SOUSLEY v. INSIGNIA HOSPITALITY GROUP, INC. d/b/a HOLIDAY INN

CourtDistrict Court, W.D. Texas
DecidedJuly 7, 2025
Docket7:24-cv-00117
StatusUnknown

This text of SOUSLEY v. INSIGNIA HOSPITALITY GROUP, INC. d/b/a HOLIDAY INN (SOUSLEY v. INSIGNIA HOSPITALITY GROUP, INC. d/b/a HOLIDAY INN) is published on Counsel Stack Legal Research, covering District Court, W.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
SOUSLEY v. INSIGNIA HOSPITALITY GROUP, INC. d/b/a HOLIDAY INN, (W.D. Tex. 2025).

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF TEXAS MIDLAND/ODESSA DIVISION

TRACY SOUSLEY, § Plaintiff, § § v. § MO:24-CV-00117-DC-RCG § INSIGNIA HOSPITALITY GROUP, INC., § d/b/a HOLIDAY INN, § Defendant. §

REPORT AND RECOMMENDATION OF THE U.S. MAGISTRATE JUDGE

BEFORE THE COURT is Defendant Insignia Hospitality Group, Inc., d/b/a Holiday Inn’s Second Partial Motion to Dismiss or, in the alternative, Rule 12(e) Motion for a More Definite Statement. (Doc. 12). This case is before the undersigned through an Order pursuant to 28 U.S.C. § 636 and Appendix C of the Local Court Rules for the Assignment of Duties to United States Magistrate Judges. After due consideration of the record and applicable case law, the Court RECOMMENDS Defendant’s Partial Motion to Dismiss be DENIED WITHOUT PREJUDICE and Defendant’s Motion for a More Definite Statement be GRANTED. (Doc. 12). I. BACKGROUND On March 29, 2024, Plaintiff Tracy Sousley (“Plaintiff”) filed her Original Complaint against Defendant Insignia Hospitality Group, Inc. (“Defendant”) in the Midland County Court at Law. (Doc. 1-4). On May 8, 2024, Defendant removed the action to this Court. (Doc. 1). On July 19, 2024, Defendant filed its first Motion to Dismiss, or alternatively, Motion for a More Definite Statement. (Doc. 6). The Magistrate Judge then issued a Report and Recommendation denying Defendant’s Motion to Dismiss, granting Defendant’s Motion for a More Definite Statement, and ordering Plaintiff to restate her case and replead her claims with more specificity. (Doc. 9 at 5). With no objections filed, the Court adopted the Report and Recommendation and ordered Plaintiff to file her First Amended Complaint, which she did. (Docs. 10, 11). In her Amended Complaint, Plaintiff alleges two causes of action: (1) a violation of the Fair Labor Standards Act and (2) implied breach of contract between employer and employee. (Doc. 11 at 5). On February 3, 2025, Defendant filed a Second Partial Motion to Dismiss arguing

Plaintiff fails to state a breach of contract claim. (Doc. 12 at 4). In the alternative, Defendant requests Plaintiff be required to file a more definite statement under Rule 12(e). Id. The instant Motions have been fully briefed and are ripe for disposition. (Docs. 13, 14). II. LEGAL STANDARD Federal Rule of Civil Procedure 12(b)(6) allows a party to move for the dismissal of a complaint for “failure to state a claim upon which relief can be granted.” To survive a motion to dismiss, “a complaint 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 has facial plausibility when the plaintiff

pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Iqbal, 556 U.S. at 678. A claim for relief must contain: (1) “a short and plain statement of the grounds for the court’s jurisdiction”; (2) “a short and plain statement of the claim showing that the pleader is entitled to the relief”; and (3) “a demand for the relief sought.” FED. R. CIV. P. 8(a). A plaintiff “must provide enough factual allegations to draw the reasonable inference that the elements exist.” Innova Hosp. San Antonio, L.P. v. Blue Cross & Blue Shield of Ga., Inc., 995 F. Supp. 2d 587, 602 (N.D. Tex. 2014) (citing Patrick v. Wal–Mart, Inc.-Store No. 155, 681 F.3d 614, 617 (5th Cir. 2012)); see Torch Liquidating Tr. ex rel. Bridge Assocs. LLC v. Stockstill, 561 F.3d 377, 384 (5th Cir. 2009) (“[T]he complaint must contain either direct allegations or permit properly drawn inferences to support every material point necessary to sustain recovery”) (internal quotation marks and citations omitted). In a court’s review of a motion to dismiss under Rule 12(b)(6), all factual allegations from the complaint should be taken as true, and the facts are to be construed in the light most favorable to the nonmoving party. Fernandez-Montes v. Allied Pilots Assoc., 987 F.2d 278, 284

(5th Cir. 1993). Still, a complaint must contain “more than labels and conclusions, and a formulaic recitation of the elements of a cause of action will not do.” Twombly, 550 U.S. at 555. “‘[N]aked assertions’ devoid of ‘further factual enhancement,’” and “threadbare recitals of the elements of a cause of action, supported by mere conclusory statements,” are not entitled to the presumption of truth. Iqbal, 556 U.S. at 678 (quoting Twombly, 550 U.S. at 557); see R2 Invs. LDC v. Phillips, 401 F.3d 638, 642 (5th Cir. 2005) (stating that the court should neither “strain to find inferences favorable to plaintiffs” nor accept “conclusory allegations, unwarranted deductions, or legal conclusions.”). When a party moves under Federal Rule of Civil Procedure 12(e) for a more definite

statement, the court is afforded discretion to determine whether the complaint is such that a party cannot reasonably be required to frame a responsive pleading. Mitchell v. E-Z Way Towers, Inc., 269 F.2d 126, 130 (5th Cir. 1959). A more definite statement of a pleading is required when the pleading “is so vague or ambiguous that the party cannot reasonably prepare a response.” FED. R. CIV. P. 12(e). “If a pleading fails to specify the allegations in a manner that provides sufficient notice, a defendant can move for a more definite statement under Rule 12(e) before responding.” Swierkiewicz v. Sorema N.A., 534 U.S. 506, 514 (2002). III. DISCUSSION Plaintiff’s First Amended Complaint is insufficient as to her breach of contract claim. As Defendant points out, Plaintiff’s only mention of the cause of action is in Section 5 of her Complaint, which states, “For causes of action, the Plaintiff pleads the following: . . . (b) implied breach of contract between employer and Employee.” (Doc. 11 at 5). Plaintiff’s claim falls

victim to the same issue her Original Complaint did—“her breach of contract claim lacks any factual allegations as to the purported parties, terms, and/or breach of any agreement.” (Doc. 9 at 4). Thus, the Court is inclined to dismiss the cause of action. However, because Defendant has so generously filed a Rule 12(e) Motion for a More Definite Statement in the alternative, the Court will give Plaintiff one more bite at the apple. The Court takes this opportunity to remind Plaintiff this is federal court. Here, a notice pleading standard does not suffice. Plaintiff must plead “enough facts to a state a claim to relief that is plausible on its face,” and her “factual allegations must be enough to raise a right to relief above the speculative level.” Twombly, 550 U.S. at 555. Because the Court is not convinced Plaintiff

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Bluebook (online)
SOUSLEY v. INSIGNIA HOSPITALITY GROUP, INC. d/b/a HOLIDAY INN, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sousley-v-insignia-hospitality-group-inc-dba-holiday-inn-txwd-2025.