Senne v. Kansas City Royals Baseball Corp.

105 F. Supp. 3d 981, 25 Wage & Hour Cas.2d (BNA) 1009, 2015 U.S. Dist. LEXIS 66170, 2015 WL 2412245
CourtDistrict Court, N.D. California
DecidedMay 20, 2015
DocketCase Nos. 14-cv-00608-JCS, 14-cv-03289-JCS
StatusPublished
Cited by18 cases

This text of 105 F. Supp. 3d 981 (Senne v. Kansas City Royals Baseball Corp.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Senne v. Kansas City Royals Baseball Corp., 105 F. Supp. 3d 981, 25 Wage & Hour Cas.2d (BNA) 1009, 2015 U.S. Dist. LEXIS 66170, 2015 WL 2412245 (N.D. Cal. 2015).

Opinion

ORDER RE MOTIONS TO DISMISS AND MOTIONS TO TRANSFER

Re: Docket Nos. 281, 283, 285, 286

JOSEPH C. SPERO, United States Chief Magistrate Judge

I. INTRODUCTION

Plaintiffs in this putative class action are former Minor League baseball players who assert claims under the federal Fair Labor Standards Act (“FLSA”) and California, Florida, Arizona, North Carolina and New York wage and hour laws against the Office of the Commissioner of Baseball doing business as Major League Baseball (“MLB”) and its thirty member franchises. Presently before the Court are two sets of motions challenging personal jurisdiction and venue.

With respect. to personal jurisdiction, two motions to dismiss have been filed in this action (the “Motions to Dismiss”). First, ten of the MLB Clubs named ; as Defendants in the Complaint — Atlanta National League Baseball Club, Inc., Boston Red- Sox Baseball Club L.P., -Chicago White Sox, Ltd., -Cleveland Indians Baseball Co., Inc., Cleveland Indians Baseball Co., L.P., Detroit Tigers, Inc., New York Yankees Partnership, The Phillies, Pittsburgh Associates, L.P., Tampa Bay Rays Baseball, Ltd., and Washington Nationals Baseball Club, LLC (“Proskauer PJ Defendants”) bring a Motion to Dismiss the Consolidated Amended Complaint as Against Certain Defendants for Lack of Personal Jurisdiction, Docket No. 281 (“Proskauer Motion to Dismiss”). Second, Defendant Baltimore Orioles Limited Partnership and Baltimore Orioles, Inc. (collectively, “Baltimore Orioles”) join in the Proskauer Motion to Dismiss and also bring a Motion to Dismiss the Consolidated Amended Complaint for Violations of Federal and State Wage and Hour Laws Against the Baltimore Orioles Limited Partnership and Baltimore Orioles, Inc., Docket No. 285 (“Baltimore Orioles Motion to Dismiss”). -The Court refers collectively to the Defendants who seek dismissal on the basis of lack of personal jurisdiction as the “Personal Jurisdiction Defendants.”

Similarly, two motions seeking transfer under 28 U.S.C. § 1404(a) have been filed (“the Transfer Motions”). First, all of the Defendants except the Baltimore Orioles (“Proskauer Transfer Defendants”) bring a Motion to Transfer Action to Middle District of Florida, Docket No. 283 (“Proskauer Transfer Motion”). Second, the Baltimore Orioles join in the Pros-kauer Transfer Motion and also bring a Motion to Transfer Case to the Middle District of Florida Filed by Defendants Baltimore Orioles, Inc. and Baltimore Orioles Limited Partnership (“Baltimore Orioles Transfer Motion”). In these motions, Defendants ask that the entire case be transferred to the Middle District of Florida.

[991]*991All of the Motions came on for hearing on Friday, February 13, 2015 at 2:00 p.m. Following the Motion hearing, the Court gave Plaintiffs leave to file a proposed amended complaint that included additional named Plaintiffs to address possible defects with respect to personal jurisdiction over the Personal Jurisdiction Defendants. The Court further instructed Plaintiffs to file a supplemental brief addressing the “arising out of’ requirement for specific jurisdiction on a team-by-team 'basis. Plaintiffs have filed a Proposed Second Consolidated Amended Complaint (“SCAC”)1 adding name Plaintiffs, as well as the supplemental brief requested by the Court; the Baltimore Orioles and ■ the Proskauer PJ Defendants have filed a brief in response in which they assert that Plaintiffs still cannot establish the. existence of personal jurisdiction as to the teams that challenge jurisdiction.

For the reasons stated below, the Court GRANTS in part and DENIES in part the Proskaur Motion to Dismiss and GRANTS the Baltimore Orioles’ Motion to Dismiss. The Court DENIES the Transfer Motions.2

II. BACKGROUND

A. Overview of Major League Baseball

MLB is an unincorporated association whose members are the thirty MLB Clubs named as defendants in this action. SCAC, ¶ 62. Each MLB Club is affiliated with several Minor League teams, organized into “classes” roughly reflecting the skill levels of the players. Id., ¶ 169. Although some Minor League teams are directly owned by an MLB Club, most Minor League teams are independently owned and operated pursuant to Player Development Contracts (“PDCs”), agreements by which a' Minor League club agrees to “affiliate” itself with an MLB Club .for a-certain time period. Id., ¶ 171.

MLB teams employ a small number of players who play at the highest level, the Major Leaguers. Id.,' ¶ 146. They also employ a larger number of Minor Leag-uers, who the teams acquire through either an amateur draft or free agency. Id., ¶¶ 147,150. The Minor Leaguers begin at the “Rookie” level and then, ideally, advance to higher levels (Class-A, Advanced Class-A, Double-A and Triple-A), potentially leading to the major leagues. Id., ¶ 169. Many Minor Leaguers do not advance past Class-A. Id.

MLB operates a scouting service known as the Major League Baseball Scouting Bureau (“Scouting Bureau”) that evaluates amateur players on behalf of all the Defendants. Id., ¶ 163. MLB owners created the centralized service in 1974, and it operates under the umbrella of the Office of' the Commissioner. Id. The Scouting Bureau hosts tryouts for amateur players seeking to enter the industry, and its scouts attend amateur games throughout the country and in Latin America to develop reports on amateur players. Id.

MLB' rules require that all teams use the same uniform player contract (“UPC”) when signing players. Id., ¶ 164. Under the UPC, players receive a salary during the championship season, which lasts approximately five months. Id., ¶¶ 182-83. They are not compensated during the remainder of the year. Id., ¶ 183. The UPC imposes “duties and obligations” that “continue in full force throughout the calendar year,” however. Id. Thus, during the off-[992]*992season, players are required to participate in spring training (lasting approximately one month) and sometimes in extended spring training and instructional leagues as well. Id., ¶¶ 185-86. Players are also required to maintain “first-class” conditioning throughout the year. Id., ¶ 187.

B. Summary of Plaintiffs’ Claims

Plaintiffs are former and current Minor League baseball players who allege that they were paid “illegally low wages during the championship season, no overtime wages, and no wages for work performed outside the championship season.” Id., ¶¶ 19-61, 189. Defendants are the Office of the Commissioner of Baseball and MLB’s thirty member franchises. Id., ¶¶ 62-102. Plaintiffs assert twenty state law wage and hour claims on behalf of a number of putative classes (including a California class)3 under Rule 28 of the Federal Rules of Civil Procedure. Id., ¶¶ 103-27.

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105 F. Supp. 3d 981, 25 Wage & Hour Cas.2d (BNA) 1009, 2015 U.S. Dist. LEXIS 66170, 2015 WL 2412245, Counsel Stack Legal Research, https://law.counselstack.com/opinion/senne-v-kansas-city-royals-baseball-corp-cand-2015.