KG Mining (Bald Mountain) Inc. v. Maki

CourtDistrict Court, D. Nevada
DecidedMarch 4, 2022
Docket3:20-cv-00656
StatusUnknown

This text of KG Mining (Bald Mountain) Inc. v. Maki (KG Mining (Bald Mountain) Inc. v. Maki) is published on Counsel Stack Legal Research, covering District Court, D. Nevada primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
KG Mining (Bald Mountain) Inc. v. Maki, (D. Nev. 2022).

Opinion

3 UNITED STATES DISTRICT COURT

4 DISTRICT OF NEVADA

5 * * *

6 KG MINING (BALD MOUNTAIN) INC, Case No. 3:20-cv-00656-MMD-CLB

7 Plaintiff, ORDER v. 8 JOSEPH MAKI, 9 Defendant. 10

11 I. SUMMARY 12 Plaintiff KG Mining, Inc. (“Bald Mountain”) sued Defendant Joseph Maki for 13 breach of contract. (ECF No. 1 at 3.) Before the Court is Bald Mountain’s motion to 14 dismiss (ECF No. 21 (“Motion”)) Maki’s counterclaims under Federal Rule of Civil 15 Procedure 12(b)(6).1 (ECF No. 21 at 1.) Because Maki has failed to plead facially 16 plausible counterclaims, and as further explained below, the Court will grant the Motion 17 and will grant Maki leave to amend some of his counterclaims. 18 II. BACKGROUND 19 The following facts are adapted from the pleadings. Bald Mountain is a mining 20 company. (ECF No. 1 at 1.) Maki was offered a position with Bald Mountain for an 21 alleged annual base salary of $92,000, along with a signing bonus of $12,196.52 and 22 relocation benefits of $69,588.17. (ECF Nos. 1 at 2, 18 at 9.) Maki allegedly signed an 23 agreement on September 17, 2019, and September 18, 2019, that he would return the 24 signing bonus and relocation benefits, totaling $81,784.69, if he left Bald Mountain 25 within one year. (ECF No. 1 at 2.) Maki allegedly began working for Bald Mountain 26 around October 7, 2019. (ECF No. 18 at 9.) He contends that Bald Mountain eventually 27 1Maki filed an opposition to the Motion (ECF Nos. 22, 23), and Bald Mountain 28 filed a reply (ECF No. 24). It appears that ECF No. 22 and ECF No. 23 are duplicate documents. 2 Complaint that Maki resigned and denies that Maki was terminated. (ECF Nos. 1 at 2, 3 21 at 8). Bald Mountain sent Maki a letter requesting repayment of the signing bonus 4 and relocation expenses on August 14, 2020, because Maki resigned before completing 5 one year of employment. (ECF No. 1 at 3.) Bald Mountain sent Maki another formal 6 demand letter on September 21, 2020. (Id.) According to Bald Mountain, Maki has not 7 repaid the $81,784.69. (Id.) 8 Bald Mountain subsequently filed this lawsuit against Maki, alleging breach of 9 contract. (Id.) Maki filed an answer and eleven counterclaims against Bald Mountain for 10 (1) luring an employee under false pretenses under NRS § 613.010; (2) negligent hiring, 11 training, supervision, and retention; (3) violation of the Fair Labor Standards Act 12 (“FLSA”) for failing to pay minimum and overtime wages; (4) retaliation in violation of 13 FLSA; (5) fraud and fraud in the inducement; (6) tortious discharge; (7) conversion; (8) 14 unlawful lending practices; (9) failure to pay wages under NRS § 608; (10) failure to pay 15 wages upon termination of employment under NRS §§ 608.020-.050, 608.140 and the 16 Nevada Constitution; and (11) unjust enrichment. (ECF No. 18 at 10-21.) Bald Mountain 17 now seeks dismissal of the counterclaims. (ECF No. 21.) 18 III. LEGAL STANDARD 19 The standard on a motion to dismiss a counterclaim under Rule 12(b)(6) is the 20 same as on a motion to dismiss a plaintiff's complaint. A court may dismiss a plaintiff’s 21 complaint for “failure to state a claim upon which relief can be granted.” Fed. R. Civ. P. 22 12(b)(6). A properly pleaded complaint must provide “a short and plain statement of the 23 claim showing that the pleader is entitled to relief.” Fed. R. Civ. P. 8(a)(2); Bell Atl. Corp. 24 v. Twombly, 550 U.S. 544, 555 (2007). While Rule 8 does not require detailed factual 25 allegations, it demands more than “labels and conclusions” or a “formulaic recitation of 26 the elements of a cause of action.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (citing 27 Twombly, 550 U.S. at 555). “Factual allegations must be enough to rise above the 28 speculative level.” Twombly, 550 U.S. at 555. Thus, to survive a motion to dismiss, a 2 on its face.” Iqbal, 556 U.S. at 678 (quoting Twombly, 550 U.S. at 570). 3 In Iqbal, the Supreme Court of the United States clarified the two-step approach 4 district courts are to apply when considering motions to dismiss. First, a district court 5 must accept as true all well-pleaded factual allegations in the complaint; however, legal 6 conclusions are not entitled to the assumption of truth. See Iqbal, 556 U.S. at 678. Mere 7 recitals of the elements of a cause of action, supported only by conclusory statements, 8 do not suffice. See id. Second, a district court must consider whether the factual 9 allegations in the complaint allege a plausible claim for relief. See id. at 679. A claim is 10 facially plausible when the plaintiff’s complaint alleges facts that allow a court to draw a 11 reasonable inference that the defendant is liable for the alleged misconduct. See id. at 12 678. 13 Where the complaint does not permit the Court to infer more than the mere 14 possibility of misconduct, the complaint has “alleged—but it has not show[n]—that the 15 pleader is entitled to relief.” Id. at 679 (alteration in original) (quotation marks and 16 citation omitted). That is insufficient. When the claims in a complaint have not crossed 17 the line from conceivable to plausible, the complaint must be dismissed. See Twombly, 18 550 U.S. at 570. Dismissal of a complaint without leave to amend is only proper when it 19 is clear the complaint could not be saved by any amendment. Ariz. Students’ Ass’n v. 20 Ariz. Bd. of Regents, 824 F.3d 858, 871 (9th Cir. 2016); see also Fed. R. Civ. P. 21 15(a)(2) (instructing district courts to “freely give leave” to amend). 22 IV. DISCUSSION 23 Bald Mountain argues that none of Maki’s counterclaims are plausibly pled, and 24 that the Court should dismiss them all. (ECF No. 21 at 13.) The Court agrees, but finds 25 that some counterclaims may be cured by amendment. The Court first addresses Maki’s 26 counterclaims that may be cured by amendment, which includes his fraud counterclaims 27 (counts I, V), negligent hiring/supervision/training/retention (count II), retaliation (count 28 IV), tortious discharge (count VI), unpaid wages (counts III, IX, X), unjust enrichment 2 that may not be cured by amendment, which includes his unlawful lending practices 3 (count VIII) counterclaim. Because Maki has failed to plead facially plausible 4 counterclaims, the Court will grant Defendant’s Motion. 5 A. Fraud (Counts I, V)

6 To start, Maki failed to meet the heightened pleading standard for fraud claims 7 under Federal Rule of Civil Procedure 9(b). Bald Mountain argues that dismissal is 8 proper because Maki failed to identify the hours he was not compensated for, the 9 specific misrepresentations Bald Mountain made to Maki, and the specific parties that 10 made the misrepresentations. (ECF No. 21 at 4, 7.) Maki counters that he did provide 11 the time, place, specific content, and identities of the parties in his counterclaims. (ECF 12 No. 23 at 2-3). The Court agrees with Bald Mountain.

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KG Mining (Bald Mountain) Inc. v. Maki, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kg-mining-bald-mountain-inc-v-maki-nvd-2022.