HR Benefits, Inc. d/b/a Portlaus, et al. v. April House

District Court, W.D. Washington·Decided April 16, 2026·No. 2:26-cv-00361·Unknown

Opinion

WESTERN DISTRICT OF WASHINGTON HR BENEFITS, INC. D/B/A PORTLAUS, et al., Case No. 2:26-cv-00361-TLF Plaintiffs, ORDER DENYING MOTION v. TO DISMISS, OR IN THE ALTERNATIVE, TRANSFER APRIL HOUSE, (DKT. 5) Defendant. The matter before the Court is April House’s “Motion to Dismiss Or, In The Alternative, Transfer Venue.” Dkt. 5. This motion concerns two separate proceedings. First, a matter filed by House on October 15, 2025, with the San Diego County Superior Court which was then removed to the Southern District of California (hereinafter, the “California Action”). Dkt. 6-1 at 2. Second, the above-captioned matter filed by House’s former employer (hereinafter the “Employer”)1 on December 30, 2025, in the King County Superior Court which was

1 Defendants in the California Action (and plaintiffs in the Washington Action) include HR Benefits, Inc., (d/b/a Portalus) and the Washington Technology Industry Association (“WTIA”). See Dkts. 6-1, 18. It is undisputed HR Benefits, Inc. (d/b/a Portalus) is a wholly owned subsidiary of WTIA. Dkt. 5 at 1; Dkt. 18 at 2. It is also undisputed that House was primarily employed by HR Benefits, Inc. (d/b/a Portalus). Dkt. 5 at 1; Dkt. 18 at 2. For simplicity and clarify, the Court collectively refers to HR Benefits, Inc. and WTIA as the “Employer.” removed to this Court (hereinafter, the “Washington Action”). Dkt. 1-2 at 2 (initial complaint); Dkt. 18 (amended complaint).2 House argues this Court should dismiss the Washington Action as the claims the Employer asserts were required to be asserted as compulsory counterclaims in the

California Action. Dkt. 5 at 1-2. Alternatively, House asks the Court to transfer the Washington Action to the Southern District of California under 28 U.S.C. § 1404(a) or use the first-to-file rule. Dkt. 5 at 2. The parties unanimously consented to the jurisdiction of a Magistrate Judge. Dkt. 9. For the reasons below, the Court DENIES the motion to dismiss, or in the alternative, transfer venue. House is a resident of San Diego County, California. Dkt. 6-1 at 2; Dkt. 18 at 2. The Employer is based in King County, Washington. Dkt. 6-1 at 2-3; Dkt. 18 at 2. House worked remotely for the Employer from October 2021 until her resignation in August

2025. Dkt. 6-1; Dkt. 18. A. California Action On October 15, 2025, House filed a complaint with the San Diego County Superior Court. Dkt. 6-1. House asserted claims for (1) hostile work environment, sexual harassment; (2) quid pro quo sexual harassment; and (3) failure to prevent harassment and discrimination. Dkt. 6-1 at 8-10. House’s claims rely on three primary allegations. 2 As explained in the parties’ stipulated motion to amend, the amended complaint sought only to correct plaintiff’s name, and “[n]o new claims are asserted, and no additional parties are added.” Dkt. 17. First, House states that she was hired in October 2021, and “[f]or the next three plus years, until the Employer allowed [Michael Thomas] Schutzler” (her then supervisor) “to resign with benefits on December 31, 2024, [she] was subjected to unwanted harassing conduct, including but not limited to . . . [v]erbal harassment . . .

[p]hysical harassment,” and “[u]nwanted sexual advances.” Dkt. 6-1 at 3-5. Second, House alleges that “[b]ecause of the nature of the sexually harassing conduct, [she] reasonably believed that the terms of her employment, job benefits, and favorable working conditions were made contingent, by words or conduct, on her acceptance of Shutzler’s sexual advances and harassing conduct.” Dkt. 6-1 at 5. Finally, House asserts the Employer “willfully violated its obligation to conduct a prompt, thorough, or neutral investigation of the prior harassment complaint against Schutlzer, and likewise, the [Employer] has willfully refused to investigate House’s February 9, 2025, complaint.” Dkt. 6-1 at 7. The action was removed to the Southern District of California on December 8,

2025. See Dkts 5, 6-2 at 12. On January 5, 2026, the Employer answered House’s complaint. Dkt. 6-2 at 12. B. Washington Action On December 30, 2025, the Employer filed a complaint with the King County Superior Court. Dkt. 1-2; Dkt. 18. The Employer asserted claims for (1) conversion, (2) fraud/intentional misrepresentation, (3) breach of contract, (4) unjust enrichment, (5) breach of fiduciary duty, (6) breach of duty of loyalty, (7) violation of the Washington Consumer Protection Act, RCW 19.86.020, (8) treble damages under the California Civil

Code § 496, (9) exemplary damages under the California Civil Code § 3294, and (10) violating the California Business & Professions Code. Dkt. 18 at 7-18. The Employer’s claims rely on three overarching allegations. First, the Employer alleges House “took one week of paid time off starting on

August 10, 2025, claiming she had a sick family member.” Dkt. 18 at 3. The Employer argues House “never provided any required supporting documentation or verification” and “[r]ather than returning to work on or around August 18, 2025, as she previously represented she would,” she “suddenly resigned from her employment.” Dkt. 18 at 3. Second, the Employer claims “House refuses to return the company-issued laptop upon her resignation and continues to ignore all requests for its return.” Dkt. 18 at 3. “House’s continued possession of the [Employer]-issued laptop, combined with her refusal to return it, poses an ongoing risk of destruction, alteration, or dissemination of proprietary [] information.” Dkt. 18 at 3-4. Finally, the Employer states “House directed [the Employer] to issue a portion of

her bonus payments and retroactive wages to a nonprofit organization Nudge Fund, Inc.” Dkt. 18 at 4. The Employer alleges they later “discovered that Nudge Fund, Inc., is a for-profit corporation owned and directed by Defendant House, a material fact she failed to disclose.” Dkt. 18 at 4. The Employer argues House’s direction “breached her duties and obligations” to them and caused a “financial loss . . . of $67,000.00.” Dkt. 18 at 5. The action was removed to this Court on January 30, 2026. Dkt. 1. On February 2, 2026, House filed the present motion to dismiss under Federal Rule of Civil Procedure 12(b)(6). Dkt. 5.

A. Rule 12(b)(6) Motions to Dismiss A motion to dismiss under Rule 12(b)(6) “tests the legal sufficiency of a claim” and a “claim may be dismissed only if it appears beyond doubt that the plaintiff can

prove no set of facts in support of his claim which would entitle him to relief.” Cook v. Brewer, 637 F.3d 1002, 1004 (9th Cir. 2011) (citation and quotation marks omitted). “We accept factual allegations in the complaint as true and construe the pleadings in the light most favorable to the nonmoving party.” Manzarek v. St. Paul Fire & Marien Ins. Co., 519 F.3d 1025, 1031 (9th Cir. 2008). “We need not accept as true conclusory allegations that are contradicted by documents referred to in the complaint.” Id. B. Judicial Notice “Generally, district courts may not consider material outside the pleadings when assessing the sufficiency of a complaint under Rule 12(b)(6) . . .” Khoja v. Orexigen

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HR Benefits, Inc. d/b/a Portlaus, et al. v. April House, (W.D. Wash. 2026).

HR Benefits, Inc. d/b/a Portlaus, et al. v. April House (HR Benefits, Inc. d/b/a Portlaus, et al. v. April House) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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