Mauia v. Petrochem Insulation, Inc.

CourtDistrict Court, N.D. California
DecidedJanuary 16, 2020
Docket3:18-cv-01815
StatusUnknown

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

Bluebook
Mauia v. Petrochem Insulation, Inc., (N.D. Cal. 2020).

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 7 IAFETA MAUIA, Case No. 18-cv-01815-TSH

8 Plaintiff, ORDER RE: MOTION TO DISMISS 9 v. Re: Dkt. No. 77 10 PETROCHEM INSULATION, INC., 11 Defendant.

12 13 I. INTRODUCTION 14 This putative class action involves alleged violations of the California Labor Code and Fair 15 Labor Standards Act (“FLSA”) by Defendant Petrochem Insulation, Inc. while employing Plaintiff 16 Iafeta Mauia and others on oil platforms on the Outer Continental Shelf (“OCS”). Before the 17 Court is Petrochem’s Amended Motion to Dismiss pursuant to Federal Rule of Civil Procedure 18 12(b)(6). ECF No. 84. Mauia filed an Opposition (ECF No. 86) and Petrochem filed a Reply 19 (ECF No. 87). Having considered the parties’ positions, relevant legal authority, and the record in 20 this case, the Court GRANTS IN PART and DENIES IN PART Petrochem’s motion for the 21 following reasons. 22 II. BACKGROUND 23 Mauia worked for Petrochem as an hourly Onsite Project Manager and Superintendent of 24 scaffolding projects on oil platforms off the coast of California. Third Am. Compl. (“TAC”) ¶ 9. 25 He worked for Petrochem until around March 2016. Id. ¶¶ 9-10. On February 20, 2018, he filed 26 an action against Petrochem in state court which Petrochem removed to this Court. 27 In his Third Amended Complaint, Mauia alleges five causes of action against Petrochem 1 California law and therefore is liable for meal period premiums under California Labor Code 2 section 226.7, TAC ¶ 32; (2) it failed to provide rest periods as required by California law and 3 therefore is liable for rest period premiums under California Labor Code section 226.7, TAC ¶ 39; 4 (3) it willfully failed to pay overtime, double-time, and meal and rest period premium wages under 5 California law, which failure constitutes unfair business practices under the California Business 6 and Professions Code section 17200, TAC ¶ 47; (4) it did not pay immediately all meal or rest 7 period premium wages earned and unpaid upon discharge, and that such failure was willful, TAC 8 ¶ 55; and (5) it willfully and in bad faith did not pay proper overtime rates for overtime work, in 9 violation of section 207 of the FLSA, by not including the reasonable cost of meals and lodging 10 when calculating overtime earnings, TAC ¶¶ 61-62. 11 Petrochem moves to dismiss all claims. 12 III. LEGAL STANDARD 13 A complaint must contain a “short and plain statement of the claim showing that the 14 pleader is entitled to relief.” Fed. R. Civ. P. 8(a)(2). To survive a Rule 12(b)(6) motion to 15 dismiss, a complaint must plead “enough facts to state a claim to relief that is plausible on its 16 face.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007). Plausibility does not mean 17 probability, but it requires “more than a sheer possibility that a defendant has acted unlawfully.” 18 Ashcroft v. Iqbal, 556 U.S. 662, 687 (2009). A complaint must provide a defendant with “fair 19 notice” of the claims against it and the grounds for relief. Twombly, 550 U.S. at 555 (quotations 20 and citation omitted); Fed. R. Civ. P. 8(a)(2) (A complaint must contain a “short and plain 21 statement of the claim showing that the pleader is entitled to relief.”). In considering a motion to 22 dismiss, a court accepts factual allegations in the complaint as true and construes the pleadings in 23 the light most favorable to the nonmoving party. Manzarek v. St. Paul Fire & Marine Ins. Co., 24 519 F.3d 1025, 1031 (9th Cir. 2008).; Erickson v. Pardus, 551 U.S. 89, 93-94 (2007). However, 25 “the tenet that a court must accept a complaint’s allegations as true is inapplicable to threadbare 26 recitals of a cause of action’s elements, supported by mere conclusory statements.” Iqbal, 556 27 U.S. at 678. 1 request to amend the pleading was made, unless it determines that the pleading could not possibly 2 be cured by the allegation of other facts.” Lopez v. Smith, 203 F.3d 1122, 1127 (9th Cir. 2000) (en 3 banc) (citations and quotations omitted). However, a court “may exercise its discretion to deny 4 leave to amend due to ‘undue delay, bad faith or dilatory motive on part of the movant, repeated 5 failure to cure deficiencies by amendments previously allowed, undue prejudice to the opposing 6 party . . ., [and] futility of amendment.’” Carvalho v. Equifax Info. Servs., LLC, 629 F.3d 876, 7 892-93 (9th Cir. 2010) (alterations in original) (quoting Foman v. Davis, 371 U.S. 178, 182 8 (1962)). 9 IV. DISCUSSION 10 A. Parker Drilling Mgmt. Servs. v. Newton 11 While this case has been pending, the U.S. Supreme Court issued an opinion addressing 12 whether federal law or California law applies to wage and hour claims made by employees who 13 work on drilling platforms on the OCS. Parker Drilling Mgmt. Servs. v. Newton, 139 S. Ct. 1881 14 (2019). That case is especially pertinent here, as it clarified the standard for determining when 15 state law applies on the OCS (and overturned the Ninth Circuit’s decision on that issue). The case 16 involved a former employee, Newton, who had worked on drilling platforms off the California 17 coast. Newton filed a class action which included claims premised on California’s minimum- 18 wage and overtime laws. The issue before the Supreme Court was whether California law could 19 be adopted since the claims arose out of work on the OCS. 20 The Supreme Court noted first that the Outer Continental Shelf Lands Act (“OCSLA”), 42 21 U.S.C. §§ 1333-56b, “extends federal law to the subsoil and seabed of the [OCS].” 139 S. Ct. at 22 1886. “Under the OCSLA, all law on the OCS is federal law, administered by federal officials.” 23 Id. The OCSLA, the Court wrote, “denies States any interest in or jurisdiction over the OCS, and 24 it deems the adjacent State’s laws to be federal law ‘[t]o the extent that they are applicable and not 25 inconsistent with’ other federal law.” Id. (quoting 43 U.S.C. § 1333). The Court proceeded to 26 address the question of how to determine which state laws meet that requirement and therefore 27 should be adopted as federal law. 1 Fifth Circuit precedent which provides that under the OCSLA, “state law only applies to the extent 2 it is necessary to ‘fill a significant void or gap’ in federal law.” Newton v. Parker Drilling Mgmt. 3 Servs., 2015 U.S. Dist. LEXIS 191899, *6 (quoting Cont’l Oil Co. v. London Steam-Ship Owners’ 4 Mut. Ins. Ass’n, 417 F. 2d 1030, 1036 (1969)). On appeal, the Ninth Circuit vacated and 5 remanded, finding that state law is “‘applicable’” under the OCSLA whenever it “pertains to the 6 subject matter at hand,” and that state laws are “inconsistent” with federal law under the OCSLA 7 only if “they are mutually incompatible, incongruous, or inharmonious.” Newton v. Parker 8 Drilling Mgmt. Servs., 881 F.3d 1078, 1078-93 (2018) (citations omitted). The Supreme Court 9 disagreed.

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