Filed: Jul. 20, 2020
Latest Update: Jul. 20, 2020
Summary: NOT FOR PUBLICATION FILED UNITED STATES COURT OF APPEALS JUL 20 2020 MOLLY C. DWYER, CLERK U.S. COURT OF APPEALS FOR THE NINTH CIRCUIT OXY-HEALTH, LLC, a California Limited No. 19-55986 Liability Company, D.C. No. Plaintiff-Appellee, 2:18-cv-04066-MWF-SS v. MEMORANDUM* H2 ENTERPRISES, INC., DBA oxychambers.com, a California Corporation; CHING WEN YEH, DBA oxychambers.com, AKA Wen Yeh, an individual, Defendants-Appellants. Appeal from the United States District Court for the Central District of C
Summary: NOT FOR PUBLICATION FILED UNITED STATES COURT OF APPEALS JUL 20 2020 MOLLY C. DWYER, CLERK U.S. COURT OF APPEALS FOR THE NINTH CIRCUIT OXY-HEALTH, LLC, a California Limited No. 19-55986 Liability Company, D.C. No. Plaintiff-Appellee, 2:18-cv-04066-MWF-SS v. MEMORANDUM* H2 ENTERPRISES, INC., DBA oxychambers.com, a California Corporation; CHING WEN YEH, DBA oxychambers.com, AKA Wen Yeh, an individual, Defendants-Appellants. Appeal from the United States District Court for the Central District of Ca..
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NOT FOR PUBLICATION FILED
UNITED STATES COURT OF APPEALS JUL 20 2020
MOLLY C. DWYER, CLERK
U.S. COURT OF APPEALS
FOR THE NINTH CIRCUIT
OXY-HEALTH, LLC, a California Limited No. 19-55986
Liability Company,
D.C. No.
Plaintiff-Appellee, 2:18-cv-04066-MWF-SS
v.
MEMORANDUM*
H2 ENTERPRISES, INC., DBA
oxychambers.com, a California Corporation;
CHING WEN YEH, DBA
oxychambers.com, AKA Wen Yeh, an
individual,
Defendants-Appellants.
Appeal from the United States District Court
for the Central District of California
Michael W. Fitzgerald, District Judge, Presiding
Submitted July 9, 2020**
Pasadena, California
Before: BERZON and COLLINS, Circuit Judges, and KATZMANN,*** Judge.
*
This disposition is not appropriate for publication and is not precedent
except as provided by Ninth Circuit Rule 36-3.
**
The panel unanimously concludes this case is suitable for decision
without oral argument. See Fed. R. App. P. 34(a)(2).
***
The Honorable Gary S. Katzmann, Judge for the United States Court
of International Trade, sitting by designation.
Plaintiff Oxy-Health, LLC, brought trademark infringement and related
claims against its former employee Ching Wen Yeh and his business, H2
Enterprises (collectively, “Wen”). Wen appeals the district court’s order denying
his motion to compel arbitration.
A district court’s denial of a motion to compel arbitration is reviewed de
novo. Kilgore v. KeyBank, Nat. Ass’n,
718 F.3d 1052, 1057 (9th Cir. 2013) (en
banc). “Notwithstanding the federal policy favoring it, arbitration is a matter of
contract and a party cannot be required to submit to arbitration any dispute which
he has not agreed so to submit.” Tracer Research Corp. v. Nat’l Envtl. Servs. Co.,
42 F.3d 1292, 1294 (9th Cir. 1994) (internal quotation marks omitted). “[W]e must
look to the express terms of the agreements at issue to determine whether [the
parties] intended that [the] claims be arbitrated.” Ferguson v. Corinthian Colleges,
Inc.,
733 F.3d 928, 938 (9th Cir. 2013) (citation omitted).
1. The district court properly interpreted the scope of the arbitration
agreement in Wen’s employee handbook as limited to employment-related
disputes. By its own terms, the agreement is limited to the employment
relationship: Oxy-Health “promise[d] to arbitrate all employment-related disputes”;
Wen agreed to arbitrate disputes “arising out of, relating to, or resulting from [his]
employment with the company”; and the list of examples of claims covered
includes statutes concerning employment issues. The district court properly held
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that the provision stating that “this agreement to arbitrate also applies to any
disputes that the company may have with you,” read in context, is limited to
employment-related disputes. This limitation is necessary to “give effect to every
part” of the agreement, “each clause helping to interpret the other.” See Comedy
Club, Inc. v. Improv West Assocs.,
553 F.3d 1277, 1285 (9th Cir. 2009) (quoting
Cal. Civ. Code § 1641).
2. The district court properly concluded that Oxy-Health’s trademark-based
claims are not covered by the arbitration agreement because they did not arise out
of, relate to, or result from Wen’s prior employment with Oxy-Health. Oxy-
Health’s trademark-based claims focus on Wen’s use of the allegedly infringing
mark “oxychambers.com” and can be resolved entirely without reference to Wen’s
former employment by Oxy-Health. See Simula, Inc. v. Autoliv, Inc.,
175 F.3d 716,
721 (9th Cir. 1999) (an arbitration agreement with the language here “reaches
every dispute between the parties having a significant relationship to the contract
and all disputes having their origin or genesis in the contract”). Although the
parties apparently dispute whether Wen’s ownership of that mark is wrongful, that
issue has no bearing on Oxy-Health’s trademark-related claims as presently
pleaded in the complaint. Because none of the complaint’s allegations “touch
matters” that are employment-related and thus covered by the arbitration
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agreement, the district court properly denied the motion to compel arbitration. See
id.;
Tracer, 42 F.3d at 1295.
AFFIRMED.
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