Rosas v. NFI Industries

District Court, E.D. California·Decided April 6, 2021·No. 2:21-cv-00046·Unknown

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 EASTERN DISTRICT OF CALIFORNIA 10 ----oo0oo---- 11 12 MARIA ROSAS, No. 2:21-cv-00046 WBS CKD 13 Plaintiff, 14 v. ORDER RE: PLAINTIFF’S MOTION FOR LEAVE TO FILE A FIRST 15 NFI INDUSTRIES, AKA NATIONAL AMENDED COMPLAINT DISTRIBUTION CENTERS LLC; and 16 DOES 1 through 50, inclusive 17 Defendants. 18 19 ----oo0oo---- 20 Plaintiff Maria Rosas brought this action against her 21 former employer, National Distribution Centers LLC (“NDC”), 22 alleging violations of the California Family Rights Act (“CFRA”), 23 the California Fair Employment and Housing Act (“FEHA”), 24 California Labor Code § 1102.5, intentional infliction of 25 emotional distress (“IIED”), and wrongful termination in 26 violation of California public policy. (See Compl. (Docket No. 27 1-1).) Plaintiff now moves for leave to file a First Amended 28 Complaint, in which she seeks to join two individuals--Angela 1 Brown and Nathan Sorenson, who are both citizens of California 2 for diversity purposes--as defendants. (See Mot. for Leave to 3 Amend (Docket No. 9).) 4 I. Factual and Procedural Background 5 Plaintiff originally filed her complaint in this matter 6 on November 25, 2020, in San Joaquin County Superior Court. (See 7 Compl.) Plaintiff alleged that she “experienced favoritism” 8 while working at NDC because “temporally employees”1--who were 9 referred and/or hired by her managers--were treated more 10 favorably by management. (See Compl. ¶ 16.) Though these 11 temporary employees had accidents that should have led to instant 12 termination, plaintiff alleged, they were “treated special” and 13 advised how to avoid future accidents. (Id.) 14 Plaintiff’s complaint identified Angela Brown as 15 plaintiff’s manager, and Nathan Sorenson as one of the operations 16 managers at NDC. (See id. at ¶¶ 17-18.) Plaintiff alleged that 17 Brown was aware of the favoritism shown towards temporary 18 employees but did nothing about it, and that Sorenson would 19 “constantly criticize” or find fault with her, “giv[e] her a hard 20 time,” generally make her work time miserable and unpleasant, and 21 never provide plaintiff with support or encouragement, causing 22 plaintiff to work under pressure and constant fear. (Id. at 23 ¶¶ 17-19.) The complaint alleged that Sorenson’s conduct caused 24 plaintiff to have panic and anxiety attacks at work, such that 25 she had to be placed on anxiety medications. (Id. at ¶ 20.) 26 Though plaintiff’s complaint identified Brown and 27 1 The court assumes that plaintiff’s complaint refers to 28 temporary employees of NDC. 1 Sorenson by name and position as plaintiff’s supervisors, 2 plaintiff only named NDC as a defendant.2 Because plaintiff is a 3 California citizen and NDC is a citizen of New Jersey, 4 Pennsylvania, and Texas for purposes of diversity, NDC removed 5 the case to this court on January 8, 2021. (Docket No. 1.) 6 Plaintiff then filed a motion to remand, arguing that 7 this court could not assert diversity jurisdiction over her 8 claims because she was “in the process” of naming Brown and 9 Sorenson as Does 1 and 2 from her complaint. (See Pl.’s Mot. to 10 Remand at 2 (Docket No. 3).) The court denied plaintiff’s 11 motion, noting that, under binding Ninth Circuit precedent, the 12 citizenship of fictitious defendants is disregarded for removal 13 purposes and becomes relevant only if and when the plaintiff 14 seeks leave to substitute a named defendant.3 See (Docket No. 8 15 at 8-10); Soliman v. Philip Morris Inc., 311 F.3d 966, 971 (9th 16 Cir. 2002). At the hearing on plaintiff’s motion, plaintiff’s 17 counsel indicated that he intended to amend plaintiff’s complaint 18 to add Brown and Sorenson as named defendants, which would “kill 19 diversity.” (See Def.’s Opp’n, Ex. A (“Mot. to Remand Hr’g 20 Tr.”), at 2:15-24 (Docket No. 12-2).) 21

22 2 Plaintiff’s complaint erroneously named defendant as “NFI Industries, AKA National Distribution Centers LLC.” The 23 parties agree that the correct identity of defendant and plaintiff’s employer is National Distribution Centers LLC. 24 Plaintiff seeks to correct defendant NDC’s name in her Proposed First Amended Complaint. (See Pl.’s Mot. for Leave to Amend at 2 25 (Docket No. 9).) 26 3 The court also rejected plaintiff’s argument that the court should consider the traditional trusts that make up NFI, 27 LP--the sole member of defendant--as “unincorporated associations” for the purposes of diversity jurisdiction. (See 28 Docket No. 8 at 5-8.) 1 Two days after the court denied plaintiffs’ motion to 2 remand, plaintiff filed the instant motion for leave to amend her 3 complaint, to which she attached a proposed First Amended 4 Complaint (“Proposed FAC”). (Docket No. 9-1.) 5 II. Analysis 6 Plaintiff contends that her motion is properly 7 evaluated under Federal Rule of Civil Procedure 15, which states 8 that the court “should freely give leave when justice so 9 requires.” Fed. R. Civ. P. 15(a)(2); see also DCD Programs, Ltd. 10 v. Leighton, 833 F.2d 183, 186 (9th Cir. 1987) (“Rule 15’s policy 11 of favoring amendments to pleadings should be applied with 12 extreme liberality.”). However, because plaintiff’s proposed 13 amendments to the complaint would destroy diversity, the 14 appropriate standard under which to evaluate plaintiff’s motion 15 is provided by 28 U.S.C. § 1447(e), which states: “If after 16 removal the plaintiff seeks to join additional defendants whose 17 joinder would destroy subject matter jurisdiction, the court may 18 deny joinder, or permit joinder and remand the action to the 19 State court.” See Hardin v. Wal-Mart Stores, Inc., 813 F. Supp. 20 2d 1167, 1173 (E.D. Cal. 2011) (Ishii, J.) (“Plaintiffs may not 21 circumvent 28 U.S.C. § 1447(e) by relying on [Rule 15] to join 22 non-diverse parties.” (citing Clinco v. Roberts, 41 F. Supp. 2d 23 1080, 1086 (C.D. Cal. 1999))). 24 The Ninth Circuit has stated that “the language of 25 § 1447(e) is couched in permissive terms and it clearly gives the 26 district court the discretion to deny joinder.” Newcombe v. 27 Adolf Coors Co., 157 F.3d 686 (9th Cir. 1998). In this regard, 28 the court has greater discretion in determining whether to allow 1 an amendment to add a non-diverse party that would destroy 2 existing, diversity jurisdiction, than it does under Rule 15. 3 Id. at 691. The court may (1) deny joinder; or (2) permit 4 joinder and remand the action to State court. Id. 5 In determining whether to grant leave to amend under 6 section 1447, the court considers the following six factors:

7 (1) whether the new defendants should be joined under Fed. R. Civ. P. 19(a) as “needed for 8 just adjudication”; 9 (2) whether the statute of limitations would 10 preclude an original action against the new defendants in state court; 11 (3) whether there has been unexplained delay in 12 requesting joinder; 13 (4) whether joinder is intended solely to defeat 14 federal jurisdiction;

15 (5) whether the claims against the new defendant appear valid; and 16

17 (6) whether denial of joinder will prejudice the plaintiff. 18 19 Davis v. Tower Select Ins. Co., Inc., No.

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