Employment Litigation · Primary-source case analysis

Sorokunov v. NetApp: An Arbitration Loss Precluded PAGA Standing on the Same Issues

By Aneeta Mishra and Timothy Chan

Published April 20, 2026 · Updated October 17, 2026

Decision: Sorokunov v. NetApp, Inc., No. A171964 (Cal. Ct. App. Mar. 3, 2026).

In its published March 3, 2026 decision, the California Court of Appeal, First District, Division Four, examined whether an employee could keep a PAGA action after losing the same alleged Labor Code violations in individual arbitration.

Commission and PAGA claims followed a resignation

A salesperson alleged that NetApp unlawfully capped commissions under a windfall provision. He asserted individual Labor Code claims and sought PAGA penalties after providing statutory notice.

The individual claims went to arbitration

The court compelled arbitration under the parties’ agreement. The arbitrator rejected each individual claim, and the superior court confirmed the award while the representative PAGA theory remained in court.

Issue preclusion resolved aggrieved-employee status

The plaintiff needed an underlying Labor Code violation against him to establish standing—the right to bring this PAGA action. The confirmed award had already rejected those same alleged violations. The court applied issue preclusion: He could not relitigate issues finally decided against him. That bound this plaintiff’s standing claim, not the state or other employees. The court expressly explained that the dismissal did not prevent the state from bringing its own action. Sorokunov, slip opinion, pages 27–36.

Disposition

The court affirmed judgment for NetApp, including confirmation of the award and judgment on the pleadings. Its result depended on the identical issues having been actually and necessarily decided in a final proceeding. The opinion discussed differing appellate decisions and considered fairness; it did not announce that every arbitration loss ends every PAGA action. Sorokunov, slip opinion, pages 27–38.

Key takeaways

• Map the exact issues shared by individual and PAGA claims.
• A confirmed award can have preclusive consequences beyond arbitration.
• PAGA standing still requires an underlying violation suffered by the plaintiff.
• Preserve objections to arbitration and award confirmation at each stage.