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Yeroushalmi v. Benetton U.S.A. Corp.12/8/2005
NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS
California Rules of Court, rule 977(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 977(b). This opinion has not been certified for publication or ordered published for purposes of rule 977.
In this action for employment discrimination, wrongful termination and other claims, the defendant employer (Benetton U.S.A. Corporation) moved to compel arbitration under its predecessor's (Benecity, Inc.) arbitration agreement with the plaintiff employee (Monica Yeroushalmi). We affirm the order denying the motion to compel arbitration because Benetton U.S.A. lacks standing to enforce the agreement.
BACKGROUND
In June 2003, Yeroushalmi began working at the United Colors of Benetton store in Century City (the Century City store) which was then owned and operated by Benecity, Inc., under an implied license agreement with the Benetton Group, S.p.A.
A. Benecity's Employee Handbook and Arbitration Agreement
When Yeroushalmi was hired, Benecity gave her a multi-page document (Employee Handbook) consisting of, in the following order: (1) a cover page stating "United Colors of Benetton" and "Company Policy"; (2) nine pages of company policies and procedures; (3) a cover page stating "Exhibit B [ ] Mediation and Arbitration Agreement" followed by a one-page, six-paragraph arbitration agreement with a space at the bottom for the employee to initial but not sign or date the agreement; and (4) a final page containing at the bottom the only space for the employee to sign and date the Employee Handbook beneath an acknowledgment which stated in part: "Your signature in the space below indicates that you have read, understood and voluntarily agreed to the provisions of the Employee Handbook and the Seasonal Handbook."
Yeroushalmi signed and dated the last page of the Employee Handbook on July 1, 2003. She initialed (but did not sign or date) the arbitration agreement which preceded the final page of the Employee Handbook.
B. The Benecity-Benetton U.S.A. Agreement and Release
United Colors of Benetton stores are owned either by licensees of the Benetton Group, S.p.A or by its subsidiary Benetton U.S.A. When Yeroushalmi was hired in June 2003, Benecity owned and operated the Century City store as an implied licensee of the Benetton Group, S.p.A. Thereafter, Benecity transferred its Century City store lease, assets and inventory to Benetton U.S.A. pursuant to an "Agreement and Release" effective October 4, 2003.
C. Benecity Terminated Yeroushalmi Who Was Then Hired by Benetton U.S.A. Without Signing an Arbitration Agreement
Pursuant to the Benecity-Benetton U.S.A. Agreement and Release, Benecity terminated all of its Century City store employees including Yeroushalmi on October 3, 2003. Benetton U.S.A. then hired the former Benecity employees including Yeroushalmi. The Benecity-Benetton U.S.A. Agreement and Release provided that Benetton U.S.A. would employ the former Benecity employees at the Century City store for the same pay and benefits, for not less than 30 days.
When Benetton U.S.A. hired the former Benecity employees, the employees (including Yeroushalmi) signed new W-2s and other employment documents but did not sign an Employee Handbook or arbitration agreement. There is no evidence that Benetton U.S.A. informed the former Benecity employees (including Yeroushalmi) that the Employee Handbook or arbitration agreement which they had signed while working for Benecity would remain in effect.
D. The Present Lawsuit and
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