Ramirez v. HV Global Management Corporation

District Court, N.D. California·Decided June 14, 2022·No. 5:21-cv-09955·Unknown

Opinion

1 2 6 7 NELSON RAMIREZ, Case No. 21-cv-09955-BLF

8 Plaintiff, ORDER GRANTING IN PART AND 9 v. DENYING MOTION TO DISMISS FIRST AMENDED COMPLAINT CORPORATION, et al., [Re: ECF No. 21] 11 Defendants. 12 13 Plaintiff Nelson Ramirez filed this case against Defendants HV Global Management 14 Corporation and HV Global Group, Inc., alleging violations of California Labor Code and 15 Business & Professions Code. Now before the Court is Defendants’ motion to dismiss the First 16 Amended Complaint. ECF No. 21 (“MTD”); see also ECF No. 24 (“Reply”). Defendants argue 17 that none of Plaintiffs’ claims is sufficiently pled under Rule 12(b)(6) and that there is no personal 18 jurisdiction over HV Global Group, Inc. under Rule 12(b)(1). Plaintiffs oppose the motion. ECF 19 No. 22 (“Opp.”). The Court previously found this motion suitable for disposition without oral 20 argument and vacated the hearing. ECF No. 41; Civ. L.R. 7-1(b). For the following reasons, the 21 Court GRANTS IN PART and DENIES IN PART the motion to dismiss the First Amended 22 Complaint. 24 As alleged in the First Amended Complaint, Defendants employed Ramirez as a non- 25 exempt employee from September 2010 to September 2019 and during that time failed to 26 compensate him for hours he worked and missed meal periods and rest breaks. ECF No. 17 27 (“FAC”) ¶¶ 19, 27. Ramirez alleges that he was paid $8.00 per hour from 2010 to 2016 and $10– 1 represent a class of all current and former hourly-paid and non-exempt employees who worked for 2 Defendants in California in the last four years. Id. ¶ 14. Ramirez brings seven claims under the 3 California Labor Code and one claim under California’s Unfair Competition Law. See id. ¶¶ 51– 4 113. 5 II. MOTION TO DISMISS – RULE 12(B)(6) 6 A. Legal Standard 7 “A motion to dismiss under Federal Rule of Civil Procedure 12(b)(6) for failure to state a 8 claim upon which relief can be granted ‘tests the legal sufficiency of a claim.’” Conservation 9 Force v. Salazar, 646 F.3d 1240, 1241–42 (9th Cir. 2011) (quoting Navarro v. Block, 250 F.3d 10 729, 732 (9th Cir. 2001)). When determining whether a claim has been stated, the Court accepts 11 as true all well-pled factual allegations and construes them in the light most favorable to the 12 plaintiff. Reese v. BP Expl. (Alaska) Inc., 643 F.3d 681, 690 (9th Cir. 2011). However, the Court 13 need not “accept as true allegations that contradict matters properly subject to judicial notice” or 14 “allegations that are merely conclusory, unwarranted deductions of fact, or unreasonable 15 inferences.” In re Gilead Scis. Sec. Litig., 536 F.3d 1049, 1055 (9th Cir. 2008) (internal quotation 16 marks and citations omitted). While a complaint need not contain detailed factual allegations, it 17 “must contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible 18 on its face.’” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting Bell Atl. Corp. v. Twombly, 19 550 U.S. 544, 570 (2007)). A claim is facially plausible when it “allows the court to draw the 20 reasonable inference that the defendant is liable for the misconduct alleged.” Id. On a motion to 21 dismiss, the Court’s review is limited to the face of the complaint and matters judicially 22 noticeable. MGIC Indem. Corp. v. Weisman, 803 F.2d 500, 504 (9th Cir. 1986); N. Star Int’l v. 23 Ariz. Corp. Comm’n, 720 F.2d 578, 581 (9th Cir. 1983). 24 B. Analysis 25 Defendants urge the Court to dismiss all of Ramirez’s claims under Rule 12(b)(6). Each of 26 their arguments falls in the same vein: that there are no factual allegations that support Ramirez’s 27 claims that Defendants violated California labor law. See, e.g., MTD at 13 (as to meal period 1 happened, when and where they happened, who was responsible, or how often they occurred”); id. 2 at 16–17 (as to unpaid wages and overtime claims, Ramirez “fails to allege that, during any actual 3 identified work week, he and/or any putative class members were entitled to either minimum wage 4 or overtime compensation, but did not receive it”). In response to these arguments, in addition to 5 defending the allegations supporting each cause of action, Ramirez claims that Defendants are 6 holding him to an improperly high pleading standard because “[t]he standards for ‘plausibility’ are 7 different in the context of wage-and-hour cases than they are for other cases.” Opp. at 5. The 8 Court first considers the applicable pleading standard before analyzing the allegations supporting 9 each cause of action. 10 i. Pleading Standard for Wage-and-Hour Claims 11 The parties dispute the applicable pleading standard to the wage-and-hour claims in this 12 case. Ramirez asserts that “[t]he standards for ‘plausibility’ are different in the context of wage- 13 and-hour cases” than for other cases and that all that is necessary to state claims is to “allege that 14 earned wages were denied.” Opp. at 5. Ramirez points to other “so-called ‘skeletal’ wage-and- 15 hour pleadings” allegedly similar to his own that survived motions to dismiss. Id. Defendants 16 argue that multiple courts have rejected Ramirez’s argument that a lower pleading standard applies 17 to wage-and-hour claims, and that the Ninth Circuit’s decision in Landers v. Quality Commc’ns, 18 Inc., 771 F.3d 638 (9th Cir. 2014), establishes what is required. Reply at 7–8. 19 The Court agrees with Defendants. Multiple courts have rejected Ramirez’s assertion that 20 “skeletal” wage-and-hour complaints can survive Rule 12(b)(6) motions. For example, in 21 Ritenour v. Carrington Mortg. Servs. LLC, 228 F. Supp. 3d 1025, 1033 (C.D. Cal. 2017), the court 22 found this exact argument to run headlong into Landers. “Although . . . detailed factual 23 allegations regarding the number of overtime hours worked are not required to state a plausible 24 claim, we do not agree that conclusory allegations that merely recite the statutory language are 25 adequate.” Id. (quoting Landers, 771 F.3d at 644). To allow conclusory allegations to suffice 26 would “run[] afoul of the Supreme Court’s pronouncement in Iqbal that a [p]laintiff’s pleading 27 burden cannot be discharged by ‘[a] pleading that offers labels and conclusions or a formulaic 1 U.S. at 678).1 Under Landers, a plaintiff “may establish a plausible claim by estimating the length 2 of her average workweek during the applicable period and the average rate at which she was paid, 3 the amount of overtime wages she believes she is owed, or any other facts that will permit the 4 court to find plausibility.” Id. Ramirez’s position that some lower pleading standard applies is 5 thus “inaccurate and unsupported by the case law.” Byrd v. Masonite Corp., 2016 WL 756523, at 6 *4 n.16 (C.D. Cal. Feb. 25, 2016); see also Alvarado v. Amazon, 2022 WL 899850, at *2 (N.D. 7 Cal. Mar. 28, 2022) (dismissing wage-and-hour claims under Landers).

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