure to provide accurate wage statements. (Doc. No. 1-

2 at 4.) This case was then removed on October 6, 2017. (Doc. No. 1.) 

LEGAL STANDARDS 

I. Motion to Compel Arbitration 

 The Federal Arbitration Act (“FAA”) governs the enforcement of arbitration 

agreements involving interstate commerce. 9 U.S.C. § 2. Under § 2 of the FAA, an 

arbitration agreement is “valid, irrevocable, and enforceable, save upon such grounds as 

exist at law or in equity for the revocation of any contract.” Id. The FAA permits “[a] party 

aggrieved by the alleged failure, neglect, or refusal of another to arbitrate under a written 

agreement for arbitration [to] petition any United States district court . . . for an order 

directing that such arbitration proceed in the manner provided for in [the] agreement.” Id.

at § 4. 

While generally applicable defenses to contract, such as fraud, duress, or 

unconscionability, may invalidate arbitration agreements, the FAA preempts state law 

defenses that apply only to arbitration or that “derive their meaning from the fact that an 

agreement to arbitrate is at issue.” AT&T Mobility LLC v. Concepcion, 563 U.S. 333, 339 

(2011). Moreover, there is generally a strong policy favoring arbitration, which requires 

any doubts to be resolved in favor of the party moving to compel arbitration. Moses H. 

Cone Mem. Hosp. v. Mercury Constr. Corp., 460 U.S. 1, 24–25 (1983). However, where a 

party challenges the existence of an arbitration agreement, “the presumption in favor of 

Case 3:17-cv-02063-AJB-JLB Document 20 Filed 05/11/18 PageID.<pageID> Page 3 of 14
4 

17-cv-02063-AJB-JLB 

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

arbitrability does not apply.” Goldman, Sachs & Co. v. City of Reno, 747 F.3d 733, 742 

(9th Cir. 2014). 

II. Motion to Stay 

A court’s power to stay proceedings is incidental to the inherent power to control the 

disposition of its cases in the interests of efficiency and fairness to the court, counsel, and 

litigants. See Landis v. N. Am. Co., 299 U.S. 248, 254–55 (1936). A stay may be granted 

pending the outcome of other legal proceedings related to the case in the interests of judicial 

economy. See Leyva v. Certified Grocers of Cal., Ltd., 593 F.2d 857, 863–64 (9th Cir. 

1979). Discretion to stay a case is appropriately exercised when the resolution of another 

matter will have a direct impact on the issues before the court, thereby substantially 

simplifying the issues presented. See Mediterranean Enters., Inc. v. Ssangyong Corp., 708 

F.2d 1458, 1465 (9th Cir. 1983). 

In determining whether a stay is appropriate, a district court “must weigh competing 

interests and maintain an even balance.” Landis, 299 U.S. at 254–55. “[I]f there is even a 

fair possibility that the stay . . . will work damage to some one else, the stay may be 

inappropriate absent a showing by the moving party of hardship or inequity.” Dependable 

Highway Express, Inc. v. Navigators Ins. Co., 498 F.3d 1059, 1066 (9th Cir. 2007) (citation 

and internal quotation marks omitted). “A stay should not be granted unless it appears 

likely the other proceedings will be concluded within a reasonable time in relation to the 

urgency of the claims presented to the court.” Leyva, 593 F.2d at 864. 

DISCUSSION 

I. Defendant’s Request for Judicial Notice 

The Court may judicially notice an adjudicative fact that “is not subject to reasonable 

dispute because it: (1) is generally known within the trial court’s territorial jurisdiction; or 

(2) can be accurately and readily determined from sources whose accuracy cannot 

reasonably be questioned.” Fed. R. Evid. 201(b). 

A. Request for Judicial Notice: Exhibits A and B 

First, Defendant asks the Court to take judicial notice of the JAMS Employment 

Case 3:17-cv-02063-AJB-JLB Document 20 Filed 05/11/18 PageID.<pageID> Page 4 of 14
5 

17-cv-02063-AJB-JLB 

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

Arbitration Rules & Procedures and JAMS Policy on Employment Arbitration Minimum 

Standards of Procedural Fairness. (Doc. No. 10-2 at 2.) Plaintiff does not oppose this 

request. (See generally Doc. No. 14.) Thus, as these rules and procedures are not subject 

to reasonable dispute and other courts commonly grant judicial notice of JAMS rules, 

Defendant’s request as to exhibits A and B is GRANTED. E.g., O'Connor v. Uber Techs., 

Inc., 150 F. Supp. 3d 1095, 1098 n.2 (N.D. Cal. 2015) (granting judicial notice of JAMS 

rules and acknowledging that other District Courts have done the same). 

B. Request for Judicial Notice: Exhibit C

Second, Defendant asks the Court to take judicial notice of the United States 

Supreme Court’s online docket entry for Ernst & Young, LLP v. Morris, Case 16-300. 

(Doc. No. 10-2 at 2.) Plaintiff did not oppose this request or dispute the authenticity of 

these documents. (See generally Doc. No. 14.) 

The Court notes that courts routinely grant judicial notice of court records and public 

records. See Reyn’s Pasta Bella, LLC v. Visa USA, Inc., 442 F.3d 741, 746 n.6 (9th Cir. 

2006) (taking judicial notice of briefs, transcripts, pleadings, memoranda, expert reports, 

among other documents, that were filed in another suit). Though, a court may not take 

judicial notice of the truth of the contents of the documents. See Lee v. City of Los Angeles, 

250 F.3d 668, 690 (9th Cir. 2001). Accordingly, Defendant’s request for judicial notice of 

exhibit C is GRANTED for the limited purpose stated above. See Johnson & Johnson v. 

Superior Court, 192 Cal. App. 4th 757, 768 (2011) (“[W]e may take judicial notice of the 

existence of judicial opinions, court documents, and verdicts reached, we cannot take 

judicial notice of the truth of hearsay statements in other decision or court files or of the 

truth of factual findings made in another action.”) (internal citations omitted). 

C. Request for Judicial Notice: Exhibits D and E 

Finally, attached to Defendant’s reply brief are additional requests for judicial notice 

of Hewlett-Packard’s form 10-K annual report for the fiscal year ending October 31, 2014, 

and an excerpt of Hewlett-Packard’s Global Citizenship Report for the fiscal year ending 

October 31, 2011. (Doc. No. 16-3 at 2.) While Plaintiff does not challenge the authenticity 

Case 3:17-cv-02063-AJB-JLB Document 20 Filed 05/11/18 PageID.<pageID> Page 5 of 14
6 

17-cv-02063-AJB-JLB 

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

of the documents, the Court finds the two Hewlett Packard documents irrelevant to the 

present matter. In fact, Defendant’s reply brief does not even mention these two documents. 

Thus, at this stage of the proceedings, as the two exhibits are irrelevant to any controversy 

the Court must resolve and the documents cannot be judicially noticed or incorporated by 

reference, judicial notice of exhibits D and E is DENIED. See Gerritsen v. Warner Bros. 

Entm’t Inc., 112 F. Supp. 3d 1011, 1026 (C.D. Cal. 2015) (declining to take judicial notice 

of several exhibits finding that they were irrelevant to the matter). 

II. Both Parties’ Evidentiary Objections 

Another threshold matter before the Court is both Plaintiff and Defendant’s 

evidentiary objections. (Doc. Nos. 15, 16-1.) 

 Plaintiff filed the following evidentiary objections as a separate document: (1) those 

supporting striking of entire declarations and exhibits under Rule 37 based upon 

Defendant’s failure to satisfy its obligations under Rule 26(a); (2) a summary of the legal 

grounds for objections to specific language in declarations; and (3) specific objections to 

the declarations submitted by Mr. Peter Lozzi and Ms. Eva Billie. (Doc. No. 15 at 2.) 

 Defendant opposes the objections arguing that the objections are untimely and are 

thus waived. (Doc. No. 16-2 at 2–3.) Additionally, Defendant asserts that there is no basis 

to strike the declaration of Eva Billie. (Id. at 3–6.) 

 Defendant is correct that Plaintiff’s evidentiary objections were filed on November 

21, 2017, a day after his opposition brief was due according to the Court’s briefing 

schedule. (Doc. Nos. 11, 15.) The Court notes that a single day delay is negligible. 

Nevertheless, courts in this district have found it appropriate as well reasonable to strike 

late filed evidentiary objections. See Elliot v. Spherion Pac. Work, LLC, 368 F. App’x 761, 

763 (9th Cir. 2010) (holding that the court did not abuse its discretion “in following the 

local rules and refusing to consider [untimely filed] evidentiary objections . . . .”); see also 

Traylor v. Pyramid Services, Inc., No. CV 07 4376 R(SSx), 2008 WL 8667410, at *2 (C.D. 

Cal. Sept. 24, 2008) (denying the plaintiffs’ evidentiary objections as they were filed late 

and thus violated the timelines mandated by the local rules); Rosen v. Cross, CV 12-2376 

Case 3:17-cv-02063-AJB-JLB Document 20 Filed 05/11/18 PageID.<pageID> Page 6 of 14
7 

17-cv-02063-AJB-JLB 

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

ABC (FMOx), 2013 WL 12130250, at *1 n.2 (C.D. Cal. May 21, 2013) (refusing to 

consider the untimely filed evidentiary objections stating that “[i]f [the] Defendant wanted 

to have these evidentiary objections considered, they should have been filed with the 

opposition papers . . . .”); Cybersitter, LLC v. People’s Republic of China, No. CV 10-38- 

JST (SHx), 2010 WL 4909958, at *4 n.5 (C.D. Cal. Nov. 18, 2010) (“The Court need not 

consider untimely filed objections.”). 

 Moreover, the Court notes that pursuant to its Civil Case Procedures, “[o]bjections 

relating to the motion should be set forth in the parties’ opposition or reply. No separate 

statement of objections will be allowed.” Civ. Case. Proc. II.B.

1

 Additionally, Civil Local 

Rule 7.1 clearly states that “[i]f an opposing party fails to file the papers in the manner 

required by Civil Local Rule 7.1.e.2, that failure may constitute a consent to the granting 

of a motion or other request for ruling by the court.” CivLR 7.1.f.3.c. 

 Thus, taking all of this into consideration, the Court declines to rule on Plaintiff’s 

evidentiary objections. 

 For similar reasons, the Court also denies Defendant’s evidentiary objections, which 

total twelve pages in length in addition to its eleven page reply brief. (Doc. No. 16-1.) Not 

only are the evidentiary objections not set forth in his reply brief, but courts routinely hold 

that new evidence or arguments may not be filed in a reply memorandum unless the other 

party is given a chance to respond. See Thompson v. C.I.R., 631 F.2d 642, 649 (9th Cir. 

1980) (illuminating that the Ninth Circuit has held that parties “cannot raise a new issue 

for the first time in their reply briefs.”); see also Provenz v. Miller, 102 F.3d 1478, 1483 

(9th Cir. 1996) (explaining that where new evidence is presented in a reply, the district 

court should either not consider the new evidence, or not consider it without giving the 

other party the opportunity to respond). 

                                                      

1

 The Court notes that it does not believe that Plaintiff submitted its evidentiary objections 

in a separate document in an attempt to avoid the page limits for its opposition brief, as the 

brief and objections total only nineteen pages. 

Case 3:17-cv-02063-AJB-JLB Document 20 Filed 05/11/18 PageID.<pageID> Page 7 of 14
8 

17-cv-02063-AJB-JLB 

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

 In sum, the Court DENIES both Plaintiff and Defendant’s evidentiary objections 

based on their various procedural deficiencies, noncompliance with the Local Rules of this 

District, and failure to follow this Court’s Civil Case Procedures.2

 (Doc. Nos. 15, 16-1.) 

III. Defendant’s Motion to Compel Arbitration

Defendant asserts that the Court should compel Plaintiff to honor his mutual 

agreement to arbitrate his individual claims. (Doc. No. 10-1 at 14–23.) In opposition, 

Plaintiff argues that the arbitration agreement is “illegal” as he was not provided a 

meaningful opportunity to opt-out of the agreement. (Doc. No. 14 at 6–13.) Thus, there is 

no reason to compel this case to go to arbitration. (Id.) 

Given the liberal federal policy favoring arbitration, the FAA “mandates that district 

courts [must] direct the parties to proceed to arbitration on issues as to which an arbitration 

agreement has been signed.” Dean Witter Reynolds, Inc. v. Byrd, 470 U.S. 213, 218 (1985) 

(citation omitted). Thus, in a motion to compel arbitration, the district court’s role is limited 

to determining “(1) whether a valid agreement to arbitrate exists and, if it does, (2) whether 

the agreement encompasses the dispute at issue.” Kilgore v. KeyBank, Nat’l Ass’n, 673 

F.3d 947, 955–56 (9th Cir. 2012) (citing Chiron Corp. v. Ortho Diagnostic Sys., Inc., 207 

F.3d 1126, 1130 (9th Cir. 2000)). If these factors are met, the court must enforce the 

arbitration agreement in accordance with its precise terms. Id. at 955 (citation omitted). 

The Court notes that both parties do not dispute that the FAA governs the parties’ 

mutual arbitration agreement. (Doc. No. 10-1 at 16; Doc. No. 14.) Instead, the parties argue 

the merits of Morris v. Ernst & Young LLP, 834 F.3d 975 (9th Cir. 2016). (Doc. No. 10-1 

at 21–23; Doc. No. 14 at 6–11.) Defendant claims that any of Plaintiff’s arguments 

premised on Morris are meritless as Plaintiff was not required to enter into an arbitration 

                                                      

2

 The Court notes that to the extent that it does not rely on most of the evidence under 

Plaintiff and Defendant’s objections, the objections are largely moot. See Humphreys & 

Assocs., Inc. v. Cressman, No. SACV 15-0782 AG (RNBx), 2015 WL 12698428, at *2 

(C.D. Cal. Aug. 31, 2015). 

Case 3:17-cv-02063-AJB-JLB Document 20 Filed 05/11/18 PageID.<pageID> Page 8 of 14
9 

17-cv-02063-AJB-JLB 

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

agreement as a condition of his employment. (Doc. No. 10-1 at 22.) Plaintiff contends that 

the contract in this case and the one in Morris contain the same unenforceable restrictions 

prohibiting employees from maintaining any class action. (Doc. No. 14 at 8.) Moreover, 

Plaintiff asserts that he had no meaningful opportunity to opt-out of the class action waiver 

as he was forced to sign the agreement as a condition of his employment. (Id. at 8–9.) 

Specifically, Plaintiff argues that the mutual arbitration agreement was self-enforcing, 

regardless of whether Plaintiff signed it or was even aware of it. (Id. at 9.) 

The issue in Morris was “whether an employer violates the National Labor Relations

Act [“NLRA”] by requiring employees to sign an agreement precluding them from 

bringing, in any forum, a concerted legal claim regarding wages, hours, and terms and 

conditions of employment.” Morris, 834 F.3d at 979. Similar to the allegations in the 

present matter, the arbitration agreement in Morris was imposed on the plaintiff as a 

condition of employment. (Id. (Doc. No. 14 at 8–9).) The plaintiff then filed suit despite 

the existence of a class action waiver in the arbitration agreement, claiming that the waiver 

was rendered illegal by the NLRA, and thus sought to avoid individual arbitration and 

instead proceed in federal court as a class. Id. On January 13, 2017, the Supreme Court 

granted certiorari in Morris to resolve the circuit split that had developed and heard oral

argument on October 2, 2017—Ernst & Young, LLP v. Morris, 137 S. Ct. 809 (Mem) 

(2017). 

Defendant argues that rather than Morris governing, Johnmohammadi v. 

Bloomingdale’s, Inc., 755 F.3d 1072 (9th Cir. 2014) controls. (Doc. No. 10-1 at 22.) 

Defendant is mistaken given the facts in Johnmohammadi. In Johnmohammadi, the 

plaintiff had a right to opt-out of the arbitration agreement if she chose to within a 30–day 

period. Id. at 1074. When the plaintiff did not opt-out within this time period, “she became 

bound by the terms of the arbitration agreement.” Id. This differs from the allegations at 

bar, where Defendant purportedly did not give Plaintiff an option to opt-out of the 

agreement. (See generally Doc. No. 14.) Therefore, Johnmohammadi is not relevant to this 

Court’s analysis or decision. 

Case 3:17-cv-02063-AJB-JLB Document 20 Filed 05/11/18 PageID.<pageID> Page 9 of 14
10 

17-cv-02063-AJB-JLB 

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

 Consequently, bearing in mind the parties’ focus on Morris, it is clear that the instant 

matter turns on whether an employment agreement requiring an employee and employer 

to resolve employment disputes through individual arbitration is enforceable under the 

FAA. Thus, this matter falls squarely under Morris with the Supreme Court addressing the 

circuit split on this exact issue in the near future. 

With this framework in mind, the Court thus turns to the Landis factors to determine 

whether a stay of this case pending the Supreme Court’s resolution of Morris is justified. 

See Robledo v. Randstad US, L.P., No. 17-cv-01003-BLF, 2017 WL 4934205, at *2–3 

(N.D. Cal. Nov. 1, 2017) (declining to analyze the defendant’s motion to compel arbitration 

as the issues present in the motion fell within the boundaries of Morris and thus the court 

focused its analysis on the defendant’s motion to stay). 

IV. A Stay is Warranted 

Defendant argues that this proceeding should be stayed pending the Supreme Court’s 

ruling in Morris. (Doc. No. 10-1 at 23–32.) Plaintiff argues that a stay is not proper and 

urges reliance on the Ninth Circuit’s opinion in Morris.

 3 (Doc. No. 14 at 13–14.) The Court 

                                                      

3

 Plaintiff also asserts that this case falls squarely within the application of Echevarria v. 

Aerotek, Inc., No. 16-cv-04041-BLF, 2017 WL 24877 (N.D. Cal. Jan. 3, 2017), where the 

court denied the defendant’s motion to stay pending Morris. (Doc. No. 14 at 10.) However, 

as explained by the court in Robledo, 2017 WL 4934205, at *5: 

At the time this court considered Aerotek’s motion, the Supreme

Court had not yet granted the petition for certiorari in Morris. 

The possibility that the Supreme Court would grant cert and 

ultimately resolve the case on the merits was entirely speculative 

at that time, and the hypothetical resolution was at least one year 

away . . . Aerotek appealed this Court’s denial of its motion to 

compel arbitration, and the Ninth Circuit stayed the action 

pending the Supreme Court’s resolution of Morris. This Court 

then granted Aerotek’s motion to stay all proceedings in the 

district court pending appeal, reasoning that whether the plaintiff 

“may proceed with his class claims in this action turns squarely 

on the outcome of the Supreme Court’s review of Morris. 

Thus, the Court disagrees with Plaintiff and finds Echevarria inapposite. 

Case 3:17-cv-02063-AJB-JLB Document 20 Filed 05/11/18 PageID.<pageID> Page 10 of

 14
11 

17-cv-02063-AJB-JLB 

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

notes that Plaintiff’s Reply brief does not adequately address the Landis factors, but instead 

resorts to citing to cases that have denied a stay pending Morris. (Id. at 13.) 

In determining whether to grant a stay, “the competing interests which will be 

affected by the granting or refusal to grant a stay must be weighed.” CMAX, Inc. v. Hall, 

300 F.2d 265, 268 (9th Cir. 1962). “Among these competing interests are [1] the possible 

damage which may result from the granting of a stay, [2] the hardship or inequity which a 

party may suffer in being required to go forward, and [3] the orderly course of justice 

measured in terms of the simplifying or complicating of issues, proof, and questions of law 

which could be expected to result from a stay.” Id. These factors are drawn from the 

Supreme Court’s decision in Landis v. N. Am. Co., 299 U.S. 248, 254–55 (1936). If there 

is “even a fair possibility” of harm to the opposing party, the moving party “must make out 

a clear case of hardship or inequity in being required to go forward[.]” Id. at 255. Overall, 

the “proponent of a stay bears the burden of establishing its need.” Clinton v. Jones, 520 

U.S. 681, 708 (1997) (citation omitted). 

After considering the various competing interests, this Court finds that a stay is 

warranted pending the Supreme Court’s ruling in Morris. Presently, the Court notes that 

the possible prejudice or harm to Plaintiff from granting a stay under these circumstances 

is slight. First, Plaintiff seeks monetary damages in the form of unpaid wages and 

reimbursements and will therefore not be unduly prejudiced or harmed by a delay in 

receiving monetary relief. (Doc. No. 1-2 at 18–19 (see Lockyer v. Mirant Corp., 398 F.3d 

1098, 1110 (9th Cir. 2005) (holding that monetary recovery cannot serve as a foundation 

for the denial of a stay)). Additionally, as the decision from the Supreme Court in this 

matter is anticipated sometime this year, “a stay to accommodate that decision would not 

be open-ended and will likely be relatively short.” Cook v. Rent-A-Center, Inc., No. 2:17-

cv-00048-MCE-EFB, 2017 WL 4270203, at *4 (E.D. Cal. Sept. 26, 2017).

In contrast, Defendant has identified concrete harms it will suffer if the stay is denied 

and this action proceeds. Defendant argues that if this case were to move forward, it would 

have to engage in collective and class action discovery, which would be a waste of time 

Case 3:17-cv-02063-AJB-JLB Document 20 Filed 05/11/18 PageID.<pageID> Page 11 of

 14
12 

17-cv-02063-AJB-JLB 

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

and resources pending the outcome of Morris. (Doc. No. 10-1 at 26.) Moreover, Defendant 

states that if the Court were to deny its motion to compel individual arbitration based on 

Morris, it would appeal such a decision. (Id.) 

For reasons that the court in Cook, 2017 WL 4270203, at *4 so clearly and 

articulately stated, the Court finds that this factor weighs in favor of granting a stay. In 

relevant part, the Cook court held that: 

Requiring the parties to go forward with litigation given the 

uncertainty in this regard would waste the time and resources of 

both the parties and the Court. Engaging in collective and class 

action discovery, not to mention handling disputes over 

conditional certification, potential class members, and the merits 

of the collective/class action allegations themselves, will require 

substantial effort on the part of all concerned, efforts that may 

well be unnecessary depending on the Supreme Court’s ultimate 

decision in Morris. Additionally, by forcing [the defendant] to

litigate this matter while the class waiver issue is pending before 

the Supreme Court, would effectively deprive [it] of its right 

under the [FAA] to enforce its Arbitration Agreement as written. 

Id. (emphasis in original). 

 Finally, judicial economy clearly warrants a stay pending Morris. It is without 

question that Morris will have an imperative impact on this case and will also simplify the 

issues before the Court. For instance, if the Supreme Court reverses Morris and sides with 

the majority of circuit courts who have upheld class action waivers in arbitration 

agreements, then Defendant has a likelihood of prevailing on its motion to compel 

arbitration. Thus, this factor weighs in favor of granting the stay. See McElrath v. Uber 

Techs., Inc., No. 16-cv-07241-JSC, 2017 WL 1175591, at *6 (N.D. Cal. Mar. 30, 2017) 

(“While any estimate regarding when the Supreme Court will issue its Morris opinion is 

necessarily somewhat speculative, two factors are concrete: this case is in its early stages, 

and the outcome of Morris will have a significant impact on this case. Thus, this factor

weighs slightly in favor of a stay.”); see also Robledo, 2017 WL 4934205, at *4 (“This 

factor clearly weighs in favor of granting a stay because the decision in Morris could be 

Case 3:17-cv-02063-AJB-JLB Document 20 Filed 05/11/18 PageID.<pageID> Page 12 of

 14
13 

17-cv-02063-AJB-JLB 

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

dispositive of whether Plaintiffs’ claims should be litigated or arbitrated.”). 

 In light of these considerations, the Court is satisfied that granting a stay will 

conserve judicial resources that would otherwise be unnecessarily expended challenging 

pleadings and litigating class certification issues. Indeed, it would prove to be “an 

extraordinary waste of time and money” to continue litigating this case “only to have to do 

it all again because the experts, the parties and the Court were proceeding under a legal 

framework that the [Supreme Court] determined did not apply.” Meijer, Inc. v. Abbott 

Labs., No. C 07-5985 CW, 2009 WL 723882, at *4 (N.D. Cal. Mar. 18, 2009). 

 On a final note, the Court is well-aware that courts in this district have gone both 

ways on the issue. However, the cases cited to by Plaintiff involved different circumstances 

than those present here. In Daugherty v. SolarCity Corp., No. C 16-05155 WHA, 2017 WL 

386253 (N.D. Cal. Jan 26, 2017), and Coppernoll v. Hamcor, Inc., No. C 16-05936 WHA, 

2017 WL 446315 (N.D. Cal. Jan. 17, 2017), the courts denied motions to stay that were 

issued over a year earlier than the date of this Order and when the timing of the decision in 

Morris was much more uncertain. In contrast, the Court is presently more persuaded by 

decisions that have “granted stays citing the timing of Morris as relevant to the hardship 

faced by defendants.” Guerrero v. Halliburton Energy Servs. Inc., 1:16-cv-1300-LJO-JLT, 

2017 WL 3116672, at *7 (E.D. Cal. July 21, 2017).4

 As to Plaintiff’s use of Rivera v. Saul 

Chevrolet, Inc., No. 16-cv-05966-LHK, 2017 WL 1862509 (N.D. Cal. May 9, 2017), the 

Court notes that this case is currently on appeal. 

 Consequently, because all three of the Landis factors weigh in favor of granting a 

                                                      

4

 Plaintiff argues that it is “unclear whether the Court can elect not to adhere to Ninth 

Circuit authority merely because an appeal is pending.” (Doc. No. 14 at 14.) Though the 

Court will not explicitly analyze this argument, as already delineated in this Order, courts 

have granted stays despite the Ninth Circuit precedent on the issue. See Campanelli v. 

ImageFirst Healthcare Laundry Specialists, Inc., No. 15-cv-04456-PJH, 2017 WL 

2929450, at *4 (N.D. Cal. July 10, 2017) (holding that a stay was warranted as it would be 

“inefficient to proceed to the certification stage” without the Supreme Court’s holding in 

Morris). 

Case 3:17-cv-02063-AJB-JLB Document 20 Filed 05/11/18 PageID.<pageID> Page 13 of

 14
14 

17-cv-02063-AJB-JLB 

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

stay, the Court concludes that a stay of proceedings pending the Supreme Court’s 

resolution of Morris is warranted. See Rodriguez v. Jerome’s Furniture Warehouse, No. 

3:17-cv-00460-L-NLS, 2017 WL 3131845, at *4 (S.D. Cal. July 24, 2017). 

CONCLUSION

As the arbitration agreement at issue was purportedly imposed on Plaintiff as a 

condition of his employment, the Supreme Court’s decision in Morris will have a direct 

impact on the issues before the Court. Consequently, the Court GRANTS Defendant’s 

motion to stay. 

All litigation is hereby stayed until further order from this Court. Defendant’s 

pending motion to compel arbitration is TERMINATED WITHOUT PREJUDICE so 

that Defendant may re-notice this motion, if applicable, after the Morris decision is 

published. Further, the parties are ordered to jointly notify the Court within five days of 

the Supreme Court’s decision in Morris. 

IT IS SO ORDERED. 

Dated: May 11, 2018 

Case 3:17-cv-02063-AJB-JLB Document 20 Filed 05/11/18 PageID.<pageID> Page 14 of

 14