Gonzalez Quiroz v. Coffman Specialties, Inc.

CourtDistrict Court, S.D. California
DecidedDecember 10, 2020
Docket3:20-cv-01779
StatusUnknown

This text of Gonzalez Quiroz v. Coffman Specialties, Inc. (Gonzalez Quiroz v. Coffman Specialties, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gonzalez Quiroz v. Coffman Specialties, Inc., (S.D. Cal. 2020).

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 SOUTHERN DISTRICT OF CALIFORNIA 6 JOSE REFUGIO GONZALEZ QUIROZ Case No.: 20-CV-1779-CAB-AHG individually and on behalf of all others 7 similarly situated, ORDER REMANDING CASE 8 Plaintiff, 9 [Doc. No. 16] v. 10 COFFMAN SPECIALTIES, INC., 11 Defendant. 12 13 14 Defendant Coffman Specialties, Inc. (“CSI”) removed this putative wage and hour 15 class action from San Diego County Superior Court asserting subject matter jurisdiction 16 under 28 U.S.C. § 1331 on the grounds that Plaintiff’s complaint includes claims that are 17 completely preempted by federal law under § 301 of the Labor Management Relations Act 18 (“LMRA”), 29 U.S.C. § 185. [Doc. No. 1.] A week later, CSI moved to dismiss the 19 operative first amended complaint (“FAC”) arguing that Plaintiff is required to resolve his 20 claims in accordance with a grievance and arbitration procedure contained in a collective 21 bargaining agreement under which Plaintiff was employed by CSI. [Doc. No. 16.] In 22 opposition to the motion, Plaintiff argues in part that the removal was improper because 23 Plaintiff’s claims are not preempted under section 301 of the LMRA, and that the Court 24 must remand the case to state court. Upon consideration of the FAC, the notice of removal, 25 and the jurisdictional arguments contained in the briefing on Defendant’s motion to 26 dismiss, the Court agrees with Plaintiff that Plaintiff’s claims are were not subject to 27 removal pursuant to § 301. Accordingly, as discussed further below, this case is remanded 28 to San Diego County Superior Court. 1 I. Background 2 Plaintiff Jose Refugio Gonzalez Quiroz is a non-exempt employee of CSI, which is 3 a California corporation involved in the construction business and specializing in large 4 public and government projects. [Doc. No. 1-3 at ¶¶ 8-9.] On July 1, 2020, Plaintiff filed 5 a complaint in San Diego County Superior Court asserting six wage and hour claims under 6 the California labor code and a claim for violation of California’s unfair competition law 7 (“UCL”), California Business and Professions Code § 17200, on behalf of a putative class 8 consisting of all current and former non-exempt California CSI employees within four 9 years of filing of the complaint. [Doc. No. 1-2.] The six claims under the California labor 10 code were: (1) failure to pay overtime and minimum wages in violation of sections 204, 11 510, 1194, 1194.2, 1197, and 1198; (2) failure to provide meal breaks in violation of 12 sections 226.7 and 512; (3) failure to provide rest periods in violation of section 226.7; (4) 13 failure to provide accurate wage statements in violation of section 226; (5) waiting time 14 penalties for failure to comply with final paycheck requirements in violation of sections 15 201, 202, and 203; and (6) failure to reimburse business expenses in violation of sections 16 2800 and 2802. On August 31, 2020, Plaintiff filed a first amended complaint (“FAC”) in 17 state court asserting the same seven claims as in the original complaint along with an 18 additional claim for violation of California’s Private Attorney General Act (“PAGA”), 19 California Labor Code § 2698 et seq. Neither complaint makes any mention of a collective 20 bargaining agreement or of any other contract governing Plaintiff’s employent relationship 21 with CSI. 22 On September 10, 2020, CSI removed the lawsuit to this Court, asserting subject 23 matter jurisdiction based on a federal question under 28 U.S.C. § 1331 because the FAC 24 includes “claims that require interpretation of a collective bargaining agreement (‘CBA’) 25 and thus is completely preempted by federal law under Section 301 of the Labor 26 Management Relations Act (‘LMRA’), 29 U.S.C. § 185.” [Doc. No. 1 at ¶ 11.] The notice 27 of removal alleges that CSI is a member of the Associated General Contractors of America 28 San Diego Chapter, Inc. (“AGC”), and that “[s]ince at least 2007, [CSI] has assigned its 1 collective bargaining rights to the AGC and thereby agreed to be bound by the terms and 2 conditions in a CBA known as the Master Labor Agreement (‘MLA’) between the 3 International Union of Operating Engineers, Local 12 (the ‘Union’) and the AGC.” [Id. at 4 ¶ 14.] The notice of removal also attaches the current MLA, which covers the period of 5 July 1, 2019 through June 30, 2022. [Doc. No. 1-5; see also Doc. No. 16-2.] The notice 6 of removal contends that because of the complete preemption doctrine, the fact that the 7 FAC does not reference the MLA does not preclude removal. [Id. at ¶¶ 19-21.] Plaintiff 8 argues that removal was improper, and the Court must remand this case. 9 II. Legal Standards 10 Although Plaintiff did not file a formal motion to remand, he argued for remand in 11 his opposition to CSI’s motion to dismiss, and CSI had the opportunity to respond in its 12 reply. Regardless, “[t]he court may—indeed must—remand an action sua sponte if it 13 determines that it lacks subject matter jurisdiction.” GFD, LLC v. Carter, No. CV 12- 14 08985 MMM FFMX, 2012 WL 5830079, at *2 (C.D. Cal. Nov. 15, 2012) (citing Kelton 15 Arms Condominium Owners Ass’n v. Homestead Ins. Co., 346 F.3d 1190, 1192 (9th Cir. 16 2003)); see also 28 U.S.C. § 1447(c) (“If at any time before final judgment it appears that 17 the district court lacks subject matter jurisdiction, the case shall be remanded.”). 18 “Federal courts are courts of limited jurisdiction. They possess only that power 19 authorized by Constitution and statute.” Kokkonen v. Guardian Life Ins. Co. of Am., 511 20 U.S. 375, 377 (1994). Thus, it is “presume[d] that federal courts lack jurisdiction unless 21 the contrary appears affirmatively from the record.” Hansen v. Grp. Health Coop., 902 22 F.3d 1051, 1056 (9th Cir. 2018) (citing DaimlerChrysler Corp. v. Cuno, 547 U.S. 332, 342 23 n.3 (2006)). “The right of removal is entirely a creature of statute and a suit commenced 24 in a state court must remain there until cause is shown for its transfer under some act of 25 Congress.” Syngenta Crop Protection, Inc. v. Henson, 537 U.S. 28, 32 (2002) (internal 26 quotation marks and citation omitted). “The ‘strong presumption’ against removal 27 jurisdiction means that the defendant always has the burden of establishing that removal is 28 proper.” Gaus v. Miles, Inc., 980 F.2d 564, 566 (9th Cir. 1992) (citation omitted). Courts 1 must “strictly construe the removal statute against removal jurisdiction,” and “[f]ederal 2 jurisdiction must be rejected if there is any doubt as to the right of removal in the first 3 instance.” Id. “Where doubt regarding the right to removal exists, a case should be 4 remanded to state court.” Matheson v. Progressive Specialty Ins. Co., 319 F.3d 1089, 1090 5 (9th Cir. 2003). 6 III.

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Gonzalez Quiroz v. Coffman Specialties, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/gonzalez-quiroz-v-coffman-specialties-inc-casd-2020.