Morgan v. Rohr, Inc.

District Court, S.D. California·Decided November 15, 2023·No. 3:20-cv-00574·Unknown

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 SOUTHERN DISTRICT OF CALIFORNIA 10 11 NATHANIEL MORGAN, an individual; Case No.: 20-cv-574-GPC-AHG MICHAEL BEVAN, an individual; 12 individually and on behalf of all others ORDER GRANTING PLAINTIFFS’ 13 similarly situated, MOTION FOR RECONSIDERATION 14 Plaintiff,

15 v. [ECF Nos. 189, 196, 197] 16 ROHR, INC., a corporation; HAMILTON SUNDSTRAND, d/b/a COLLINS 17 AEROSPACE; UNITED 18 TECHNOLOGIES CORPORATION, 19 Defendant. 20 21 Pending before the court is Plaintiffs’ motion for reconsideration of the July 7, 22 2023, order dismissing Plaintiffs’ claim for restitution under California’s Unfair 23 24 25 26 27 1 Competition Law (“UCL”).1 Hearings were held on September 15, 2023, and October 2 20, 2023. For the reasons stated herein, Plaintiffs’ motion for reconsideration is 3 GRANTED and Plaintiffs’ claim under the UCL is remanded to the San Diego Superior 4 5 Court. 6 BACKGROUND 7 The facts of this case are well-known to the parties and will be repeated only to the 8 9 extent that they are relevant to the instant motion. 10 Plaintiffs filed their initial complaint on March 27, 2019, in Solano County 11 Superior Court, alleging labor law violations related to unpaid wages and interrupted rest 12 13 periods. ECF No. 1 at 6.2 In addition to eight claims made under California Labor Code, 14 Plaintiffs raised an equitable claim under the UCL for restitution and disgorgement of 15 wages and other compensation unlawfully withheld by Defendants. ECF No. 1-1 at 25– 16 17 26. Defendants timely removed the case to the Eastern District of California, see ECF 18 No. 1 at 8–9, invoking diversity jurisdiction pursuant to the Class Action Fairness Act of 19 2005 (“CAFA”), see 28 U.S.C. §1332(d), and on March 25, 2020, the case was 20 21 transferred to the Southern District of California, see ECF No. 23. This Court eventually 22 23 24 25 1 Plaintiffs move in the alternative for certification of the issue for interlocutory appeal. See 28 U.S.C. §1292(b). 26 2 Page citations refer to CM/ECF pagination. 27 1 certified classes relating to five of Plaintiffs’ claims, including certification of subclasses 2 relating to Plaintiffs’ cause of action for unfair and unlawful business practices in 3 violation of California’s UCL, see ECF No. 105 at 45–46. 4 5 Defendants moved for judgment on the pleadings on May 4, 2023, seeking 6 dismissal of Plaintiffs’ equitable claim under the UCL for restitution because Plaintiffs 7 had an adequate legal remedy through their damages claims under California Labor 8 9 Code. ECF No. 160-1 at 8. Relying on Sonner v. Premier Nutrition Corp., 971 F.3d 834 10 (9th Cir. 2020), Defendants moved to dismiss Plaintiffs’ UCL claim without prejudice to 11 refiling of the same claim in state court. Id. Plaintiffs conceded that their complaint as 12 13 pleaded was deficient for lack of equitable jurisdiction under Sonner and requested that 14 the UCL claim be remanded to state court instead. ECF No. 170 at 6. This Court held 15 that dismissal with leave to refile in a court of competent jurisdiction was the proper 16 17 course of action, pursuant to Guzman v. Polaris Industries Inc., 49 F.4th 1308 (9th Cir. 18 2022). ECF No. 183. On August 24, 2023, Plaintiffs brought this motion for 19 reconsideration under Local Rule 7.1(i), contending that this Court should have remanded 20 21 the UCL claim. ECF No. 189-1 at 4. 22 Plaintiffs’ primary argument is that reconsideration is warranted because Guzman 23 is procedurally distinguishable, an argument that Plaintiffs failed to advance in their 24 25 initial briefing, and that it was error for the Court to rely on Guzman in its initial decision 26 to dismiss the UCL claim. ECF No. 183. The Court agrees. Guzman was originally 27 1 filed in federal court, whereas the instant case was not. As such, the district court in 2 Guzman could not have remanded the case to the state court. The Court’s initial reliance 3 on Guzman to dismiss Plaintiffs’ UCL claim was erroneous, and after reconsideration of 4 5 the matter, the Court concludes that Plaintiffs’ UCL claim should instead be remanded. 6 LEGAL STANDARD 7 Federal district courts have inherent jurisdiction to reconsider and alter non-final 8 9 orders. United States v. Jones, 608 F.2d 386, 390 (9th Cir. 1979). Allowing 10 reconsideration “furthers the policy favoring judicial economy.” Jones, 608 F.2d at 390 11 n.2. In this jurisdiction, parties may apply for such reconsideration, as Plaintiffs did, 12 13 “[w]henever any motion . . . for any order or other relief has been made to any judge and 14 has been refused in whole or in part, or has been granted conditionally or on terms . . . .” 15 Local Rule 7.1(i). The moving party need only set forth “what new or different facts and 16 17 circumstances are claimed to exist which,” in the initial application, “did not exist, or 18 were not shown . . . .” Id. 19 Defendants argue that, under Fed. R. Civ. P. 59(e), Plaintiffs’ motion for 20 21 reconsideration is appropriate only if “the district court (1) is presented with newly 22 discovered evidence, (2) committed clear error or the initial decision was manifestly 23 unjust, or (3) if there is an intervening change in controlling law.” See Sch. Dist. No. 1J, 24 25 Multnomah Cnty., Or. v. ACandS, Inc., 5 F.3d 1255, 1263 (9th Cir. 1993). Defendants 26 submit that, under Fed. R. Civ. P. 59(e), Plaintiffs’ motion for reconsideration fails 27 1 because the facts Plaintiffs rely on are not newly discovered and any changes in law 2 Plaintiffs cite are not controlling. 3 Defendants have failed to account for the difference between a motion for 4 5 reconsideration of a non-final order, brought under Local Rule 7.1(i), and a motion to 6 alter or amend a judgment, brought under Fed. R. Civ. P. 59(e). See ECF No. 196. On 7 one hand, there is some support for examining motions for reconsideration brought under 8 9 local rules as if they were motions to alter or amend a judgment brought under Fed. R. 10 Civ. P. 59(e). In Schroeder v. McDonald, the Ninth Circuit held that a “timely filed 11 motion for reconsideration under a local rule is a motion to alter or amend a judgment 12 13 under Fed.R.Civ.P. 59(e).” 55 F.3d 454, 457 (9th Cir. 1995) (quoting Bestran Corp. v. 14 Eagle Comtronics, Inc., 720 F.2d 1019, 1019 (9th Cir. 1983) (applying Rule 59(e) filing 15 deadline requirement to motion for reconsideration brought under local rules); see also 16 17 Fuller v. M.G. Jewelry, 950 F.2d 1437, 1441 (9th Cir. 1991) (applying Rule 59(e) and 18 Rule 60(b) substantive requirements to motion for reconsideration brought under local 19 rules). This remained the case even where the motion for reconsideration attacked a non- 20 21 final order. In Schroeder, the plaintiff’s motion for reconsideration challenged the 22 district court’s grant in part of summary judgment to defendants. 55 F.3d at 458.

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