Broadnax v. Uber Technologies, Inc.

District Court, D. Nevada·Decided May 18, 2025·No. 2:25-cv-00113·Unknown

Opinion

1 UNITED STATES DISTRICT COURT 2 DISTRICT OF NEVADA

3 4 Rafford Broadnax, Case No. 2:25-cv-00113-JAD-MDC

5 Plaintiff v. Order Denying Motion to Remand, 6 Granting Motion to Compel Uber Technologies, Inc., et al., Arbitration, and Staying Case Pending 7 Arbitration Defendants 8 ECF Nos. 5, 6, 9, 18, 23, 34, 35, 45, 49, 50 9

10 Rafford Broadnax is a former Uber driver who characterizes himself as “the 11 epitome of diligence and compliance in the rideshare industry, having meticulously 12 adhered to all state and local regulations required” to do his job.1 Broadnax was 13 “deactivated” as a driver last summer, purportedly “due to passenger reports,” but Uber 14 refused Broadnax’s requests for clarification, preventing him “from defending himself 15 against the accusation.”2 So Broadnax went on the offensive and seeks to hold Uber 16 Technologies, Inc. accountable not just for mistreating him, but for “misclassifying 17 employees to evade financial responsibilities, unjustly enriching themselves at the 18 expense of their drivers, and retaliating against those who dare to challenge their 19 unethical practices.”3 He filed this suit in Nevada state court against Uber and its 20 1 ECF No. 1-4 at 2 (complaint). 21 2 Id. at 4. 22 3 Id. at 2–3. 1 subsidiaries4 for “employee misclassification,” unjust enrichment, breach of contract, 2 negligence, estoppel, employment discrimination, retaliation, and misrepresentation.5

3 The Uber entities removed the case to federal court, and Broadnax moves to 4 remand it back to state court, noting that he asserts only state-law claims.6 Relying on a 5 comprehensive arbitration clause in Broadnax’s Platform Access Agreement, the Uber 6 entities move to compel arbitration.7 I deny the motion to remand because this case finds 7 jurisdiction not based on federal claims but based on the diversity of the parties. And 8 because the Uber entities have met their burden to show that Broadnax entered into a

9 binding agreement to arbitrate his claims, I grant the motion to compel arbitration, stay 10 this case pending the completion of those proceedings, and deny all other motions. 11 Analysis 12 A. Remand is not available because jurisdiction over this case is based on 13 diversity of the parties, not federal claims.

14 Broadnax asks this court to remand this case back to state court. He notes that his 15 claims do “not reference any United States Codes, Federal Statutes, or the Constitution of 16 17 18 4 Although Broadnax also sued various Uber officers, directors, or managers, see ECF 19 No. 1-4, he voluntarily dismissed his claims against them, see ECF No. 40, leaving Uber Technologies, Inc.; Uber USA, LLC; and Rasier, LLC (collectively, “the Uber entities”) 20 as the only defendants. 5 See generally ECF No. 1-4. 21 6 ECF No. 5. 22 7 ECF No. 6. 1 the United States.”8 Thus, he theorizes, “no federal question exists,” and this case was 2 improperly removed.9

3 Pleading a claim based on a federal question is just one way that a case can be 4 removed from state court to federal court. A second way is to bring an action with a 5 value of more than $75,000 and with parties who are citizens of different states.10 It’s 6 this second type of subject-matter jurisdiction—diversity jurisdiction—on which the 7 defendants in this case rely and which gave them the right to remove this case from state 8 court. As the Uber entities explain in their notice of removal, “this court has subject-

9 matter jurisdiction over this action under 28 U.S.C. § 1332(a), which encompasses 10 ‘actions where the matter in controversy exceeds the sum or value of $75,000.00, 11 exclusive of interest and costs, and is between . . . citizens of different States,” Broadnax 12 is a citizen of Nevada, each of the Uber entities is a citizen of Delaware and California, 13 and Broadnax expressly alleges in his complaint that he seeks millions of dollars in

14 restitution and damages.11 So this case was properly removed based on diversity 15 jurisdiction. 16 Broadnax’s suggestion that the Uber entities’ removal was an improper “snap 17 removal” misunderstands that concept. A snap removal happens when multiple 18 defendants are sued—some of whom are citizens of the forum state, and some of whom

20 8 ECF No. 5 at 2. 9 Id. at 7. 21 10 28 U.S.C. § 1332. 22 11 ECF No. 1 at 3–4 (cleaned up). 1 are citizens of other states—and a non-forum defendant removes the case before any 2 defendant gets served.12 The Uber entities’ removal here was not a “snap removal”

3 because they removed after being served with process. Plus, there appears to be no 4 forum defendant in this case because the Uber entities are citizens of Delaware and 5 California, and the plaintiff states in the motion for default judgment that he filed in state 6 court that “The Individual Defendants that are included in the Complaint reside outside 7 the State of Nevada.”13 So this wasn’t a snap removal. 8 The final premise on which Broadnax’s remand request relies—that only the

9 Nevada state court can decide issues related to Nevada law or cases in which Nevada law 10 governs—is simply wrong. Federal courts are empowered to decide issues of state law 11 and do so all the time. When a case is pending in federal court based on diversity 12 jurisdiction like this one, the federal court is empowered to apply state law. The U.S. 13 Supreme Court articulated this rule in Erie R. Co. v. Tompkins in 1938.14 “Under the

14 Erie doctrine, federal courts sitting in diversity apply state substantive law and federal 15 procedural law.”15 So Broadnax’s assertions that “[o]nly State Courts can execute and 16 enforce State law”16 or that “State Statutes are only enforceable by State jurisdictional 17 18

12 See, e.g., Gentile v. Biogen Idec, Inc., 934 F. Supp. 2d 313, 316, 318–19 (D. Mass. 19 2013) (quoting 28 U.S.C. § 1441(b) (2002)). 20 13 ECF No. 1-5 at 53. 14 Erie R. Co. v. Tompkins, 304 U.S. 64 (1938). 21 15 Gasperini v. Ctr. for Humans., Inc., 518 U.S. 415, 427 (1996). 22 16 ECF No. 5 at 6, ¶ 13. 1 courts”17 are incorrect and thus not a basis to remand this case back to state court. So I 2 deny the motion to remand in its entirety.

3 B. The court grants the Uber entities’ motion to compel arbitration and stays 4 this case pending the completion of that proceeding.

5 Broadnax entered into a contract with the Uber entities through his Uber Driver 6 App, which he alleges in his complaint was “[a] valid contract.”18 That contract, known 7 as the Platform Access Agreement, contains an arbitration clause that requires all 8 “disputes . . .

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Broadnax v. Uber Technologies, Inc., (D. Nev. 2025).

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