Mackenzie Anne Thoma v. VXN Group, LLC

CourtDistrict Court, C.D. California
DecidedAugust 30, 2023
Docket2:23-cv-04901
StatusUnknown

This text of Mackenzie Anne Thoma v. VXN Group, LLC (Mackenzie Anne Thoma v. VXN Group, LLC) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mackenzie Anne Thoma v. VXN Group, LLC, (C.D. Cal. 2023).

Opinion

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6 7 UNITED STATES DISTRICT COURT 8 CENTRAL DISTRICT OF CALIFORNIA 9 MACKENZIE ANNE THOMA, a.k.a. Case No. 2:23-cv-04901-WLH (AGRx) 10 KENZIE ANNE, an individual and on behalf of all others similarly situated, 11 ORDER RE PLAINTIFF’S MOTION Plaintiff, TO REMAND [13] AND 12 DEFENDANTS’ MOTION TO DISMISS [9] 13 v. 14 VXN GROUP LLC, a Delaware limited liability company; STRIKE 3 15 HOLDINGS, LLC, a Delaware limited 16 liability company; GENERAL MEDIA SYSTEMS, LLC, a Delaware limited 17 liability company; MIKE MILLER, an 18 individual; and DOES 1 through 100, inclusive, 19 20 Defendants. 21 22 Neither party filed a written request for oral argument stating that an attorney 23 with five years or less of experience would be arguing the matter. See Standing Order 24 for Newly Assigned Civil Cases at 15. Further, pursuant to Federal Rule of Civil 25 Procedure 78 and Local Rule 7-15, the Court has deemed this matter suitable for 26 decision without oral argument. The hearing set for August 31, 2023, at 9:30 a.m. is 27 VACATED. 28 1 This is a putative class action. Before the Court are Plaintiff Mackenzie Anne

2 Thoma’s Motion to Remand (Docket No. 13) and Defendants’ Motion to Dismiss

3 (Docket No. 9). For the reasons below, the Court DENIES Thoma’s Motion except as

4 to her tenth cause of action under the California Unfair Competition Law; it severs and

5 remands that claim to state court. The Court GRANTS Defendants’ Motion to Dismiss

6 with leave to amend as to Thoma’s first through ninth causes of action.

7 I. BACKGROUND

8 Thoma is an adult film actor. (Notice of Removal, Docket No. 1, Exh. A ¶ 1). 9 Defendants VXN Group, LLC (“VXN”), Strike 3 Holdings, LLC (“Strike 3”), General 10 Media Systems, LLC (“General Media”), and Mike Miller (collectively, “Defendants”) 11 run Vixen Media Group, an adult film production company. (Id. ¶¶ 3, 10). In November 12 2020, Thoma entered into an agreement with Defendants under which she “performed 13 in Defendants’ movies and modeled at their direction.” (Id. ¶ 8). The agreement 14 expired in September 2022. (Id.). 15 Thoma filed this action in California Superior Court on April 20, 2023. (See 16 generally id.). Thoma alleges that Defendants are jointly liable for violating various 17 sections of the California Labor Code1 and California’s Unfair Competition Law 18 (“UCL”), Business and Professions Code section 17200, et seq., by failing to, inter alia, 19 pay minimum and overtime wages, provide meal periods and rest periods, furnish 20 accurate wage statements, pay for vested vacation time, and timely pay final wages at 21 termination. (Id.). Thoma alleges that “[f]or at least three (3) years prior to the filing 22 of this action and continuing to the present, Defendants have, at times, failed to pay 23 Plaintiff and Class Members, or some of them, the full amount of their wages owed to 24 them upon termination and/or resignation,” including “overtime wages, minimum 25 wages, premium wages, and vacation pay pursuant to Labor Code section 227.3.” (Id. 26 ¶ 26). Thoma also seeks penalties from Defendants for misclassifying her and other 27

28 1 All following mentions of the “Labor Code” refer to the California Labor Code. ! | class members as independent contractors. (Id. § 6; 113(1)). She does not make an 2 | allegation regarding the frequency with which Defendants misclassified other potential 3 | class members. 4 On June 21, 2023, Defendants removed the action to federal court pursuant to the 5 | Class Action Fairness Act (“CAFA”), codified in relevant part at 28 U.S.C. §§ 1332, 6 1441(a), 1446, and 1453. Under CAFA, the federal court has jurisdiction over class 7 | actions “if the class has more than 100 members, the parties are minimally diverse, and 8 | the amount in controversy exceeds $5 million.” Dart Cherokee Basin Operating Co., 9 | LLC v. Owens, 574 U.S. 81, 84-85 (2014) (citing 28 U.S.C. § 1332). Defendants 10 support their assertion that the amount in controversy exceeds $5 million by relying on Il | the declarations of VXN’s Content Manager (See Decl. of Aldrich Yap (“Yap Decl.”’), 12 | Docket No. 1-1 4] 2), its Production Accountant (See Decl. of Belen Burditte (“Burditte 13 Decl.’”’), Docket No. 1-2 4 2), and a producer (See Decl. of Taylor Brock (“Brock 14 Decl.”), Docket No. 1-3 § 2). These employees reviewed accounting and personnel I5 records, among other documents, from the entire class period. (Burditte Decl. □□□□ 3-4; 16 Yap Decl. 45). From the employees’ personal knowledge and review of the documents, '7 | Defendants established the following’: Is e Defendants categorizes their films into two types: “Type-I” and “Type-II.” 19 (Brock Decl. | 4). Type-I films, like those Thoma performed in, “typically 20 involve a different and more complex filming style that results in a longer 1 duration on set.” (/d.). For the purposes of the amount-in-controversy 22 calculation, Defendants accounted for only the Type-I engagements. (See 23 Notice of Removal § 51). 24 e The number of actors who worked in Type-I films during the class 29 period—and therefore the likely number of putative class members—is 26 384. (Yap Decl. 5). 27 28 | * The Court recounts only those findings that are relevant to its calculations below.

l e Actors in Type-I movies are engaged and paid on a per-film basis. 2 (Burditte Decl. 4] 5(b)). From April 20, 2020, to May 8, 2023, Defendants 3 entered into 1,001 separate “engagements” with actors in Type-I films. ‘ (Id. 4 6(a)). 5 e The average daily rate paid to Type-I actors in the three years before 6 Thoma filed this action was $1,603.18. (Id. 9 6(b)). 7 e “The on-set production duration for Type-I films is at least ten (10) hours. 8 These production hours occur consecutively within the same calendar ? workday.” (Suppl. Decl. of Taylor Brock (“Suppl. Brock Decl.”), Docket 10 No. 17-297). uM Defendants then made the following assumptions and calculations: e The average daily rate during the class period of $1,603.18 equates to an 13 average hourly rate of $200.40 ($1,603.18 average daily rate/8 hours). 4 (Notice of Removal § 44). e The average hourly overtime rate was $300.60 (average hourly rate of $200.40 x 1.5). (d.). e Accordingly, assuming Thoma’s allegations are correct, the actors’

19 average daily rate including overtime works out to $2,204.38 ($1,603.18 50 average daily rate + 2 hours of overtime at $300.60 each) during the class

51 period. (/d.). e Each actor was “effectively discharged” after each engagement. (Notice 73 of Removal § 44). e Under California Labor Code section 201, employers must pay employees 95 all wages due to them at the time of discharge. Cal. Lab. Code § 201. 6 California Labor Code section 203 allows recovery of a waiting time 77 penalty equal to a day’s wages for each day that wages are unpaid, up to 28 30 days. Cal. Lab. Code § 203.

l e Because actors were paid on a per-film basis, Defendants never paid 2 overtime wages for any engagement. The amount-in-controversy on the 3 waiting time claim alone is therefore $66,197,306.18 ($2,204.38 average 4 daily wage x 30 days x 1,001 Type-I actor engagements).? 5 On June 28, 2023, Defendants filed a motion to dismiss for failure to state a claim © | under Federal Rule of Civil Procedure 12(b)(6). (Mot. to Dismiss).

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