Gca Production Services, Inc. v. Abdik Adir Hassan

CourtCourt of Appeals of Washington
DecidedApril 5, 2021
Docket80542-8
StatusPublished

This text of Gca Production Services, Inc. v. Abdik Adir Hassan (Gca Production Services, Inc. v. Abdik Adir Hassan) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gca Production Services, Inc. v. Abdik Adir Hassan, (Wash. Ct. App. 2021).

Opinion

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

ABDIKADIR HASSAN, ADEN YUSUF, AMAN ADAM, AMINA No. 80542-8-I AHMED, ANAB ALI, ASHA ALI, ASHWANI BHARDWAJ, BINH LE, DIVISION ONE CHINDERPAL SINGH, FADUMO MOHAMED, FARDOUS PUBLISHED IN PART HUSSEIN, FARHIA ADAM, FELIX GARCIA, GURMAIL SINGH, HAI PHAM, HAMZA ADEN, HANI OSMAN, HARINDER NAHAL, JASWINDER GREWAL, JASMINDER SINGH GILL, JOGGIT SINGH BHULLAR, MACARIO ESPINOZA, MALKIT SINGH, MURAYO GULED, RESHAM SINGH GILL, SALADO KHALIF ALI, SURINDER SINGH, THU THI NGUYEN, UBAH SHEIK, VALENTIN GALLETA, YASIN ABDULLAHI, ABDIHAKIM RASHID, ADEN JAMA, AHMED ADAM, ALI ALI, AYAAN NUUR, BASRA BASHIR, BURHAN FARAH, DALJINDER SINGH, FARHIO GURHAN, FARHIYO HUSSIEN, GURJIT SINGH, HARLIN KAUR, HASSAN ABDI, HUSSEIN ADEN MOLAMED, HUSSEIN ALI, ISHMAHAN MUSE, KULDIP SINGH, LARRY TULLIS, LAYLA YUUSUF, MINO YUSUF, MOHAMED WARE, MOHAMUD MOALIN, MUJHTAAR ALI, MUHUBO BARQADLE, MUHYADIIN ALI, MULKI ABDI, NAIMA AHMED and SADIA ADAN,

Appellants, No. 80542-8-I/2

v.

GCA PRODUCTION SERVICES, INC.,

Respondent.

SMITH, J. — This case revolves around the interpretation of SeaTac

Municipal Code (SMC) 7.45.010(M)(2) (ordinance), which requires defined

transportation employers, including those that provide or operate rental car

services, to pay employees $15 per hour. In 2009, GCA Production Services Inc.

(GCA) contracted with Avis Budget Car Rental LLC (Avis) to shuttle Avis’s rental

cars to and from its Seattle-Tacoma International Airport (Sea-Tac Airport)

location in SeaTac, Washington. In 2014, after SeaTac residents voted to raise

the minimum wage for certain, but not all, employees, the city of SeaTac enacted

SMC 7.45.050. When GCA failed to pay its employees $15 per hour, a number

of employees filed a complaint in the United States District Court for the Western

District of Washington, and others filed wage complaints with the Washington

Department of Labor and Industries (DLI). The employees alleged—and allege

here—that GCA is a transportation employer subject to the ordinance. The

district court and DLI concluded that the ordinance did not apply to GCA.

Later, many of the same employees filed a complaint in superior court,

which is the subject of this appeal. GCA moved to dismiss the lawsuit based on

the doctrines of claim preclusion and collateral estoppel. On December 11,

2018, in its order on GCA’s motion to dismiss (2018 Order), the court addressed

the motion as a summary judgment motion and concluded that claim preclusion

2 No. 80542-8-I/3

barred 13 employee-plaintiffs who had filed complaints with DLI from relitigating

their claim. GCA then moved for summary judgment, this time arguing that it was

not subject to the ordinance. On September 4, 2019, the superior court granted

GCA’s motion and concluded that GCA was not a transportation employer under

the ordinance (2019 Order).

The employees appeal both orders. In the unpublished portion of this

opinion, we review the issue of claim preclusion and GCA’s appeal of the 2018

Order. To this end, because an additional 37 plaintiffs had filed wage complaints

with DLI, claim preclusion also bars their claims. Therefore, we reverse the 2018

Order as to those 37 employees and dismiss their complaints. In the published

portion of this opinion, we review whether GCA is a transportation employer

under the ordinance. With regard to the 2019 Order and the remaining 9

employees, because the ordinary meaning of providing or operating rental car

services does not include the services that GCA provided to Avis, the trial court

did not err when it concluded that GCA was not subject to the ordinance.

Therefore, we reverse in part the 2018 Order, but we affirm the 2019 Order. We

thereby dismiss the complaint in its entirety.

FACTS

In September 2009, GCA and Avis entered into the Master Supplier

Agreement (MSA). Pursuant to the MSA, GCA managed and operated “the on-

airport shuttling and off-airport shuttling duties for” Avis as an independent

contractor. Specifically, GCA transported Avis’s rental cars between various Avis

locations in Seattle, Everett, Tukwila, and Tacoma, Washington.

3 No. 80542-8-I/4

In 2013, by voter initiative, SeaTac voters passed Proposition 1, which

required a $15 minimum hourly wage for defined transportation and hospitality

employers. Subsequently, SeaTac enacted the proposition as

chapter 7.45 SMC, which took effect on January 1, 2014.

In 2016, a group of GCA employees filed a complaint against GCA

Services Group Inc.1 (GSG) in the District Court for the Western District of

Washington.2 The plaintiffs sought payment of wages from GCA in accordance

with the ordinance. They argued that GSG was a transportation employer under

SMC 7.45.010(M)(1),3 because it provided baggage handling, ground

transportation management, and customer service in SeaTac. GSG moved for

summary judgment, which the court granted, finding that GSG was not a

transportation employer under SMC 7.45.010(M)(1). After the court denied the

plaintiffs’ motion for reconsideration, the plaintiffs amended their complaint.

However, the parties stipulated to dismissal with prejudice a few months later.

The plaintiffs did not appeal.

In February 2017, DLI sent GCA a letter, asserting that it had received

wage complaints from 93 GCA employees (complainants) and that it would

begin an investigation into those claims. Some complainants filed “minimum

wage not paid claims,” while others asserted that GCA violated the ordinance,

1 GCA Services Group Inc. is GCA’s parent company. 2 The plaintiffs included Abdikhadar Jama, Aneb Abdinor Hirey, Rogiya Digale, Abdisalam Mohamed, Jashir Grewal, Udham Singh, Sukdev Singh Basra, Khalif Mahamad, Jama Diria, Ahmed F. Gelle, and Lul Salad. 3 SMC 7.45.010(M)(1)(a) provides one definition for transportation

employer under the ordinance.

4 No. 80542-8-I/5

specifically. However, DLI’s letter indicated that the “complaints focus on

[GCA’s] failure to pay minimum wage set forth in” SMC 7.45.050. GSG, on

behalf of GCA, responded, contending that it had “already been held as a matter

of law to not be covered under the relevant SeaTac ordinance.”

On July 21, 2017, DLI issued a “Determination of Compliance.” DLI

concluded that GCA did “not meet the definition of a ‘Transportation Employer’

for the purpose of Ordinance SMC 7.45.” Seven complainants appealed to the

Office of Administrative Hearings (OAH), which affirmed DLI’s order.

On May 7, 2018, 32 employees filed the complaint in this case. They

alleged that GCA was a transportation employer under SMC 7.45.010(M)(2)

because it provided rental car services. A week later, the employees amended

the complaint, adding 28 plaintiffs but asserting the same claim.

GCA answered the complaint and asserted that the complaint was barred

“in whole or in part” because of claim preclusion or collateral estoppel. It filed a

motion to dismiss, arguing that among other lawsuits and complaints,4 the DLI

investigation constituted a final judgment on the merits for the purpose of claim

preclusion and collateral estoppel. GCA provided the court with a letter from DLI,

which certified that there were no records found for nine plaintiffs.

The court granted in part and denied in part GCA’s motion to dismiss but

“consider[ed] the motion as one for summary judgment.” It concluded that the

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