Jones v. SuperMedia Inc.

281 F.R.D. 282, 19 Wage & Hour Cas.2d (BNA) 376, 2012 WL 995292, 2012 U.S. Dist. LEXIS 40799
CourtDistrict Court, N.D. Texas
DecidedMarch 23, 2012
DocketCivil Action No. 3:11-CV-1467-B
StatusPublished
Cited by18 cases

This text of 281 F.R.D. 282 (Jones v. SuperMedia Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jones v. SuperMedia Inc., 281 F.R.D. 282, 19 Wage & Hour Cas.2d (BNA) 376, 2012 WL 995292, 2012 U.S. Dist. LEXIS 40799 (N.D. Tex. 2012).

Opinion

[285]*285 MEMORANDUM ORDER & OPINION

JANE J. BOYLE, District Judge.

Before the Court are Defendants’ Motion to Reconsider their Motion to Dismiss Plaintiffs’ Original Complaint and, Alternatively, Motion to Dismiss Plaintiffs’ First Amended Complaint (doc. 21), filed September 6, 2011, as well as Plaintiffs’ Motion to Conditionally Certify a Collective Action and to Issue Notice (doc. 28), filed October 15, 2011 (together the “Motions”). For the reasons stated below, the Court finds that Defendants’ Motion is hereby DENIED and that Plaintiffs’ Motion is hereby GRANTED.

I.

BACKGROUND

This case arises out of a Fair Labor Standards Act (“FLSA”) claim for unpaid overtime compensation. 29 U.S.C. § 201-219 (2006). The Original Complaint (doc. 1) was filed by seven named Plaintiffs on July 1, 2011. Pl.’s Original Compl. ¶ 8. The named Plaintiffs are all former salespersons for Defendants, SuperMedia Inc. Their primary duty was the selling of advertising. Pl.’s Am. Comp. ¶ 34. Many had the title of “media consultant” or “sales associate.” Id. In this capacity, the Plaintiffs were not customarily and regularly engaged away from the employer’s place or places of business and were therefore consider “inside salespersons.” See id. ¶ 34r-36. The named Plaintiffs along with sales associates in facilities in five states comprised part of SuperMedia’s Internet Division Sales (“IDS”) team. Id. ¶37, Tatom Declaration, Doc. No. 5-2 ¶ 10. Sales associates on the IDS team were “classified as nonexempt, salaried employees who were eligible for overtime and incentive/commission pay.” Id. ¶ 38, Tatom Declaration, Doc. No. 5-2 ¶ 11. Specifically, the named Plaintiffs were sales associates at a SuperMedia operated call center in Irving, Texas. See id. ¶ 40.

The Defendant, SuperMedia Inc., is a publicly traded company that primarily sells print and online advertising to small and medium sized business. Pl.’s Original Compl. ¶ 2. The other corporate Defendants are affiliated companies or subsidiaries of SuperMedia Inc. Id. ¶ 4. The individual Defendants are the current and former CEO of the corporate Defendants in the three-year time period before Plaintiffs filed suit. Id. ¶ 5. It is undisputed that the individual Defendants are employers under 29 U.S.C. § 203(d).

In the three years prior to suit, Defendants employed numerous non-exempt inside sales employees to sell advertising. See Pl.’s Am. Comp. ¶ 37-44. Plaintiffs seek to represent a collective action under the FLSA on behalf of all current and former non-exempt salespersons employed by Defendants after January 1, 2010, who worked on the IDS team, at the Irving call center or any other facilities operated by Defendants, and were not compensated for overtime (“putative collective action members”). Id. ¶ 4.

On July 28, 2011, Defendants submitted a Rule 68 Offer of Judgement (“Offer”) which was accepted by three named Plaintiffs. Def.’s Mot. to Dismiss 2. On July 29, 2011, subsequent to the acceptance of the Offer, Defendants filed a Motion to Dismiss for lack of subject-matter jurisdiction, claiming that their Offer renders Plaintiffs’ case moot. Id.

On August 18, 2011, the remaining named Plaintiffs filed an Amended Complaint. In the Amended Complaint, Plaintiffs contend they are due unpaid overtime compensation because commissions were not included in the regular rate of pay and Defendants failed to accurately track and record all hours worked. Id. ¶¶ 7, 9.

On August 23, 2011 this Court denied Defendant’s motion without prejudice because the Amended Complaint mooted the Motion to Dismiss. Defendants now move this Court to reconsider their Motion to Dismiss and additionally contend that Plaintiffs lack standing to amend. Def.’s Mot. to Dismiss 1. Defendants alternatively move to dismiss Plaintiffs’ Amended Complaint for failure to state a claim. Id.

On October 25, 2011 Plaintiffs filed a Motion to Conditionally Certify Collective Action and to Issue Notice (doc. 28) (“Motion to Certify”). Plaintiffs contend that collective action is appropriate because putative collective action members exist, are similarly situated and would likely have a desire to [286]*286opt-in to their FLSA claim. Motion to Certify 12-14.

The Motions now being ripe, the Court turns first to the Defendants’ Motion to Dismiss, then to Plaintiffs’ Motion to Certify.

II.

LEGAL STANDARD

A. Motion to Dismiss

i. Subject Matter Jurisdiction

A court must dismiss for lack of subject matter jurisdiction under Rule 12(b)(1) where it lacks the statutory or constitutional power to adjudicate the ease. Home Builders Ass’n of Mississippi, Inc. v. City of Madison, Miss., 143 F.3d 1006, 1010 (5th Cir.1998). Article III of the United States Constitution limits the jurisdiction of the federal courts to “cases and controversies.” U.S. Const, art. Ill, § 2; Flast v. Cohen, 392 U.S. 83, 94, 88 S.Ct. 1942, 20 L.Ed.2d 947 (1968). Accordingly, when the issues presented in a case are no longer “live” or the parties lack a legally cognizable interest in the outcome, the case becomes moot and the court no longer has subject matter jurisdiction. County of Los Angeles v. Davis, 440 U.S. 625, 631, 99 S.Ct. 1379, 59 L.Ed.2d 642 (1979).

The standard for reviewing a 12(b)(1) motion depends on whether the party moving for dismissal is making a facial or factual attack on subject matter jurisdiction. See Paterson v. Weinberger, 644 F.2d 521, 523 (5th Cir.1981). A facial attack is made by the mere filing of a Rule 12(b)(1) motion, at which point “the trial court is required merely to look to the sufficiency of the allegations in the complaint because they are presumed to be true.” Id. If those allegations sufficiently allege a claim for recovery the complaint stands and the federal court must entertain the suit. Id.; see also Bell v. Hood, 327 U.S. 678, 681-82, 66 S.Ct. 773, 90 L.Ed. 939 (1946).

Conversely, in a factual attack, courts may look beyond the pleadings. That is, the defendant may submit affidavits, testimony, or other evidentiary materials in support of the motion. Paterson, 644 F.2d at 523. When a factual attack has occurred, to establish jurisdiction, the plaintiff must respond by submitting facts through some evidentiary method. Id. Ultimately, the plaintiff has the burden of proving by a preponderance of the evidence that the trial court does have subject-matter jurisdiction. Id.; see also Middle South Energy, Inc. v. City of New Orleans, 800 F.2d 488, 490 (5th Cir.1986).

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281 F.R.D. 282, 19 Wage & Hour Cas.2d (BNA) 376, 2012 WL 995292, 2012 U.S. Dist. LEXIS 40799, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jones-v-supermedia-inc-txnd-2012.