Sims v. AT & T Mobility Services LLC

955 F. Supp. 2d 1110, 2013 WL 3339052, 2013 U.S. Dist. LEXIS 93265
CourtDistrict Court, E.D. California
DecidedJuly 2, 2013
DocketNo. 2:12-CV-2702-JAM-AC
StatusPublished
Cited by4 cases

This text of 955 F. Supp. 2d 1110 (Sims v. AT & T Mobility Services LLC) 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
Sims v. AT & T Mobility Services LLC, 955 F. Supp. 2d 1110, 2013 WL 3339052, 2013 U.S. Dist. LEXIS 93265 (E.D. Cal. 2013).

Opinion

[1113]*1113ORDER LIFTING STAY; DENYING MOTION TO REMAND; and GRANTING IN PART AND DENYING IN PART DEFENDANT’S MOTION TO DISMISS.

JOHN A. MENDEZ, District Judge.

The Court previously considered Plaintiff Phillip Sims’ Motion to Remand (Doc. # 8) and stayed this action (Order, February 27, 2013, Doc. # 21, 2013 WL 753496) pending the outcome of Standard Fire Ins. Co. v. Knowles, — U.S. -, 133 S.Ct. 1345, 185 L.Ed.2d 439 (2013). The issue decided by the Supreme Court in Standard Fire bears directly on this Court’s subject matter jurisdiction under the Class Action Fairness Act (“CAFA”), 28 U.S.C. § 1332(d). Due to the stay, Defendant’s pending Motion to Dismiss Plaintiffs Seventh and Eighth Claims and Request for Punitive Damages (Doc. # 6) was not decided.1 On April 3, 2013, the parties filed a stipulation (Doc. #22) informing the Court that the Standard Fire decision was published and requesting a final order on Plaintiffs Motion to Remand and Defendant’s Motion to Dismiss if the action is not remanded. The stay on this action is accordingly lifted.

I. MOTION TO REMAND

As fully discussed in the Court’s February 27, 2013 Order, federal subject matter jurisdiction exists over this action if Plaintiff is not permitted to waive recovery beyond CAFA’s $5,000,000 jurisdictional threshold on behalf of both himself and absent members of the class he seeks to represent. Standard Fire unequivocally held that such waivers are ineffective and cannot defeat federal subject matter jurisdiction under CAFA. 133 S.Ct. 1345, 1350-51 (2013) (holding that stipulations purporting to waive recovery of damages over $5,000,000 are to be ignored when determining a CAFA amount in controversy). Accordingly, in conformity with the holding in Standard Fire and for the reasons given in the Court’s February 27, 2013 Order, Plaintiffs motion to remand is denied because this Court has subject matter jurisdiction over this action.

II. MOTION TO DISMISS

The substantive claims raised by Plaintiff relate to his former employment with Defendant. Plaintiff was a Retail Store Manager (“RSM”) for one of Defendant’s retail locations. Plaintiff alleges that his position was unlawfully classified as exempt from state overtime and break period laws. Plaintiff seeks unpaid wages, overtime compensation, meal and rest break compensation, statutory penalties, and relief under California’s Unfair Competition law (“UCL”), Cal. Bus. & Prof.Code § 17200, et seq.

In its motion to dismiss, Defendant seeks to dismiss Plaintiffs Seventh and Eighth causes of action along with his request for punitive damages. The Seventh cause of action is in tort for conversion of Plaintiffs earned but unpaid wages. The Eighth Cause of Action is for violation of the UCL.

A. Legal Standard

A party may move to dismiss an action for failure to state a claim upon which relief can be granted pursuant to Federal Rule of Civil Procedure 12(b)(6). In considering a motion to dismiss, the court must accept the allegations in the complaint as true and draw all reasonable inferences in favor of the plaintiff. [1114]*1114Scheuer v. Rhodes, 416 U.S. 232, 236, 94 S.Ct. 1683, 40 L.Ed.2d 90 (1974), overruled on other grounds by Davis v. Scherer, 468 U.S. 183, 104 S.Ct. 3012, 82 L.Ed.2d 139 (1984); Cruz v. Beto, 405 U.S. 319, 322, 92 S.Ct. 1079, 31 L.Ed.2d 263 (1972). Assertions that are mere “legal conclusions,” however, are not entitled to the assumption of truth. Ashcroft v. Iqbal, 556 U.S. 662, 678, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009) (citing Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 555, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007)). To survive a motion to dismiss, a plaintiff needs to plead “enough facts to state a claim to relief that is plausible on its face.” Twombly, 550 U.S. at 570, 127 S.Ct. 1955. Dismissal is appropriate where the plaintiff fails to state a claim supportable by a cognizable legal theory. Balistreri v. Pacifica Police Department, 901 F.2d 696, 699 (9th Cir. 1990).

Upon granting a motion to dismiss for failure to state a claim, the court has discretion to allow leave to amend the complaint pursuant to Federal Rule of Civil Procedure 15(a). “Dismissal with prejudice and without leave to amend is not appropriate unless it is clear ... that the complaint could not be saved by amendment.” Eminence Capital, L.L.C. v. Aspeon, Inc., 316 F.3d 1048, 1052 (9th Cir. 2003).

B. Discussion

1. Seventh Cause of Action, Conversion

(a) “New-right Exclusive-remedy” Rule

Defendant seeks dismissal of Plaintiffs claim for conversion of Plaintiffs allegedly unpaid wages on the theory that violations of the Labor Code are limited to the remedies and penalties contained therein pursuant to California’s “new right-exclusive remedy” rule. Plaintiff disputes Defendant’s position and argues that the “new right-exclusive remedy” rule does not apply to the facts of this case. Plaintiffs allegations related to his conversion claim are limited to unpaid wages, and he does not allege conversion of statutory penalties related to waiting time or meal and rest breaks.

The California Supreme Court has recognized as a matter of statutory interpretation that, “[a]s a general rule, where a statute creates a right that did not exist at common law and provides a comprehensive and detailed remedial scheme for its enforcement, the statutory remedy is exclusive.” Rojo v. Kliger, 52 Cal.3d 65, 79, 276 Cal.Rptr. 130, 801 P.2d 373 (1990). Conversely, “where a statutory remedy is provided for a preexisting common law right, the newer remedy is generally considered to be cumulative, and the older remedy may be pursued at the plaintiffs election.” Id. The first step in analyzing whether the “new right-exclusive remedy” rule applies is therefore to determine whether the statute at issue created a right not available under the common law.

Defendant relies on a series of federal district court cases that apply the “new right-exclusive remedy” rule and find that the California Labor Code preempts conversion claims for unpaid wages. The first decision in this line of cases, Green v. Party City Corp., No. CV-01-09681 CAS (EX), 2002 WL 553219 (C.D.Cal. Apr. 9, 2002), involved a motion for judgment on the pleadings. Id. at *3. The Green

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Bluebook (online)
955 F. Supp. 2d 1110, 2013 WL 3339052, 2013 U.S. Dist. LEXIS 93265, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sims-v-at-t-mobility-services-llc-caed-2013.