Pilant v. Caesars Enterprise Services, LLC

District Court, S.D. California·Decided December 1, 2020·No. 3:20-cv-02043·Unknown

Opinion

DARRELL PILANT, Case No.: 20-CV-2043-CAB-AHG

Plaintiff, ORDER DENYING MOTION TO v. DISMISS FOR FAILURE TO JOIN AN INDISPENSABLE PARTY AND GRANTING IN PART AND LLC, and CAESARS DENYING IN PART MOTION TO ENTERTAINMENT, INC. et al., DISMISS FOR LACK OF Defendant. PERSONAL JURISDICTION [Doc. No. 3] This matter is before the Court on a motion by specially appearing Defendants Caesars Enterprise Services, LLC (“CES”) and Caesars Entertainment, Inc. (“CEI”) to dismiss the complaint for failure to join an indispensable party and for lack of personal jurisdiction. The motion has been fully briefed, and the Court deems it suitable for submission without oral argument. As discussed below, the motion to dismiss for failure to join an indispensable party is denied and the motion to dismiss for lack of personal jurisdiction is granted in part and denied in part. I. Background On August 31, 2020, Plaintiff Darrell Pilant filed this lawsuit in San Diego County Superior Court. The complaint alleges that Defendants jointly employed Pilant as senior vice president and general manager of Harrah’s Resort SoCal hotel/casino (the “Resort”), which is owned by The Rincon Band of Luiseño Indians (the “Rincon Band”), until Pilant’s resignation in May 2020. [Doc. No. 1-5 at ¶¶ 6, 9, 10, 16.] Although it is not expressly alleged in the complaint, it is implied that at some point prior to May 2020, the Resort closed because of the COVID-19 pandemic. In early May 2020, Rincon Band Tribal Chairman Bo Mazzetti informed Pilant that San Diego tribes intended to inform California Governor Gavin Newsom that they planned to reopen their respective casino resorts on or after May 18, 2020. [Id. at ¶ 17.] On May 15, 2020, Governor Newsom responded to a letter from San Diego tribal leaders and strongly advised that casinos not be reopened. [Id. at ¶ 18.] On May 18, 2020, Pilant expressed his concerns about the health and safety of reopening the Resort to Robert Livingston (Pilant’s immediate supervisor), N. Lynne Hughes (Defendants’ chief legal officer), and Tom Jenkin (Defendants’ global president). [Id. at ¶ 19.] Later that day, Hughes and Livingston informed Pilant that Defendants were proceeding with reopening the Resort on May 22, 2020. [Id.] Pilant submitted his resignation on May 19, 2020, and then spent the two days assisting with the preparations for reopening the Resort before handing in his gaming badge and other company materials to Livingston on May 21, 2020. [Id. at ¶¶ 21, 23.] The Resort ultimately reopened on May 22, 2020. [Id. at ¶ 24.] The complaint names CES and CEI (along with 20 “Does”) as defendants and asserts four causes of action: (1) wrongful termination in violation of public policy; (2) violation of California Labor Code § 6310; (3) violation of California Labor Code § 1102.1; and (4) breach of a written employment agreement. The complaint alleges that Defendants constructively terminated Pilant because he opposed the decision to reopen the Resort as endangering the health and safety of employees and the public due to the COVID-19 pandemic. According to Pilant, he “was forced to resign because [Defendants] continued to insist that he reopen the [Resort] despite the health and safety risks.” [Doc. No. 1-5 at ¶ 25.] On October 16, 2020, Defendants removed the case to this court, alleging the existence of subject matter jurisdiction on the basis of a federal question under the Indian Gaming Regulatory Act (“IGRA”), 25 U.S.C. § 2701 et seq., and diversity. [Doc. No. 1.] Defendants now move to dismiss the complaint on two separate grounds: (1) under Federal Rule of Civil Procedure 12(b)(7) for failure to join an indispensable party; and (2) under Rule 12(b)(2) for lack of personal jurisdiction over either CES or CEI. II. Motion to Dismiss for Failure to Join an Indispensable Party Federal Rule of Civil Procedure 12(b)(7) permits a party to move to dismiss a complaint for “failure to join a party under Rule 19.” “Under Rule 19, if the party ‘who is required to be joined if feasible cannot be joined, the court must determine whether, in equity and good conscience, the action should proceed among the existing parties or should be dismissed.’ If it cannot proceed, a motion to dismiss under Rule 12(b)(7) for failure to join a party is properly granted.” Dine Citizens Against Ruining Our Env’t v. Bureau of Indian Affairs, 932 F.3d 843, 851 (9th Cir. 2019) (quoting Fed. R. Civ. P. 19(b)). Defendants argue that the Rincon Band is a required party that cannot be joined because of sovereign immunity and that therefore this action must be dismissed. A three- step inquiry applies to a motion to dismiss for failure to join an indispensable party under Rule 19: 1. Is the absent party necessary (i.e., required to be joined if feasible) under Rule 19(a)? 2. If so, is it feasible to order that the absent party be joined? 3. If joinder is not feasible, can the case proceed without the absent party, or is the absent party indispensable such that the action must be dismissed? Salt River Project Agr. Imp. & Power Dist. v. Lee, 672 F.3d 1176, 1179 (9th Cir. 2012) (citing EEOC v. Peabody W. Coal Co., 400 F.3d 774, 779-80 (9th Cir. 2005)). The instant motion falls short at the first step of this inquiry. “A party may be necessary under Rule 19(a) in three different ways.” Id. First, under Rule 19(a)(1)(A), a party must be joined “if the court cannot accord complete relief among existing parties.” Fed. R. Civ. P. 19(a)(1)(A). Alternatively, under Rule 19(a)(1)(B), a party must be joined if that party “claims an interest relating to the subject of the action and is so situated that disposing of the action in the person’s absence may: (i) as a practical matter impair or impede the [party]’s ability to protect the interest; or (ii) leave an existing party subject to a substantial risk of incurring double, multiple, or otherwise inconsistent obligations because of the interest.” Fed. R. Civ. P. 19(a)(1)(B). “There is no precise formula for determining whether a particular non-party is necessary to an action. The determination is heavily influenced by the facts and circumstances of each case.” Confederated Tribes of the Chehalis Indian Reservation v. Lujan, 928 F.2d 1496, 1498 (9th Cir. 1991) (internal citations and quotations omitted). Because, as discussed below, the facts and circumstances of this case demonstrate that the Rincon Band is not a necessary party under either subpart of Rule 19(a)(1), the Court need not reach the second and third steps of the inquiry. See generally Alto v. Black, 738 F.3d 1111, 1126 (9th Cir. 2013) (“Only if we determine that the Band is a required party do we proceed to the second Rule 19 inquiry: whether joinder is feasible, or is barred by sovereign immunity. Finally, only if joinder is impossible must we determine whether, in ‘equity and good conscience,’ the suit should be dismissed.”) (citations omitted). A. The Court Can Accord Complete Relief To Pilant From Defendants “This factor is concerned with consummate rather than partial or hollow relief as to those already parties, and with precluding multiple lawsuits on the same cause of action.” Disabled Rights Action Comm. v. Las Vegas Events, Inc., 375 F.3d 861, 879 (9th Cir. 2004) (quoting Northrop C

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