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Court Denies Arbitration in Danny Lopez vs. Aircraft Service International, Inc.

Court Denies Arbitration in Danny Lopez vs. Aircraft Service International, Inc.In a recent legal battle, Danny Lopez took on his former employers, Aircraft Service International, Inc., and Menzies Aviation (USA), Inc., over alleged wage and hour violations. The case, initially filed in Los Angeles County Superior Court, was moved to federal court by the defendants, who argued that federal law preempted some of Lopez’s claims.

Lopez, who worked as a field technician fueling planes at Los Angeles International Airport (LAX) from 2007 to 2021, claimed that his rights were violated under California’s Private Attorneys General Act (PAGA). His employers countered by pointing to their Alternative Dispute Resolution (ADR) policy, which mandates arbitration and prohibits class actions, claiming Lopez had agreed to these terms in 2019.

The Federal Arbitration Act (FAA) generally requires courts to enforce arbitration agreements, but there are exceptions. One such exception, highlighted in the Supreme Court’s Southwest Airlines Co. v. Saxon decision, applies to certain transportation workers directly involved in interstate commerce.

The judge in Lopez’s case, Dolly M. Gee, ruled that because Lopez’s job involved fueling planes that traveled across state lines, he fell under this exemption. This meant that Lopez was not required to settle his dispute through arbitration as outlined in his employment agreement.

In summary, the court sided with Lopez, allowing his case to proceed in court rather than being forced into arbitration. This decision underscores the protections available to workers engaged in interstate commerce, highlighting the nuances of the FAA and its exceptions.

Key Takeaway: Workers directly involved in interstate transportation, like fueling planes, may be exempt from mandatory arbitration agreements, allowing them to pursue legal claims in court.

Employment Law Blog

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