Moshtagh v. The Home Depot USA Inc

District Court, W.D. Washington·Decided May 13, 2021·No. 2:19-cv-01205·Unknown

Opinion

2 3 4 UNITED STATES DISTRICT COURT AT SEATTLE 6 7 STEVE MOSHTAGH, an individual, on behalf of No. 2:19-cv-01205-RSM himself and others similarly situated, Plaintiffs, DEFENDANT’S MOTION FOR PARTIAL 9 vs. SUMMARY JUDGMENT

10 THE HOME DEPOT U.S.A., INC. a Delaware Corporation, 11 Defendant. 12

14 This matter comes before the Court on Defendant Home Depot U.S.A., Inc. (“Home 15 Depot”)’s Motion for Partial Summary Judgment. Dkt. #73. Home Depot moves for summary 16 judgment on Plaintiff Steve Moshtagh’s claims for: (1) unlawful wage deductions for donations to 17 The Homer Fund (First Cause of Action); (3) unpaid wages for off-the-clock waiting time after 18 19 store closing (Third Cause of Action); (4) double damages for willful withholding of wages (Fourth 20 Cause of Action); and (5) violation of Washington’s Consumer Protection Act (Fifth Cause of 21 Action). Id. at 7. Mr. Moshtagh has filed an opposition. Dkt. #135. The Court has determined 22 that oral argument is unnecessary, and, for the reasons stated below, GRANTS IN PART this 23 Motion. Class certification in this matter is still pending. See Dkt. #39. 24 II. BACKGROUND 25 In 2014 Plaintiff Moshtagh first started working for Home Depot in a Palm Springs, 26 27 California store. Dkt. #76-1, Ex. A (“Moshtagh Dep.”), 13:12-16, 26:1-7. 1 In February of 2016, Mr. Moshtagh submitted his resignation so he could move closer to 2 his sick mother, who lived in Kirkland, Washington. Id. at 27:2-20; 116:5-24. Home Depot instead 3 offered to transfer him to a store location in Bothell, Washington, and he accepted the transfer. Id. 4 At the Bothell store, Mr. Moshtagh worked in “special services” for about six months, then 5 on the freight team, then as a cashier. Id. at 144:21-145:1. During his employment in Washington, 6 plaintiff earned an hourly wage of $11.25 or more. Dkt. #75 (“Dixon Decl.”), ¶ 4. 7 8 In March 2019, Mr. Moshtagh called the Home Depot hotline (AwareLine) to report that he 9 was not getting rest breaks when he worked a five-hour shift. Moshtagh Dep. at 69:11-13. Home 10 Depot conducted an investigation, finding that many witnesses disputed Mr. Moshtagh’s account, 11 and that Mr. Moshtagh’s statements were “contradictory.” See Dkt. #73 at 10–11. Mr. Moshtagh 12 stopped reporting to work in April of 2019 and was fired. Id. at 76:20-22. 13 Mr. Moshtagh filed a proposed class action in King County Superior Court on June 28, 14 15 2019. Dkt. #1-2. The case was removed to this Court on August 1, 2019. Dkt. #1. He alleges the 16 following causes of action: Unlawful Wage Deductions for Home Depot’s policy and practice of 17 deducting money from paychecks for The Homer Fund charity, failure to provide rest breaks, failure 18 to pay for all time on duty, willful withholding of wages, and a Washington Consumer Protection 19 Act (“CPA”) claim. Additional facts for these claims are discussed in greater detail below. 20 III. DISCUSSION 21 A. Legal Standard for Summary Judgment 22 23 Summary judgment is appropriate where “the movant shows that there is no genuine 24 dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. 25 Civ. P. 56(a); Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 247 (1986). Material facts are those 26 which might affect the outcome of the suit under governing law. Anderson, 477 U.S. at 248. In 27 ruling on summary judgment, a court does not weigh evidence to determine the truth of the matter, 1 but “only determine[s] whether there is a genuine issue for trial.” Crane v. Conoco, Inc., 41 F.3d 2 547, 549 (9th Cir. 1994) (citing Federal Deposit Ins. Corp. v. O’Melveny & Meyers, 969 F.2d 744, 3 747 (9th Cir. 1992)). 4 On a motion for summary judgment, the court views the evidence and draws inferences in 5 the light most favorable to the non-moving party. Anderson, 477 U.S. at 255; Sullivan v. U.S. Dep't 6 of the Navy, 365 F.3d 827, 832 (9th Cir. 2004). The Court must draw all reasonable inferences in 7 8 favor of the non-moving party. See O’Melveny & Meyers, 969 F.2d at 747, rev’d on other grounds, 9 512 U.S. 79 (1994). However, the nonmoving party must make a “sufficient showing on an 10 essential element of her case with respect to which she has the burden of proof” to survive summary 11 judgment. Celotex Corp. v. Catrett, 477 U.S. 317, 323 (1986). 12 B. The Homer Fund Deduction Claims 13 The Homer Fund is a nonprofit charity, established in 1999, funded mainly by voluntary 14 15 donations from Home Depot employees for the purpose of providing emergency financial 16 assistance to Home Depot employees in need. Dkt. #76-1 Ex. D (“Robinson Dep.”) at 9:3-6, 94:21- 17 25. The Homer Fund is affiliated with THDF II, Inc., a registered 501(c)(3) organization not legally 18 part of Home Depot. Id. at 9:7-16; Dkt. #74 (“Robinson Decl.”), ¶¶ 3, 4. The Homer Fund maintains 19 separate bank accounts from Home Depot and from The Home Depot Foundation, a separate 20 charitable part of THDF II, Inc. Robinson Dep. at 25:13-25, 42:2-23; Robinson Decl. ¶¶ 3, 4.2. 21 Mr. Moshtagh claims that Home Depot deducted money from his paycheck for the Homer 22 23 Fund in violation of WAC 296-126-028, RCW 49.46 et seq., RCW 49.48 et seq., and RCW 49.52 24 et seq. Dkt. #1-2 at 11. He alleges that the Homer Fund is “an agent and instrumentality” that is 25 controlled entirely by Home Depot. Id. at 4. He alleges that employees “are heavily pressured to 26 sign forms authorizing such deductions.” Id. at 5. Although the Homer Fund is a charity set up to 27 assist Home Depot employees in need, Mr. Moshtagh claims that “only a small fraction of 1 employees who ‘donate’ actually receive charity from The Homer Fund,” and that “[g]iving to The 2 Homer Fund is no guarantee that an employee will actually receive money from The Homer Fund.” 3 Id. at 6. Mr. Moshtagh alleges that Home Depot derives “substantial benefit” from these payroll 4 deductions, mainly by getting good public relations by advertising about the charity. Id. 5 As an initial matter, the Court finds that Mr. Moshtagh has abandoned his claims that the 6 Homer Fund deductions violate RCW 49.46 and 49.48. Home Depot points out in a footnote that 7 8 “plaintiff has apparently abandoned these allegations,” and that in any event “plaintiff was paid an 9 hourly rate of $11.25 or more, which exceeded the minimum wage even after the deduction of his 10 $0.50 per week donation during the brief period he contributed to the Homer Fund.” Dkt. #73 at 11 13-14 n.4. Mr. Moshtagh does not contest this characterization and otherwise fails to make a 12 sufficient showing on these claims.

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