Renteria v. Land O' Lakes, Inc.

CourtDistrict Court, E.D. California
DecidedMay 12, 2025
Docket1:25-cv-00043
StatusUnknown

This text of Renteria v. Land O' Lakes, Inc. (Renteria v. Land O' Lakes, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Renteria v. Land O' Lakes, Inc., (E.D. Cal. 2025).

Opinion

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7 UNITED STATES DISTRICT COURT 8 EASTERN DISTRICT OF CALIFORNIA 9 10 IRIS RENTERIA, Case No. 1:25-cv-00043-JLT-SAB 11 Plaintiff, FINDINGS AND RECOMMENDATIONS 12 RECOMMENDING GRANTING v. PLAINTIFF’S MOTION TO REMAND AND 13 DENYING DEFENDANT’S MOTION TO LAND O'LAKES, INC., DISMISS AS MOOT 14 Defendant. 15 ORDER DEEMING DEFENDANT’S MOTION TO TRANSFER VENUE 16 WITHDRAWN

17 OBJECTIONS DUE WITHIN 14 DAYS

18 (ECF Nos. 5, 6, 17) 19 20 Currently before the Court is Plaintiff Iris Renteria’s motion to remand and Defendant 21 Land O’Lake’s motion to transfer venue to the United States District Court, District of Minnesota 22 or, in the alternative, motion to dismiss. 23 A hearing was held in this matter on April 9, 2025. (ECF No. 26.) Counsel Majed Dakak 24 appeared for Plaintiff. Counsel Joel Andersen appeared on behalf of Defendant. At the hearing, 25 Defendant informed the Court that it withdraws its motion to transfer venue (ECF No. 5). 26 Based on the moving, opposition, and reply papers, the record, and the arguments 27 presented at the April 9, 2025 hearing, the Court recommends, for the following reasons, that 28 Plaintiff’s motion to remand be granted and Defendant’s motion to dismiss be denied as moot. 1 I. 2 BACKGROUND 3 On December 10, 2024, Plaintiff filed her non-class action complaint in Tulare County 4 Superior Court. (ECF No. 1-4 (“Compl.”).) Plaintiff alleges she was employed by Defendant 5 from approximately February 2021 until she was terminated by Defendant in January 2023. 6 (Compl. ¶¶ 5, 7.) In February 2021, Defendant required that Plaintiff sign an Invention and Trade 7 Secret Agreement (“Agreement”), which included the following provision: 8 While I am employed by Company and for one (1) year after the termination of my employment, I will not employ or solicit any 9 Company employee, directly or indirectly, for employment by a firm or company engaged in or which is about to engage in the 10 design, development, manufacturing, or marketing of any product, process, or service which resembles or competes with a product, 11 process, or service about which I acquired proprietary information during employment with Company. 12 13 (Compl. ¶ 6 (“non-solicitation provision”).) 14 Plaintiff brings one cause of action against Defendant for violation of California’s Unfair 15 Competition Law (“UCL”), California Business & Professions Code §§ 17200 et seq. (Compl. ¶¶ 16 8-16.) Plaintiff alleges the non-solicitation provision is unlawful pursuant to California Business 17 and Professions Code § 16600, which states in pertinent part that “every contract by which 18 anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that 19 extent void.” (Compl. ¶ 10 (quoting Bus. & Prof. Code § 16600(a)).) Plaintiff further alleges that 20 newly enacted Business and Professions Code § 16600.1 requires that, by February 14, 2024, 21 employers notify current and former employees who were employed after January 1, 2022, whose 22 contracts include a noncompete clause or were required to enter a noncompete agreement, that the 23 noncompete clause or agreement is void. (Compl. ¶ 13 (citing Bus. & Prof. Code § 24 16600.1(b)(1)).) Plaintiff alleges that Defendant engaged in an unlawful business act by 25 including the non-solicitation provision in her Agreement and failing to provide notice by 26 February 14, 2024 that such provision is void.1 (Compl. ¶ 14.) Plaintiff further alleges that

27 1 Because the Court recommends granting Plaintiff’s motion to remand for lack of subject matter jurisdiction, the Court declines to address the merits of Defendant’s motion to dismiss regarding the applicability of Section 28 16600.1’s prohibition of noncompete agreements to the non-solicitation provision at issue here. The Court 1 Defendant has included the same or similar non-solicitation provision in the contracts of other 2 members of the public that are employed by Defendant in California and has not advised them 3 such provisions are void. (Compl. ¶ 15.) Plaintiff seeks public injunctive relief, attorney’s fees, 4 costs, and any other relief the Court may deem proper and just. (Compl. at p. 8.) 5 On January 9, 2025, Defendant removed the action to this Court on the basis of diversity 6 jurisdiction pursuant to 28 U.S.C. § 1332(a). (Def’s Not. Removal (“NOR”), ECF No. 1 at ¶¶ 15, 7 21.) On January 16, 2025, Defendant filed a motion to transfer venue to the District of Minnesota 8 pursuant to 28 U.S.C. 1404(a) and a motion to dismiss. (ECF Nos. 5, 6.) Plaintiff filed 9 oppositions to both motions (ECF Nos. 13, 14) and Defendant replied (ECF Nos. 15, 16). On 10 February 12, 2025, Plaintiff filed a motion to remand this action to Tulare County Superior Court. 11 (ECF No. 17-1.) Defendant filed an opposition (ECF No. 23), and Plaintiff replied (ECF No. 24). 12 II. 13 LEGAL STANDARDS 14 A defendant may remove a matter to federal court if the district court would have original 15 jurisdiction. See 28 U.S.C. § 1441(a); Caterpillar, Inc. v. Williams, 482 U.S. 386, 392 (1987). 16 Federal district courts have original jurisdiction over state law civil actions between citizens of 17 different states in which the amount in controversy exceeds $75,000 exclusive of costs and 18 interest. 28 U.S.C. § 1332(a)(1). 19 A motion to remand is the proper procedure to challenge a removal based on lack of 20 jurisdiction. 28 U.S.C. § 1447(c). “Standing is a necessary component of the court's subject 21 matter jurisdiction; if a plaintiff lacks standing, the court lacks jurisdiction.” Rodriguez v. Old W. 22 Exp., Inc., 711 F. Supp. 3d 1182, 1188 (E.D. Cal. 2024) (citing Cetacean Cmty. v. Bush, 386 F.3d 23 1169, 1174 (9th Cir. 2004)). A removed case in which the plaintiff lacks Article III standing 24 must be remanded to state court under § 1447(c). Polo v. Innoventions Int'l, LLC, 833 F.3d 1193, 25 1196 (9th Cir. 2016). “Remand is the correct remedy because a failure of federal subject-matter 26 jurisdiction means only that the federal courts have no power to adjudicate the matter. State 27 courts are not bound by the constraints of Article III.” Id. (Emphasis in original).

28 recommends denying Defendant’s motion to dismiss as moot without prejudice to refiling in state court. 1 Ultimately, “[t]he removal statute is strictly construed against removal jurisdiction, and 2 the burden of establishing federal jurisdiction falls to the party invoking the statute.” Cal. ex rel. 3 Lockyer v. Dynegy, Inc., 375 F.3d 831, 838 (9th Cir. 2004) (citation omitted); see also Provincial 4 Gov’t of Marinduque v. Placer Dome, Inc., 582 F.3d 1083, 1087 (9th Cir. 2009) (“The defendant 5 bears the burden of establishing that removal is proper.”). Thus, if there is any doubt as to the 6 right of removal, a federal court must reject jurisdiction and remand the case to state court. 7 Matheson v. Progressive Specialty Ins. Co., 319 F.3d 1089, 1090 (9th Cir. 2003). 8 III.

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Bluebook (online)
Renteria v. Land O' Lakes, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/renteria-v-land-o-lakes-inc-caed-2025.