Hershal Bridges, III v. Dealers Choice Truckaway System, Inc.

District Court, W.D. Missouri·Decided August 24, 2020·No. 4:20-cv-00678·Unknown

Opinion

O JS-6 United States District Court Central District of California HERSHAL BRIDGES, III, et al. Case No. 2:20-cv-01620-ODW (SKx)

Plaintiffs, ORDER DENYING PLAINTIFFS’ v. MOTION TO REMAND [8], MOTION TO TRANSFER [11], AND SYSTEM, INC., et al., DENYING DEFENDANTS’ MOTION Defendants. TO DISMISS [10]. Plaintiffs Hershal Bridges, III and Jason C. Hurd, III (together, “Plaintiffs”) filed this action in Los Angeles Superior Court against Defendants Dealers’ Choice Truckaway System, Inc. and IronTiger Logistics, Inc. (together, “Defendants”). (Notice of Removal (“Notice”), Ex. A (“Compl.”), ECF No. 1-1.) Defendants subsequently removed the case to this Court under the Class Action Fairness Act, 28 U.S.C. §§ 1332, 1441, 1446, and 1453 (“CAFA”). (Notice 3–14, ECF No. 1.) Now pending before the Court are Plaintiffs’ Motion to Remand for lack of subject matter jurisdiction and Defendants’ Motions to Transfer to the United States District Court for the Western District of Missouri or, alternatively, to Dismiss for lack of personal jurisdiction. (Mot. to Remand (“MTR”), ECF No. 8; Mot. to Transfer (“MTT”), ECF No. 11; Mot. to Dismiss (“MTD”), ECF No. 10). For the reasons that follow, the Court DENIES Plaintiffs’ Motion to Remand, GRANTS Defendants’ Motion to Transfer, and DENIES Defendants’ Motion to Dismiss for lack of personal jurisdiction as moot.1 Bridges and Hurd brought this class action against Defendants on behalf of themselves and the class they seek to represent. The proposed class (the “Class”) consists of “all current and former drivers . . . who performed work for D[efendants] in the State of California while residing outside of the State.” (Compl. ¶ 6.) Bridges resides in Florida, and Hurd resides in Texas. (Compl. ¶¶ 3–4.) Dealers’ Choice is a Kansas corporation with its principal place of business in Missouri, and IronTiger is a Missouri corporation with its principal place of business in Missouri. (Notice 3.) Plaintiffs allege eight causes of action against Defendants: (1) Failure to Provide Required Meal Periods, (2) Failure to Provide Required Rest Periods, (3) Failure to Pay Minimum Wage, (4) Failure to Pay All Wages Due to Discharged and Quitting Employees, (5) Failure to Provide Accurate Itemized Wage Statements, (6) Failure to Indemnify Employees for Necessary Expenditures Incurred in Discharge of Duties, (7) Unlawful Wage Deductions, and (8) Unfair and Unlawful Business Practices. (Compl. ¶¶ 21-63.) Notably, Plaintiffs do not allege a specific number of total violations or a specific amount in total damages. (See Compl., Prayer for Relief.) Defendants removed under CAFA and, alternatively, under 28 U.S.C. § 1332(a) based on Hurd’s individual claims. Now, Plaintiffs move to remand, claiming that the aggregate amount in controversy (“AIC”) does not meet the $5 million threshold required by CAFA, and that the individual AIC as to Hurd does not exceed $75,000 as required for traditional diversity jurisdiction. (See generally MTR.) Relevantly, Defendants filed a declaration by Rick Lantefield, the Treasurer and Chief Financial

1 After carefully considering the papers filed in support of and in opposition to the Motion, the Court deemed the matter appropriate for decision without oral argument. Fed. R. Civ. P. 78; L.R. 7-15. Officer for both Defendants, to support their contentions that the AIC requirements are satisfied. (Decl. of Rick Lantefield (“Lantefield Decl.”), ECF Nos. 1-2, 18-1.2) Defendants later filed their Motion to Dismiss for lack of personal jurisdiction (ECF No. 10) and Motion to Transfer the case (ECF No. 11). First, the Court considers Plaintiffs’ Motion to Remand. Plaintiffs argue that the case must be remanded because Defendants have failed to show by a preponderance of the evidence that the total AIC exceeds $5 million and that the AIC as to Hurd exceeds $75,000. (See MTR; Reply ISO MTR, ECF No. 23.) Because the Court concludes that jurisdiction exists under CAFA, the Court declines to assess the AIC specific to Hurd’s individual claims. A. Legal Standard Federal courts have subject matter jurisdiction only as authorized by the Constitution and Congress. U.S. Const. art. III, § 2, cl. 1; see also Kokkonen v. Guardian Life Ins. Co., 511 U.S. 375, 377 (1994). For instance, CAFA allows for federal jurisdiction over a purported class action when (1) there is an AIC exceeding $5 million, (2) at least one putative class member is a citizen of a state different from Defendants, and (3) the putative class exceeds 100 members. 28 U.S.C. § 1332(d)(2). However, “[i]f at any time before final judgment it appears that the district court lacks subject matter jurisdiction [over a case removed from state court], the case shall be remanded.” 28 U.S.C § 1447(c). The first step in determining an AIC is to look to the complaint. Ibarra v. Manheim Invs., Inc., 775 F.3d 1193, 1197 (9th Cir. 2015). “Whether damages are unstated in a complaint, or, in the defendant’s view are understated, the defendant seeking removal bears the burden to show by a preponderance of the evidence that the aggregate amount in controversy exceeds $5 million when federal jurisdiction is

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