Clark v. Southwestern Energy Company

CourtDistrict Court, E.D. Arkansas
DecidedFebruary 23, 2021
Docket4:20-cv-00475
StatusUnknown

This text of Clark v. Southwestern Energy Company (Clark v. Southwestern Energy Company) is published on Counsel Stack Legal Research, covering District Court, E.D. Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Clark v. Southwestern Energy Company, (E.D. Ark. 2021).

Opinion

IN THE UNITED STATES DISTRICT COURT EASTERN DISTRICT OF ARKANSAS CENTRAL DIVISION

THOMAS CLARK, individually and on behalf of all others similarly situated PLAINTIFF

v. Case No. 4:20-cv-00475-KGB

SOUTHWESTERN ENERGY COMPANY; FLYWHEEL ENERGY MANAGEMENT, LLC; and FLYWHEEL ENERGY PRODUCTION, LLC DEFENDANTS

ORDER

Plaintiff Thomas Clark brings this action on behalf of himself and all others similarly situated against separate defendant Southwestern Energy Company (“Southwestern”) and separate defendants Flywheel Energy Management, LLC (“FEM”), and Flywheel Energy Production, LLC (“FEP”), (collectively “Flywheel”) alleging violations of the Fair Labor Standards Act (“FLSA”), 29 U.S.C. § 216, et seq. Before the Court are Flywheel’s motion to dismiss and motion to dismiss plaintiff’s amended complaint (Dkt. Nos. 5, 14). Also before the Court are Southwestern’s motion to dismiss and motion to dismiss plaintiff’s first amended and substituted complaint (Dkt. Nos. 8, 16). Mr. Clark responded in opposition (Dkt. Nos. 17, 18), and defendants replied (Dkt. Nos. 23, 24). For the following reasons, the Court denies defendants’ motions to dismiss Mr. Clark’s amended complaint (Dkt. Nos. 14, 16). The Court denies as moot defendants’ motions to dismiss Mr. Clark’s original complaint (Dkt. Nos. 5, 8). I. Procedural Background On May 5, 2020, Mr. Clark filed a collective action complaint alleging violations of the FLSA against Southwestern and Flywheel (Dkt. No. 1). Defendants moved to dismiss Mr. Clark’s original complaint (Dkt. Nos. 5, 8). On July 13, 2020, Mr. Clark filed an amended complaint (Dkt. No. 10). Mr. Clark alleges that Southwestern and Flywheel are independent oil and natural gas companies (Id., ¶¶ 20, 53). According to Mr. Clark, he worked for Southwestern as an hourly- paid Well Tender/Pumper from approximately June 2014 to November 2017 (Id., ¶ 23). His duties included driving to well sites and monitoring and tending to pumps, performing safety checks on his vehicle before beginning work for the day, and completing paperwork at the end of each day

such as entering tickets from well sites and filling out logs (Id., ¶ 25). Mr. Clark alleges that the vehicle safety check took approximately 30 minutes each day to complete, that the end-of-day paperwork took approximately one to two hours to complete, and that he spent approximately one to four hours each day driving to well sites (Id., ¶¶ 26–28). Mr. Clark further alleges that Southwestern neither recorded nor compensated Mr. Clark for the time spent on these activities and expressly directed him not to clock in while performing these activities (Id., ¶¶ 29, 32). According to Mr. Clark, he regularly worked over 40 hours per week but did not receive overtime compensation for some hours worked over 40 per week (Id., ¶¶ 31, 35). Mr. Clark makes these allegations on behalf of himself and other similarly situated employees.

Mr. Clark further alleges that, around December 2018, FEM and/or FEP acquired Southwestern or the portion of Southwestern in which Mr. Clark formerly worked (Id., ¶ 37). Mr. Clark alleges that Southwestern informed FEM and/or FEP of Southwestern’s practice of not paying employees pursuant to the requirements of the FLSA and that Flywheel continued the same pay practices as Southwestern (Id., ¶¶ 38, 41). Mr. Clark alleges that similarly situated Flywheel employees performed duties comparable to those he performed as a Well Tender/Pumper but were not compensated for such duties or for overtime hours worked (Id., ¶¶ 56–68). Mr. Clark also alleges that Flywheel directed its employees not to clock in while performing safety checks, driving to their first locations, or completing end-of-day paperwork and that Flywheel neither recorded the time spent on such activities nor compensated employees for such activities (Id., ¶¶ 62, 65). Mr. Clark brings this claim for relief for violation of the FLSA as a collective action pursuant to 29 U.S.C. § 216(b) (Id., ¶ 71). Mr. Clark proposes the following class under the FLSA: “All Well Tenders/Pumpers, or comparable positions, employed by Southwestern, FEM and/or

FEP in the past three years.” (Id., ¶ 72). Mr. Clark alleges that the members of the proposed FLSA class are similarly situated because they were subject to defendants’ common policy of requiring Well Tenders/Pumpers or comparable positions to perform vehicle inspections before clocking in; they were subject to defendants’ common policy of failing to pay Well Tenders/Pumpers or comparable positions for all hours worked; and they had substantially similar job duties, requirements, and pay provisions (Id., ¶ 75). Mr. Clark asserts that putative class members are entitled to relief in the form of regular wages and overtime premiums for all hours worked over 40 hours in any week, liquidated damages, and attorney’s fees and costs (Id., ¶ 71). Mr. Clark thus requests relief individually and collectively under the FLSA.

Flywheel and Southwestern now move to dismiss Mr. Clark’s amended complaint pursuant to Federal Rule of Civil Procedure 12(b)(6) (Dkt. Nos. 14, 16). Flywheel argues in its motion that the Court should dismiss Mr. Clark’s FLSA claims against Flywheel because Mr. Clark has not plausibly pleaded successor liability (Dkt. No. 15, at 6). According to Flywheel, Mr. Clark merely recites the elements of successor liability without pleading actual facts (Id., at 8). Flywheel further argues that Mr. Clark has not plausibly pleaded willful conduct and that his claim is therefore barred by the FLSA’s two-year statute of limitations (Id., at 9–10). Flywheel finally argues that Mr. Clark cannot represent a collective action against Flywheel because he was never employed by Flywheel and therefore is not similarly situated to Flywheel employees (Id., at 10–12). Flywheel attaches to its motion to dismiss a Form 8-K for Southwestern Energy Company dated August 30, 2018, filed with the United States Securities and Exchange Commission (Dkt. No. 15- 1), and a membership interest purchase agreement by and between Southwestern Energy Company, as seller, and Flywheel Energy Operating, LLC, as buyer, dated August 30, 2018 (Dkt. No. 15-2). Southwestern in its motion also argues that Mr. Clark’s claim is barred by the FLSA’s

two-year statute of limitations because he fails to plead willful conduct and that Mr. Clark cannot represent a collective action against Southwestern (Dkt. No. 16-1, at 3–7). II. Legal Standard A Rule 12(b)(6) motion tests the legal sufficiency of the claim or claims stated in the complaint. See Peck v. Hoff, 660 F.2d 371, 374 (8th Cir. 1981). “To survive a motion to dismiss, a complaint must contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’” Ashcroft v. Iqbal, 556 U.S. 662 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007)). “A claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable

for the misconduct alleged.” Id. (citing Twombly, 550 U.S. at 556). Although a complaint “does not need detailed factual allegations” to survive a Rule 12(b)(6) motion to dismiss, the “[f]actual allegations must be enough to raise a right to relief above the speculative level.” Twombly, 550 U.S.

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Clark v. Southwestern Energy Company, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clark-v-southwestern-energy-company-ared-2021.