Esters v. Vanguard Clinical, Inc.

District Court, S.D. California·Decided October 17, 2023·No. 3:23-cv-00820·Unknown

Opinion

FELICIA ESTERS a/k/a ESTERS TRIAL Case No.: 23-cv-00820-AJB-JLB MANAGEMENT FIRM, LLC, Plaintiff, ORDER GRANTING DEFENDANT BEACON HILL STAFFING GROUP, v. LLC’S MOTION TO DISMISS VANGUARD CLINICAL, INC., and BEACON HILL STAFFING GROUP, (Doc. No. 12) LLC, Defendant. Presently pending before the Court is Defendant Beacon Hill Staffing Group’s (“Beacon Hill”) motion to dismiss Plaintiff Felicia Esters a/k/a Esters Trial Management Firm, LLC’s (“ETMF”) Complaint pursuant to Federal Rules of Civil Procedure 12(b)(2), 12(b)(3), and 12(b)(6). (Doc. No. 12.) Plaintiff filed an opposition to the motion to dismiss, (Doc. No. 14), to which Beacon Hill replied, (Doc. No. 15). Pursuant to Civil Local Rule 7.1.d.1, the Court finds the instant matter suitable for determination on the papers and without oral argument. For the reasons stated herein, the Court GRANTS the motion to dismiss Plaintiff’s Complaint as to Beacon Hill. /// /// /// Plaintiff brings the instant action for damages under the provisions of the Fair Labor Standards Act of 1938, 29 U.S.C § 201 et seq. (“FLSA”) and California Labor Codes.1 (Complaint (“Compl.”), Doc. No. 1, ¶ 1.) She alleges specifically that Defendants Vanguard Clinical, Inc. (“Vanguard”) and Beacon Hill, as joint employers, failed to pay Plaintiff, on behalf of ETMF, time and one-half hour worked in excess of forty hours per work week. (Id.) Beacon Hill is a Massachusetts limited liability company with its primary place of business in Boston, Massachusetts. (Declaration of Beacon Hill (“B.H. Decl.”), Doc. No. 12-1, ¶ 2.) It is a human resources and personnel company that provides staffing services to companies. (Compl. ¶ 16.) Here, Beacon Hill offered Vanguard contracted services with independent contractors. (Id.) In November 2021, Plaintiff submitted “New hire paperwork – Vanguard / Beacon Hill” to set up ETMF as “an approved vendor in a B2B relationship with Beacon Hill” as an independent contractor for Vanguard. (Id. ¶ 17.) Beacon Hill facilitated the contract for ETMF to begin working for Vanguard, with the contract beginning on December 6, 2021, lasting six months with the option for Vanguard to extend the contract or hire Esters as an employee. (Id.) Beacon Hill’s Chicago, Illinois office facilitated the contract between Beacon Hill and ETMF, which according to its records is a Texas-based limited liability company founded by Esters, a citizen of Texas. (B.H. Decl. ¶ 3; Compl. ¶ 4.) ETMF was required to send an invoice and submit timesheets weekly to Beacon Hill’s Boston, Massachusetts office, to be compensated by Beacon Hill, who would not pay overtime for any hours worked in excess of forty hours per week. (Compl. ¶¶ 19, 20; B.H. Decl. ¶ 5.) Beacon Hill’s Boston, Massachusetts office paid ETMF for all invoices submitted and issued ETMF a 1099. (B.H. Decl. ¶ 5.) 1 Plaintiff’s Complaint does not expressly state which Defendant or Defendants the Counts are directed to, other than Count 4. (See generally Doc. No. 1.) Beacon Hill analyzes its Motion to Dismiss under Plaintiff alleges that while she was classified as an independent contractor, “she was doing the work of an employee under the direction of Vanguard and being paid by Beacon Hill.” (Compl. ¶ 18.) Plaintiff further alleges her relationship with Vanguard was controlled by Beacon Hill as a joint employer. (Id. ¶ 20.) A. Rule 12(b)(2) Under Federal Rule of Civil Procedure 12(b)(2), a party may move to dismiss a complaint for lack of personal jurisdiction. Fed. R. Civ. P. 12(b)(2). “Where a defendant moves to dismiss a complaint for lack of personal jurisdiction, the plaintiff bears the burden of demonstrating that jurisdiction is appropriate.” Schwarzenegger v. Fred Martin Motor Co., 374 F.3d 797, 800 (9th Cir. 2004) (citing Sher v. Johnson, 911 F.2d 1357, 1361 (9th Cir. 1990)). If the Rule 12(b)(2) motion “is based on written materials rather than an evidentiary hearing, the plaintiff need only make a prima facie showing of jurisdictional facts to withstand the motion to dismiss.” Mavrix Photo, Inc. v. Brand Techs., Inc., 647 F.3d 1218, 1223 (9th Cir. 2011) (citing Brayton Purcell LLP v. Recordon & Recordon, 606 F.3d 1124, 1127 (9th Cir. 2010)). While uncontroverted allegations in the complaint are taken as true, the court “cannot ‘assume the truth of allegations which are contradicted by affidavit.’” LNS Enters. LLC v. Cont’l Motors, Inc., 22 F.4th 852, 858 (9th Cir. 2022) (quoting Data Disc., Inc. v. Sys. Tech. Assocs., Inc., 557 F.2d 1280, 1284 (9th Cir. 1977)). Where both sides submit affidavits, conflicts over the statements contained in affidavits are resolved in the plaintiff’s favor. Id. (quoting Boschetto v. Hansing, 539 F.3d 1011, 1015 (9th Cir. 2008)). “Additionally, any evidentiary materials submitted on the motion ‘are construed in the light most favorable to the plaintiff[s] and all doubts are resolved in [their] favor.’” Ochoa v. J.B. Martin & Sons Farms, 287 F.3d 1182, 1187 (9th Cir. 2002) (quoting Metro Life Ins. Co. v. Neaves, 912 F.2d 1062, 1064 n.1 (9th Cir. 1990)). B. Rule 12(b)(3) A party may file a motion to dismiss on the basis of improper venue. Fed. R. Civ. P. 12(b)(3). Plaintiff has the burden of showing that venue is proper. Piedmont Label Co. v. Sun Garden Packing Co., 598 F.2d 491, 496 (9th Cir. 1979). “In a Rule 12(b)(3) motion, the allegations in the complaint need not be accepted as true and the Court may consider evidence outside the pleadings.” eBay Inc. v. Digital Point Sols., Inc., 608 F. Supp. 2d 1156, 1161 (N.D. Cal. 2009). “If the court finds that the case has been filed in the wrong division or district, it must dismiss, or if it be in the interest of justice, transfer such case to any district or division in which it could have been brought.” Allstar Mktg. Grp., LLC v. Your Store Online, LLC, 666 F. Supp. 2d 1109, 1126 (C.D. Cal. 2009) (internal citation and quotation omitted). Beacon Hill moves to dismiss each of Plaintiff’s claims against it pursuant to Federal Rules of Civil Procedure 12(b)(2), 12(b)(3), and 12(b)(6). (Doc. No. 12.) A. Lack of Personal Jurisdiction Pursuant to 12(b)(2) Plaintiff bears the burden to show the Court has either general personal jurisdiction or specific personal jurisdiction over Beacon Hill. Boschetto, 539 F.3d at 1015. When there is no applicable federal statute governing personal jurisdiction, as is the case here, the law of the forum state determines personal jurisdiction. See Schwarzenegger, 374 F.3d at 800 (“Where, as here, there is no applicable federal statute governing personal jurisdiction, the district court applies the law of the state in which the district court sits.”). California’s long arm statute, Cal. Code Civ. Proc. § 410.10, is co-extensive with federal due process requirements, and therefore the jurisdictional analyses under California law and federal due process are the same. See Cal. Code Civ. Proc. § 410.10 (“[A] court of

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