Gatewood v. Hamidiy Inc

CourtDistrict Court, W.D. Oklahoma
DecidedOctober 5, 2023
Docket5:22-cv-00583
StatusUnknown

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

Bluebook
Gatewood v. Hamidiy Inc, (W.D. Okla. 2023).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF OKLAHOMA

ROSCOE CURTIS GATEWOOD, JR., ) ) Plaintiff, ) ) v. ) Case No. CIV-22-583-PRW ) HAMIDIY, INC., ) ) Defendant. )

ORDER Before the Court is Plaintiff Roscoe Curtis Gatewood, Jr.’s (“Gatewood’s”) Motion for Entry of Default Judgment (Dkt. 10). Gatewood filed his Complaint (Dkt. 1) against Defendant Hamidiy, Inc. (“Hamidiy”) on July 13, 2022, and service was effected July 20, 2022. Hamidiy filed no answer or other responsive pleading. On December 23, 2022, Gatewood moved the Court Clerk to enter default (Dkt. 7), which the Court Clerk did on January 12, 2023 (Dkt. 8). Because the Complaint did not allege a specific damage amount, the Court held a Motion Hearing on April 24, 2023, to confirm the Court’s jurisdiction to render judgment and to determine the amount of damages owed (Dkt. 16). Background This case arises out of the employment relationship between Gatewood, a truck driver, and Hamidiy, Inc., a trucking company. The relationship arose when Hamidiy reached out to Gatewood to see if he would be a good fit as a driver for the company. In the subsequent months that Gatewood drove for Hamidiy, his dedicated run always started and ended in Oklahoma, his home state. On or about June 1, 2022, while Gatewood was in the middle of a delivery run, he called his Hamidiy supervisor to inquire about his

paycheck, which was $3,000 short. Later that day, Gatewood was contacted by “Russ,” to his knowledge the president of Hamidiy. On the call, Russ cursed, threatened Gatewood and his family with bodily harm and death, and repeatedly referred to Gatewood using a racial slur derogatory to African Americans (Gatewood is an African American). Russ then told Gatewood he was fired and ordered him to pull over and leave the truck immediately. A second call from Russ, and several follow-up text messages, proceeded along the same

lines. Gatewood then filed this lawsuit, alleging a violation of 42 U.S.C. § 1981, which, in relevant part, prohibits intentional race discrimination in the enforcement of contracts by private actors. Specifically, Gatewood alleged that Hamidiy violated § 1981 by terminating his employment contract in part because of his race. In addition, Gatewood

brought a claim for unpaid wages under Oklahoma state law.1 Hamidiy then defaulted as related above. Legal Standard As already discussed, the Court Clerk has entered a default pursuant to Federal Rule of Civil Procedure 55(a).2 That default “concedes the truth of the allegations of the

1 See Okla. Stat. tit. 40, § 165.3 2 Fed. R. Civ. P. 55(a). Complaint regarding Defendant[‘s] liability under all counts brought against them.”3 However, “it remains for the court to consider whether the unchallenged facts constitute a

legitimate cause of action, since a party in default does not admit mere conclusions of law.”4 In addition, the rule of concession “does not extend . . . to allegations about the amount of damages.”5 Instead, the Court must hold a damages hearing in accordance with Rule 55(b)(2)(B),6 at which the plaintiff must introduce sufficient evidence to establish, “to a reasonable degree of certainty,”7 “that the amount requested is reasonable under the circumstances.”8

Discussion At the Motion Hearing on April 24, 2023, the Court heard testimony by Gatewood. That testimony served to aid the Court in assuring itself of personal and subject matter jurisdiction, determining the adequacy of Plaintiff’s claims, and establishing the evidentiary support for the requested forms of damages. Each will be discussed in turn.

3 All. Laundry Sys. LLC v. Cowboy Laundry of Oklahoma Inc., No. CIV-20-136-PRW, 2020 WL 6136785, at *2 (W.D. Okla. June 23, 2020). 4 Id. at *2 (quoting Bixler v. Foster, 596 F.3d 751, 762 (10th Cir. 2010)). 5 Ross v. Jenkins, 325 F. Supp. 3d 1141, 1154 (D. Kan. 2018). 6 See Venable v. Haislip, 721 F.2d 297, 300 (10th Cir. 1983). 7 Everyday Learning Corp. v. Larson, 242 F.3d 815, 819 (8th Cir. 2001); see Ross, 325 F. Supp. 3d at 1154. 8 Mathiason v. Aquinas Home Health Care, Inc., 187 F. Supp. 3d 1269, 1274–75 (D. Kan. 2016). I. Personal Jurisdiction The Court has specific personal jurisdiction over Hamidiy. Courts assess two requirements to determine when an exercise of specific jurisdiction is proper.9 First,

whether the defendant has “purposefully directed [its] activities at residents of the forum.”10 Second, whether the suit “arises out of or relates to those activities.”11 Even when both requirements are satisfied, specific personal jurisdiction may still be improper if “it would be incompatible with traditional notions of fair play and substantial justice.”12 Here, the allegations in the Complaint, now taken as true, make clear that Hamidiy

purposefully directed its activities at residents of Oklahoma when it reached out to Gatewood to contract for an ongoing business relationship. The suit clearly arises out of Hamidiy’s activities in Oklahoma, as both of Gatewood’s claims stem from the employment relationship that resulted from Hamidiy’s solicitation. And Hamidiy has not “present[ed] a compelling case” that the fair play and substantial justice factors13 make this

one of the rare cases where an otherwise valid exercise of personal jurisdiction is constitutionally unfair.14 The Court has personal jurisdiction over Hamidiy.

9 See Hood v. Am. Auto Care, LLC, 21 F.4th 1216, 1221–22 (10th Cir. 2021). 10 Id. (quoting Burger King Corp. v. Rudzewicz, 471 U.S. 462, 472 (1985)). 11 Id. 12 Id. 13 See Compañía de Inversiones Mercantiles, S.A. v. Grupo Cementos de Chihuahua S.A.B. de C.V., 970 F.3d 1269, 1289 (10th Cir. 2020) (listing the five factors). 14 Hood, 21 F.4th at 1227 (quoting Burger King, 471 U.S. at 477). II. Subject Matter Jurisdiction Gatewood’s primary cause of action arises under a federal statute, 42 U.S.C. § 1981. This Court has subject matter jurisdiction over such a federal question.15 In addition, this

Court exercises supplemental jurisdiction over Gatewood’s additional, related cause of action under Oklahoma state law.16 III. Adequacy of Claims The facts alleged in Gatewood’s Complaint (Dkt. 1) sufficiently allege both his § 1981 and his state law claims.

A. Section 1981 Claim 42 U.S.C. § 1981 guarantees that “[a]ll persons . . . shall have the same right . . . to make and enforce contracts . . . as is enjoyed by white citizens.”17 “[T]he term ‘make and enforce contracts’ includes . . . termination of contracts, and the enjoyment of all benefits, privileges, terms, and conditions of the contractual relationship.”18 A plaintiff demonstrates

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Bluebook (online)
Gatewood v. Hamidiy Inc, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gatewood-v-hamidiy-inc-okwd-2023.