Cooper v. Applied Integrated Techs., Inc.

371 F. Supp. 3d 846
CourtDistrict Court, D. Oregon
DecidedMarch 4, 2019
DocketNo. 3:18-cv-01561-HZ
StatusPublished

This text of 371 F. Supp. 3d 846 (Cooper v. Applied Integrated Techs., Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cooper v. Applied Integrated Techs., Inc., 371 F. Supp. 3d 846 (D. Or. 2019).

Opinion

MARCO A. HERNÁNDEZ, United States District Judge

Plaintiff Eric Cooper brings this putative class action for failure to timely pay final wages as required by Or. Rev. Stat. ("ORS") § 652.140 against Defendant Applied Integrated Technologies, Inc. Defendant removed this case to federal court on the ground that it is preempted by § 301 of the Labor Management Relations Act ("LMRA"). Plaintiff now moves to remand this case to state court for lack of subject matter jurisdiction, and Defendant moves to dismiss this claim under Fed. R. Civ. P. 12(b)(6). The Court denies Plaintiff's Motion to Remand and grants Defendant's Motion to Dismiss.

BACKGROUND

In 2015, Plaintiff was hired by Defendant to fulfill its obligations under a contract to supply the federal government with security officers. Notice of Removal Ex. 1 ("Compl.") at ¶¶ 10, 16, ECF 1-1. Plaintiff was subject to a Collective Bargaining Agreement ("CBA"). Compl. ¶ 12. The CBA contains provisions governing sick pay, vacation pay, and undisputed errors in payment. Redman Decl. Ex. A §§ 7.4, 8.5, 10.1, 10.4, ECF 7-1. Section 8.5 provides that up to eighty hours of sick leave may carry over into the following year, but otherwise "all unused hours will be paid at 100% of the earned amount within 30 days after the end of the government contract year." Id. at § 8.5. Similarly, "at the time of termination of employment," Defendant is to pay employees unpaid vacation hours that have vested but have not been used. Id. at § 10.4. Section 7.4 of the CBA also provides:

In case of an undisputed error on the part of the Company as to an employee's pay, proper adjustment will be made within one (1) week for undisputed *850errors over $50 after the Company is provided a payroll discrepancy form identifying the error. All other such undisputed errors will be made on the next paycheck. Employees shall notify the Company of all errors on the part of the Company as to an employee's pay as soon as the error is noticed by the Employee. It is expressly agreed and understood that this Section 7.4 shall apply, without limitation, to those instances where an employee has separated from employment and believes that his/her final pay was incorrect.

Id. at § 7.4. Any disagreements or disputes raised by the employee that arise "during the term of [the CBA] concerning the application, meaning or interpretation of an express term of [the CBA] or the employment relationship" are governed exclusively by the grievance and arbitration procedures set forth in the CBA. Id. at § 13.1.

On April 30, 2018, Defendant terminated Plaintiff's employment after it lost its federal contract. Compl. ¶¶ 17-19. Plaintiff alleges that more than 50 other individuals were similarly terminated by Defendant. Compl. ¶¶ 21-22. Plaintiff alleges Defendant violated state law when it made a late partial payment of final wages and failed to pay Plaintiff accrued sick and vacation leave until June 7, 2018, over a month after Plaintiff's employment ended. Compl. ¶¶ 26-30. As a result of this conduct, Plaintiff seeks statutory penalty wages of not less than $6,432.00 pursuant to ORS 652.150. Compl. ¶ 63.

STANDARDS

I. Motion to Remand

Generally, "any civil action brought in a State court of which the district courts of the United States have original jurisdiction, may be removed by the defendant or the defendants, to the district court of the United States for the district and division embracing the place where such action is pending." 28 U.S.C. § 1441(a) ; Matheson v. Progressive Specialty Ins. Co. , 319 F.3d 1089, 1090 (9th Cir. 2003) ("Any civil action may be removed to federal district court so long as original jurisdiction would lie in the court to which the case is removed").

"A motion to remand is the proper procedure for challenging removal." Moore-Thomas v. Alaska Airlines, Inc. , 553 F.3d 1241, 1244 (9th Cir.2009). Remand is governed by 28 U.S.C. § 1447(c) which provides, in pertinent part, that:

A motion to remand the case on the basis of any defect other than lack of subject matter jurisdiction must be made within 30 days after the filing of the notice of removal under section 1446(a). If at any time before final judgment it appears that the district court lacks subject matter jurisdiction, the case shall be remanded. An order remanding the case may require payment of just costs and any actual expenses, including attorney fees, incurred as a result of the removal.

28 U.S.C. § 1447(c). The removal statute is strictly construed and any doubt about the right of removal is resolved in favor of remand. Gaus v. Miles, Inc. , 980 F.2d 564, 566 (9th Cir. 1992) (citations omitted). The presumption against removal jurisdiction means "the defendant always has the burden of establishing that removal is proper." Id.

II. Failure to State a Claim

A motion to dismiss under Federal Rule of Civil Procedure 12(b)(6) tests the sufficiency of the claims. Navarro v. Block , 250 F.3d 729, 732 (9th Cir. 2001). "All allegations of material fact are taken as true and construed in the light most favorable to the nonmoving party."

*851Am. Family Ass'n, Inc. v. City & Cty. of S.F. , 277 F.3d 1114, 1120 (9th Cir. 2002).

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371 F. Supp. 3d 846, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cooper-v-applied-integrated-techs-inc-ord-2019.