Williams v. Condensed Curriculum International, Inc

CourtDistrict Court, N.D. California
DecidedNovember 2, 2021
Docket4:20-cv-05292
StatusUnknown

This text of Williams v. Condensed Curriculum International, Inc (Williams v. Condensed Curriculum International, Inc) 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
Williams v. Condensed Curriculum International, Inc, (N.D. Cal. 2021).

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 EUREKA DIVISION 7 8 RYAN WILLIAMS, Case No. 20-cv-05292-YGR (RMI)

9 Plaintiff, ORDER RE: DISCOVERY DISPUTE 10 v. Re: Dkt. No. 30 11 CONDENSED CURRICULUM INTERNATIONAL, 12 Defendant. 13 14 Now pending before the court is a jointly-filed letter brief (dkt. 30) presenting a series of 15 discovery disputes that boil down to Plaintiff’s numerous requests to compel various items of 16 discovery. Plaintiff’s requests are granted in part and denied in part as set forth below.1 17 BACKGROUND 18 On July 31, 2020, this case was removed to this court from the Napa County Superior 19 Court. See Notice (dkt. 1). Plaintiff is a California resident who was previously employed by 20 Defendant as a commissioned salesperson; the employment contract fixed Plaintiff’s starting 21 salary at $60,000 per year while also setting forth the following commission schedule: (1) 10% for 22 each e-learning student sales contracts or relationship that Plaintiff would secure on Defendant’s 23 behalf; and, (2) 5% for “each instructor led training student sale from contracts or relationships 24 Plaintiff contracted with” on Defendant’s behalf. See FAC (dkt. 1-1) at 32-34. Defendant is a New 25 Jersey corporation engaged in the business of providing content, support services, and staffing 26 solutions for various educational institutions. See id. at 33-34. 27 1 At some point, the employer-employee relationship between the Parties soured and 2 devolved into litigation. Reportedly, following Plaintiff’s termination, Defendant first sued 3 Plaintiff on March 19, 2020, in state court in Maryland for misrepresentation, breach of fiduciary 4 duty, constructive fraud, tortious interference with contractual relations, misappropriation of trade 5 secrets, and breach of contract – as a result of which Defendant pursued injunctive relief, and 6 (presumably) certain measures of damages as well. See Ltr. Br. (dkt. 30) at 4. One day later, 7 Plaintiff filed the instant action. See Compl. (dkt. 1-1) at 6-20. A few months later, Plaintiff filed 8 an amended complaint (“FAC”) through which he claimed (on his own behalf and on behalf of 9 other similarly aggrieved individuals) the following claims: breach of contract; misclassification 10 as an independent contractor in violation of Cal. Labor Code §§ 226.8, 2750.3, and 2753; 11 inaccurate wage statements in violation of Cal. Labor Code § 226; failure to provide wages when 12 due in violation of Cal. Labor Code §§ 201, 202, and 203; failure to reimburse business expenses 13 in violation of Cal. Labor Code § 2802; unfair business practices in violation of Cal Bus. & Prof. 14 Code § 17200; wrongful termination in violation of public policy; retaliation in violation of Cal. 15 Gov. Code § 12940; and, violation of the Private Attorney General Act (Cal. Labor Code § 2698) 16 (“PAGA”). See generally FAC (dkt. 1-1) at 31-46. Plaintiff seeks injunctive relief (as to 17 Defendant’s “illegal covenant not to compete”) as well as various measures of damages. Id. at 43- 18 44, 45. 19 Given the near-simultaneous filing of these two lawsuits – there will be a great deal of 20 overlap between the Parties’ claims and defenses in each of their respective lawsuits. Through the 21 Maryland action, Plaintiff reports that Defendant has accused him of having “been engaged in 22 direct competition with CCI for nearly two years, acting as VP of Sales for a competitor and 23 soliciting clients, poaching opportunities, and directing business away from CCI.” See Ltr. Br. 24 (dkt. 30) at 6. In this action, Plaintiff alleges that despite working diligently for Defendant during 25 the past 7 years, devoting over 50 hours a week to his work, and generating Defendant millions of 26 dollars in revenue – Defendant refused to pay him his earned commissions. See FAC (dkt. 1-1) at 27 34. Plaintiff alleges that Defendant owes him approximately $883,738 in unpaid commissions for 1 Defendant paid him and other aggrieved employees their wages through a Form 1099 by 2 intentionally misclassifying them as independent contractors, thereby avoiding their obligation to 3 pay employer-side payroll taxes, which in turn “forced Plaintiff and other aggrieved employees to 4 incur self-employment tax.” Id. at 34-35. Further, Plaintiff contends that Defendant also failed to 5 reimburse him and other aggrieved employees for expenses associated with their use of a home 6 office, cellular telephone, and the entertainment of clients. Id. at 35. Lastly, Plaintiff maintains that 7 as a result of his complaints about these practices, Defendant wrongfully terminated his 8 employment, threatened him with a frivolous lawsuit in an attempt to prevent him from enforcing 9 his rights through this litigation, and attempted to enforce an illegal non-compete agreement while 10 interfering with his business relationships and his other employment opportunities. Id. 11 Because it is relevant to the scope of discovery in this case, it should also be mentioned 12 that Defendant has pleaded more than fifty affirmative defenses in this case. See Def.’s Answer 13 (dkt. 1-1) at 50-59. Given that “Rule 26 allows a party to obtain discovery concerning any non- 14 privileged matter that is relevant to any claim or defense,” (see e.g., Glass Egg Dig. Media v. 15 Gameloft, Inc., No. 17-cv-04165-MMC (RMI), 2019 U.S. Dist. LEXIS 149896, at *13 (N.D. Cal. 16 Sep. 3, 2019)), Defendant’s rather enthusiastic approach to pleading affirmative defenses has 17 essentially operated to significantly broaden the scope of discovery.

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Bluebook (online)
Williams v. Condensed Curriculum International, Inc, Counsel Stack Legal Research, https://law.counselstack.com/opinion/williams-v-condensed-curriculum-international-inc-cand-2021.