McMillan v. The CPride Group LLC

District Court, W.D. Washington·Decided April 22, 2022·No. 2:21-cv-00549·Unknown

Opinion

UNITED STATES DISTRICT COURT AT SEATTLE RACHEL K. MCMILLAN, No. 2:21-cv-549-BJR Plaintiff, v. ORDER ON DEFENDANTS’ MOTION THE CPRIDE GROUP LLC, et al., ALTERNATIVE, TO REQUIRE SPECIFICITY OF CLAIMS Defendants.

This matter comes before the Court on Defendants’ Motion to Dismiss, or, in the Alternative, to Require Specificity of Claims. Dkt. No. 26. Having reviewed the materials submitted by the parties and Plaintiff’s complaint, the Court GRANTS in part and DENIES in part Defendants’ motion. The reasons for the Court’s decision are set forth below. I. Background Plaintiff Rachel McMillan has brought this action against the following defendants: (1) The CPride Group LLC (“CPride Group”); (2) Pride Group NW LLC (“Pride Group NW”); (3) Carlene Pride; (4) Carlene Pride’s marital community; and (5) “Unknown John Doe Employees of Defendants.” Plaintiff’s complaint raises multiple claims against Defendants under federal, state, and municipal law.

ORDER - 1 Unless noted otherwise, the facts recited below are taken from Plaintiff’s complaint. For the purposes of the pending motion to dismiss, the Court takes the factual allegations in Plaintiff’s complaint as true. Plaintiff was employed as a transaction coordinator by Defendant CPride Group, which is a business based in Seattle.1 Her supervisor was Defendant Carlene Pride, who was CPride Group’s sole owner, shareholder, and officer. Plaintiff’s complaint does not specifically describe the nature of CPride Group’s business; however, Defendants represent in their motion that Defendant Pride is a real estate broker. Plaintiff was employed by CPride Group on an hourly basis of $25 per hour from March to March 31, 2018. Thereafter, on April 17, 2018, Plaintiff signed an employment contract 12 with CPride Group. This contract provided that Plaintiff would be paid $4,200 per month. The employment contract provided that Plaintiff was to be paid $2,100 bi-monthly on the 2nd and 15th days of each month. The employment contract also provided that Plaintiff would receive a bonus of $1,500 for every deal that CPride Group closed. The employment contract stated that Plaintiff’s job “encompasses multi-lateral digital management.” Plaintiff alleges that CPride Group issued her paycheck late eight times and also failed to pay her $6,500 in bonuses for deals that were closed. Plaintiff also alleges that from approximately June 2018 until she was terminated in November 2018, she worked more than 40 hours per week and was not paid overtime wages. On November 14, 2018, Defendant Pride told Plaintiff that she would not receive $6,500 in unpaid bonuses because Plaintiff did not deserve them due to “underperformance.” Instead, As discussed below, Plaintiff also argues in response to Defendants’ pending motion that she was employed by Defendant Pride Group NW. ORDER - 2 1 Defendant Pride offered to pay Plaintiff $3,000 for unpaid past bonuses. Defendant Pride also told Plaintiff that she must sign a new employment contract to continue working for CPride Group. Defendant Pride gave Plaintiff a check for $5,100 (which represented $2,100 for Plaintiff’s bi-monthly paycheck and $3,000 for unpaid bonuses) and a new employment contract to sign. However, Defendant Pride took back the new employment contract and the $5,100 check after Plaintiff demanded full payment of the $6,500 of unpaid bonuses and her $2,100 bi- monthly wages (for a total of $8,600). Later that day, Plaintiff sent an email to Defendant Pride asking to be paid $8,600. On November 15, 2018, Defendant Pride gave Plaintiff a revised version of a new employment contract and a document entitled “Settlement Agreement.” In the Settlement Agreement, Defendant Pride again offered to pay Plaintiff only $3,000 of the $6,500 of unpaid bonuses. On November 16, 2018, Plaintiff told Defendant Pride that she would not sign the Settlement Agreement or the revised version of the new employment contract if those documents “required her to abandon earned wages.” Dkt. No. 1 at 22. Defendant Pride told Plaintiff that she would be immediately terminated unless Plaintiff signed the Settlement Agreement or the new employment contract. When Plaintiff refused to sign, Defendant Pride terminated Plaintiff on November 16, 2018. Plaintiff was issued a check for $2,100 by Defendant Pride on November 16, 2018. The check was drawn on the account of Pride Group NW rather than from the account of CPride Group. Dkt. No. 1 at 17. After being terminated, Plaintiff filed a claim for unemployment benefits. Defendant CPride Group unsuccessfully challenged Plaintiff’s entitlement to unemployment benefits. After

ORDER - 3 Defendant CPride Group dropped its appeal of Plaintiff’s claim for unemployment benefits, it mailed Plaintiff a check for $5,000. Plaintiff’s complaint in this matter runs 46 pages. Under the heading “Causes of Action, Damages, and Relief Requested,” Plaintiff’s complaint includes nineteen separate subheadings, which are listed as follows: (1) “Failure to pay minimum wages on the designated payday as required by city, state, and federal statutes and code.” (2) “Failure to pay a contractually-agreed-upon salary on the designated payday as required by city and state statutes and code.” (3) “Failure to pay overtime wages on the designated payday as required by state and federal statutes.” (4) “Failure to pay contractually-agreed-upon bonuses on the designated payday as required by city and state.” (5) “Failure to pay wages based on the application of the doctrine ‘application of payments’ to ongoing wage debt.” (6) “Retaliation for asserting a wage claim.” (7) “Failure to prepare, keep, and provide employees with employee records” as required by the Seattle Municipal Code. (8) “Failure to post notice of wage rights” as required by the Seattle Municipal Code; (9) “Employment taxes,” which “requests that the Defendants pay all employer taxes due on all unpaid wages.” (10) “Denied employment benefits due to treatmen[t] of McMillan as independent contractor.”

ORDER - 4 (11) “Wrongful termination in retaliation for asserting wage rights.” (12) “An injunction to prevent future retaliation.” (13) “Attorney fees and costs.” (14) “Breach of contract.” (15) “Defamation and invasion of privacy, false light.” (16) “Equitable relief.” (17) “Tax gross up.” (18) “Interest.” (19) “Other relief as the Court deems appropriate.” Defendants have moved to dismiss Plaintiff complaint on a number of grounds. In the alternative, Defendants have moved under Federal Rule of Civil Procedure 12(e) to require Plaintiff to state her claims with greater specificity. II. Discussion A. Compliance with Rule 8(a)(1) As a preliminary matter, Defendants argue that Plaintiff’s complaint fails to comply with Federal Rule of Civil Procedure 8(a)(1), which provides that a complaint must contain “a short and plain statement of the grounds for the court’s jurisdiction.” Defendants correctly note that Plaintiff’s complaint does not include such statement. Instead, Plaintiff’s complaint simply alleges that this Court has subject matter jurisdiction pursuant to RCW 2.08.010, which is a Washington State statute that does not provide a basis for federal jurisdiction. This error is notable because Plaintiff, who is represented by counsel, chose to file this case in federal court, and as a result should have followed the requirements of Federal Rule of Civil Procedure 8(a)(1) in drafting her complaint.

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McMillan v. The CPride Group LLC, (W.D. Wash. 2022).

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