Barnett v. Vapor Maven OK 1, LLC

District Court, N.D. Oklahoma·Decided December 16, 2022·No. 4:21-cv-00423·Unknown

Opinion

UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF OKLAHOMA

JASMINE BARNETT, ) ) Plaintiff, ) ) v. ) ) Case No. 21-CV-423-TCK-JFJ VAPOR MAVEN OK 1, LLC; HARMINDER ) THIND; GURPREET K. THIND; FRESH ) LEAF, LLC; VAPOR MAVEN ) FRANCHISING, LLC; VAPOR MAVEN AR, ) LLC; VAPOR MAVEN MS, LLC; VAPOR ) MAVEN E-JUICE, LLC; JASLEEN ) ENTERPRISES, LLC; and MANAV ) ENTERPRISES, LLC, ) ) Defendants. )

OPINION AND ORDER

Before the Court is Out-of-State Defendants’ Motion to Dismiss under Fed. R. Civ. P. 12(b)(2), filed by Gurpreet K. Thind; Vapor Maven Franchising, LLC; Vapor Maven AR, LLC; Vapor Maven MS, LLC; Vapor Maven E-Juice, LLC; and Manav Enterprises, LLC (collectively Out-of-State Defendants). (Doc. 23). This case was removed from the District Court of Ottawa County, Oklahoma, pursuant to 28 U.S.C. § 1331, (Doc. 2), and thereafter, Defendant Gurpreet K. Thind individually filed a Fed. R. Civ. P. 12(b)(6) Motion to Dismiss (Doc. 22). Subsequent to the Rule 12(b)(6) Motion, Defendant Gurpreet Thind, along with the other Out-of-State Defendants, filed a separate Motion to Dismiss pursuant to Rule 12(b)(2) for lack of personal jurisdiction. (Doc. 23). The Court denied Defendant Gurpreet Thind’s Rule 12(b)(6) Motion to Dismiss, (Doc. 32). The Court now turns to Out-of-State Defendants’ Rule 12(b)(2) Motion to Dismiss. In order to decide Out-of-State Defendants’ Motion, the Court directed Plaintiff to file affidavits and any other written material to support her factual allegations regarding personal jurisdiction over Out-of-State Defendants no later than November 21, 2022. (Doc. 31). On November 17, 2022, Plaintiff filed Supplemental Material in Support of Plaintiff’s Opposition to Defendants’ Motion to Dismiss, which included an affidavit and other documentary evidence. (Doc. 33). After having received leave of Court, Out-of-State Defendants filed a Supplemental

Reply based on the evidentiary materials submitted by Plaintiff. (Docs. 34-36). I. FACTS On May 14, 2021, Plaintiff Jasmine Barnett (Plaintiff) filed suit against Defendants in the District Court of Ottawa County, Oklahoma, asserting wage and retaliation claims under the FLSA against all Defendants, as joint employers. (Doc. 2-2 at 1, 5). According to the Complaint, Plaintiff was a Vapor Maven employee from April 2014 until October 7, 2019. (Id. at 5, 7). Plaintiff states that, though her job titles changed often during her employment, she “was a manager with broad responsibilities across all of the Vapor Maven stores and distribution centers.” (Doc. 33-1 at 1, ¶ 2). Vapor Maven is a self-described “strong vape-store chain” with nearly 100 stores across

multiple states, including Oklahoma, Arkansas, Kansas, Texas, and Missouri. (Doc. 2-2 at 4). In addition to its retail operations, Vapor Maven also manufactures and distributes tobacco vapor products as well as cannabis and kratom plant products in locations where such products are legally sold. (Id.) Vapor Maven does not in itself exist as a corporate entity; rather, Plaintiff asserts that all Defendants operate, function, and conduct business as a joint venture or general partnership under the tradename “Vapor Maven.” (Docs. 2-2 at 4; 27 at 2-4). In particular, the Complaint alleges that Defendants share in profits generated under the Vapor Maven name; share common property, market Vapor Maven products; operate business locations as Vapor Maven; require employees to wear Vapor Maven uniforms; provide employees with an email under the Vapor Maven domain; require employees to conduct business on behalf of one or more of the other named Defendants in order to generate income under the Vapor Maven tradename; and shared in control over employees, including the power to hire, fire, supervise, schedule, and regulate conditions of employment. (Doc. 2-2 at 4-5). Defendants Harminder and Gurpreet Thind, according to Plaintiff,

manage and oversee Vapor Maven employees and exert joint control over the Vapor Maven enterprise as husband and wife. (Doc. 27 at 4). In their Motion to Dismiss, Out-of-State Defendants urge this Court to dismiss them from the case pursuant to Rule 12(b)(2) because they lack sufficient contacts with Oklahoma to support the exercise of personal jurisdiction over them. (Doc. 23 at 2). Specifically, Out-of-State Defendants underscore the fact that Plaintiff’s FLSA claims relate to Jasleen Enterprises, LLC, which they assert was her “actual employer.” (Id.) Out-of-State Defendants maintain that they never had an employment relationship with Plaintiff, made any hiring decisions related to Plaintiff, or made any decisions related to Plaintiff’s compensation or schedule. (Doc. 23 at 4-5). Moreover, Out-of-State Defendants state that they do not own any property or reside in Oklahoma; that they

do not maintain an Oklahoma phone number or mailing address; and that they do not keep or maintain any bank accounts in Oklahoma. (Id. at 3-4). To the extent that Out-of-State Defendants are corporate entities, owner and managing member Harminder Thind denies the existence of any business or employment relationship between Oklahoma and the Out-of-State Defendants, asserting that such Defendants are not registered with the Oklahoma Secretary of State, do not have or direct employees in Oklahoma, and do not have members or officers residing in Oklahoma. (Doc. 23-1). Out-of-State Defendants’ Motion is supported by affidavits from Harminder Thind and Gurpreet K. Thind and Plaintiff’s 2019 W-2 from Jasleen Enterprises, LLC. (Docs. 23-1, 23- 2). Plaintiff’s Response counters that Out-of-State Defendants—as co-venturers in the Vapor Maven enterprise—are estopped from challenging personal jurisdiction because the Vapor Maven enterprise has sufficient contacts with the State of Oklahoma. (Doc. 27 at 10-11). Plaintiff underscores the fact that Vapor Maven operates 16 stores throughout Oklahoma, and it markets

and sells its products online and in Oklahoma. (Id. at 11). Further, Plaintiff maintains that Vapor Maven employs Oklahoma residents, such as herself—a point that is reflected in Plaintiff’s employment termination letter, in which Harminder Thind states that “Vapor Maven is terminating your employment.” (Doc. 33-1 at 5) (emphasis added). Thus, Plaintiff concludes, Vapor Maven has sufficient contacts with Oklahoma to support personal jurisdiction. And although Plaintiff was nominally employed by Jasleen Enterprises, LLC, the “various entities did not operate in any distinct fashion from the ‘Vapor Maven’ concept.” (Id. at 2, ¶ 10). Specifically, Plaintiff asserts that all of the named Defendants “shared employees, assets, [and] funds . . . indiscriminately, and freely shared anything Mr. or Mrs. Thind felt was needed to further the ‘Vapor Maven’ business.” (Id. at 2, ¶ 11). In at least one instance, Plaintiff received a compensation check from Vapor Maven

drawn from a Manav Enterprises bank account. (Id. at 3, ¶ 20). Plaintiff also mistakenly completed her worker’s compensation application as an employee of Vapor Maven, rather than Jasleen Enterprises, LLC. (Id. at 59-60). In short, the point at which one Vapor Maven entity ended and the next began was virtually indistinguishable, and those entities should be treated as such for purposes of personal jurisdiction. II. RULE 12(b)(2) LEGAL STANDARDS In considering a motion to dismiss pursuant to Rule 12(b)(2), a court must determine whether the plaintiff has alleged sufficient facts to establish the court’s jurisdiction over the defendant. Plaintiff bears the burden of establishing that the court has personal jurisdiction over defendants.

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Barnett v. Vapor Maven OK 1, LLC, (N.D. Okla. 2022).

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