Lopez v. National Freight Inc

CourtDistrict Court, N.D. Texas
DecidedFebruary 28, 2023
Docket3:22-cv-01844
StatusUnknown

This text of Lopez v. National Freight Inc (Lopez v. National Freight 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
Lopez v. National Freight Inc, (N.D. Tex. 2023).

Opinion

United States District Court NORTHERN DISTRICT OF TEXAS DALLAS DIVISION LUIS LOPEZ and AMBIORIS JIMENEZ, § Individually and on Behalf of All Others § Similarly Situated § § CIVIL ACTION NO. 3:22-CV-1844-S v. § § NATIONAL FREIGHT, INC., and NFI § INTERACTIVE LOGISTICS, LLC § MEMORANDUM OPINION AND ORDER This Memorandum Opinion and Order addresses Plaintiffs’ Amended Motion to Transfer Venue (“Motion”) [ECF No. 17] pursuant to 28 U.S.C. § 1404(a). The Court has reviewed the Motion, Defendants’ Opposition to Plaintiffs’ Amended Motion to Transfer Venue (“Response”) [ECF No. 26], and Plaintiffs’ Reply in Support of Amended Motion to Transfer Venue (“Reply”) [ECF No. 30]. For the following reasons, the Court DENTES the Motion. I. BACKGROUND Plaintiffs Luis Lopez and Ambioris Jimenez filed this putative class action against Defendants National Freight, Inc., and NFI Interactive Logistics, LLC (collectively, “NFI”)! on August 19, 2022. Compl. [ECF No. 1] 7 1. Plaintiffs are truck drivers who contracted with NFI to deliver goods from an NFI facility in Nazareth, Pennsylvania, to Trader Joe’s grocery stores located along the East Coast. Mot. 1. Plaintiffs allege, on behalf of themselves and similarly situated drivers, claims for improper pay deductions and unpaid wages under the Pennsylvania Wage Payment and Collection Law (“PWPCL”), 43 P.S. §§ 260.1 et. seq., breach of contract, and

' Defendants maintain that National Freight, Inc., is not a proper party to this lawsuit because it did not contract with Plaintiffs during the period of time Plaintiffs’ claims arose. Resp. 2 n.2. Because the distinction is not pertinent to this Motion, the Court will refer to Defendants collectively as NFL.

unjust enrichment, Compl. {| 37-55. The parties dispute whether Plaintiffs were properly classified as independent contractors by NFI, which would exclude them from the PWPCL’s protections, or whether Plaintiffs should have been classified as employees. Mot. 1. In the Motion, Plaintiffs argue that this case should be transferred to the District of New Jersey because two related cases (collectively, “New Jersey Actions”), presided over by Judge Joseph H. Rodriguez, are pending in that court. Jd. at 1-2. The first case is Portillo v. National Freight, Inc., No. 15-CV-7908-JHR-MJS (D.N.J_), a class action brought against NFI in 2015 by truck drivers for violations of the New Jersey Wage Payment Law. /d. at 2. Plaintiffs in this case are also class members in Portillo. Id. The second case is Kolev v. National Freight, Inc., No. 1:21- CV-15107 (D.N.J.), a putative class action brought against NFI in 2021 by truck drivers for violations of the Illinois Wage Payment and Collections Act. fd. at 2-3. Despite Plaintiffs’ wish to litigate this case in New Jersey, they filed suit in this Court because of a forum-selection clause contained within the most recent contracts they signed with NFI: This Agreement or any claim or dispute arising from or in connection with this Agreement shall be interpreted in accordance with, and governed by the laws of the United States and of the State of Texas, without regard to the choice-of-law rules of Texas or any other jurisdiction. THE PARTIES FURTHER AGREE THAT ANY CLAIM OR DISPUTE ARISING FROM OR IN CONNECTION WITH THIS AGREEMENT OR OTHERWISE WITH RESPECT TO THE OVERALL RELATIONSHIP BETWEEN THE PARTIES, WHETHER UNDER FEDERAL, STATE, LOCAL, OR FOREIGN LAW (INCLUDING BUT NOT LIMITED TO □ 49 C.F.R. PART 376), SHALL BE BROUGHT EXCLUSIVELY IN THE STATE OR FEDERAL COURTS IN DALLAS COUNTY, TEXAS. CARRIER AND CONTRACTOR HEREBY CONSENT TO THE JURISDICTION AND VENUE OF SUCH COURTS. Id. at 5-6. Prior to 2019, contracts between NFI and its drivers (“Pre-2019 Operating Agreements”) contained New Jersey choice-of-law and forum-selection clauses. /d at 2, 14. In 2019, NFT

circulated a new version of their standard contract (“Texas Operating Agreement”), which replaced the New Jersey choice-of-law and forum-selection clauses with the above-quoted Texas choice- of-law and forum-selection clauses. Id. at 5-6. NFI required their drivers to sign the Texas Operating Agreement to continue doing business with them. Reply 7. Plaintiffs, who both contracted with and delivered for NFI prior to 2019, signed the new Texas Operating Agreements in 2020. Mot. 7; Pls.’ App. in Supp. of Pls.’ Am. Mot. to Transfer Venue (“Pls.’? App.”) [ECF No, 18] 83-161. Plaintiffs ask the Court to transfer this case in spite of the Texas forum-selection clause, arguing that it is unenforceable due to fraud, overreaching, and fundamental unfairness. Mot. 12- 13. According to Plaintiffs, NFI’s addition of the Texas forum-selection clause was a “unilateralf|” and “ex parte” attempt to “limit the scope of the Portillo class outside the supervision of the court.” Id. at 13-14, 2. In Portillo, NFI argued that the Texas forum-selection clause should preclude all class members who signed Texas Operating Agreements from litigating their claims in the District of New Jersey because, in NFI’s view, the Texas forum-selection clause superseded all previous forum designations. Portillo v. Nat’l Freight, Inc., No. 15-CV-7908-JHR-KMW, 2021 WL 3486894, at *3 (D.N.J. Aug. 9, 2021). The court disagreed, defining the Portillo class such that “drivers who signed one or more New Jersey [Pre-2019 Operating Agreements] and one or more Texas [Operating Agreements |—and who otherwise satisfy the criteria for class membership—are class members eligible to recover for injuries sustained under New Jersey law before the drivers signed a Texas [Operating Agreement].” /d. at *4 (footnote omitted). However, the Portillo class does not encompass the claims that are the subject of this lawsuit because they arose after Plaintiffs signed the Texas Operating Agreements. Jd. at *6; see also Mot. 2.

The Portillo court also found that NFI’s failure to alert the drivers, opposing counsel, or the court that the changes to the Pre-2019 Operating Agreement could affect the drivers’ rights as potential class members was “misleading and coercive and threatened the fairness of this litigation.” Portillo, 2021 WL 3486894, at *5. The court went on to express skepticism at NFI’s explanation that they included the Texas choice-of-law and forum-selection clauses in the Texas Operating Agreement “as part of a routine updatef,]” noting that the update occurred just months after the court’s ruling that New Jersey law would govern the Portillo plaintiffs’ claims and that many of the signatory drivers had “no apparent connection to Texas.” Jd. at *5 n.14. In the instant case, however, NFI maintains that they have a regional headquarters located in Irving, Texas, and that more of their employees and owner-operators are based out of Texas than New Jersey, which is why they changed the choice-of-law and forum selection clauses in the driver contracts. Resp. 1. IL. LEGAL STANDARD A party seeking transfer under 28 U.S.C. § 1404(a) “must show good cause by clearly demonstrating that a transfer is for the convenience of parties and witnesses, in the interest of justice.” Defense Distributed v. Bruck, 30 F 4th 414, 433 (5th Cir. 2022) (quoting Jn re Volkswagen of Am., Inc. (Volkswagen IT), 545 F.3d 304, 315 (Sth Cir. 2008)) (cleaned up). District courts enjoy “broad discretion in deciding whether to order a transfer,” Volkswagen I, 545 F.3d at 311 (quoting Balawajder y. Scott, 160 F.3d 1066, 1067 (Sth Cir.

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Bluebook (online)
Lopez v. National Freight Inc, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lopez-v-national-freight-inc-txnd-2023.