Ege v. Express Messenger Systems Inc

CourtDistrict Court, W.D. Washington
DecidedDecember 9, 2019
Docket2:16-cv-01167
StatusUnknown

This text of Ege v. Express Messenger Systems Inc (Ege v. Express Messenger Systems Inc) is published on Counsel Stack Legal Research, covering District Court, W.D. Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ege v. Express Messenger Systems Inc, (W.D. Wash. 2019).

Opinion

6 UNITED STATES DISTRICT COURT 7 WESTERN DISTRICT OF WASHINGTON AT SEATTLE 8 9 ABDIRIZAQ EGE, ABDIRAHIM FARAH, Case No. 2:16-CV-1167-RSL 10 and ABDULKADIR HASSAN, and on behalf of other members of the general public ORDER DENYING 11 similarly situated, PLAINTIFFS’ MOTION FOR 12 RELIEF UNDER RULE 60(b) Plaintiffs, 13 v. 14 EXPRESS MESSENGER SYSTEMS, INC., a 15 Delaware corporation doing business as 16 ONTRAC; and DOES 1 through 100, inclusive, 17 Defendants. 18 19 This matter comes before the Court on plaintiffs’ motion for relief under Federal Rule of 20 Civil Procedure (“Rule”) 60(b). Dkt. #36. For the following reasons, plaintiffs’ motion is 21 DENIED. 22 BACKGROUND 23 Plaintiffs were commercial truck drivers for OnTrac, which operates a regional package 24 delivery service. Dkt. #1-2 (Compl.) at ¶ 2. They brought various wage claims under 25 Washington law. Each named plaintiff had entered into an Owner/Operator Agreement 26 (“Agreement”) with Subcontracting Concepts CT LLC (“SCI”), a transportation logistics 27 company, between October 2011 and May 2014. Each Agreement contained an arbitration 28 1 provision. See Dkt. #23. OnTrac did not sign the Agreements, but argued that it was a third- 2 party beneficiary to them, and that the arbitration provisions therefore applied to plaintiffs’ wage 3 and employment claims in their action. On January 10, 2017, this Court granted OnTrac’s 4 motion to dismiss and compel arbitration. Id. It concluded that OnTrac was a third-party 5 beneficiary to the Agreements, that the Agreements were subject to the Federal Arbitration Act 6 (“FAA”), and that the arbitration provision applied to the instant action. Id. at 4–10. 7 Plaintiffs timely appealed the Court’s dismissal on February 9, 2017. Dkt. #25. On 8 October 17, 2018, approximately four months after filing their opening brief with the Ninth 9 Circuit, plaintiffs moved to stay the appeal based on a then-pending case before the Supreme 10 Court, New Prime Inc. v. Oliveira, No. 17-340. Dkt. #37 (Banerjee Decl.) at ¶ 2; see Ex. A, Dkt. 11 #36-1; see also Pls.’ Opening Br., Ege v. Express Messenger Sys., Inc., No. 17-35123, 2017 WL 12 2782383 (9th Cir. June 21, 2017). The Ninth Circuit denied the motion to stay and affirmed this 13 Court’s dismissal of the action on December 7, 2018. Dkt. #28. New Prime was decided on 14 January 15, 2019. New Prime Inc. v. Oliveira, 139 S. Ct. 532 (2019). Plaintiffs now seek 15 reconsideration of the dismissal of their action in light of the Supreme Court’s decision in New 16 Prime. Dkt. #36. 17 In New Prime, Mr. Oliveira filed a class action lawsuit arguing that New Prime, an 18 interstate trucking company, denied its independent contractor drivers lawful wages. New 19 Prime, 139 S. Ct. at 536. The contracts between the drivers and New Prime mandated 20 arbitration, but Mr. Oliveira argued that the FAA did not authorize the court to enter an order 21 compelling it, because § 1 of the FAA states that “‘nothing herein’ may be used to compel 22 arbitration in disputes involving the ‘contracts of employment’ of certain transportation 23 workers.” Id. (citing 9 U.S.C. § 1). Mr. Oliveira argued that his agreement with New Prime to 24 drive trucks qualified as a “contract[] of employment of … [a] worker[] engaged in … interstate 25 commerce” and that the district court therefore lacked authority to compel arbitration. Id. 26 (quoting 9 U.S.C. § 1). The Supreme Court held that, first, a “court should decide for itself 27 whether § 1’s ‘contracts of employment’ exclusion applies before ordering arbitration.” Id. at 28 1 537. In order “to invoke its statutory powers under §§ 3 and 4 to stay litigation and compel 2 arbitration according to a contract’s terms, a court must first know whether the contract itself 3 falls within or beyond the boundaries of §§ 1 and 2.” Id. Second, it held that “Congress used the 4 term ‘contracts of employment’ in a broad sense to capture any contract for the performance of 5 work by workers.” Id. at 541 (emphasis in original). This includes contracts with independent 6 contractors. Id. Plaintiffs now argue that the dismissal of their case should be reconsidered. 7 DISCUSSION 8 A. The Law of the Case Doctrine 9 10 The law of the case doctrine “requires courts to follow a decision of an appellate court on 11 a legal issue in all later proceedings in the same case.” United States v. Cade, 236 F.3d 463, 12 467–68 (9th Cir. 2000) (citation omitted). OnTrac argues that the Ninth Circuit’s decision on 13 appeal bars this litigation. Dkt. #38 at 6–7. 14 There is an exception to the law of the case doctrine “where intervening controlling 15 authority makes reconsideration appropriate.” United States v. Bad Marriage, 439 F.3d 534, 538 16 (9th Cir. 2006) (citing Minidoka Irrigation Dist. v. Dep’t of Interior, 406 F.3d 567, 573 (9th Cir. 17 2005)). Plaintiffs assert that this exception applies here, arguing that dismissal of their case 18 should be reconsidered following the Supreme Court’s decision in New Prime. The Ninth 19 Circuit did not expressly consider the merits of the § 1 exemption issue in its decision, though 20 OnTrac argues it decided “by necessary implication” that the outcome of New Prime would not 21 impact plaintiffs’ appeal when it summarily denied plaintiffs’ motion to stay. See Dkt. #38 at 6- 22 8; see also Snow-Erlin v. United States, 470 F.3d 804, 807 (9th Cir. 2006) (citing Milgard 23 Tempering, Inc. v. Selas Corp. of Am., 902 F.2d 703, 715 (9th Cir. 1990)); Dkt. #28 at 4. 24 Because the Ninth Circuit’s disposition leaves the reasoning underlying its denial of the motion 25 to stay ambiguous, the Court will consider the merits of plaintiffs’ Rule 60(b) motion. 26 B. Entitlement to Relief under Rule 60(b) 27 28 Rule 60(b) provides, 1 On motion and just terms, the court may relieve a party or its legal representative from a final judgment, order, or proceeding for the following reasons: 2 (1) mistake, inadvertence, surprise, or excusable neglect; 3 (2) newly discovered evidence that, with reasonable diligence, could not 4 have been discovered in time to move for a new trial under Rule 59(b); 5 (3) fraud (whether previously called intrinsic or extrinsic), 6 misrepresentation, or misconduct by an opposing party; 7 (4) the judgment is void; 8 (5) the judgment has been satisfied, released, or discharged; it is based on an earlier judgment that has been reversed or vacated; or applying it 9 prospectively is no longer equitable; or 10 (6) any other reason that justifies relief. 11 Fed. R. Civ. P. 60(b). 12 The Rule “is meant to be remedial in nature and therefore must be liberally applied.” 13 United States v. Elmore, No. C05-810JLR, 2009 WL 10651377, at *3 (W.D. Wash. Apr. 29, 14 2009) (quoting Falk v. Allen, 739 F.2d 461, 463 (9th Cir. 1984)). “Motions under Rule 60 must 15 be brought ‘within a reasonable time.’” Patu v. Albert, No. C15-0721JLR, 2017 WL 2729862, at 16 *2 (W.D. Wash. June 26, 2017) (quoting Fed. R. Civ. P. 60(c)(1)).

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Ege v. Express Messenger Systems Inc, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ege-v-express-messenger-systems-inc-wawd-2019.