Hicks v. Grimmway Enterprises, Inc.

CourtDistrict Court, S.D. California
DecidedMay 1, 2023
Docket3:22-cv-02038
StatusUnknown

This text of Hicks v. Grimmway Enterprises, Inc. (Hicks v. Grimmway Enterprises, 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
Hicks v. Grimmway Enterprises, Inc., (S.D. Cal. 2023).

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 SOUTHERN DISTRICT OF CALIFORNIA 10 11 ELIZABETH HICKS, an Individual on Case No.: 22-CV-2038 JLS (DDL) behalf of herself and all others similarly 12 situated and the general public, ORDER DENYING DEFENDANT’S 13 MOTION TO TRANSFER VENUE Plaintiff, PURSUANT TO 28 U.S.C. § 1404 14 v. 15 (ECF No. 2) GRIMMWAY ENTERPRISES, INC., a 16 Corporation with Headquarters in California; and DOES 1–100, inclusive, 17 Defendants. 18 19 20 Presently before the Court is Defendant Grimmway Enterprises, Inc.’s Motion to 21 Transfer Venue Pursuant to 28 U.S.C. § 1404 (“Mot.,” ECF No. 2). Plaintiff Elizabeth 22 Hicks filed a Response in Opposition to (“Opp’n,” ECF No. 10), and Defendant filed a 23 Reply in Support of (“Reply,” ECF No. 12), the Motion. Having considered the Parties’ 24 briefing and the law, the Court DENIES Defendant’s Motion. 25 BACKGROUND 26 In this putative class action, Plaintiff alleges that Defendant, a California agricultural 27 corporation, misrepresented the environmental impact of its farming practices through its 28 advertising and “Inaugural Report on Environmental, Social and Governance Actions” 1 (“ESG Report”). See First Amended Complaint (“FAC,” ECF No. 1-8) ¶¶ 1–4, 19–26. 2 Specifically, Plaintiff alleges that Defendant’s statements about “regenerative farming,” its 3 Environmental, Social, and Governance (“ESG”) commitments, and “preserving natural 4 resources” were “false, deceptive, and misleading.” Id. ¶¶ 15–16. According to Plaintiff, 5 Defendant’s “method of growing its goods is causing severe harm to the ecosystem, and to 6 its neighbors and communities.” Id. ¶ 3. Plaintiff purports to represent a class of 7 consumers who “would not have purchased (or would not have paid a premium)” for 8 Defendant’s products had they known of Defendant’s allegedly misleading statements. Id. 9 ¶ 16. The FAC asserts three causes of action: (1) false advertising in violation of California 10 Business & Professions Code §§ 17500 et seq., FAC ¶¶ 43–48; (ii) “unlawful, unfair, or 11 fraudulent” business practices in violation of California Business & Professions Code §§ 12 17200 et seq., FAC ¶¶ 49–60; and (3) violation of the Consumer Legal Remedies Act 13 (“CLRA”), California Civil Code §§ 1750 et seq., FAC ¶¶ 61–69. 14 Plaintiff initiated this putative class action by filing a complaint in the Superior Court 15 of San Diego County on September 29, 2022. ECF No. 1-3. The initial complaint limited 16 the proposed class to California residents. See id. ¶ 30. On November 22, 2022, however, 17 Plaintiff filed the FAC, which expanded the proposed class to include “any out of state 18 resident in the state of California . . . who purchased Grimmway goods/products.” FAC 19 ¶ 30. Defendant then removed the case to this Court on December 22, 2022, contending 20 that the FAC’s expanded class definition resulted in minimal diversity between the Parties 21 such that removal was appropriate pursuant to the Class Action Fairness Act, 28 U.S.C. 22 § 1332(d)(2). See Notice of Removal (“Not. of Removal,” ECF No. 1) ¶¶ 11–25. 23 Defendant filed the instant Motion on December 23, 2022, requesting that this Court 24 transfer Plaintiff’s putative class action to the United States District Court for the Eastern 25 District of California, where Defendant is headquartered. Memorandum of Points and 26 Authorities in Support of Defendant Grimmway Enterprises, Inc.’s Motion to Transfer 27 / / / 28 / / / 1 Pursuant to 28 U.S.C. § 1404 (“Mem.,” ECF No. 2-1) at 7–14. Defendant concurrently 2 filed a Motion to Strike Pursuant to California Code of Civil Procedure § 425.16. See ECF 3 No. 3. Thereafter, Plaintiff filed a Motion to Remand the putative class action back to state 4 court, as well as a Motion to Amend the Operative Complaint and a Motion for 5 Jurisdictional Discovery. See ECF Nos. 7, 8, 9. This Order solely addresses Defendant’s 6 Transfer Motion.2 7 LEGAL STANDARD 8 Venue is proper in “a judicial district in which any defendant resides, if all 9 defendants are residents of the State in which the district is located.” 28 U.S.C. 10 § 1391(b)(1). For purposes of venue, an individual “shall be deemed to reside in the 11 judicial district in which that person is domiciled,” id. § 1391(c)(1), and a business entity 12 “shall be deemed to reside, if a defendant, in any judicial district in which such defendant 13 is subject to the court’s personal jurisdiction with respect to the civil action in question,” 14 id. § 1391(c)(2). If venue is improper, a district court “shall dismiss, or if it be in the 15 interest of justice, transfer such case to any district or division in which it could have been 16 brought.” Id. § 1406(a). 17 Even where venue is proper, “[f]or the convenience of parties and witnesses, in the 18 interest of justice, a district court may transfer any civil action to any other district or 19

20 1 Pin citations refer to the CM/ECF page numbers electronically stamped at the top of each page. 21 2 This Court, in its discretion, has opted to rule on Defendant’s Motion to Transfer prior to Plaintiff’s 22 Motion to Remand. Pantel v. Gen. Motors LLC, No. CV 19-7350-MWH-KS, 2019 WL 5565962, at *4 (C.D. Cal. Oct. 29, 2019) (“[T]he Court has the discretion to rule on the Transfer Motion prior to the 23 Remand Motion, and . . . there are numerous examples of courts in the Ninth Circuit ruling on motions to 24 transfer prior to motions to remand.” (citing Pub. Emps.’ Ret. Sys. of Miss. v. Stanley, 605 F. Supp. 2d 1073, 1074 (C.D. Cal. 2009); Core Litig. Tr. ex rel. Kravitz v. Apollo Glob. Mgmt., LLC, No. 2:17-CV- 25 00927-JFW(AGRx), 2017 WL 3045919, at *3 (C.D. Cal. Apr. 5, 2017); Carrera v. 1st Am. Home Buyers Prot. Co., No. CV-11-0242-GHK(FFMx), 2012 WL 13012698, at *2 (C.D. Cal. Jan. 24, 2012))); see also 26 Hoptowit v. Spellman, 753 F.2d 779, 782 (9th Cir. 1985) (“Surely, when two or three motions are presented to a court, it has discretion to decide the order in which it would consider and decide them. A 27 party claiming abuse of that discretion has a heavy burden of persuasion.”). Orders on Defendant’s Motion 28 to Strike and Plaintiff’s Motion to Remand, Motion to Amend the Operative Complaint, and Motion for 1 division where it might have been brought.” Id. § 1404(a). “[T]he purpose of the section 2 is to prevent the waste ‘of time, energy and money’ and ‘to protect litigants, witnesses and 3 the public against unnecessary inconvenience and expense.’” Van Dusen v. Barrack, 376 4 U.S. 612, 616 (1964) (quoting Cont’l Grain Co. v. Barge FBL-585, 364 U.S. 19, 26–27 5 (1960)). Although § 1404 was modeled after the doctrine of forum non conveniens, “[t]he 6 Supreme Court has noted that section 1404(a) transfer is available ‘upon a lesser showing 7 of inconvenience’ than that required for a Forum non conveniens dismissal.” Commodity 8 Futures Trading Comm’n v. Savage, 611 F.2d 270, 279 (9th Cir. 1979) (quoting Norwood 9 v. Kirkpatrick, 349 U.S. 29, 32 (1955)).

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Hicks v. Grimmway Enterprises, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/hicks-v-grimmway-enterprises-inc-casd-2023.