JACOBSON v. CHARM CITY AVIATION, LLC.

CourtDistrict Court, D. New Jersey
DecidedJune 2, 2025
Docket2:24-cv-10013
StatusUnknown

This text of JACOBSON v. CHARM CITY AVIATION, LLC. (JACOBSON v. CHARM CITY AVIATION, LLC.) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
JACOBSON v. CHARM CITY AVIATION, LLC., (D.N.J. 2025).

Opinion

NOT FOR PUBLICATION

UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY ____________________________________ : MICHAEL JACOBSON, : Civil Action No. 24-10013 (MEF) (MAH) : Plaintiff, : : v. : : CHARM CITY AVIATION, LLC, : KEITH BROTHERS, MARILYN BELO, : REPORT AND RECOMMENDATION ABC CORPORATIONS 1-5 (fictitious : names describing presently unidentified : business entities) and JOHN DOES 1-5 : (fictitious names describing presently : unidentified individuals), : : Defendants. : ____________________________________:

I. INTRODUCTION This matter comes before the Court by way of Plaintiff Michael Jacobson’s motion to remand pursuant to 28 U.S.C. § 1447(c), D.E. 8. Also before the Court is the cross-motion of Defendants, Charm City Aviation, LLC (“Charm City”), Keith Brothers (“Brothers”), and Marilyn Belo (“Belo”), to dismiss Brothers, D.E. 15. The Honorable Michael Farbiarz, U.S.D.J., referred this motion to the Undersigned for a Report and Recommendation. See Local Civ. R. 72.1(a)(2). The Undersigned has considered the matter without oral argument. See Local Civ. R. 78.1(b). For the reasons set forth herein, the Undersigned respectfully recommends that the District Court grant Plaintiff’s motion to remand, deny Plaintiff’s request for attorney’s fees, and terminate as moot Defendants’ cross-motion to dismiss Defendant Brothers from the Complaint. II. BACKGROUND Plaintiff, a resident of New Jersey, worked as Director of Operations for Charm City1 from January 2024 until he was terminated on May 17, 2024.2 See Notice of Removal, Ex. A, Compl., Oct. 23, 2024, D.E. 1-1, ¶¶ 7, 28. Brothers, the Chief Executive Officer of Charm City,

is a resident of New Hampshire. Notice of Removal, D.E. 1, p. 3, ¶ 7; Compl., D.E. 1, p. 11, ¶ 10. Belo, the Director of Human Resources and Administration of Charm City, is a resident of New Jersey. Notice of Removal, D.E. 1, ¶¶ 7, 9. Pursuant to Charm City’s General Operations Manual (“Manual”), approved by the Federal Aviation Administration (“FAA”), as the Director of Operations, Plaintiff was responsible for guaranteeing that all flight operations were conducted in accordance with FAA regulations. Compl., D.E. 1, ¶¶ 9-13. Plaintiff asserts that on his first day at Charm City, he and Brothers met with Alex Ramirez (“Ramirez”), Assistant Operations Manager, to explain the importance of operational control.3 Id. ¶ 15. During that meeting, Plaintiff advised Ramirez that “his actions regarding dispatching aircraft, working with maintenance and scheduling pilots exposed” Charm City to

potential liability. Id. ¶ 16. Plaintiff maintains that he instructed Ramirez that he should not conduct any aviation logistics, because that was Plaintiff’s responsibility. Id. ¶¶ 17-20. However, Plaintiff asserts that he soon discovered that Ramirez was disregarding Plaintiff’s

1 Charm City is a limited liability company comprised of KB Hudson, LLC (“KB Hudson”), Aeronautics Management Team, LLC (“AMT”) and Caitlyn Ephraim (“Ephraim”). Notice of Removal, D.E. 1, ¶ 7. KB Hudson is a citizen of Maryland. Id. AMT is a resident of Arizona. Id. Ephraim is a resident of Maryland. Id.

2 For purposes of the motions, the Court assumes as true the factual allegations in the complaint. See Batoff v. State Farm Ins. Co., 977 F.2d 848, 851-52 (3d Cir. 1992).

3 The FAA’s definition of operational control “means the exercise of authority over initiating, conducting or terminating a flight.” Compl., D.E. 1, ¶ 11. directives to him. Id. ¶ 21. Instead, Ramirez “continued to schedule pilots, monitor aircraft maintenance and dispatch aircraft in violation of the Manual and the FAA regulations.” Id. Plaintiff contends that he repeatedly met with Ramirez to explain the importance of operational control and how it was Plaintiff’s job, not Ramirez’s, to ensure compliance with all FAA

regulations, including all logistics for Charm City. Id. ¶¶ 17-20. Plaintiff further alleges that he spoke with Ramirez because he believed Ramirez was not reporting cash income from the sale of hats, shirts, tours, and photographs. Id. ¶ 22. He instructed him to report all cash income daily. Id. ¶ 24. Plaintiff also informed Ramirez that it was Plaintiff’s responsibility to monitor all income and expenses, and comply with IRS regulations. Id. ¶ 23. “Shortly after learning of the unreported cash income, Plaintiff advised Defendant Belo . . . of his objections. Defendant Belo assured Plaintiff that she would speak with Mr. Ramirez about the cash income and make sure that he reported this income properly in the future.” Id. ¶ 25. Despite Plaintiff’s conversations with both Ramirez and Belo, Plaintiff contends that he did not see any reports of cash income or deposits. Further, none of the Excel

spreadsheets Belo provided him reflected any cash-income entries. Id. ¶ 26. On May 10, 2024, Plaintiff expressed his concerns with Ramirez’s actions in an email to Belo. Id. ¶ 27. Plaintiff stated to Belo: Although I have had numerous conversations with Mr. Ramirez, I don’t think he understands the seriousness of non compliance with the FAA. If this is discovered that a non aviation personnel is making a logistic decision for CHARM and something goes wrong, Charm can lose: our operation certificate and our letters of authorization could be pulled and we would be fined.

Id. Plaintiff asserts that one week later, on May 17, 2024, he was terminated. Id. ¶ 28. Plaintiff contends that Charm City “by and through its agents, namely Defendant Brothers and/or Defendant Belo, made the decision to terminate” him. Id. ¶¶ 31, 36, 41, 46. On August 27, 2024, Plaintiff filed a civil action in the Superior Court of New Jersey, Law Division, Essex County alleging violations of the New Jersey Conscientious Employee Protection Act (“CEPA”).4 Compl., D.E. 1, ¶¶ 7-49. Plaintiff argues that Charm, through its agents Brothers and Belo, terminated him because he objected to, and refused to participate in, a

practice, policy, or activity that he believes violated the FAA Regulations. Id. ¶ 36. On October 23, 2024, Defendants timely removed this action to the United States District Court for the District of New Jersey pursuant to 28 U.S.C. § 1332(a). Notice of Removal, ¶¶ 1- 17, Oct. 23, 2024, D.E. 1. Defendants claim that because Plaintiff seeks “compensatory damages, punitive damages, interest, attorneys’ fees and enhancements, costs of suit, and other such legal and equitable relief as the Court deems to be equitable and just,” the amount in controversy exceeds the required threshold. Id. ¶¶ 14-17. As for § 1332(a)’s requirement that the plaintiff and defendants be of diverse citizenship, Defendants contend that complete diversity exists because Plaintiff fraudulently joined Belo as a party to prevent removal. Id. ¶¶ 7-13. Plaintiff has now moved to remand this action back to the Superior Court of New Jersey,

Law Division, Essex County. See Mot. to Remand, Nov. 21, 2024, D.E. 8. Plaintiff submits that Belo is a proper party to this lawsuit, and therefore, the parties’ citizenship is not diverse under § 1332(a). See Pl.’s Br. in Supp. of Mot. to Remand, Nov. 21, 2024, D.E. 8-1. Defendants have opposed Plaintiff’s motion to remand and cross move to dismiss the claims against Brothers. See Defs.’ Mem. of Law in Opp., Dec. 16, 2024, D.E. 13-1. Defendants reiterate that Plaintiff fraudulently joined Belo as a party and further assert that Plaintiff has failed to state a claim against Brothers pursuant to Rule 12(b)(6). In support of Defendants’ cross-motion, Belo submitted a Certification wherein she states that she “was

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JACOBSON v. CHARM CITY AVIATION, LLC., Counsel Stack Legal Research, https://law.counselstack.com/opinion/jacobson-v-charm-city-aviation-llc-njd-2025.