FENWICK v. SOTHEBY'S

CourtDistrict Court, D. New Jersey
DecidedApril 4, 2022
Docket2:21-cv-11987
StatusUnknown

This text of FENWICK v. SOTHEBY'S (FENWICK v. SOTHEBY'S) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
FENWICK v. SOTHEBY'S, (D.N.J. 2022).

Opinion

NOT FOR PUBLICATION

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW JERSEY

FRANCIS FENWICK, et al., Plaintiffs, Case No. 2:21-cv-11987 (BRM) (JSA)

v. OPINION SOTHEBY’S, et al., Defendants. MARTINOTTI, DISTRICT JUDGE Before the Court are Defendant Sotheby’s (“Sotheby’s”) Motion to Dismiss pursuant to Federal Rules of Civil Procedure 12(b)(1) and 12(b)(6) and Motion to Strike class allegations. (ECF No. 13.) Plaintiff Francis Fenwick (“Fenwick”), individually and on behalf of all others similarly situated, filed an opposition to the motion. (ECF No. 15.) Sotheby’s filed a reply. (ECF No. 16.) Having reviewed the parties’ submissions filed in connection with the Motion and having declined to hold oral argument pursuant to Federal Rule of Civil Procedure 78(b), for the reasons set forth below and for good cause having been shown, Sotheby’s Motion to Dismiss is GRANTED and Sotheby’s Motion to Strike is DENIED AS MOOT. I. BACKGROUND This action arises out of the alleged misclassification of workers as independent contractors instead of employees. (Compl. (ECF No. 1) ¶¶ 1–2.) For the purpose of the motion to dismiss, the Court accepts the factual allegations in the Complaint as true and draws all inferences in the light most favorable to Fenwick. See Phillips v. Cnty. of Allegheny, 515 F.3d 224, 228 (3d Cir. 2008). The Court applies this same standard on a motion to dismiss for lack of subject matter jurisdiction. See Ballentine v. United States, 486 F.3d 806, 810 (3d Cir. 2007) (“Pursuant to Rule 12(b)(1), the Court must accept as true all material allegations set forth in the complaint, and must construe those facts in favor of the nonmoving party.”) (citing Warth v. Seldin, 422 U.S. 490 (1975)); Storino v. Borough of Point Pleasant Beach, 322 F.3d 293, 296 (3d Cir. 2003)). The Court also

considers any “document integral to or explicitly relied upon in the complaint.” In re Burlington Coat Factory Sec. Litig., 114 F.3d 1410, 1426 (3d Cir. 1997) (quoting Shaw v. Digit. Equip. Corp., 82 F.3d 1194, 1220 (1st Cir. 1996)). Fenwick is a resident of New Jersey and worked at Sotheby’s from 2017 to 2019. (ECF No. 1 ¶ 14.) Sotheby’s is headquartered in New York. (Id. ¶ 15.) Fenwick handled Sotheby’s accounting and financial work, “as well as other work and activities.” (Id. ¶ 19.) According to Fenwick, Sotheby’s misclassified Fenwick “as an independent contractor rather than as an employee, which caused damage to” Fenwick. (Id. ¶ 20.) To that end, Fenwick alleges the following causes of action: (1) violation of the Fair Labor Standards Act, 29 U.S.C. § 216(b) (“FLSA”), on the basis of employee misclassification (Count One); (2) breach of contract (Count

Two); (3) violation of the New York City Freelance Isn’t Free Act (Count Three); (4) violation of the Americans with Disability Act, the Age Discrimination in Employment Act, the New York State Human Rights Law, and the New York City Human Rights Law, on the basis of age and disability discrimination (Count Four); (5) violation of whistleblower laws, including New York State Labor Law § 740 and Sarbanes-Oxley Act (Count Five); (6) intentional misrepresentation, fraudulent concealment and non-disclosure, fraud, and fraud in the inducement (Count Six); and (7) unjust enrichment (Count Seven). (Id. ¶¶ 25–61.) Moreover, Fenwick brings this action on behalf of himself and as a putative class action. (Id. ¶ 1.) The proposed class is defined as “individuals who worked for Sotheby’s who were classified as independent contractors by Sotheby’s.” (Id. ¶ 62.) On May 30, 2021, Fenwick filed his Complaint. (ECF No. 1.) On November 24, 2021, Sotheby’s filed its motion to dismiss and motion to strike class allegations. (ECF No. 13.) On

December 22, 2021, Fenwick filed an opposition. (ECF No. 15.) On January 7, 2022, Sotheby’s filed a reply. (ECF No. 16.) II. LEGAL STANDARD A. Rule 12(b)(1) “When a motion under Rule 12 is based on more than one ground, the court should consider the 12(b)(1) challenge first because if it must dismiss the complaint for lack of subject matter jurisdiction, all other defenses and objections become moot.” Dickerson v. Bank of Am., N.A., Civ. A. No. 12-03922, 2013 U.S. Dist. LEXIS 37639, at *2 (D.N.J. Mar. 19, 2013) (quoting In re Corestates Trust Fee Litig., 837 F. Supp. 104, 105 (E.D. Pa. 1993), aff’d 39 F.3d 61 (3d Cir. 1994)). In considering dismissal for lack of subject-matter jurisdiction, a district court’s focus is

not on whether the factual allegations entitle a plaintiff to relief but rather on whether the court has jurisdiction to hear the claim and grant relief. Maertin v. Armstrong World Indus., Inc., 241 F. Supp. 2d 434, 445 (D.N.J. 2002). “A challenge to subject matter jurisdiction under Rule 12(b)(1) may be either a facial or a factual attack.” Davis v. Wells Fargo, 824 F.3d 333, 346 (3d Cir. 2016). A facial attack “challenges subject matter jurisdiction without disputing the facts alleged in the complaint, and it requires the court to ‘consider the allegations of the complaint as true.’” Id. (quoting Petruska v. Gannon Univ., 462 F.3d 294, 302 n.3 (3d Cir. 2006)). A factual attack, on the other hand, “attacks the factual allegations underlying the complaint’s assertion of jurisdiction, either through the filing of an answer or ‘otherwise present[ing] competing facts.’” Id. (alteration in original) (quoting Constitution Party of Pa. v. Aichele, 757 F.3d 347, 358 (3d Cir. 2014)). A “factual challenge allows ‘a court [to] weigh and consider evidence outside the pleadings’” and “no presumptive truthfulness attaches to [the] plaintiff’s allegations.” Id. (alterations in original) (quoting Mortensen v. First

Fed. Sav. & Loan Ass’n, 549 F.2d 884, 891 (3d Cir. 1977)). Rather, “‘the plaintiff will have the burden of proof that jurisdiction does in fact exist,’ and the court ‘is free to weigh the evidence and satisfy itself as to the existence of its power to hear the case.’” Id. (quoting Mortensen, 549 F.2d at 891). The Third Circuit has “repeatedly cautioned against allowing a Rule 12(b)(1) motion to dismiss for lack of subject matter jurisdiction to be turned into an attack on the merits.” Id. at 348– 49 (collecting cases). “[D]ismissal for lack of jurisdiction is not appropriate merely because the legal theory alleged is probably false, but only because the right claimed is ‘so insubstantial, implausible, foreclosed by prior decisions of this Court, or otherwise completely devoid of merit as not to involve a federal controversy.’” Id. at 350 (quoting Kulick v. Pocono Downs Racing

Ass’n, Inc., 816 F.2d 895, 899 (3d Cir. 1987)). “In this vein, when a case raises a disputed factual issue that goes both to the merits and jurisdiction, district courts must ‘demand less in the way of jurisdictional proof than would be appropriate at a trial stage.’” Id.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Conley v. Gibson
355 U.S. 41 (Supreme Court, 1957)
Warth v. Seldin
422 U.S. 490 (Supreme Court, 1975)
Papasan v. Allain
478 U.S. 265 (Supreme Court, 1986)
Caterpillar Inc. v. Williams
482 U.S. 386 (Supreme Court, 1987)
Kokkonen v. Guardian Life Insurance Co. of America
511 U.S. 375 (Supreme Court, 1994)
Bell Atlantic Corp. v. Twombly
550 U.S. 544 (Supreme Court, 2007)
Ashcroft v. Iqbal
556 U.S. 662 (Supreme Court, 2009)
Shaw v. Digital Equipment Corp.
82 F.3d 1194 (First Circuit, 1996)
Scott Binsack, Sr. v. Lackawanna County Prison
438 F. App'x 158 (Third Circuit, 2011)
Patrick Tillio, Sr. v. F. Spiess, Jr.
441 F. App'x 109 (Third Circuit, 2011)
Charles McNair v. Synapse Grp Inc
672 F.3d 213 (Third Circuit, 2012)
Nos. 97-5735, 97-5736
177 F.3d 210 (Third Circuit, 1999)
In Re Rockefeller Center Properties, Inc.
184 F.3d 280 (Third Circuit, 1999)
Krim M. Ballentine v. United States
486 F.3d 806 (Third Circuit, 2007)
Zambelli Fireworks Manufacturing Co. v. Wood
592 F.3d 412 (Third Circuit, 2010)
Phillips v. County of Allegheny
515 F.3d 224 (Third Circuit, 2008)

Cite This Page — Counsel Stack

Bluebook (online)
FENWICK v. SOTHEBY'S, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fenwick-v-sothebys-njd-2022.