Ramirez v. HV Global Management Corporation

District Court, N.D. California·Decided July 6, 2023·No. 5:21-cv-09955·Unknown

Opinion

NELSON RAMIREZ, Case No. 21-cv-09955-BLF

Plaintiff, ORDER GRANTING IN PART v. WITHOUT LEAVE TO AMEND AND DENYING IN PART MOTION TO HV GLOBAL MANAGEMENT DISMISS AND/OR STRIKE THIRD CORPORATION, et al., AMENDED COMPLAINT Defendants. [Re: ECF No. 65]

Plaintiff Nelson Ramirez brings this case against Defendant HV Global Management Corporation alleging violations of the California Labor Code and the California Business & Professions Code. Now before the Court is Defendant’s motion to dismiss and/or strike the Third Amended Complaint. ECF No. 65 (“MTD”); see also ECF No. 71 (“Reply”). Plaintiff opposes the motion. ECF No. 70 (“Opp.”). The Court held a hearing on the motion on June 22, 2023. See ECF No. 99. For the following reasons, the Court GRANTS IN PART WITHOUT LEAVE TO AMEND and DENIES IN PART the motion to dismiss and/or strike the Third Amended Complaint. I. BACKGROUND As alleged in the Third Amended Complaint, Defendants employed Ramirez as a non- exempt employee from September 2010 to September 2019 and during that time failed to compensate him for hours he worked and missed meal periods and rest breaks. ECF No. 64 (“TAC”) ¶¶ 17, 19. Ramirez alleges that he was paid $10.00 per hour as a server. Id. ¶ 18. Ramirez seeks to represent a class of all current and former hourly-paid and non-exempt employees who worked for Defendant in California since November 3, 2017. Id. ¶ 11. Ramirez brings six claims under the California Labor Code and one claim under California’s Unfair Competition Law. See id. ¶¶ 52-134. A. Motion to Dismiss “A motion to dismiss under Federal Rule of Civil Procedure 12(b)(6) for failure to state a claim upon which relief can be granted ‘tests the legal sufficiency of a claim.’” Conservation Force v. Salazar, 646 F.3d 1240, 1241-42 (9th Cir. 2011) (quoting Navarro v. Block, 250 F.3d 729, 732 (9th Cir. 2001)). When determining whether a claim has been stated, the Court accepts as true all well-pled factual allegations and construes them in the light most favorable to the plaintiff. Reese v. BP Expl. (Alaska) Inc., 643 F.3d 681, 690 (9th Cir. 2011). But the Court need not “accept as true allegations that contradict matters properly subject to judicial notice” or “allegations that are merely conclusory, unwarranted deductions of fact, or unreasonable inferences.” In re Gilead Scis. Sec. Litig., 536 F.3d 1049, 1055 (9th Cir. 2008) (internal quotation marks and citation omitted). While a complaint need not contain detailed factual allegations, it “must contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007)). A claim is facially plausible when it “allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Id. On a motion to dismiss, the Court’s review is limited to the face of the complaint and matters judicially noticeable. MGIC Indem. Corp. v. Weisman, 803 F.2d 500, 504 (9th Cir. 1986); N. Star Int’l v. Ariz. Corp. Comm’n, 720 F.2d 578, 581 (9th Cir. 1983). B. Motion to Strike Class Allegations Federal Rule of Civil Procedure 12(f) permits a court to “strike from a pleading an insufficient defense or any redundant, immaterial, impertinent, or scandalous matter.” Fed. R. Civ. P. 12(f). The function of a motion made under this rule is “to avoid the expenditure of time and money that must arise from litigating spurious issues by dispensing with those issues prior to trial.” Whittlestone, Inc. v. Handi-Craft Co., 618 F.3d 970, 973 (9th Cir. 2010). “While a Rule generally disfavored because the motions may be used as delaying tactics and because of the strong policy favoring resolution on the merits.” Barnes v. AT & T Pension Ben. Plan- Nonbargained Program, 718 F. Supp. 2d 1167, 1170 (N.D. Cal. 2010). Motions to strike “should not be granted unless the matter to be stricken clearly could have no possible bearing on the subject of the litigation.” Platte Anchor Bolt, Inc. v. IHI, Inc., 352 F. Supp. 2d 1048, 1057 (N.D. Cal. 2004). “If there is any doubt whether the portion to be stricken might bear on an issue in the litigation, the court should deny the motion.” Id. “With a motion to strike, just as with a motion to dismiss, the court should view the pleading in the light most favorable to the nonmoving party.” Id. “There is a split in this District as to whether a motion to strike class action allegations may be entertained at the motion to dismiss stage.” Ogala v. Chevron Corp., No. 14-cv-173-SC, 2014 WL 4145408, at *2 (N.D. Cal. Aug. 21, 2014) (collecting cases). Even those courts that have considered such a motion early in the proceedings “have applied a very strict standard to motions to strike class allegations on the pleadings.” Id. “Only if the court is convinced that any questions of law are clear and not in dispute, and that under no set of circumstances could the claim or defense succeed may the allegations be stricken.” Id. (internal quotation marks and citation omitted). Thus, even if a motion to strike class allegation is considered at the pleading stage, it may only be granted under “rare circumstances” where “the complaint demonstrates that a class action cannot be maintained on the facts alleged.” Tasion Commc’ns, Inc. v. Ubiquiti Networks, Inc., No. C-13-1803 EMC, 2014 WL 1048710, at *3 (N.D. Cal. Mar. 14, 2014) (citation omitted). Defendant moves to dismiss and/or strike class allegations as to all of Ramirez’s claims. See MTD. The Court will address each claim(s) in turn. A. Claims 1 & 4: Unpaid Wages and Overtime Wages Ramirez’s first claim is for failure to pay overtime wages in violation of California Labor Code §§ 510, 1198, see TAC ¶¶ 52-67; and his fourth claim is for failure to pay minimum wages argues that these claims should be dismissed because Plaintiff has not alleged sufficient facts as to himself or as to a class. MTD at 14-22. Defendant also argues that Plaintiff’s “new claim” for reporting time pay must be dismissed or stricken. Id. at 19-21. 1. Activities Defendant first argues that Plaintiff has not alleged activities that are compensable “hours worked” under California law. MTD at 15-17. Plaintiff points to a variety of different activities for which he was allegedly not compensated as the basis for these claims. TAC ¶¶ 56-65, 99-107. For example, Plaintiff alleges that employees were required to park in a specific employee parking lot that was a significant distance from the place of work and that they were prohibited from using main roads to enter the lots. TAC ¶¶ 56, 99. Plaintiff alleges that employees were required to keep their uniforms in a

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