Mincy v. Staff Leasing, L.P.

100 F. Supp. 2d 1050, 2000 U.S. Dist. LEXIS 9111, 2000 WL 834448
CourtDistrict Court, D. Arizona
DecidedJune 22, 2000
Docket99-1796-PHX-ROS
StatusPublished
Cited by5 cases

This text of 100 F. Supp. 2d 1050 (Mincy v. Staff Leasing, L.P.) is published on Counsel Stack Legal Research, covering District Court, D. Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mincy v. Staff Leasing, L.P., 100 F. Supp. 2d 1050, 2000 U.S. Dist. LEXIS 9111, 2000 WL 834448 (D. Ariz. 2000).

Opinion

ORDER

SILVER, District Judge.

On September 3, 1999, Plaintiffs, Beatrice Mincy and Linda Leise (“Plaintiffs”) filed a Complaint against Defendants Staff Leasing and JMB Multimedia, LLC (“JMB”), in the Maricopa County Superior Court alleging violation of the Fair Labor Standards Act (“FLSA”), 29 U.S.C. § 201 et seq.; violation of A.R.S. § 23-353, and other state law causes of action quantum meruit, breach of express and implied contract, and breach of the covenant of good faith and fair dealing, all related to the wage dispute. Plaintiffs allege that Defendant failed to pay them the so called “comp time” which was due to them and accumulated by the time they were terminated in 1997. “The thrust of Plaintiffs’ case is that Defendants had a policy of providing paid time off for hours worked over 40 in a work week [i.e., “comp time”], and failed to pay monies owed to Plaintiffs for [that time] accrued when it [sic] terminated Plaintiffs.” (Mot. at 4.) Plaintiffs seek to recover treble damages under A.R.S. §§ 23-353 and -355, and an additional amount as liquidated damages under § 216(b) of FLSA, as well as compensation for unpaid wages under the common law claims.

On October 6, 1999, Defendants filed a Notice of Removal alleging jurisdiction based on federal question, 28 U.S.C. § 1331, as well as diversity, 28 U.S.C. § 1332. 1 On October 7, 1999, Defendant *1051 Staff Leasing, LP (“Staff Leasing”) filed an Answer denying Plaintiffs’ allegations. On November 4, 1999, Defendant JMB filed an Answer denying Plaintiffs’ allegations.

Before the Court is Plaintiffs’ Motion to Remand filed on October 19, 1999. 2 Plaintiffs assert that this case should be remanded pursuant to 28 U.S.C. § 1441(c) because the state claims predominate. Plaintiffs further state that there is no complete diversity of citizenship because “both Plaintiffs and Defendant JMB Multimedia are residents of the State of Arizona” and, therefore, there is no original jurisdiction under 28 U.S.C. § 1332. (Mot. at 4-5.) In addition, in support of their Motion to Remand, Plaintiffs argue that to prevail on their federal claim “they will have to overcome the burden of proving that they are not exempt under the Act,” (Mot. at 3), and, therefore, “FLSA is merely a secondary claim for overtime if Plaintiffs can overcome the presumption of exempt status.” 3 (Mot. at 4.)

In Response, Defendants state that as long as there is a federal cause of action asserted, the removal was proper and they are entitled to be in this Court. Further, Defendants state that there is only a single set of facts to be proven on the federal and state claims, and that if Plaintiffs know that their federal claim is weak and they do not want to be in federal court they should dismiss it. (Resp. at 3. n. 1.) No Reply has been filed. In their Response, Defendants do not controvert that there is no diversity jurisdiction, though they alleged it in their Notice of Removal, nor do they raise a question whether the fact that JMB is a “resident” of Arizona — as opposed to citizen — destroys diversity.

Having considered all the pleadings and having heard counsels’ arguments, on May 26, 2000, the Court denied Plaintiffs’ Motion to Remand for the reasons explained in this Order.

Discussion

Title 28 U.S.C. § 1367 reads in part

(a) Except as provided in subsections (b) and (c) or as expressly provided otherwise by Federal statute, in any civil action of which the district courts have original jurisdiction, the district courts shall have supplemental jurisdiction over all other claims that are so related to claims in the action within such original jurisdiction that they form part of the same case or controversy under Article III of the United States Constitution. Such supplemental jurisdiction shall include claims that involve the joinder or intervention of additional parties.
(c) The district courts may decline to exercise supplemental jurisdiction over a claim under subsection (a) if—
(1) the claim raises a novel or complex issue of State law,
(2) the claim substantially predominates over the claim or claims over which the district court has original jurisdiction,
(3) the district court has dismissed all claims over which it has original jurisdiction, or
(4) in exceptional circumstances, there are other compelling reasons for declining jurisdiction.

Id. Title 28 U.S.C. § 1441(c) provides

Whenever a separate and independent claim or cause of action within the juris *1052 diction conferred by section 1331 of this title is joined with one or more otherwise non-removable claims or causes of action, the entire case may be removed and the district court may determine all issues therein, or, in its discretion, may remand all matters in which State law predominates.

28 U.S.C. § 1441(c) (emphasis added).

In Executive Software v. U.S. District Court for Central District of California, 24 F.3d 1545, 1551 (9th Cir.1994), while mandating that the district court provide a reason for declining to exercise supplemental jurisdiction pursuant to § 1367(c), the Ninth Circuit held that “once it is determined that the assertion of supplemental jurisdiction is permissible under section 1367(a) and (b), section 1367(c) provides the only valid basis upon which the district court may decline jurisdiction and remand pendent claims.” Id. This holding suggests that, under § 1367, the exercise of supplemental jurisdiction by a district court is mandatory rather than discretionary, absent reasons to decline jurisdiction, which are enumerated in § 1367(c). Accord Chemerinsky, Federal Jurisdiction § 5.4 at 332 and n. 22 (3 ed.1999) (section 1367 “changes the preexisting law in that it seems to make supplemental jurisdiction mandatory not discretionary;” quoting City of Chicago v. International College of Surgeons,

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Bluebook (online)
100 F. Supp. 2d 1050, 2000 U.S. Dist. LEXIS 9111, 2000 WL 834448, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mincy-v-staff-leasing-lp-azd-2000.