Beckwith-Cohen v. VibrantCare Rehabilitation, Inc.

CourtDistrict Court, E.D. California
DecidedDecember 14, 2021
Docket2:21-cv-01180
StatusUnknown

This text of Beckwith-Cohen v. VibrantCare Rehabilitation, Inc. (Beckwith-Cohen v. VibrantCare Rehabilitation, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Beckwith-Cohen v. VibrantCare Rehabilitation, Inc., (E.D. Cal. 2021).

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 EASTERN DISTRICT OF CALIFORNIA 10 11 BECKWITH-COHEN, an individual, on No. 2:21-cv-01180-TLN-JDP behalf of herself and all others similarly 12 situated, 13 Plaintiff, ORDER 14 v. 15 VIBRANTCARE REHABILITATION, INC., a corporation; PATSY NEUMANN; 16 and DOES 1 through 10, inclusive, 17 Defendants. 18 19 This matter is before the Court on Plaintiff Carol Beckwith-Cohen’s (“Plaintiff”) Motion 20 for Remand. (ECF No. 5.) Defendant VibrantCare Rehabilitation, Inc. (“Defendant”) filed an 21 opposition. (ECF No. 6.) Plaintiff filed a reply. (ECF No. 8.) For the reasons set forth below, 22 the Court GRANTS Plaintiff’s motion. 23 /// 24 /// 25 /// 26 /// 27 /// 28 /// 1 I. FACTUAL AND PROCEDURAL BACKGROUND 2 Defendant employed Plaintiff and other individuals as physical and occupational 3 therapists in California. (ECF No. 1 at 43.) On February 11, 2019, Plaintiff filed this putative 4 class action in Alameda County Superior Court, alleging various state law wage and hour claims. 5 (ECF No. 1 at 60–81.) The case was transferred to Sacramento County Superior Court, and 6 Plaintiff filed her First Amended Complaint (“FAC”) on July 6, 2021. (ECF No. 1 at 8, 94.) On 7 July 16, 2021, Defendant removed the case to this Court under the Class Action Fairness Act 8 (“CAFA”). (ECF No. 1.) Plaintiff moved to remand on August 5, 2021, arguing Defendant fails 9 to show by a preponderance of the evidence that the requisite $5 million amount in controversy 10 has been met. (ECF No. 5.) 11 II. STANDARD OF LAW 12 A civil action brought in state court, over which the district court has original jurisdiction, 13 may be removed by the defendant to federal court in the judicial district and division in which the 14 state court action is pending. 28 U.S.C. § 1441(a). CAFA gives federal courts original 15 jurisdiction over certain class actions only if: (1) the class has more than 100 members; (2) any 16 member of the class is diverse from the defendant; and (3) the aggregated amount in controversy 17 exceeds $5 million, exclusive of interest and costs. See 28 U.S.C. §§ 1332(d)(2), (5)(B). 18 Congress enacted CAFA “specifically to permit a defendant to remove certain class or 19 mass actions into federal court” and intended courts to interpret CAFA “expansively.” Ibarra v. 20 Manheim Invs., Inc., 775 F.3d 1193, 1197 (9th Cir. 2015). As a general rule, removal statutes are 21 to be strictly construed against removal. Gaus v. Miles, Inc., 980 F.2d 564, 566 (9th Cir. 1992). 22 However, “no antiremoval presumption attends cases invoking CAFA.” Dart Cherokee Basin 23 Operating Co. v. Owens, 574 U.S. 81, 89 (2014). Nonetheless, “[i]f at any time before final 24 judgment it appears that the district court lacks subject matter jurisdiction, the case shall be 25 remanded” to state court. 28 U.S.C. § 1447(c). 26 A defendant seeking removal under CAFA must file in the federal forum a notice of 27 removal “containing a short and plain statement of the grounds for removal.” Dart Cherokee, 574 28 U.S. at 83 (quoting 28 U.S.C. § 1446(a)). The notice of removal “need not contain evidentiary 1 submissions,” rather a defendant’s “plausible allegation that the amount in controversy exceeds 2 the jurisdictional threshold” suffices. Id. at 84, 89. When “a defendant’s assertion of the amount 3 in controversy is challenged . . . both sides submit proof and the court decides, by a 4 preponderance of the evidence, whether the amount-in-controversy requirement has been 5 satisfied.” Id. at 88. The parties may submit evidence outside the complaint including “affidavits 6 or declarations or other ‘summary-judgment-type evidence relevant to the amount in controversy 7 at the time of removal.’” Hender v. Am. Directions Workforce LLC, No. 2:19-cv-01951-KJM- 8 DMC, 2020 WL 5959908 *2 (E.D. Cal. Oct. 7, 2020) (citing Singer v. State Farm Mut. Ins. Co., 9 116 F.3d 373, 377 (9th Cir. 1997)). 10 When “the defendant relies on a chain of reasoning that includes assumptions to satisfy its 11 burden of proof, the chain of reasoning and the underlying assumptions must be reasonable, and 12 not constitute mere speculation and conjecture.” Id. (citing Ibarra, 775 F.3d at 1197–99). 13 “CAFA’s requirements are to be tested by consideration of real evidence and the reality of what is 14 at stake in the litigation, using reasonable assumptions underlying the defendant’s theory of 15 damages exposure.” Ibarra, 775 F.3d at 1198. Then “the district court must make findings of 16 jurisdictional fact to which the preponderance standard applies.” Dart Cherokee, 574 U.S. at 17 89 (internal citation omitted). 18 III. ANALYSIS 19 Plaintiff argues Defendant fails to show by a preponderance of the evidence that the 20 amount in controversy exceeds $5 million because Defendant’s estimates are inflated, 21 unreasonable, and unsupported. (ECF No. 5-1.) Plaintiff also requests attorney’s fees incurred in 22 bringing this motion. (Id.) The Court will address Defendant’s amount in controversy estimate 23 and then Plaintiff’s request for attorney’s fees. 24 A. Amount in Controversy 25 Defendant estimates the total amount in controversy exceeds $7,400,000 based on the 26 class claims for unpaid wages, liquidated damages, unpaid overtime, meal periods, rest periods, 27 untimely final wages, inaccurate wage statements, and statutory attorney’s fees. (ECF No. 1; 28 ECF No. 6.) The Court will address Defendant’s arguments as to those claims in turn. 1 i. Unpaid Wages 2 Defendant argues the amount in controversy with respect to the claims for unpaid wages is 3 at least $1,527,000. (ECF No. 6 at 13.) Defendant contends that based on Plaintiff’s allegations 4 — “all members of the Class and Sub-Class” at all relevant times” were “systematically” forced 5 to “consistently” work through breaks and off the clock, including on weekends, under the 6 “same” overbooking practice — it is reasonable to apply a 100% violation rate. (Id. at 15.) 7 Defendant further contends it provided sufficient evidence and reasonable calculations to support 8 its estimate. (Id. at 16.) More specifically, Defendant provides a declaration from Heather 9 Tenconi, Defendant’s Director of Human Resources and Recruiting.1 (ECF No. 6-2.) Tenconi 10 declares that her statements are based on her personal knowledge of Defendant’s business records 11 kept in the ordinary course of business, including personnel files and payroll records. (Id. at 2–7.) 12 Tenconi states Defendant’s records reflect that, during the relevant period between February 11, 13 2015 and July 6, 2021, Defendant employed 117 occupational therapists and physical therapists. 14 (Id. at 4.) Of these employees: 47 were full-time employees who worked an average of 40 hours 15 per week over five workdays for approximately 3,102 weeks during the relevant time period with 16 an average hourly rate of $35.63; 7 were part-time employees who worked an average of 32 hours 17 per week composed of eight-hour days for approximately 539 weeks during the relevant time 18 period with an average hourly rate of $40.30; and 63 were per diem employees who worked an 19 average of 12 hours per week for approximately 4,498 weeks in the relevant time period with an 20 average hourly rate of $44.79.

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Bluebook (online)
Beckwith-Cohen v. VibrantCare Rehabilitation, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/beckwith-cohen-v-vibrantcare-rehabilitation-inc-caed-2021.