Legaux v. Mercer Investments, Inc.

CourtDistrict Court, S.D. California
DecidedAugust 3, 2021
Docket3:20-cv-02041
StatusUnknown

This text of Legaux v. Mercer Investments, Inc. (Legaux v. Mercer Investments, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Legaux v. Mercer Investments, Inc., (S.D. Cal. 2021).

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 SOUTHERN DISTRICT OF CALIFORNIA 10 11 LUCRETIA LEGAUX, Case No. 20-cv-2041-BAS-AGS

12 Plaintiff, ORDER DENYING DEFENDANT’S 13 v. MOTION TO DISMISS FOR LACK OF SUBJECT MATTER 14 MERCER INVESTMENTS, INC., JURISDICTION (ECF No. 11) 15 Defendant.

17 18 On October 15, 2020, Plaintiff Lucretia Legaux commenced this lawsuit against 19 Defendant Mercer Investments, Inc. (Compl., ECF No. 1.) On December 15, 2020, 20 Plaintiff filed an amended complaint pursuant to Title VII of the Civil Rights Act of 1964, 21 42 U.S.C. § 2000e, et seq., as well as state anti-discrimination laws. (First Am. Compl. 22 (“FAC”) ¶ 1, ECF No. 6.) Plaintiff alleges that Defendant engaged in racially 23 discriminatory practices and retaliation against her, forcing her to terminate her 24 employment as Defendant’s Operations Manager. (Id. ¶ 6.) 25 Presently before the Court is Defendant’s Motion to Dismiss Plaintiff’s action for 26 lack of subject matter jurisdiction under 28 U.S.C. §§ 1331 and 1367. (Mot., ECF No. 11.) 27 Defendant argues that dismissal is warranted because the claims brought do not require an 28 1 application of federal law and because the state law claims predominate over the federal 2 law claims. (Id.) Plaintiff opposes. (Opp’n, ECF No. 14.) 3 The Court finds this motion suitable for determination on the papers submitted and 4 without oral argument. See Fed. R. Civ. P. 78(b); Civ. L.R. 7.1(d)(1). For the following 5 reasons, the Court DENIES Defendant’s Motion to Dismiss for lack of subject matter 6 jurisdiction. 7 8 I. BACKGROUND1 9 A. Factual Allegations Against Defendant 10 Plaintiff Lucretia Legaux is an individual with her primary residence in San Diego, 11 California. (FAC ¶ 5.) Defendant Mercer Investments, Inc. is “in [the] business of real 12 estate [and] providing brokerage and property management services to the public” and is a 13 corporation with its principal place of business in California. (Id. ¶ 6.) Prior to her 14 employment with Defendant, Plaintiff had over thirteen years of operations and real estate 15 management experience. (Id. ¶ 23.) In October 2018, Defendant hired Plaintiff as a 16 Receptionist and Administrative Assistant. (Id. ¶ 22.) Barbara Mercer, co-owner of 17 Mercer Investments, hired Plaintiff with a promise of growth within the company. (Id. ¶ 18 25.) 19 1. Discrimination Regarding Compensation 20 In August 2019, there was a new opening for the Operations Manager position at 21 Mercer Investments. (FAC ¶ 27.) Kelli Mercer-Chandler, Barbara Mercer’s daughter, 22 temporarily filled the position and was compensated at a rate of $32.00 per hour. (Id. ¶ 23 80.) The former Operations Manager, Kristen Carter, was compensated at a similar rate of 24 $31.95 per hour. (Id. ¶¶ 27, 76.) Both women are white. (Id. ¶ 52.) 25 26

27 1 These facts are all taken from the Complaint. For this Motion to Dismiss, the Court accepts all of Plaintiff’s factual allegations as true. See Safe Air for Everyone v. Meyer, 373 F.3d 1035, 1039 (9th 28 1 Only after unsuccessfully outsourcing a permanent manager, Barbara Mercer then 2 met with Plaintiff to discuss a possible promotion. (Id. ¶ 71.) The following month, 3 Barbara Mercer orally offered Plaintiff the managerial position. (Id. ¶¶ 35, 88.) Included 4 in this oral offer was the promise of a pay raise from $22.00 to $25.00 per hour, with a 5 stipulation that Plaintiff would be on a 90-day probationary period as manager prior to 6 receiving the pay raise. (Id. ¶¶ 37, 85, 87.) 7 During the probationary period, Plaintiff assumed the responsibilities of Operations 8 Manager. (Id. ¶¶ 38, 91.) Plaintiff also continued to assist as Receptionist and assumed 9 the role of Leasing Agent due to understaffing. (Id. ¶¶ 96, 151.) Her compensation 10 throughout this period remained at $22.00 per hour. (Id. ¶ 96.) Plaintiff did not receive 11 any of the benefits typically offered to Leasing Agents, such as reimbursements for work 12 expenses and leasing bonuses, nor did she take lunch breaks because of her increased 13 workload. (Id. ¶¶ 49, 152, 155.) 14 In October 2019, Plaintiff met with Barbara Mercer to discuss terminating the 15 probationary period early given Plaintiff’s extensive managerial background. (Id. ¶ 97.) 16 Plaintiff also requested a salary increase to $31.95 per hour, matching that of the previous 17 manager. (Id. ¶ 98.) The probationary period was not terminated, and Barbara Mercer 18 never gave Plaintiff a definitive answer regarding the requested salary increase. (Id. ¶¶ 19 99–100.) 20 2. Retaliation for Engaging in a Protected Activity 21 Following Plaintiff’s probationary period, Barbara Mercer instructed Plaintiff to 22 speak to Mercer’s son-in-law, Michael Chandler, regarding Plaintiff’s promised raise. 23 (FAC ¶¶ 41, 126.) Plaintiff spoke to Chandler shortly after. (Id. ¶ 43.) She also attempted 24 to speak to Barbara Mercer and Kelli Mercer-Chandler regarding the raise, but the “request 25 . . . was never taken seriously nor accomplished.” (Id. ¶ 59.) 26 In January 2020, Chandler demoted Plaintiff from the Operations Manager position. 27 (Id. ¶¶ 44, 138.) Plaintiff argues the demotion was in retaliation for the protected activity 28 of opposing the wage discrimination. (Id. ¶ 192.) Chandler said the “salary increase was 1 never offered[,]” and that Plaintiff’s “current pay was generous” without providing further 2 explanation. (Id. ¶ 45.) 3 3. Discrimination Regarding Image 4 Plaintiff also asserts that Barbara Mercer and her husband, Olen Mercer, treated 5 other employees, all of which are or appear to be white, like family. (FAC ¶¶ 103–04.) 6 The Mercers posted regular updates on social media regarding new employees at Mercer 7 but made no mention of Plaintiff when she was initially hired or when she was promoted 8 to Operations Manager. (Id. ¶¶ 105–08.) Plaintiff was also expected to show rental 9 properties in addition to her normal responsibilities. (Id. ¶ 117.) She was primarily sent 10 to low-income neighborhoods or those with large minority demographics. (Id. ¶¶ 118–22.) 11 Plaintiff claims that these are examples of Defendant’s racially discriminatory practices 12 against her with respect to image. (Id. ¶ 185.) 13 In late January 2020, Plaintiff was “forced to resign from employment with 14 Defendant due to the unfulfilled promises and blatant discrimination at Mercer.” (Id. ¶ 60.) 15 B. Legal Allegations Against Defendant 16 Based on the foregoing, Plaintiff asserts the following thirteen causes of action: 17 (1) racial discrimination, violating 42 U.S.C. § 2000e-2 and section 12940 of the California 18 Government Code; (2) retaliation for engaging in a protected activity, violating section 19 12940 of the California Government Code; (3) creating a hostile work environment, 20 violating section 12940 of the California Government Code; (4) failing to prevent 21 discrimination, violating section 12940 of the California Government Code; (5) 22 constructive discharge; (6) failure to pay timely wages; (7) nonpayment of wages, violating 23 section 200 of the California Labor Code; (8) negligent misrepresentation; (9) breach of 24 oral contract; (10) unjust enrichment; (11) unfair business practices, violating section 25 17200 of the California Business & Professions Code; (12) intentional infliction of 26 emotional distress; and (13) negligent infliction of emotional distress.

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Legaux v. Mercer Investments, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/legaux-v-mercer-investments-inc-casd-2021.