McCormick v. Festiva Development Group, LLC

269 F.R.D. 59, 2010 U.S. Dist. LEXIS 77374, 2010 WL 2990284
CourtDistrict Court, D. Maine
DecidedJuly 29, 2010
DocketCivil No. 09-365-P-S
StatusPublished
Cited by3 cases

This text of 269 F.R.D. 59 (McCormick v. Festiva Development Group, LLC) is published on Counsel Stack Legal Research, covering District Court, D. Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McCormick v. Festiva Development Group, LLC, 269 F.R.D. 59, 2010 U.S. Dist. LEXIS 77374, 2010 WL 2990284 (D. Me. 2010).

Opinion

MEMORANDUM DECISION ON DEFENDANT’S MOTION TO SEVER

JOHN H. RICH III, United States Magistrate Judge.

Defendant Rangeley Lake Resort Development Company, LLC (“Rangeley”) moves pursuant to Federal Rule of Civil Procedure 21 to sever itself from the instant suit, arguing that it was misjoined as a defendant. See Defendant Rangeley Lake Resort Development Company, LLC’s Motion To Sever Pursuant to Fed.R.Civ.P. 21 (“Motion”) (Docket No. 71). For the reasons that follow, the Motion is denied.1

I. Applicable Legal Standards

Federal Rule of Civil Procedure 21 provides, in relevant part: “On motion or on its own, the court may at any time, on just terms, add or drop a party.” Fed.R.Civ.P. 21. “The rule does not define the grounds for misjoinder, but it is well-settled that parties are misjoined when the preconditions for permissive joinder in Rule 20(a) are not met.” Beaulieu v. Concord Group Ins. Co., 208 F.R.D. 478, 479 (D.N.H.2002). “To properly join two or more defendants in one action, the plaintiff must allege facts that show: (1) that the right to relief asserted against the defendants arises out of the same transaction, occurrence, or series of transactions or occurrences, and (2) that a question of law or fact in common to both defendants will arise in the action.” Id.; see also Fed. R.Civ.P. 20(a)(2) (persons may be joined in one action as defendants if “any right to relief is asserted against them jointly, severally, or in the alternative with respect to or arising out of the same transaction, occurrence, or series of transactions or occurrences” and “any question of law or fact [61]*61common to all defendants will arise in the action”).

“When appropriate, the joinder rules result in beneficial economies of scale and judicial efficiency by resolving related issues in a single lawsuit.” Beaulieu, 208 F.R.D. at 479. “Therefore, the preconditions for permissive joinder are construed liberally in order to promote the broadest scope of action consistent with fairness to the parties.” Id. “However, the determination of whether parties have been misjoined lies within the sound discretion of the district court.” Id.

“If the test for permissive joinder is not satisfied, a court, in its discretion, may sever the misjoined parties, so long as no substantial right will be prejudiced by the severance.” Helm v. Alderwoods Group, Inc., No. C 08-01184 SI, 2010 WL 2219722, at *1 (N.D.Cal. May 28, 2010) (citation and internal quotation marks omitted). “Even if the permissive joinder requirements are met, the court may sever to avoid delay, jury confusion, or prejudice to the moving party.” Id.

II. Factual Background

The instant action was initiated in state court on June 26, 2009, and removed by Rangeley to this court on August 12, 2009. See Docket Nos. 1-2. Following the resolution of a motion for remand, which ultimately was withdrawn, and two motions to dismiss, see Docket Nos. 5, 7,14, 25, 30, 31, 48, 56, the discovery deadline was reset to April 1, 2011, see Docket No. 67. Discovery has only recently begun. See Defendant Festiva’s Opposition to Defendant Rangeley’s Motion To Sever (“Festiva’s Opposition”) (Docket No. 76) at 2, 4; Plaintiffs’ Opposition to Defendant Rangeley’s Motion To Sever (“Plaintiffs’ Opposition”) (Docket No. 78) at 1, 3.

A. Plaintiffs’ Allegations

The plaintiffs, on behalf of themselves and others similarly situated, seek relief for the defendants’ alleged violations of federal and Maine overtime-pay and minimum-wage laws. See Third Amended Complaint (Docket No. 84) ¶¶ 1-4.2 They propose to do so through the vehicles of a collective action pursuant to the Fair Labor Standards Act (“FLSA”), 29 U.S.C. § 216(b), and a class action pursuant to Federal Rule of Civil Procedure 23 targeting violations of Maine law. See id.

The “Collective Class” pursuant to the FLSA would consist of “[a]ll persons who are or have been employed by Defendants as a Sales Representative or some similar title, who were paid solely on a commission basis, at any time within three years prior to this action’s filing date through the final disposition of this case.” Id. ¶23. The “Maine Class” pursuant to Rule 23 would consist of “[a]ll employees of Defendants who were, are, or will be employed in the State of Maine as Sales Representatives or some similar title, who were paid solely on a commission basis, at any time within six years prior to this action’s filing date through the final disposition of this case.” Id. ¶ 30.

The plaintiffs allege, in relevant part, that:

1. They were or are employed by Rangeley and/or its successor, Festiva Development Group, LLC (“Festiva”), and Williams as sales representatives or some similar title. Id. ¶ 1.

2. They performed tasks of selling timeshare interests to the general public and were paid exclusively on a commission basis. Id. During all relevant times, they were employed on the defendants’ premises, and the defendants substantially controlled their hours and places of employment. Id.

3. During the Collective Class and Maine Class periods, the defendants failed to pay appropriate compensation, including overtime compensation and minimum wage, to each member of the Collective Class and the Maine Class as required by federal and state law. Id. ¶ 4.

[62]*624. Rangeley, a corporation of the State of Maine doing business in Portland, Maine, employed certain of the plaintiffs during all relevant times at the same location as that of Festiva. Id. ¶ 17. Festiva is a foreign corporation qualified to do business in the State of Maine and having a place of business in Portland, Maine. Id. ¶ 18. It employed certain of the plaintiffs, at all relevant times, at the same location as that of Rangeley. Id.

5. The defendants suffered and permitted the plaintiffs and the Collective Class to work without being paid minimum wage compensation and to work more than 40 hours a week without appropriate overtime compensation. Id. ¶ 24.

6. The defendants’ unlawful conduct has been widespread, repeated, and consistent. Id. ¶ 25. The defendants have operated under a scheme to deprive these employees of appropriate minimum wage and overtime compensation by failing to compensate them properly for all hours worked. Id. ¶ 26. The defendants misclassified the plaintiffs and members of the Collective Class who had the job title of sales representative as “independent contractors” or “exempt” from federal overtime laws. Id. ¶ 27.

7.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
269 F.R.D. 59, 2010 U.S. Dist. LEXIS 77374, 2010 WL 2990284, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mccormick-v-festiva-development-group-llc-med-2010.