Gofron v. Picsel Technologies, Inc.

804 F. Supp. 2d 1030, 2011 U.S. Dist. LEXIS 80589, 2011 WL 3053191
CourtDistrict Court, N.D. California
DecidedJuly 25, 2011
DocketNo. C 09-04041 CW
StatusPublished
Cited by4 cases

This text of 804 F. Supp. 2d 1030 (Gofron v. Picsel Technologies, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gofron v. Picsel Technologies, Inc., 804 F. Supp. 2d 1030, 2011 U.S. Dist. LEXIS 80589, 2011 WL 3053191 (N.D. Cal. 2011).

Opinion

ORDER GRANTING PICSEL DEFENDANTS’ MOTIONS TO DISMISS; DENYING PLAINTIFFS’ MOTION FOR EXTENSION OF TIME; GRANTING INDIVIDUAL DEFENDANTS’ MOTION FOR PARTIAL SUMMARY JUDGMENT; AND DENYING INDIVIDUAL DEFENDANTS’ MOTION TO DISMISS PENDENT STATE LAW CLAIMS (Docket Nos. 76, 79, 81 and 84.)

CLAUDIA WILKEN, District Judge.

Defendant Picsel Group Holdings Limited (Picsel Group) moves to dismiss for lack of personal jurisdiction. Plaintiffs Carrie Gofron, et al., do not oppose the motion. Defendant Picsel Holdings Limited, formerly Hamsard Limited (Picsel Holdings), also moves to dismiss for lack of personal jurisdiction. Plaintiffs oppose the motion. Defendants Masood Jabbar and Imran Khand move for partial summary judgment on counts I, III, IV, V, VI and VII of the Second Amended Complaint (SAC) and move to dismiss the remaining pendent state law claims. In response, Plaintiffs move pursuant to Federal Rule of Civil Procedure 56(d) for an extension of time to file their opposition until after they have completed discovery. Having considered oral argument and the papers submitted by the parties, the Court (1) GRANTS Picsel Group’s unopposed motion to dismiss, (2) GRANTS Picsel Holdings’ motion to dismiss, (3) DENIES Plaintiffs’ motion for an extension of time to file an opposition to Jabbar and Khand’s motion for summary judgment, (4) GRANTS Jabbar and Khand’s motion for partial summary judgment and (5) DENIES Jabbar and Khand’s motion to dismiss the remaining pendent state law claims.

[1034]*1034BACKGROUND

I. Factual Allegations and Plaintiffs’ Claims

Plaintiffs allege they were employed by Defendant Picsel Technologies, Inc. (PTI), a California corporation. Plaintiffs began working for PTI at different times, but they all ended their employment by April 30, 2009. Plaintiffs allege that, beginning in the fall of 2008, PTI refused to pay their salaries, commissions and bonuses, denied them promised stock options, and terminated promised benefit programs. PTI attempted to extend Plaintiffs’ employment by promising full compensation in the future.

In the fall of 2009, PTI’s parent company, Picsel Group Limited (not to be confused with Defendant Picsel Group), entered into an Administration, the United Kingdom equivalent to bankruptcy protection. The parties dispute the fate of PTI following Picsel Group Limited’s Administration. Plaintiffs allege that Picsel Holdings, which is a subsidiary of Picsel Group, purchased PTI or Picsel Group Limited. Defendants claim that Picsel Holdings purchased only certain assets of PTI’s sister companies, Picsel Technologies Limited and Picsel (Research) Limited.

The parties also dispute the roles of Jabbar and Khand in PTI. Plaintiffs allege that Jabbar was the chairman of PTI’s board of directors and that Khand was an officer of the company. Jabbar denies that he was an officer, director or employee of PTI. Khand acknowledges only that he was the CEO of PTI’s parent company, Picsel Group Limited.

Plaintiffs plead claims for wage-and-hour violations under California, Illinois and federal law, along with common law claims for breach of contract, fraud, misrepresentation and unjust enrichment.

II. Procedural History

Plaintiffs initiated this litigation against PTI, Jabbar and Khand on August 31, 2009. Plaintiffs added Defendant Picsel Holdings, under its former name, Hamsard Limited, in their First Amended Complaint (FAC), filed May 21, 2010. Plaintiffs named Defendant Picsel Group, which is Picsel Holdings’ parent company, in their SAC, filed December 15, 2010.1

On August 24, 2010, the Court held a case management conference and established a discovery cut-off date of June 13, 2011 and a deadline for hearing case-dis-positive motions of March 31, 2011. On February 15, 2011, the Court entered an order approving a stipulation between Plaintiffs and Jabbar and Khand extending the deadline for dispositive motions, but not the discovery cut-off. The new deadline for dispositive motions was June 2, 2011.

On April 6, 2011, Picsel Holdings filed its motion to dismiss for lack of personal jurisdiction, contending that it has never done business in California and lacks the requisite minimum contacts with the State for the Court to exercise personal jurisdiction. On April 18, 2011, Picsel Group filed its motion to dismiss for lack of jurisdiction, on substantially similar grounds. On April 28, 2011, Jabbar and Khand filed their motion for summary judgment on Plaintiffs’ claims under the Fair Labor [1035]*1035Standards Act (FLSA) and the California Labor Code, on the grounds that Plaintiffs were exempt employees, as established by their default admissions to Jabbar and Khand’s requests for admission. Because Plaintiffs’ FLSA claim is the basis for federal jurisdiction in this case, Jabbar and Khand also moved to dismiss Plaintiffs’ remaining pendent state law claims. All motions were noticed for hearing on June 2, 2011.

Plaintiffs failed to file an opposition to any of these motions by their deadline of May 12, 2011. On May 14, 2011, the Court issued an order extending Plaintiffs’ deadline to respond to May 19, 2011 and continuing the hearings until June 23, 2011. On May 19, 2011, Plaintiffs filed an opposition to Picsel Holdings’ motion to dismiss, contending that this Court has jurisdiction over Picsel Holdings because it is the “mere continuation” of PTI, which was a California corporation. In response to Jabbar and Khand’s motion for summary judgment, Plaintiffs moved for an extension of time to respond in order to complete discovery.

LEGAL STANDARD

I. Dismissal under Federal Rule of Civil Procedure 12(b)(2)

Under Rule 12(b)(2) of the Federal Rules of Civil Procedure, a defendant may move to dismiss for lack of personal jurisdiction. The plaintiff then bears the burden of demonstrating that the Court has jurisdiction. Schwarzenegger v. Fred Martin Motor Co., 374 F.3d 797, 800 (9th Cir.2004). The plaintiff “need only demonstrate facts that if true would support jurisdiction over the defendant.” Ballard v. Savage, 65 F.3d 1495, 1498 (9th Cir.1995). Uncontroverted allegations in the complaint must be taken as true. AT & T v. Compagnie Bruxelles Lambert, 94 F.3d 586, 588 (9th Cir.1996). However, the court may not assume the truth of such allegations if they are contradicted by affidavit. Data Disc, Inc. v. Systems Tech. Assocs., Inc., 557 F.2d 1280, 1284 (9th Cir.1977). If the plaintiff also submits admissible evidence, conflicts in the evidence must be resolved in the plaintiffs favor. AT & T, 94 F.3d at 588.

There are two independent limitations on a court’s power to exercise personal jurisdiction over a non-resident defendant: the applicable state personal jurisdiction rule and constitutional principles of due process. Sher v. Johnson,

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Cite This Page — Counsel Stack

Bluebook (online)
804 F. Supp. 2d 1030, 2011 U.S. Dist. LEXIS 80589, 2011 WL 3053191, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gofron-v-picsel-technologies-inc-cand-2011.