Myles v. Builders Concrete Inc.

District Court, E.D. California·Decided June 28, 2022·No. 1:21-cv-01309·Unknown

Opinion

DAMMION MYLES, an individual, on No. 1:21-cv-01309-DAD-BAK behalf of himself and on behalf of all persons similarly situated, Plaintiff, ORDER GRANTING DEFENDANTS’ MOTION FOR JUDGMENT ON THE v. PLEADINGS BUILDERS CONCRETE, INC., et al., (Doc. No. 11) Defendants. This matter is before the court on the motion for judgment on the pleadings filed on behalf of defendants Builders Concrete, Inc. (“Builders”), Concrete Holding Company of California, Inc. (“CHC”), Viking Ready Mix Co., Inc. (“Viking”), and National Ready Mixed Concrete Co. (“NRMC”) on November 17, 2021. (Doc. No. 11.) Pursuant to General Order No. 617 addressing the public health emergency posed by the COVID-19 pandemic, the motions were taken under submission on the papers. (Doc. No. 13.) For the reasons explained below, the court will grant defendants’ motion for judgment on the pleadings. Plaintiff Dammion Myles originally filed a class action complaint in Kern County Superior Court on October 9, 2020, alleging various violations of California’s Labor Code and Unfair Competition Law (UCL). (Doc. No. 1 at 13–53.) On July 28, 2021, plaintiff amended his complaint in state court, adding two claims arising under the federal Fair Credit Reporting Act (FCRA). (Id. at 55–103.) Within 30 days of plaintiff’s amendment, defendants filed answers to the first amended complaint (FAC) in state court and then filed a notice of removal in this federal court. (Id. at 3.) In plaintiff’s operative FAC, he alleges the following. Defendants are “ready mixed concrete supplier[s]” serving the Southern California market. (Doc. No. 11 at 12–60 (the FAC), at ¶ 6.) Plaintiff alleges he was employed by all defendants as an hourly non-exempt employee for approximately two months, from November 2019 until January 10, 2020. (Id. at ¶¶ 5, 7.) Specifically, plaintiff alleges that defendants Builders, CHC, Viking, and NRMC “were joint employers,” “[a]s evidenced by [plaintiff’s] paychecks and company documents.” (Id. at ¶ 5.) Plaintiff also alleges that there “existed a unity of interest and ownership between the[] Defendants such that any individuality and separateness between the entities cease[d]” and therefore defendants Builders, CHC, Viking, and NRMC are “alter egos of each other.” (Id.) After alleging that all defendants are alter egos, plaintiff avers that “[a]dherence to the fiction of the separate existence of (sic) would permit an abuse of the corporative privilege, and would promote injustice by protecting . . . [defendants] from liability for the wrongful acts committed by them.” (Id.) Plaintiff does not allege any other facts regarding defendants’ purported alter ego liability or joint employer relationship, except that each defendant is according to plaintiff a California corporation doing business in California. (Id. at ¶¶ 1–4.) Plaintiff also defines all four defendants as a singular “defendant” in the FAC, (id. at ¶ 5), and all of plaintiff’s subsequent allegations use the word “defendant” without any differentiation among defendants Builders, CHC, Viking, or NRMC. (See, e.g., id. at ¶ 6.) Approximately three months after the removal of the action to this federal court, on November 17, 2021, defendants filed a motion for judgment on the pleadings contending that no relief can be granted as to any of plaintiff’s causes of action against defendants Viking, CHC, and NRMC because the FAC fails to adequately allege that those entities are joint employers or alter egos of defendant Builders, plaintiff’s actual purported employer. (Doc. No. 11.) Plaintiff filed an opposition to the pending motion, arguing that (i) the joint employer and alter ego allegations in the FAC are sufficient; (ii) defendants cannot attack a portion of a cause of action; and (iii) group allegations regarding all four defendants are permitted. (Doc. No. 14.) Defendants filed a reply to plaintiff’s opposition. (Doc. No. 15.) Federal Rule of Civil Procedure 12(c) provides that: “After the pleadings are closed––but early enough not to delay trial––a party may move for judgment on the pleadings.” A motion for judgment on the pleadings “challenges the legal sufficiency of the opposing party’s pleadings[.]” Morgan v. County of Yolo, 436 F. Supp. 2d 1152, 1154–55 (E.D. Cal. 2006), aff’d, 277 F. App’x 734 (9th Cir. 2008). In reviewing a motion brought under Rule 12(c), the court “must accept all factual allegations in the complaint as true and construe them in the light most favorable to the nonmoving party.” Fleming v. Pickard, 581 F.3d 922, 925 (9th Cir. 2009). The same legal standard applicable to a Rule 12(b)(6) motion applies to a motion brought under Rule 12(c). See Dworkin v. Hustler Magazine, Inc., 867 F.2d 1188, 1192 (9th Cir. 1989). Accordingly, “judgment on the pleadings is properly granted when, taking all the allegations in the non-moving party’s pleadings as true, the moving party is entitled to judgment as a matter of law.” Marshall Naify Revocable Trust v. United States, 672 F.3d 620, 623 (9th Cir. 2012) (quoting Fajardo v. County of Los Angeles, 179 F.3d 698, 699 (9th Cir. 1999)); see also Fleming, 581 F.3d at 925 (stating that “judgment on the pleadings is properly granted when there is no issue of material fact in dispute, and the moving party is entitled to judgment as a matter of law”). The allegations of the complaint must be accepted as true, while any allegations made by the moving party that contradict the allegations of the complaint are assumed to be false. See MacDonald v. Grace Church Seattle, 457 F.3d 1079, 1081 (9th Cir. 2006). The facts are viewed in the light most favorable to the non-moving party and all reasonable inferences are drawn in favor of that party. See Living Designs, Inc. v. E.I. DuPont de Nemours & Co., 431 F.3d 353, 360 (9th Cir. 2005). A. Failure to Allege Joint Employer Liability Whether the FAC sufficiently alleges that defendants are joint employers implicates state law as to plaintiff’s California Labor Code claims and federal law as to plaintiff’s FCRA claim. To be held liable for any violations under the California Labor Code, defendants must be plaintiff’s employer.1 Lesnik v. Eisenmann SE, 374 F. Supp. 3d 923, 947 (N.D. Cal. 2019). “California courts rely on the definitions provided in California’s Industrial Welfare Commission’s (‘IWC’) wage orders in determining whether an employment relationship exists.” Rodriguez v. SGLC, Inc., No. 2:08-cv-01971-MCE-KJN, 2012 WL 5704403, at *12 (E.D. Cal. Nov. 15, 2012). Under the IWC’s wage orders, “[t]o employ . . . has three alternative definitions. It means: (a) to exercise control over wages, hours or working conditions, or (b) to suffer or permit to work, or (c) to engage, thereby creating a common law employment relationship.” Martinez v. Combs, 49 Cal. 4th 35, 64 (2010). Because the FCRA does not provide a definition of “employer,” the court will rely on the definition provided by the Fair Labor Standards Act (FLSA). See Berrellez v. Pontoon Sols., Inc., No. 2:15-cv-01898-CAS-FFM, 2016 WL 5947221, at *8 (C.D. Cal. Oct. 13, 2016), aff’d, 775 F. App’x 357 (9th Cir. 2019). To determine whether a joint employer relationship exists under the FLSA, courts in the Ninth Circuit use a four-part “economic reality” test that evaluates whether an entity: “(1) had the power to hire and fire the employees, (2) supervised an

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Myles v. Builders Concrete Inc., (E.D. Cal. 2022).

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