Jones v. CASSEY'S GENERAL STORIES

538 F. Supp. 2d 1094, 2008 U.S. Dist. LEXIS 22940, 2008 WL 731960
CourtDistrict Court, S.D. Iowa
DecidedMarch 20, 2008
Docket4:07-cv-400
StatusPublished
Cited by13 cases

This text of 538 F. Supp. 2d 1094 (Jones v. CASSEY'S GENERAL STORIES) is published on Counsel Stack Legal Research, covering District Court, S.D. Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jones v. CASSEY'S GENERAL STORIES, 538 F. Supp. 2d 1094, 2008 U.S. Dist. LEXIS 22940, 2008 WL 731960 (S.D. Iowa 2008).

Opinion

ORDER

ROBERT W. PRATT, Chief Judge.

Before the Court is Defendant’s Objections to Magistrate’s January 25, 2008 Order Granting Plaintiffs’ Motion to File Amended Collective Action Complaint (Clerk’s No. 169), filed February 8, 2008. Plaintiffs filed a resistance to the Defendant’s Objections on February 25, 2008. Clerk’s No. 185. Defendant has not filed a timely reply to Plaintiffs’ resistance. Defendant’s request for oral argument on the matter is denied, as the Court does not believe that oral argument will substantially aid the resolution of the Defendant’s Objections. Accordingly, the matter is fully submitted.

I. BACKGROUND

Plaintiffs filed a Complaint in the above-captioned action on May 30, 2007, alleging that Defendant failed to properly pay overtime compensation to its assistant managers, as required by the Fair Labor Standards Act (the “FLSA”), 29 U.S.C. § 201 et seq. See Clerk’s No. 64.3. On October 31, 2007, this Court conditionally certified Plaintiffs’ FLSA claim as a collective action. See Clerk’s No. 127. In its October 31, 2007 Order, the Court further provided the form of notice to putative opt-in collective members, and the manner in which such notice should be disseminated. Id. The deadline for opt-in consents provided in the Court approved notice was February 1, 2008. Id.

On November 20, 2007, Plaintiffs filed a Motion to Amend/Correct Collective Action Complaint. See Clerk’s No. 133. In their Motion, Plaintiffs stated that “[s]ig-nifieant developments have occurred since [the filing of the original Complaint] and the attached Amended Collective Action Complaint (Jury Trial Demanded) further clarifies and refines the nature of Plain *1098 tiff[s’] claims.” Id. Specifically, Plaintiffs’ Amended Complaint adds an allegation within the FLSA claim that Defendant failed to properly pay employees a minimum wage for all hours worked, in violation of § 206 of the FLSA. Plaintiffs’ Amended Complaint further asserts fourteen new “class action” counts premised on various statutes from Iowa, Illinois, Indiana, Kansas, Minnesota, Missouri, Nebraska, and South Dakota. Defendant filed a resistance to Plaintiffs’ Motion to Amend on December 6, 2007. Clerk’s No. 138. Defendant resisted the amendments to the extent that Plaintiffs sought to add a minimum wage claim under the FLSA claim in Count I, and with regard to the newly asserted Counts V (Violation of Illinois Rest and Meal Break Requirements), VI (Violation of Indiana Minimum Wage and Overtime Requirements), VII (Violation of Kansas Minimum Wage and Overtime Requirements), VIII (Violation of Kansas Record Keeping Requirements) and XIII (Violation of Missouri Record Keeping Requirements). In general, Defendant argued: 1) Plaintiffs’ proposed amendments would be futile; 2) the amendment to the FLSA claim would be unfairly prejudicial to Defendant because of Plaintiffs’ undue delay in asserting the claim; and 8) the amendments should not be allowed because they would substantially alter the scope of the lawsuit.

Chief Magistrate Judge Thomas Shields held a hearing on Plaintiffs’ Motion to Amend on December 14, 2007. See Clerk’s No. 175. On January 25, 2008, Chief Magistrate Judge Shields issued an Order granting the Plaintiffs’ Motion to Amend, finding that “a fair reading of the amended complaint on its face does not compel the undersigned magistrate judge to make a finding as a matter of law that under no set of circumstances, or based upon the legal issues alleged, that plaintiffs could not obtain a judgment against defendant.” Clerk’s No. 159 at 3. The magistrate judge further found that, given the mandate to liberally permit amendments, the legal defenses asserted by Defendant would be “better asserted and vetted in the context of dispositive motions.” Id. at 4.

II. STANDARD OF REVIEW

There are two standards for a district court’s review of the order of a magistrate judge. A nondispositive order may only be reversed if it is “clearly erroneous or contrary to law.” 28 U.S.C. § 636(b)(1)(a); Fed.R.Civ.P. 72(a). Conversely, if the order concerns a dispositive motion, the district court must review the magistrate judge’s decision de novo and “may accept, reject, or modify the recommended disposition; receive further evidence; or return the matter to the magistrate judge with instructions.” Fed. R.Civ.P. 72(b)(3). Because the present matter deals with a nondispositive matter, the Chief Magistrate Judge’s order is subject to a “clearly erroneous or contrary to law” standard of review. A finding is clearly erroneous when, after considering the entire record, the reviewing court has been definitely and firmly convinced that a mistake has been committed. Anderson v. City of Bessemer City, N.C., 470 U.S. 564, 573, 105 S.Ct. 1504, 84 L.Ed.2d 518 (1985).

III. LAW AND ANALYSIS

Defendant argues that the Chief Magistrate Judge’s ruling: 1) failed to consider Defendant’s argument that Plaintiffs unduly delayed in asserting an FLSA minimum wage claim to the prejudice of Defendant; 2) applied the wrong standard in considering Defendant’s argument that Plaintiffs’ proposed FLSA minimum wage claim would be futile; and 3) erred in determining that factual issues precluded Defendant’s futility arguments with respect to Counts V, VI, VII, VIII, and XIII. Defen *1099 dant requests that the Court find Chief Magistrate Judge Shields’ January 25, 2008 Order to be clearly erroneous or contrary to law.

The determination of whether to grant leave to amend a complaint after a responsive pleading has been filed rests in the “broad discretion” of the district court, though such leave “shall be freely given when justice so requires.... ” See Baptist Health v. Smith, 477 F.3d 540, 544 (8th Cir.2007); Fed.R.Civ.P. 15(a). “There is no absolute right to amend and a court may deny the motion based upon a finding of undue delay, bad faith, dilatory motive, repeated failure to cure deficiencies in previous amendments, undue prejudice to the non-moving party, or futility.” Baptist Health, 477 F.3d at 544 (citations omitted).

A. Undue Delay

Defendant first argues that the magistrate judge failed to consider its argument that Plaintiffs unduly delayed in bringing the FLSA minimum wage claim, to the prejudice of Defendant.

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Bluebook (online)
538 F. Supp. 2d 1094, 2008 U.S. Dist. LEXIS 22940, 2008 WL 731960, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jones-v-casseys-general-stories-iasd-2008.