Dahl v. Petroplex Acidizing, Inc.

CourtDistrict Court, D. New Mexico
DecidedJanuary 19, 2023
Docket2:22-cv-00252
StatusUnknown

This text of Dahl v. Petroplex Acidizing, Inc. (Dahl v. Petroplex Acidizing, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. New Mexico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dahl v. Petroplex Acidizing, Inc., (D.N.M. 2023).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF NEW MEXICO

DARVIN DAHL, individually and on behalf of all those similarly situated,

Plaintiff,

v. Civ. No. 22-252 GJF/KRS

PETROPLEX ACIDIZING, INC.,

Defendant.

ORDER DENYING MOTION TO DISMISS

THIS MATTER is before the Court upon Defendant’s Motion to Dismiss [ECF 7] (“Motion”). The Motion is fully briefed. See ECFs 14 (“Response”), 18 (“Reply”). As discussed below, the Court concludes that (1) it has personal jurisdiction over Defendant, (2) venue is proper in this District, and (3) venue should not be transferred to the Western District of Texas. The Court will therefore DENY the Motion. I. BACKGROUND Plaintiff’s Complaint [ECF 1] alleges that he was “employed by Defendant within . . . the three-year period preceding the [April 2022] filing of [his] Complaint.” Compl. at ¶ 2.1. The Complaint further alleges that, “within the actionable time period,” Defendant required Plaintiff and other similarly situated employees to “perform[ ] acidizing services” in “the oil fields in various states including Texas and New Mexico.” Id. at ¶¶ 2.3, 2.4. In addition, Plaintiff and the other “Acidizer/Treater” employees all allegedly “work[ed] long hours in the field”—as they “all worked in excess of 40 hours each week and were often scheduled to work 12 hour shifts for weeks at a time.” Id. at ¶¶ 5.20, 5.24 (emphasis added). Moreover, Defendant allegedly failed to pay Plaintiff and the other Acidizer/Treaters “at the statutory rate of one and one-half times their regular rate of pay for all hours worked more than forty (40) in a workweek.” Id. at ¶¶ 2.4, 7.3, 8.8; see also id. at ¶ 5.25 (alleging Defendant instead paid these employees “on a salary-plus-daily- rate system”). Plaintiff further alleges that he and the other Acidizer/Treaters performed such underpaid overtime work “in the state of New Mexico.” Id. at ¶¶ 2.2, 2.3, 3.1–3.3, 6.2. Consequently, the

Complaint includes a cause of action under the New Mexico Minimum Wage Act, NMSA 1978, §§ 50-4-19 to 50-4-30, for the repeated instances in which Plaintiff and the other Acidizer/Treaters allegedly “worked more than 40 hours in one or more individual workweeks in the state of New Mexico” without receiving the required overtime payments. Compl. at ¶¶ 5.20, 6.2, 8. Plaintiff’s remaining cause of action is brought under the Fair Labor Standards Act, 29 U.S.C. §§ 201 to 219, for the instance in which he and the other Acidizer/Treaters performed underpaid overtime work “at any location in the United States.” Compl. at ¶¶ 2.4, 6.5, 7. Defendant “is a Texas corporation with its principal place of business in Odessa, Texas,” and Defendant “has a yard in Lovington, New Mexico.” Mot. at 1–2, 4. Defendant’s Chief

Executive Officer (CEO) attested in an affidavit that “[w]hile [Defendant] does some work in New Mexico, the majority of the work, roughly 75-80%, is performed in Texas.” ECF 7-1 at ¶ 6. The CEO further represented that (1) “while working for [Defendant]” Plaintiff lived in Texas and “primarily worked in Texas” and (2) “most of the Acid Treaters/Supervisors live and work in Texas, approximately 76% over the last three years”—whereas “[o]nly approximately 24% of the Acid Treaters/Supervisors over the last three years worked in New Mexico.” Id. at ¶¶ 7, 8, 12, 13. Defendant now requests that the Court dismiss this case for either (1) lack of personal jurisdiction or (2) improper venue. Mot. at 3–4; Reply at 2. “[A]lternatively,” Defendant requests that “venue be transferred to the United States District Court for the Western District of Texas, Midland-Odessa Division.” Mot. at 3–4. II. PARTIES’ PRIMARY ARGUMENTS A. Defendant’s Contentions Defendant contends that the Court lacks “specific personal jurisdiction” over Defendant

because, “while [Defendant] has a yard in Lovington, New Mexico, it does not have sufficient minimum contacts with the state.” Id. at 4; Reply at 1–6. Defendant argues that “[t]he amount of work performed by [Plaintiff] in [New Mexico] would have been so insubstantial as to prohibit . . . personal jurisdiction” because (1) “[o]nly a small percentage of [Defendant’s] business is conducted in New Mexico, less than 25% on average each year”; (2) “Plaintiff primarily worked for Defendant in Texas” and “lived in Texas throughout his employment with Defendant”; and (3) “Plaintiff has failed to controvert [such factual assertions, which are found in] Defendant’s affidavit.” Mot. at 4; Reply at 1–5. Defendant next asserts that venue is improper because Plaintiff “cannot show that a

substantial part of the events that give rise to his claims occurred in New Mexico.” Mot. at 4; Reply at 2, 4. Defendant incorporates the same points it made regarding personal jurisdiction to further argue that “[t]he amount of work performed by [Plaintiff] in [New Mexico] would have been so insubstantial” so as to render venue in this District improper. Mot at 4; Reply at 2–5. Finally, Defendant submits that “[e]ven if venue is proper in New Mexico, this Court should transfer the case to the Western District of Texas, Midland-Odessa division because New Mexico is an inconvenient forum.” Mot at 5–8; Reply at 5–8. Defendant specifically argues that venue here is inconvenient because (1) Plaintiff lives in Texas, and thus his chosen forum should be given less deference; (2) the majority of both Plaintiff and Defendant’s work occurred in Texas; (3) a number of Defendant’s witnesses (including four potential key witnesses), as well as Defendant’s records, are in Texas; (4) travel to Las Cruces, New Mexico (over 300 miles from Odessa, Texas) would increase costs (e.g., gasoline and hotel expenses and travel time); and (5) “[t]he median time from filing to disposition for civil cases in the Western District of Texas was 8.2 months, but it was 10 months in the District of New Mexico.” Mot at 5–8; Reply at 5–8.

B. Plaintiff’s Contentions For his part, Plaintiff responds that he has made the required “prima facie showing that personal jurisdiction exists.” Resp. at 6–7. Plaintiff argues that such jurisdiction exists in light of his allegation that “he performed work in New Mexico”—specifically, that he (along with other Acidizer/Treaters) repeatedly worked over 40 hours per week in New Mexico without proper payment for overtime. Id. at 6 (citing Compl. at ¶¶ 8.1–8.10); see also id. (noting that Defendant was served with process in, and has a physical presence in, New Mexico). Plaintiff similarly contends that venue in this District is proper because he “plead[ed] that he performed work in [New Mexico] for which he was not properly compensated in violation of, among other things,

New Mexico law.” Id. at 7 (citing Compl. at ¶¶ 3.1–3.3, 8.1–8.10). Finally, Plaintiff asserts that “for essentially the[se] same reasons” venue should not be transferred for the convenience of parties and their witnesses—particularly as “[Plaintiff] chose to file suit in this Court” and convenience considerations do not “strongly favor” Defendant. Id. at 8.1

1 Plaintiff also requests that, if the Court is “considering dismissal under Rule 12(b)(2)” for lack of jurisdiction, the Court (1) “defer ruling on [Defendant’s Motion] until trial” and (2) “permit [Plaintiff] to conduct jurisdictional discovery and, perhaps, hold an evidentiary hearing if the evidence adduced so warrants.” Resp. at 5–6, 8. The Court, however, is unpersuaded that it should wait until trial to decide the Motion. In addition, by denying the Motion, the Court obviates Plaintiff’s need for jurisdictional discovery. III. APPLICABLE LAW A.

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Dahl v. Petroplex Acidizing, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/dahl-v-petroplex-acidizing-inc-nmd-2023.