Delbrick Dion Jackson v. Costco Wholesale Corporation, et al.

District Court, E.D. California·Decided September 10, 2025·No. 2:25-cv-00610·Unknown

Opinion

DELBRICK DION JACKSON, No. 2:25-cv-00610-DAD-SCR Plaintiff, FINDINGS AND RECOMMENDATIONS v. CORPORATION, et al., Defendants. Plaintiff is proceeding pro se in this matter, which is referred to the undersigned pursuant to Local Rule 302(c)(21) and 28 U.S.C. § 636(b)(1). Before the Court is Defendant Costco Wholesale Corporation’s (“Costco”) motion to dismiss (ECF No. 11). The Court heard oral argument on the motion on April 17, 2025, and now recommends that Defendant’s motion to dismiss be GRANTED and that Plaintiff be allowed leave to file an amended complaint. I. Background and Procedural History Plaintiff filed this action on November 22, 2024, in San Joaquin County Superior Court. ECF No. 1 (Notice of Removal) at 2. Costco alleges it was served on January 21, 2025, and removed the action on February 20, 2025. Costco removed the action based on diversity of citizenship jurisdiction, and argues that the citizenship of the individual defendants can be disregarded because they are fraudulently joined. ECF No. 1 at 4. The Complaint is captioned as an action under the California Fair Employment and Housing Act (“FEHA”). ECF No. 1 at 23.1 In addition to naming Costco as a Defendant, Plaintiff names 21 individuals. Several are listed with last name unknown, such as “Andy Unknown.” Id. at 24. The Complaint alleges that on November 5, 2022, Plaintiff was harassed, discriminated against, and experienced retaliation. Id. at 25. Plaintiff alleges he was discriminated against based on disability, medical condition, and race. Id. at 25-26. Plaintiff alleges that he is a 56-year-old, African American man who was hired at Costco in 2014. Id. at 26. In or around March 2022, Plaintiff alleges he was diagnosed with plantar fasciitis, that caused pain in his feet and he was given work restrictions, but was still able to perform his essential job duties as a cashier. Id. In April 2022, Plaintiff alleges he was asked to sign a note “indicating he was rejecting the accommodations requested per his doctor’s note.” Id. Plaintiff refused to sign the note. On April 13, 2022, Plaintiff visited his doctor again and his restrictions were modified, including removing a ten-minutes of rest per hour restriction. Id. Plaintiff was then offered a “temporary transitional duty position” of working at self-check-out and for twelve weeks “was accommodated with light duty.” Id. However, on June 2, 2022, Plaintiff was “placed off work completely due to his plantar fasciitis.” Id. Plaintiff was off work through October 30, 2022, and attempted to return to work on October 31, 2022. Plaintiff contends that Defendant Clark told him he would be placed on paid suspension until an investigation was complete. Plaintiff alleges that he was then terminated by Defendant Sakuma on November 5, 2022, for the alleged reasons of “malicious gossip, derogatory comments, retaliation, interfering with an investigation, and breach of contract.” Id. //// //// 1 References are to the page number as Plaintiff’s complaint does not contain numbered paragraphs as required by Federal Rule of Civil Procedure 10(b). II. Subject Matter Jurisdiction Defendant Costco removed the action on the basis of diversity of citizenship and alleges that the 21 individual defendants have been fraudulently joined. A removing defendant who invokes diversity jurisdiction based on fraudulent joinder bears a “heavy burden,” as there is a presumption against finding fraudulent joinder. Grancare, LLC v. Thrower, 889 F.3d 543, 548 (9th Cir. 2018). Under the “possibility standard” articulated in Grancare, a party is not fraudulently joined if the failure to state a claim can possibly be cured by amendment. 889 F.3d at 550 (“[T]he district court must consider, as it did in this case, whether a deficiency in the complaint can be possibly cured by granting the plaintiff leave to amend.”). Plaintiff has not challenged Defendant’s fraudulent joinder assertion in a motion to remand, and did not file a timely opposition to the motion to dismiss. Plaintiff eventually filed an opposition to the motion to dismiss (ECF No. 18) some two months after the extended May 1, 2025 deadline set by the Court. ECF No. 15. The untimely opposition does not specifically address this jurisdictional issue or respond to the fraudulent joinder argument. Regardless, federal courts have an obligation to sua sponte consider their jurisdiction. To that end, the Court issued a minute order directing the parties to address the fraudulent joinder issue—including the Ninth Circuit’s standard in Grancare—at oral argument, and offering them an opportunity to file supplemental briefs on the issue. Costco did file a supplemental brief (ECF No. 14), which the Court has considered. Costco argues that there are no allegations in the complaint as to sixteen of the 21 individual defendants, and as to the five that are mentioned, Plaintiff fails to state a claim. ECF No. 14 at 2. Costco relies on Pasco v. Red Robin Gourmet Burgers, Inc., 2011 WL 5828153, *3 (E.D. Cal. Nov. 18, 2011), to argue that the Court must focus on the allegations of the complaint and not speculate as to what could be pled in an amended complaint. In Pasco, the court noted that fraudulent joinder is a term of art and does not require an ill motive. Rather, joinder “will be deemed fraudulent where the plaintiff fails to state a cause of action against the resident defendant, and the failure is obvious according to the settled rules of the stated.” Id. at 3, citing Ritchey v. Upjohn Drug Co., 139 F.3d 1313, 1318 (9th Cir. 1998). The Pasco court further stated that review of the complaint “is constrained to the facts actually alleged therein; it does not extend to facts or causes of action that could be alleged via an amended complaint.” Id. at *3 (emphasis in original) (internal citation omitted). The complaint broadly alleges violation of FEHA, and asserts claims for harassment, discrimination, and retaliation. ECF No. 1 at 25. Plaintiff cannot maintain claims under FEHA for discrimination or retaliation against the individual defendants as a matter of law. See Jones v. Lodge at Torrey Pines, 42 Cal.4th 1158, 1160 (2008) (non-employer individuals cannot be held personally liable for retaliation under FEHA); Reno v. Baird, 18 Cal.4th 640, 643 (1998) (non- employer individuals cannot be held personally liable for discrimination under FEHA). As discussed further below, Plaintiff has not adequately alleged a harassment claim against any of the individual Defendants or against Costco. Costco also argues that courts in this District have routinely denied motions to remand on fraudulent joinder grounds where claims of harassment were insufficiently pled. Costco cites Villalobos v. Costco Wholesale Corp., 2023 WL 5108499, * 6 (E.D. Cal. Aug. 9, 2023) and Jensen v. Hardwoods Specialty Prods., 2022 WL 17455980, *4 (E.D. Cal. Dec. 6, 2022). In Villalobos, the court recognized that there is a presumption against finding fraudulent joinder and that a defendant removing on that basis carries a heavy burden. 2023 WL 5108488 at *3. However, a plaintiff must show some possibility of prevailing against the allegedly fraudulently joined defendant. The Villalobos court stated that, “Plaintiff had ample opportunity in her Motion to Remand and at the July 6 hearing to supplement her claims, but failed to do so.” Id. at 4. Thus, the court concluded that although plaintiff only needed to show a “glimmer of hope” that she could establish a claim, no such glimmer had been demonstrated. Id. Similarly here, Plaintiff has not rebutted Costco’s fraudulent joi

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Delbrick Dion Jackson v. Costco Wholesale Corporation, et al., (E.D. Cal. 2025).

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