Legaux v. Mercer Investments, Inc.

District Court, S.D. California·Decided August 3, 2021·No. 3:20-cv-02041·Unknown

Opinion

LUCRETIA LEGAUX, Case No. 20-cv-2041-BAS-AGS

Plaintiff, ORDER DENYING DEFENDANT’S v. MOTION TO DISMISS FOR LACK OF SUBJECT MATTER JURISDICTION (ECF No. 11) Defendant.

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

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 Only after unsuccessfully outsourcing a permanent manager, Barbara Mercer then met with Plaintiff to discuss a possible promotion. (Id. ¶ 71.) The following month, Barbara Mercer orally offered Plaintiff the managerial position. (Id. ¶¶ 35, 88.) Included in this oral offer was the promise of a pay raise from $22.00 to $25.00 per hour, with a stipulation that Plaintiff would be on a 90-day probationary period as manager prior to receiving the pay raise. (Id. ¶¶ 37, 85, 87.) During the probationary period, Plaintiff assumed the responsibilities of Operations Manager. (Id. ¶¶ 38, 91.) Plaintiff also continued to assist as Receptionist and assumed the role of Leasing Agent due to understaffing. (Id. ¶¶ 96, 151.) Her compensation throughout this period remained at $22.00 per hour. (Id. ¶ 96.) Plaintiff did not receive any of the benefits typically offered to Leasing Agents, such as reimbursements for work expenses and leasing bonuses, nor did she take lunch breaks because of her increased workload. (Id. ¶¶ 49, 152, 155.) In October 2019, Plaintiff met with Barbara Mercer to discuss terminating the probationary period early given Plaintiff’s extensive managerial background. (Id. ¶ 97.) Plaintiff also requested a salary increase to $31.95 per hour, matching that of the previous manager. (Id. ¶ 98.) The probationary period was not terminated, and Barbara Mercer never gave Plaintiff a definitive answer regarding the requested salary increase. (Id. ¶¶ 99–100.) 2. Retaliation for Engaging in a Protected Activity Following Plaintiff’s probationary period, Barbara Mercer instructed Plaintiff to speak to Mercer’s son-in-law, Michael Chandler, regarding Plaintiff’s promised raise. (FAC ¶¶ 41, 126.) Plaintiff spoke to Chandler shortly after. (Id. ¶ 43.) She also attempted to speak to Barbara Mercer and Kelli Mercer-Chandler regarding the raise, but the “request . . . was never taken seriously nor accomplished.” (Id. ¶ 59.) In January 2020, Chandler demoted Plaintiff from the Operations Manager position. (Id. ¶¶ 44, 138.) Plaintiff argues the demotion was in retaliation for the protected activity of opposing the wage discrimination. (Id. ¶ 192.) Chandler said the “salary increase was never offered[,]” and that Plaintiff’s “current pay was generous” without providing further explanation. (Id. ¶ 45.) 3. Discrimination Regarding Image Plaintiff also asserts that Barbara Mercer and her husband, Olen Mercer, treated other employees, all of which are or appear to be white, like family. (FAC ¶¶ 103–04.) The Mercers posted regular updates on social media regarding new employees at Mercer but made no mention of Plaintiff when she was initially hired or when she was promoted to Operations Manager. (Id. ¶¶ 105–08.) Plaintiff was also expected to show rental properties in addition to her normal responsibilities. (Id. ¶ 117.) She was primarily sent to low-income neighborhoods or those with large minority demographics. (Id. ¶¶ 118–22.) Plaintiff claims that these are examples of Defendant’s racially discriminatory practices against her with respect to image. (Id. ¶ 185.) In late January 2020, Plaintiff was “forced to resign from employment with Defendant due to the unfulfilled promises and blatant discrimination at Mercer.” (Id. ¶ 60.) B. Legal Allegations Against Defendant Based on the foregoing, Plaintiff asserts the following thirteen causes of action: (1) racial discrimination, violating 42 U.S.C. § 2000e-2 and section 12940 of the California Government Code; (2) retaliation for engaging in a protected activity, violating section 12940 of the California Government Code; (3) creating a hostile work environment, violating section 12940 of the California Government Code; (4) failing to prevent discrimination, violating section 12940 of the California Government Code; (5) constructive discharge; (6) failure to pay timely wages; (7) nonpayment of wages, violating section 200 of the California Labor Code; (8) negligent misrepresentation; (9) breach of oral contract; (10) unjust enrichment; (11) unfair business practices, violating section 17200 of the California Business & Professions Code; (12) intentional infliction of emotional distress; and (13) negligent infliction of emotional distress. (FAC ¶¶ 158–315.) Plaintiff asserts that this Court has jurisdiction over her first count pursuant to 28 U.S.C. § 1331 and 42 U.S.C. § 2000e-2. (Id. ¶¶ 14–15.) Plaintiff asserts that this Court thus has supplemental jurisdiction over her r

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

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