Sawyer v. KeHE Distributors CA4/2 ( 2023 )


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  • Filed 7/12/23 Sawyer v. KeHE Distributors CA4/2
    See Concurring Opinion
    NOT TO BE PUBLISHED IN OFFICIAL REPORTS
    California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for
    publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication
    or ordered published for purposes of rule 8.1115.
    IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA
    FOURTH APPELLATE DISTRICT
    DIVISION TWO
    MICHAEL SAWYER,
    Plaintiff and Respondent,                                      E078024
    v.                                                                      (Super.Ct.No. CIVSB2114784)
    KEHE DISTRIBUTORS, INC. et al.,                                         OPINION
    Defendants and Appellants.
    APPEAL from the Superior Court of San Bernardino County. Bryan F. Foster,
    Judge. Affirmed.
    Ballard Rosenberg Golper & Savitt, John B. Golper, John J. Manier, and Daniel J.
    Corbett for Defendants and Appellants.
    The Myers Law Group, David P. Myers and Morgan Good for Plaintiff and
    Respondent.
    Plaintiff Michael Sawyer sued defendant, KeHE Distributors, Inc., for wrongful
    termination under several theories relating to a disability plaintiff suffered due to a slip
    1
    and fall which left him limited to light duty. When defendant changed the light duty
    assignment, plaintiff objected, resulting in his termination. After answering plaintiff’s
    complaint, defendant filed a motion to compel arbitration, which the trial court denied.
    Defendant appeals.
    On appeal, defendant argues the trial court erred in denying the motion to compel
    arbitration because the Federal Arbitration Act applies to a document signed by plaintiff
    at the time of his hiring, and that, because this case is distinguishable from Flores v.
    Nature’s Best Distribution, LLC (2016) 
    7 Cal.App.5th 1
    , involving a nearly identical
    arbitration provision, the arbitration agreement in this case is enforceable. We affirm.
    BACKGROUND
    The facts are undisputed1 as set out in the complaint. Plaintiff Michael Sawyer
    was hired by Nature’s Best Distribution, LLC (Nature’s Best) in February 2012 as a
    temporary worker, but he became a full time employee in April 2012. As part of the
    hiring process, plaintiff was handed a “stack” of documents, and was instructed to
    complete and execute them. During his employment with KeHE, plaintiff was a member
    of Teamsters Local 848 (Union), and his employment was governed by the operative
    collective bargaining agreement (CBA) between the Union and KeHE Distributors, Inc.
    In 2014, Nature’s Best was acquired by defendants KeHE Distributors, Inc. (KeHE or
    defendant) and all Nature’s Best employees became KeHE employees.
    1 As is normal in this type of case, we take the facts from the complaint,
    pleadings, and facts submitted respecting the petition to compel arbitration.
    2
    On or about August 13, 2020, while plaintiff was working for defendants, plaintiff
    slipped in the restroom and suffered, among other injuries, a lumbar contusion and
    injuries to his groin and left foot. He promptly informed his coworker and shop steward
    of the injury and received medical treatment. He also informed the manager. Plaintiff’s
    doctor issued a work status report with work restrictions. After being referred to
    defendant’s third-party health care provider, another report with work restrictions was
    provided to KeHE.
    A short time later he was given a new schedule with light duties and a change in
    his work hours, but the light duty violated his work restrictions, so plaintiff declined to
    sign the document. In September 2020, plaintiff was terminated from his employment.
    No mediation occurred respecting plaintiff’s grievance.
    Plaintiff then filed suit against defendants for disability discrimination, failure to
    accommodate disability, failure to engage in the interactive process, retaliation for
    requesting accommodation, failure to prevent discrimination and retaliation, and
    wrongful termination in violation of public policy. On September 3, 2021, defendant
    filed a motion to compel arbitration.
    An alternative dispute resolution agreement was included among the documents
    presented to plaintiff at the time of his hiring by Nature’s Best. That agreement
    purported to refer “all legal, equitable and administrative disputes to the American
    Arbitration Association for mediation and binding arbitration. This applies to all
    employee disputes, except those actually covered by the grievance and arbitration
    3
    procedure in the Agreement between Nature’s Best and Teamster’s Local 848, hereinafter
    referred to as the ‘Collective Bargaining Agreement.’” The agreement further provided
    that both parties waived the right to a jury or court trial, as well as the right to appeal.
    However, before either party could initiate binding arbitration, a mediation procedure had
    to be exhausted. At the time defendant made its motion to compel arbitration, no
    mediation had occurred.
    On October 25, 2021, after hearing arguments and taking the matter under
    submission, the trial court denied the motion on the ground that defendants “failed to
    meet their burden of showing that Plaintiff agreed to submit his claims to final and
    binding arbitration.” On November 5, 2021, defendant timely appealed.
    DISCUSSION
    The sole issue presented in this appeal is a claim that the trial court erred in
    denying defendant’s motion to compel arbitration. Defendant argues that plaintiff signed
    an agreement to arbitrate when he was hired by Nature’s Best, prior to defendant’s
    acquisition of the business, thereby agreeing to submit all claims in his lawsuit to binding
    arbitration. Plaintiff, in response, posits that the trial court properly denied the motion
    where the arbitration agreement in question was identical to an arbitration agreement that
    had been declared invalid in the published decision of Flores v. Nature’s Best Distr. LLC,
    supra, 
    7 Cal.App.5th 1
    , where the reviewing court found there was no agreement to
    arbitrate. We agree with plaintiff.
    4
    A.     Standard of Review
    Where the facts in the record are undisputed, our review is de novo. (Diaz v.
    Sohnen Enterprises (2019) 
    34 Cal.App.5th 126
    , 129, citing Rosenthal v. Great Western
    Fin. Securities Corp. (1996) 
    14 Cal.4th 394
    , 413; Flores v. Nature’s Best Distribution,
    LLC, supra, 7 Cal.App.5th at p. 9; Esparza v. Sand & Sea, Inc. (2016) 
    2 Cal.App.5th 781
    ,
    787.) “If the court’s order is based on a decision of fact, then we adopt a substantial
    evidence standard.” (Robertson v. Health Net of California (2005)
    132 Cal.App.4th 1419
    ,
    1425.)
    In the present case, the court’s conclusion that there was no arbitration agreement
    was a factual determination. (Vita Planning & Landscape Architecture, Inc. v. HKS
    Architects, Inc. (2015) 
    240 Cal.App.4th 763
    , 771, citing Alexander v. Codemasters
    Group Limited (2002) 
    104 Cal.App.4th 129
    , 141, disapproved on another ground in Reid
    v. Google, Inc. (2010) 
    50 Cal.4th 512
    , 524.) Yet defendant urges us to apply the de novo
    standard of review.2 We will review the trial court’s finding that there was no
    enforceable arbitration agreement applying the substantial evidence test and will resolve
    any remaining legal issues under the independent reviewing standard. (See Fleming v.
    Oliphant Financial, LLC (2023) 
    88 Cal.App.5th 13
    , 18, citing Pinnacle Museum Tower
    Assn. v. Pinnacle Market Development (U.S.), LLC (2012) 
    55 Cal.4th 223
    , 236
    (Pinnacle).)
    2At oral argument, defendant argued that the trial court in this case, unlike the
    case of Flores, did not find there was no agreement to arbitrate. This statement is refuted
    by the trial court’s ruling that defendants “failed to meet their burden of showing that
    Plaintiff agreed to submit his claims to final and binding arbitration.”
    5
    B.     General Legal Principles Governing Motions to Compel Arbitration.
    California’s Code of Civil Procedure, section 1281, provides, “A written
    agreement to submit to arbitration an existing controversy or a controversy thereafter
    arising is valid, enforceable and irrevocable, save upon such grounds as exist for the
    revocation of any contract.” “‘The policy of California law is to recognize and give the
    utmost effect to arbitration agreements.’” (Fleming v. Oliphant Financial, LLC, supra,
    88 Cal.App.5th at p. 19, quoting Loscalzo v. Federal Mut. Ins. Co. (1964) 
    228 Cal.App.2d 391
    , 398.)
    The party seeking arbitration bears the burden of proving the existence of an
    arbitration agreement. (Fleming v. Oliphant Financial, LLC, supra, 88 Cal.App.5th at p.
    18.) If such an agreement exists, then the court is statutorily required to order the matter
    to arbitration. (Code Civ. Proc., § 1281.2; Fleming, supra, at p. 19.) However, there is
    no policy compelling persons to accept arbitration of controversies that they have not
    agreed to arbitrate. (Fleming, supra, at p. 19, citing Long v. Provide Commerce, Inc.
    (2016) 
    245 Cal.App.4th 855
    , 861.)
    “‘Contract formation requires mutual consent, which cannot exist unless the
    parties “agree upon the same thing in the same sense.”’” (HM DG, Inc. v. Amini (2013)
    
    219 Cal.App.4th 1100
    , 1109, quoting Bustamante v. Intuit, Inc. (2006) 
    141 Cal.App.4th 199
    , 208.) “‘Mutual assent is determined under an objective standard applied to the
    outward manifestations or expressions of the parties, i.e., the reasonable meaning of their
    words and acts, and not their unexpressed intentions or understandings.’ [Citations.]”
    6
    (Bustamante, supra, at p. 208.) “Where the existence of a contract is at issue and the
    evidence is conflicting or admits of more than one inference, it is for the trier of fact to
    determine whether the contract actually existed. But if the material facts are certain or
    undisputed, the existence of a contract is a question for the court to decide.” (Ibid.; see
    Robinson & Wilson, Inc. v. Stone (1973) 
    35 Cal.App.3d 396
    , 407 [“the question whether
    the contract . . . is sufficiently definite and certain in its essential terms to give rise to a
    legal obligation is a question of law”].)
    In OTO, L.L.C. v. Kho (2019) 
    8 Cal.5th 111
    (OTO), the Supreme Court recognized
    that notwithstanding the strong public policy favoring arbitration, “‘“generally applicable
    contract defenses, such as . . . unconscionability, may be applied to invalidate arbitration
    agreements without contravening” the FAA’ or California law.” (Id. at p. 125, quoting
    Pinnacle, supra, 55 Cal.4th at p. 246; see AT&T Mobility LLC v. Concepcion (2011) 
    563 U.S. 333
    , 339 (Concepcion) [
    179 L. Ed. 2d 742
    , 
    131 S. Ct. 1740
    ].)3
    “A contract is unconscionable if one of the parties lacked a meaningful choice in
    deciding whether to agree and the contract contains terms that are unreasonably favorable
    to the other party.” (OTO, supra, 8 Cal.5th at p. 125; see also, Gostev v. Skillz Platform,
    Inc. (2023) 
    88 Cal.App.5th 1035
    , 1054-1055.) The doctrine of unconscionability has
    both a procedural and a substantive element, the former focusing on oppression or
    3  Importantly, state law rules that do not “‘interfere[] with fundamental attributes
    of arbitration’” [citation] do not implicate Concepcion’s limits on state unconscionability
    rules. (Sonic-Calabasas A, Inc. v. Moreno (2013) 
    57 Cal.4th 1109
    , 1143.)
    7
    surprise due to unequal bargaining power, the latter on overly harsh or one-sided results.
    (Sonic-Calabasas A, Inc. v. Moreno, 
    supra,
     
    57 Cal.4th 1109
    , 1133.)
    “‘The procedural element addresses the circumstances of contract negotiation and
    formation, focusing on oppression or surprise due to unequal bargaining power.
    [Citations.] Substantive unconscionability pertains to the fairness of an agreement’s
    actual terms and to assessments of whether they are overly harsh or one-sided.’
    [Citations.]” (OTO, supra, 8 Cal.5th at p. 125; Gostev v. Skillz Platform, Inc. (2023) 
    88 Cal.App.5th 1035
    , 1054.) The prevailing view is that both procedural and substantive
    unconscionability must be present for a court to exercise its discretion to refuse to enforce
    a contract or clause under the doctrine of unconscionability, although they need not be
    present in the same degree. (Sanchez v. Valencia Holding Co., LLC (2015) 
    61 Cal.4th 899
    , 910 (Sanchez).) “[T]he more substantively oppressive the contract term, the less
    evidence of procedural unconscionability is required to conclude that the term is
    unenforceable, and vice versa.” (Armendariz v. Foundation Health Psychare Services,
    Inc. (2000) 
    24 Cal.4th 83
    , 114 (Armendariz).)
    A procedural unconscionability analysis “begins with an inquiry into whether the
    contract is one of adhesion.” (Armendariz, 
    supra,
     24 Cal.4th at p.113.) An adhesive
    contract is standardized, generally on a preprinted form, and offered by the party with
    superior bargaining power “on a take-it-or-leave-it basis.” (Baltazar v. Forever 21, Inc.
    (2016) 
    62 Cal.4th 1237
    , 1245; see Armendariz, 
    supra, at p. 113
    .) Arbitration contracts
    imposed as a condition of employment are typically adhesive. (Armendariz, 
    supra,
     at pp.
    8
    114–115; Serpa v. California Surety Investigations, Inc. (2013) 
    215 Cal.App.4th 695
    ,
    704.) There is little arms’ length negotiation or reciprocity involved in signing a pre-
    printed document prepared entirely by one party.
    Here, Nature’s Best (and later defendant, KeHE) was the party with greater
    bargaining power and no evidence suggests that respondents could either reject or
    negotiate the terms of the arbitration provision. (See Penilla v. Westmont Corp. (2016) 
    3 Cal.App.5th 205
    , 215.)
    Here, plaintiff “recall[ed] being given the paperwork with a group of other
    employees who were also being hired as permanent employees at that time. I only recall
    being told explanations of my benefits and how to complete the paperwork related to my
    benefits. I was instructed to complete all paperwork, turn it into [sic] Human Resources,
    and return to work. I do not recall being told that I was signing an arbitration agreement
    or having an arbitration agreement explained to me at that time.” The stack of documents
    included approximately 24 to 26 forms,4 according to the new hire checklist obtained
    from plaintiff’s personnel file. The forms were not explained to plaintiff, who did not
    receive copies of the agreements signed, and he was not provided an opportunity to
    negotiate the terms of the agreement to arbitrate. The contract involved in the present
    case is a contract of adhesion.
    The adhesive nature of the agreement demonstrates procedural unconscionability.
    However, a finding of procedural unconscionability does not mean that a contract will not
    4The “New Hire Packet Checklist” includes a list of numerous forms, many of
    which have checkmarks or other handwritten indications on the face of the form.
    9
    be enforced; instead, it means “‘“that courts will scrutinize the substantive terms of the
    contract to ensure they are not manifestly unfair or one-sided.”’” (Gostev v. Skillz
    Platform, Inc., supra, 88 Cal.App.5th at p. 1056, quoting Sanchez, 
    supra,
     61 Cal.4th at p.
    915.)
    Substantive unconscionability examines the fairness of a contract’s terms. This
    ensures that contracts, particularly contracts of adhesion, do not impose terms that have
    been variously described as “‘overly harsh’” (Stirlen v. Supercuts, Inc. (1997) 
    51 Cal.App.4th 1519
    , 1532), “‘unduly oppressive’” (Perdue v. Crocker National Bank
    (1985) 
    38 Cal.3d 913
    , 925), “‘so one-sided as to “shock the conscience”’” (Pinnacle,
    
    supra,
     55 Cal.4th at p. 246), or “unfairly one-sided.” (Little v. Auto Stiegler, Inc. (2003)
    
    29 Cal.4th 1064
    , 1071.)
    “‘[A] mandatory arbitration agreement is substantively unconscionable if it
    requires the payment of unaffordable fees to initiate the process.’ [Citation.]” (Penilla v.
    Westmont Corp., supra, 3 Cal.App.5th at p. 218; Gutierrez v. Autowest, Inc. (2003) 
    114 Cal.App.4th 77
    , 98.) The agreement in the instant case includes a provision requiring
    “[t]he costs of arbitration to be paid in advance and shall be shared equally by employee
    and the Company.” In this respect, the arbitration agreement at issue here varies slightly
    from the cost provision in the contract at issue in Flores, supra. However, that does not
    remedy the unconscionability where those costs are not set forth, are required to be paid
    in advance of initiating arbitration, and where the costs of arbitration are known to be
    quite high, and thus out of reach for many employees. While no evidence of the actual
    10
    current cost of arbitration was presented at the hearing in the present case, it is fair to
    assume it has not become more affordable today than it was in 2016, when fees for a
    single JAMS arbitrator ranged from $500 to $800 per hour, or from $5,000 to $10,000
    per day. (See, Penilla v. Westmont Corp., supra, at p. 218.)
    In addition, as was the case in Flores, the agreement in the present case includes a
    provision that requires plaintiff to “submit all legal, equitable and administrative disputes
    to the American Arbitration Association for mediation and binding arbitration. This
    applies to all employee disputes, except those actually covered by the grievance and
    arbitration procedure in the Agreement between Nature’s Best and Teamster’s Local 848,
    hereinafter referred to as the ‘Collective Bargaining Agreement.’” Unconscionability of
    this provision was found in the Flores case because the agreement failed to identify
    which set of the AAA rules would apply to binding arbitration; it provides that the
    arbitration will occur in Orange County and shall be in accordance with the rules of the
    American Arbitration Association. The same language appears in the present
    agreement.5
    In Flores, identical provisions of the agreement (see Flores, supra, 7 Cal.App.5th
    at p. 10), led the Court of Appeal to conclude the Agreement was ambiguous “regarding
    5  At oral argument, defendant argued that this factor should not be considered
    because the AAA rules can be found on the Internet. However, the question is not
    whether the rules can be found anywhere; the question is whether plaintiff was made
    aware of the rules at the time he signed the agreement. If the rules were unknown to him
    at that time, and if he was not accorded an opportunity to review them before signing, it
    cannot be said plaintiff was aware of the rules that would govern any arbitration, for
    purposes of determining there was an agreement to arbitrate when he signed the
    document.
    11
    (1) whether the arbitration provision of the Agreement (not a grievance and arbitration
    procedure of a collective bargaining agreement) applied to any or all of plaintiff’s claims
    against any or all of defendants in the instant action[6] and (2) the governing rules and
    procedures for any such arbitration.” (Flores, supra, 7 Cal.App.5th at p. 11.) Due to the
    ambiguity of this provision Division Three of our District concluded the parties had not
    reached agreement on the matter of submitting any or all of plaintiff’s claims to final and
    binding arbitration as contemplated by the Agreement. (Id., at p. 11.)
    While the arbitration agreement in the present case contains some modifications
    from the earlier version at issue in Flores, the ambiguous provision found to preclude
    arbitration in Flores is alive and well in the present agreement, constitutes substantive
    unconscionability, and supports the trial court’s conclusion that defendant failed to meet
    its burden that there was no valid agreement to arbitrate. But there’s more.
    C. Waiver
    In addition to the unconscionable terms of the adhesion agreement supporting the
    trial court’s conclusion, there is an additional reason for denying the motion to compel
    arbitration. To the extent defendant’s motion purported to bind plaintiff to the terms of
    the alternate dispute resolution agreement, it bears noting that defendant did not comply
    with an express condition precedent to seeking binding arbitration. Because the relief
    defendant seeks will require examination of this matter, it is appropriate for us to address
    6 The complaint names KeHE Distributors, Inc., as well as Nature’s Best
    Distribution, the entity responsible for drafting the Alternate Dispute Resolution
    agreement.
    12
    it now, in the interest of judicial economy. The agreement that defendant seeks to
    enforce provides as follows:
    “Before any party may initiate arbitration, the following steps must first occur in
    the following order: (1) Unless the dispute involves a termination of employment, you
    must first meet and confer with your immediate Supervisor. If not resolved with your
    immediate Supervisor, meet and confer with the next level supervisor, followed by a joint
    meeting. (2) If employment termination is involved or if all other disputes are not
    resolved at the meet and confer sessions, the disputed issues will be referred to
    independent mediation in the County of Orange, State of California at either the
    American Arbitration Association or Judicial Arbitration and Mediation Services, Inc.
    (JAMS), in accordance with their mediator selection process and rules, for a maximum of
    four hours, and the Company will pay for the mediation. The confidentiality of the
    communications during said mediation shall be protected by the Evidence Code, Section
    1151.5. (3) If all issues are not resolved in mediation, either party shall have the right to
    elect binding arbitration at the American Arbitration Association in accordance with the
    rules of the American Arbitration Association. The costs shall be paid in advance and
    shall be shared equally by employee and Company.”
    Defendant never sought mediation as required by its own adhesive contract and its
    failure to satisfy the condition precedent of submitting to mediation prior to initiating
    arbitration qualifies as a waiver of the right to arbitrate. California Code of Civil
    Procedure, section 1281.2 provides in part, “On petition of a party to an arbitration
    13
    agreement alleging the existence of a written agreement to arbitrate a controversy and
    that a party to the agreement refuses to arbitrate that controversy, the court shall order the
    petitioner and the respondent to arbitrate the controversy if it determines that an
    agreement to arbitrate the controversy exists, unless it determines that: (a) The right to
    compel arbitration has been waived by the petitioner.”
    “Waiver” generally refers to the voluntary relinquishment of a known right. (Platt
    Pacific, Inc. v. Andelson (1993) 
    6 Cal.4th 307
    , 315.) However, “it can also mean the loss
    of an opportunity or a right as a result of a party’s failure to perform an act it is required
    to perform, regardless of the party’s intent to . . . relinquish the right.” (Engalla v.
    Permanente Medical Group, Inc. (1997) 
    15 Cal.4th 951
    , 983, italics added, quoting Platt
    Pacific, Ind. v. Andelson, 
    supra, at p. 315
    .)
    “‘In determining waiver, a court can consider “(1) whether the party’s actions are
    inconsistent with the right to arbitrate; (2) whether ‘the litigation machinery has been
    substantially invoked’ and the parties ‘were well into preparation of a lawsuit’ before the
    party notified the opposing party of an intent to arbitrate; (3) whether a party either
    requested arbitration enforcement close to the trial date or delayed for a long period
    before seeking a stay; (4) whether a defendant seeking arbitration filed a counterclaim
    without asking for a stay of the proceedings; (5) ‘whether important intervening steps
    [e.g., taking advantage of judicial discovery procedures not available in arbitration] had
    taken place’; and (6) whether the delay ‘affected, misled, or prejudiced the opposing
    14
    party.’”’” (St. Agnes Medical Center v. PacifiCare of California (2003) 
    31 Cal.4th 1187
    ,
    1196.)
    Generally, the determination of waiver is a question of fact, and the trial court’s
    finding, if supported by sufficient evidence, is binding on the appellate court. (Platt
    Pacific, Inc. v. Andelson, 
    supra,
     6 Cal.4th at p. 319; see also Engalla, 
    supra,
     15 Cal.4th at
    p. 983.) “When, however, the facts are undisputed and only one inference may
    reasonably be drawn, the issue is one of law and the reviewing court is not bound by the
    trial court’s ruling.” (Platt Pacific, Inc. v. Andelson, 
    supra, at p. 319
    .) As an issue of law
    only, we may address it for the first time on appeal. (Ward v. Taggart (1959) 
    51 Cal.2d 736
    , 742.) While the trial court did not need to reach this issue, we cannot ignore the
    defendant’s failure to comply with a mandatory condition precedent to compelling
    arbitration where consideration of the issue would be inevitable if the trial court’s ruling
    were to be reversed.
    In the case before us, the essential facts are not disputed: defendant skipped the
    mediation requirement in attempting to initiate arbitration, and its actions are inconsistent
    with the right to arbitrate. (Sobremonte v. Superior Court (1996) 
    61 Cal.App.4th 980
    ,
    992.) Its failure to participate in mediation, a condition precedent to initiating arbitration
    in accordance with the agreement in the present case, constitutes a waiver of the right to
    arbitrate the dispute. A petition or motion to compel arbitration may be denied where
    “[t]he right to compel arbitration has been waived by the petitioner.” (Code Civ. Proc.,
    § 1281.2, subd. (a).)
    15
    We note that in situations where there is an enforceable agreement to arbitrate, the
    arbitrator would determine whether the breach of the condition precedent avoids the duty
    to arbitrate, as well as whether defendants’ failure to request mediation waived their right
    to compel arbitration. (See, John Wiley & Sons v. Livingston (1964) 
    376 U.S. 543
    , 557
    [
    84 S. Ct. 909
    , 
    11 L. Ed. 2d 898
    ].) However, as provided by the California Code of Civil
    Procedure, a waiver grounded on the defendant’s failure to satisfy the conditions
    precedent to seeking arbitration warrants a denial of the motion to compel arbitration in
    the first instance. Therefore, even if we could agree that there was an enforceable
    agreement to arbitration with defendant, an arbitration of the dispute would not likely
    occur due to defendant’s failure to initiate mediation as a condition precedent to
    arbitration.
    Further, given the high cost of initiating arbitration — a cost that must be paid in
    advance, according to the agreement — defendant should not be permitted to require
    plaintiff to submit to arbitration under an unconscionable agreement where defendant has,
    itself, failed to satisfy the express preconditions to arbitration — conditions it drafted into
    the adhesion agreement.
    The order denying defendant’s motion to compel arbitration was proper.
    16
    DISPOSITION
    The judgment is affirmed. Plaintiff Sawyer is awarded costs on appeal.
    NOT TO BE PUBLISHED IN OFFICIAL REPORTS
    RAMIREZ
    P. J.
    I concur:
    SLOUGH
    J.
    17
    [Michael Sawyer v. KeHE Distributors, Inc. et al., E078024]
    MENETREZ, J., Concurring.
    The arbitration agreement in this case is not materially distinguishable from the
    arbitration agreement in Flores v. Nature’s Best Distribution, LLC (2016) 
    7 Cal.App.5th 1
    , because (1) although the agreement is on “Nature’s Best” letterhead, the agreement is
    between “employee and Company,” but “Company” is not defined; (2) the agreement
    does not identify which disputes are subject to arbitration and which are subject to the
    provisions of a collective bargaining agreement, because the agreement does not specify
    which collective bargaining agreement is at issue; and (3) the agreement does not identify
    which American Arbitration Association rules would apply to any arbitration. (Id. at
    pp. 9-10.) The trial court accordingly did not err by denying the petition to compel
    arbitration. I therefore concur in the judgment.
    MENETREZ
    J.
    1