Gavin v. Lady Jane's Haircuts for Men Holding Company, LLC

CourtDistrict Court, E.D. Michigan
DecidedMay 16, 2024
Docket2:23-cv-12602
StatusUnknown

This text of Gavin v. Lady Jane's Haircuts for Men Holding Company, LLC (Gavin v. Lady Jane's Haircuts for Men Holding Company, LLC) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gavin v. Lady Jane's Haircuts for Men Holding Company, LLC, (E.D. Mich. 2024).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION

JAMIE GAVIN, et al., Case No. 2:23-cv-12602 Plaintiffs, HONORABLE STEPHEN J. MURPHY, III v.

LADY JANE’S HAIRCUTS FOR MEN HOLDING COMPANY, LLC, et al.,

Defendants. /

OMNIBUS OPINION & ORDER [24, 31, 32, 43] Plaintiffs Jamie Gavin, Lindsay Gibbons, and Jhamya Winters filed a class action complaint against Defendants on behalf of themselves and others similarly situated and alleged violations of the federal Fair Labor Standards Act, Florida Constitution, Missouri Minimum Wage Act, and Oklahoma Minimum Wage Act. ECF 1.1 Plaintiffs moved for an order authorizing them to send notice of the suit “to their similarly situated co-workers.” ECF 24, PgID 140. Defendants moved to dismiss the complaint under Federal Rules of Civil Procedure 12(b)(1) and 12(b)(6), ECF 31, and Defendants also moved to stay consideration of Plaintiffs’ motion to send notice “until [the] Court rules on Defendants’ Motion to Dismiss.” ECF 32, PgID 843. Last, the parties jointly moved to extend the page limit for the parties’ briefing on the motion

1 Since the filing of the complaint, five other plaintiffs filed notices of intent to opt into the proposed collective action. See ECF 6 (Plaintiff Tiffanie Wolf); ECF 39 (Plaintiff Melissa Speaker); ECF 46 (Plaintiff Jamie Lindquist); ECF 50 (Plaintiff Chloe Kertesez); ECF 53 (Plaintiff Kimberly Burns). to dismiss. ECF 43. First, the Court will grant the joint motion to extend the page limit. And for the reasons below, the Court will grant the motion to dismiss as to all Plaintiffs, deny as moot the motion for an order authorizing Plaintiffs to send notice

of the suit, and deny as moot the motion to stay briefing. LEGAL STANDARD Defendants moved to dismiss the complaint under Federal Rules of Civil Procedure 12(b)(1) and 12(b)(6). ECF 31. Rule 12(b)(1) provides that a party may move to dismiss a case for “lack of subject-matter jurisdiction.” “A motion under Rule 12(b)(1) to dismiss a complaint for lack of subject matter jurisdiction must be considered prior to other challenges since proper jurisdiction is a prerequisite to

determining the validity of a claim.” Bowles v. Sabree, No. CV 20-12838, 2022 WL 141666, at *3 (E.D. Mich. Jan. 14, 2022), (citation omitted). When they review a Rule 12(b)(1) motion, courts “ha[ve] wide discretion to allow affidavits, documents and even a limited evidentiary hearing to resolve disputed jurisdictional facts.” Ohio Nat. Life Ins. Co. v. United States, 922 F.2d 320, 325 (6th Cir. 1990) (citations omitted). Plaintiff has the burden of proving that jurisdiction exists. RMI Titanium Co. v.

Westinghouse Elec. Corp., 78 F.3d 1125, 1134 (6th Cir. 1996) (citation omitted). “If the [C]ourt determines at any time that it lacks subject-matter jurisdiction, the [C]ourt must dismiss the action.” Fed. R. Civ. P. 12(h)(3). Rule 12(b)(6), on the other hand, provides that a party may move to dismiss the case for “failure to state a claim upon which relief can be granted.” And unlike a 12(b)(1) motion, Defendant “has the burden of proving that no claim exists.” Total Benefits Plan. Agency, Inc. v. Anthem Blue Cross and Blue Shield, 552 F.3d 430, 433 (6th Cir. 2008). The Court may grant a motion to dismiss under Rule 12(b)(6) if the complaint fails to allege facts “sufficient ‘to raise a right to relief above the speculative

level,’ and to ‘state a claim to relief that is plausible on its face.’” Hensley Mfg. v. ProPride, Inc., 579 F.3d 603, 609 (6th Cir. 2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555, 570 (2007)). On a Rule 12(b)(6) motion, courts may “consider the [c]omplaint and any exhibits attached thereto . . . [and] items appearing in the record of the case and exhibits attached to defendant’s motion to dismiss so long as they are referred to in the [c]omplaint and are central to the claims contained therein.” Bassett v. Nat’l Collegiate Athletic Ass’n, 528 F.3d 426, 430 (6th Cir. 2008) (citation omitted);

see also Decoration Design Sols., Inc. v. Amcor Rigid Plastics USA, Inc., 553 F. Supp. 3d 424, 427 (E.D. Mich. 2021) (Murphy, J.). The Court views the complaint in the light most favorable to the plaintiff, presumes the truth of all well-pleaded factual assertions, and draws every reasonable inference in the nonmoving party’s favor. Bassett, 528 F.3d at 430. But the Court will not presume the truth of legal conclusions in the complaint. Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). If “a cause of action fails

as a matter of law, regardless of whether the plaintiff’s factual allegations are true or not,” then the Court must dismiss the complaint. Winnett v. Caterpillar, Inc., 553 F.3d 1000, 1005 (6th Cir. 2009). Rule 12(b)(6) is the proper vehicle for dismissing a case in favor of arbitration. Knight v. Idea Buyer, LLC, 723 F. App’x 300, 301 (6th Cir. 2018) (“A party’s failure to pursue arbitration in spite of a compulsory arbitration provision means that the party has failed to state a claim,” and “a motion to dismiss on such grounds is ‘properly construed as a motion . . . under Rule 12(b)(6).”) (quotation marks and quotation omitted).

DISCUSSION The Court will first address the motion to dismiss. Defendants argued that the Court should dismiss Plaintiffs Gavin, Winters, Wolf, and Speaker’s claims because they signed valid, binding arbitration agreements as part of their employment with Defendants. ECF 31, PgID 281. Defendants later submitted evidence that Plaintiffs Lindquist, Kertesez, and Burns also signed arbitration agreements. ECF 47; ECF 51- 1; ECF 54-2, PgID 1288–90. Defendants then argued that the Court should dismiss

Plaintiff Gibbons’s claims because they are time-barred. ECF 31, PgID 306. Third, and in the alternative, Defendants argued that the Court should stay the case under the first-to-file rule because three nearly identical cases—all of which were filed before the present case—are pending in the federal courts. Id. at 310. The Court will address each argument in turn. I. Plaintiffs Gavin, Winters, Wolf, Speaker, Lindquist, Kertesez, and Burns

Defendants argued that the Court should dismiss Plaintiffs Gavin, Winters, Wolf, Speaker, Lindquist, Kertesez, and Burns’s claims because they signed valid, binding arbitration agreements as part of their employment with Defendant Lady Jane’s Haircuts. ECF 31, PgID 281; ECF 47; ECF 51-1; ECF 54-2. For the reasons below, the Court will grant the motion to dismiss as to Plaintiffs Gavin, Winters, Wolf, Speaker, Lindquist, Kertesez, and Burns. A. Arbitration Analysis The Federal Arbitration Act (FAA) applies to written provisions in a “contract evidencing a transaction involving commerce to settle by arbitration a controversy

thereafter arising out of such contract or transaction.” 9 U.S.C.

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Gavin v. Lady Jane's Haircuts for Men Holding Company, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gavin-v-lady-janes-haircuts-for-men-holding-company-llc-mied-2024.