Montecino v. Spherion Corp.

427 F. Supp. 2d 965, 2006 WL 1030414
CourtDistrict Court, C.D. California
DecidedApril 14, 2006
DocketCV 06-1589 ABC (JCX)
StatusPublished
Cited by4 cases

This text of 427 F. Supp. 2d 965 (Montecino v. Spherion Corp.) 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
Montecino v. Spherion Corp., 427 F. Supp. 2d 965, 2006 WL 1030414 (C.D. Cal. 2006).

Opinion

COLLINS, District Judge.

Proceedings: ORDER Granting Defendant’s Motion to Strike (In Chambers)

Pending before the Court is a Motion to Strike Portions of the Complaint, filed by Defendant Spherion Corp. (“Defendant”) on March 20, 2006. Plaintiff Margie Mon-tecino (“Plaintiff’) filed her opposition on April 3, 2006, to which Defendant replied on April 10, 2006. The Court finds the matter appropriate for submission without oral argument. See Fed.R.Civ.P. 78; Local Rule 7-15. Accordingly, the noticed hearing date of April 17, 2006 is VACATED. Upon consideration of the parties’ submissions and the case file, the Court hereby GRANTS the Motion.

BACKGROUND

The instant case arises from Plaintiffs claim that Defendant, her former employer, failed to timely pay her and other similarly-situated employees their final wages upon termination of their employment. Plaintiff filed her complaint in Los Angeles Superior Court on February 8, 2006, on behalf of herself and a “class of Spherion employees who were assigned to work for Spherion customers, whose employment ended in California during the period commencing four years prior to the filing of this action through the date notice is mailed to the class.” (Complaint ¶ 11.) Plaintiff alleges two causes of action, both related to Defendant’s alleged failure to timely pay final wages, in violation of: 1) California Labor Code §§ 201-203; and 2) California’s Unfair Competition Law (“UCL”), California Business and Professions Code § 17200, et seq. Defendant removed this action to this Court on March 15, 2006 on diversity grounds.

LEGAL STANDARD

“Under Federal Rule of Civil Procedure 12(f), the Court ‘may order stricken from any pleading ... any redundant, immaterial, impertinent or scandalous matter.’ ” Bureerong v. Uvawas, 922 F.Supp. 1450, 1478 (C.D.Cal.1996). Mo *967 tions to strike are generally regarded with disfavor. Id. “Matter will not be stricken from a pleading unless it is clear that it can have no possible bearing upon the subject matter of the litigation])]” State of California Dept of Toxic Substances Control v. Alco Pacific, Inc., 217 F.Supp.2d 1028, 1033 (C.D.Cal.2002). When considering a motion to strike, courts must view the pleading in the light more favorable to the pleader. See Lazar v. Trans Union LLC, 195 F.R.D. 665, 669 (C.D.Cal.2000). Moreover, a court must deny the motion to strike if any doubt exists whether the allegations in the pleadings might be relevant in the action. In re 2TheMart.com. Inc. Sec. Lit., 114 F.Supp.2d 955, 965 (C.D.Cal. 2000).

DISCUSSION

Defendant moves to strike all portions of the Complaint that refer to “restitution of monies and/or recovery of penalties under the UCL or ... the UCL’s four-year statute of limitations.” (Mot.2.) California law provides that an employee’s wages earned and unpaid at the time of termination of employment, by discharge or resignation with proper notice, are due and payable immediately. Cal. Labor Code §§ 201, 202. Where an employer “willfully fails” to timely pay such wages, “the wages of the employee shall continue as a penalty from the due date thereof at the same rate until paid or until an action therefor is commenced,” for up to thirty days. 1 Cal. Labor Code § 203. The statute of limitations for an action for payment of wages due under Labor Code §§ 201 and 202 is three years. Cal.Code Civ. Proc. § 338(a). The statute of limitations for an action brought under the UCL is four years. Cal. Bus. & Prof.Code § 17208.

The parties do not dispute that remedies under the UCL are limited to injunctive relief and restitution. See, e.g., Korea Supply Co. v. Lockheed, Martin Corp., 29 Cal.4th 1134, 1144, 131 Cal.Rptr.2d 29, 63 P.3d 937 (2003); Tomlinson v. Indymac Bank, 359 F.Supp.2d 891, 893 (C.D.Cal.2005) (internal citations omitted). The parties also do not dispute that unpaid wages have been held by California courts to constitute restitution, and thus are recoverable under the UCL. See, e.g., Cortez v. Purolator Air Filtration Products Co., 23 Cal.4th 163, 177, 96 Cal.Rptr.2d 518, 999 P.2d 706 (2000). At issue here is whether Plaintiff may also recover § 203 payments under the UCL, which would allow an extra year of recovery due to the UCL’s longer statute of limitations period. Defendant contends that § 203 payments are “penalties,” and thus not recoverable under the UCL. Plaintiff argues that such payments are “wages,” and thus are a viable part of a restitutionary remedy. Each party cites to the relevant portion of the statute itself, which uses both terms. See Cal. Labor Code § 203. The Court finds that § 203 payments are clearly a penalty, and thus cannot be claimed pursuant to the UCL.

Plaintiff argues that § 203 payments may be considered wages, and cites only to Cortez, 23 Cal.4th at 177, 96 Cal.Rptr.2d 518, 999 P.2d 706, in support of this proposition. Cortez, however, does not support Plaintiffs contention, but rather underlines the difference between unpaid wages and § 203 payments. In Cortez, the plaintiff filed a claim under the UCL for both unpaid overtime wages as well as for § 203 payments. Id. at 170, 96 Cal.Rptr.2d 518, 999 P.2d 706. The California Supreme Court held that “orders for payment of *968 wages unlawfully withheld from an employee are [ ] a restitutionary remedy authorized by section 17203.” Id. at 177, 96 Cal.Rptr.2d 518, 999 P.2d 706. In reaching this conclusion, the Court relied on the language of the UCL authorizing the court to make “ ‘orders or judgments ... as may be necessary to restore’ to persons in interest any money or property acquired by unfair competition.” Id. at 176, 96 Cal. Rptr.2d 518, 999 P.2d 706 (quoting Cal. Bus. and Prof.Code § 17203). As such, “earned wages that are due and payable ... are as much the property of the employee who has given his or her labor to the employer in exchange for that property as is property a person surrenders through an unfair business practice.” Id. at 178, 96 Cal.Rptr.2d 518, 999 P.2d 706. Because the employee thus has a vested property interest in the wages previously earned, the payment of such wages is therefore a restitutionary remedy authorized by the UCL. Id.

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Bluebook (online)
427 F. Supp. 2d 965, 2006 WL 1030414, Counsel Stack Legal Research, https://law.counselstack.com/opinion/montecino-v-spherion-corp-cacd-2006.