Kristi Del Toro v. Centene Corporation

District Court, N.D. California·Decided October 14, 2020·No. 4:19-cv-05163·Unknown

Opinion

8 UNITED STATES DISTRICT COURT

9 NORTHERN DISTRICT OF CALIFORNIA 10 SAN JOSE DIVISION 11

12 KRISTI DEL TORO, Case No. 19-CV-05163-LHK

13 Plaintiff, ORDER GRANTING MOTION TO DISMISS FAIR CREDIT REPORTING 14 v. ACT CLAIM

15 CENTENE CORPORATION, et al., Re: Dkt. No. 31 16 Defendants. 17 18 Plaintiff Kristi Del Toro (“Plaintiff”) alleges that Defendants Centene Corporation 19 (“Centene”) and Envolve Pharmacy Solutions, Inc. (“Envolve”) (collectively, “Defendants”) have 20 violated the Fair Credit Reporting Act (“FCRA”) and various state wage and hour laws. 21 Defendants move to dismiss Plaintiff’s FCRA claim. Having considered the submissions of the 22 parties, the relevant law, and the record in this case, the Court GRANTS Defendants’ motion to 23 dismiss Plaintiffs’ FCRA claim. 24 I. BACKGROUND 25 On August 19, 2019, Plaintiff Kristi Del Toro filed a putative class action lawsuit against 26 Defendants Centene Corporation (“Centene”), Envolve Pharmacy Solutions, Inc. (“Envolve”), and 27 US Script, LLC for violations of the Fair Credit Reporting Act (“FCRA”) and various state wage 1 and hour laws. FAC ¶¶ 19–52. 2 Plaintiff has failed to serve Defendant US Script, LLC for over one year and has failed to 3 provide any cause, much less good cause, for Plaintiff’s failure to do so. Thus, pursuant to Federal 4 Rule of Civil Procedure 4(m), the Court orders that by October 23, 2020 Plaintiff shall file 5 (1) proof of service on Defendant US Script, LLC, or (2) a memorandum of points and authorities 6 with a supporting declaration and exhibits establishing good cause for a short extension of time for 7 such service. If Plaintiff fails to do either by October 23, 2020, the Court will dismiss Defendant 8 US Script, LLC without prejudice pursuant to Rule 4(m). 9 On October 21, 2019, Centene and Envolve (collectively, “Defendants”) filed their first 10 motion to dismiss. ECF No. 13 (“First MTD”). Defendants moved to dismiss all eight of 11 Plaintiff’s claims. Id. at 1. Most relevant here, Defendants moved to dismiss Plaintiff’s FCRA 12 claim on two grounds: (1) lack of Article III standing, id. at 5–7; and (2) FCRA’s statute of 13 limitations, id. at 8–9. Defendants also moved to dismiss the Plaintiff’s state wage and hour law 14 claims on various merits grounds, and in the alternative, to transfer the instant case to the Eastern 15 District of California. Id. at 9–20. 16 On April 2, 2020, the Court dismissed all of Plaintiff’s claims then denied Defendants’ 17 motion to transfer as moot. ECF No. 22. Specifically, the Court dismissed Plaintiff’s FCRA claim 18 for lack of Article III standing with leave to amend. Id. at 7. As for Plaintiff’s state wage and hour 19 law claims, one claim was dismissed with prejudice as legally futile. As the Court reasoned, 20 “Plaintiff [had] concede[d] that she may not pursue [that California law] claim for failure to timely 21 pay wages upon termination because she has not, in fact, been terminated.” Id. at 8. 22 The other six state wage and hour law claims were dismissed with leave to amend for lack 23 of supplemental jurisdiction. Id. Specifically, Plaintiff’s theory of federal jurisdiction was 24 supplemental jurisdiction, and Plaintiff’s FCRA claim was Plaintiff’s only federal claim. The 25 Court could exercise supplemental jurisdiction over Plaintiff’s remaining state law claims if the 26 state law claims shared a common nucleus of operative facts with the FCRA claim. However, the 27 Court could not “identify a single fact that overlaps between Plaintiff’s federal FCRA claim and 1 Plaintiff’s California wage and hour claims, other than the identity of some of the parties.” Id. at 9. 2 The state law claims thus lacked a common nucleus of operative facts with the federal FCRA 3 claim. Id. at 10. Moreover, even if the Court “could exercise supplemental jurisdiction over 4 Plaintiff’s state-law claims, the Court would decline to do so under the discretionary factors set 5 forth in 28 U.S.C. § 1367(c)(2).” Id. at 10. 6 Given all these defects with the FCRA and state law claims, the Court warned that “failure 7 to cure deficiencies identified herein or identified in the [first] motion to dismiss, will result in 8 dismissal of the deficient claims without leave to amend.” Id. at 12 (emphasis added). As relevant 9 here, deficiencies identified in the first motion to dismiss included the untimeliness of Plaintiff’s 10 FCRA claim. See, e.g., First MTD at 9 (“As for the five-year statute of limitations, Plaintiff fails to 11 allege when Defendants obtained her consumer report.”); ECF No. 22 (citing statute of limitations 12 argument in first motion to dismiss, but dismissing on standing grounds). Lastly, the Court denied 13 as moot Defendants’ request to transfer the instant case. Id. at 12. 14 On May 5, 2020, Plaintiff filed her First Amended Complaint (“FAC”). ECF No. 27. 15 Plaintiff realleged all the claims that the Court had dismissed with leave to amend, including the 16 FCRA claim. See FAC ¶¶ 51–116. As for the state law claims, which the Court had dismissed for 17 lack of supplemental jurisdiction, Plaintiff realleged those claims under a different jurisdictional 18 theory: diversity jurisdiction under the Class Action Fairness Act (“CAFA”), 28 U.S.C. 19 § 1332(d)(2). Id. ¶ 11. 20 On May 19, 2020, Defendants filed the instant motion to dismiss, which seeks to dismiss 21 only the FCRA claim. ECF No. 31. On June 2, 2020, Plaintiff filed an opposition. ECF No. 33 22 (“Opp’n”). On June 9, 2020, Defendants filed a reply. ECF No. 34. 23 II. LEGAL STANDARD 24 A. Dismissal Pursuant to Federal Rule of Civil Procedure 12(b)(6) 25 Rule 8(a) of the Federal Rules of Civil Procedure requires a complaint to include “a short 26 and plain statement of the claim showing that the pleader is entitled to relief.” A complaint that 27 fails to meet this standard may be dismissed pursuant to Federal Rule of Civil Procedure 12(b)(6). 1 Rule 8(a) requires a plaintiff to plead “enough facts to state a claim to relief that is plausible on its 2 face.” Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 570 (2007). “A claim has facial plausibility 3 when the plaintiff pleads factual content that allows the court to draw the reasonable inference that 4 the defendant is liable for the misconduct alleged.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). 5 “The plausibility standard is not akin to a probability requirement, but it asks for more than a sheer 6 possibility that a defendant has acted unlawfully.” Id. (internal quotation marks omitted). For 7 purposes of ruling on a Rule 12(b)(6) motion, the Court “accept[s] factual allegations in the 8 complaint as true and construe[s] the pleadings in the light most favorable to the nonmoving 9 party.” Manzarek v. St. Paul Fire & Marine Ins. Co., 519 F.3d 1025, 1031 (9th Cir. 2008). 10 The Court, however, need not accept as true allegations contradicted by judicially 11 noticeable facts, see Shwarz v. United States, 234 F.3d 428, 435 (9th Cir.

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