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Franco v. Athens Disposal Company, Inc., 171 Cal. App. 4th 1277 (2009)

The Appellate Case

The case of Franco v. Athens Disposal Company, Inc., 171 Cal. App. 4th 1277 (2009) involves an employee, Edixon Franco, who filed a class action lawsuit against his employer, Athens Disposal Company, Inc. (Athens). Franco accused Athens of engaging in illegal payroll practices and policies in violation of the Labor Code and the Business and Professions Code.

The court found an error in the lower court’s ruling, which granted a de facto summary adjudication motion on the overtime claim when deciding the enforceability of a class arbitration waiver. The court stated that Franco’s overtime claim should have been considered as part of the case in deciding the validity of the class arbitration provision.

However, it was later revealed in subsequent proceedings that Franco had named the wrong defendant in his lawsuit. His actual employer was Arakelian, doing business as Athens Services, not Athens Disposal Company, Inc.. This led to an amendment in the complaint to add Arakelian as a defendant.

The case was later recognized as abrogated by Iskanian v. CLS Transportation Los Angeles, LLC, in 2014, which means that the legal rule or principle established in Franco v. Athens Disposal Company, Inc., was overruled or superseded by the later case. The Iskanian case focused on whether the Federal Arbitration Act preempts a state law rule that restricts enforcement of terms in arbitration agreements, specifically concerning the waiver of class proceedings. However, it’s important to note that the Iskanian case itself was later abrogated by Viking River Cruises, Inc. v. Moriana in 2022.

Is It Illegal, or Just Unfair?

Legal cases can be lengthy, complicated, and confusing, but you don’t have to take on the system all by yourself. If you believe someone has violated your individual rights, or the rights of a large group of people in your community, we can help you find the right course of action.

Contact our California Employment Attorneys

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