Zanders v. Wells Fargo Bank N.A.

55 F. Supp. 3d 1163, 2014 U.S. Dist. LEXIS 153174, 2014 WL 5439298
CourtDistrict Court, S.D. Iowa
DecidedOctober 28, 2014
DocketNo. 4:14-cv-00288-JEG-RAW
StatusPublished
Cited by5 cases

This text of 55 F. Supp. 3d 1163 (Zanders v. Wells Fargo Bank N.A.) is published on Counsel Stack Legal Research, covering District Court, S.D. Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Zanders v. Wells Fargo Bank N.A., 55 F. Supp. 3d 1163, 2014 U.S. Dist. LEXIS 153174, 2014 WL 5439298 (S.D. Iowa 2014).

Opinion

ORDER

JAMES E. GRITZNER', Chief Judge.

This matter comes before the Court on Motion to Dismiss by Defendants Wells Fargo Bank N.A. d/b/a/ Wells Fargo Home Mortgage (Wells Fargo), Keth Malone, and Brian Freese (collectively, Defendants), as well as Motion for Leave to Amend First Amended Petition and Jury Demand and Motion for Leave to Amend Second Amended Petition and Jury Demand by Plaintiffs Rachelle Zanders, Ro-bertha Larmouth, Michelle Strawman, Mercy Issa, and employees similarly situated to them (collectively, Plaintiffs). Plaintiffs resist Defendants’ motion, and Defendants resist Plaintiffs’ motions.

The Court conducted a hearing on Defendants’ Motion to Dismiss and Plaintiffs’ first Motion to Amend on October 1, 2014. Attorney Mark Sherinian was present on behalf of Plaintiffs, and attorneys Karin A. Johnson and Michael Guidicessi were present on behalf of Defendants. Plaintiffs filed their second Motion to Amend after the hearing, and Defendants responded. Neither party requested a hearing on the second Motion to Amend, and the Court finds that a hearing on that issue is unnecessary. Accordingly, each motion is fully submitted and ready for disposition.

I. BACKGROUND1

All of the named plaintiffs are citizens of Iowa. Defendant Wells Fargo is a legal entity organized in California, and its principal place of business is in Des Moines, Iowa. The individual defendants Keth Malone and Brian Freese are citizens of Iowa and were managers and/or supervisors with Wells Fargo at all relevant times. Plaintiffs were formerly employed by Wells Fargo as Home Preservation Specialists. Plaintiffs were paid hourly and contend they were subject to the Fair Labor Standards Act (FLSA), 29 U.S.C. § 201 et seq.

Plaintiffs allege that Wells Fargo, through its agents Malone and Freese, [1166]*1166required Plaintiffs to “assume workloads that could not reasonably be performed within a forty hour work week,” and Defendants told Plaintiffs not-to report overtime and criticized them if they did. This caused Plaintiffs to work “off-the-clock” without payment for overtime. Plaintiffs contend that they worked between 50 and 60 or more hours per week. The Second Amended Petition explains that Plaintiffs were required to simultaneously assume responsibility for “more than 60 cases” involving defaulting borrowers. The Third Amended Petition alters this allegation to provide “Plaintiffs were told that they were required to handle 60 files at a time, but were normally assigned 90 to 100 files at a time.” Third Am. Pet. ¶ 18, EOF No. 15-1.

In Count 1, Plaintiffs assert that Defendants intentionally failed to pay Plaintiffs the wages due to them, and accordingly Iowa Code § 91A.8, referred to as the Iowa Wage Payment Collection Law (IWPCL), entitles Plaintiffs to back wages, court costs, attorneys’ fees, and liquidated damages. Count 2 alleges that Plaintiffs were “employees” and Defendants are “employers” as defined by the FLSA. See 29 U.S.C. § 203(d)-(e)(l) (2012). The Petition further alleges that — in violation of 29 U.S.C. § 207(a)(1) (2012) — Wells Fargo is “engaged in commerce,” it employed Plaintiffs for more than forty hours per week, and did not properly pay them overtime. Count 2 requests damages for unpaid wages and interest, liquidated damages, attorneys’ fees, and court costs.

Defendants’ 12(b)(6) motion to dismiss makes three primary arguments. Defendants argue that Plaintiffs’ IWPCL claim duplicates their FLSA claim, and accordingly the FLSA preempts the IWPCL. In the alternative, Defendants argue that Malone and Freese are not “employers” within the meaning of the IWPCL. Finally, Defendants argue that Plaintiffs have not alleged sufficient facts — in any of their Petitions — to plausibly suggest that similarly situated employees are entitled to relief.

II. DISCUSSION

A. Jurisdiction

The Court has jurisdiction over the FLSA claims under 28 U.S.C. § 1331 and 29 U.S.C. § 216(b). In addition, the Court may exercise supplemental jurisdiction over the IWPCL claims under 28 U.S.C. § 1367. See Lindsay v. Gov’t Emps. Ins. Co., 448 F.3d 416, 424 (D.C.Cir.2006) (finding supplemental jurisdiction over state-law wage claims when the plaintiffs brought claims under both the FLSA and the state wage claim statute); Salazar v. Agriprocessors, Inc., 527 F.Supp.2d 873, 884-87 (N.D.Iowa 2007) (finding supplemental jurisdiction over IWPCL claims when the plaintiffs also made FLSA claims). But see De Asencio v. Tyson Foods, Inc., 342 F.3d 301, 312 (3d Cir.2003) (holding that exercising supplemental jurisdiction over state-law wage claims was inappropriate under 28 U.S.C. § 1367(c)(l)-(2)).

B. Applicable Legal Standard

Federal Rule of Civil Procedure 8(a)(2) requires only a “short and plain statement of the claim showing that the pleader is entitled to relief.” However, the “plaintiffs obligation to provide the ‘grounds’ of his ‘entitle[ment] to relief requires more than labels and conclusions, and a formulaic recitation of the elements of a cause of action will not do.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007) (abrogating Conley v. Gibson, 355 U.S. 41, 78 S.Ct. 99, 2 L.Ed.2d 80 (1957)) (alteration in original) (quoting Papasan v. Allain, 478 U.S. 265, 286, 106 S.Ct. 2932, 92 L.Ed.2d 209 (1986)). [1167]*1167To survive a Rule 12(b)(6) “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, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009) (quoting Twombly, 550 U.S. at 570, 127 S.Ct. 1955). Under the current pleading standard, “[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.” Id. (citing Twombly, 550 U.S. at 556, 127 S.Ct. 1955). “Determining whether a complaint states a plausible claim for relief will ... be a context-specific task that requires the reviewing court to draw on its judicial experience and common sense.” Id. at 679, 129 S.Ct.

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55 F. Supp. 3d 1163, 2014 U.S. Dist. LEXIS 153174, 2014 WL 5439298, Counsel Stack Legal Research, https://law.counselstack.com/opinion/zanders-v-wells-fargo-bank-na-iasd-2014.