Adkins v. J.B. Hunt Transp., Inc.
Adkins v. J.B. Hunt Transp., Inc.
Opinion of the Court
Plaintiff Jeffrey Adkins brought this action against defendants J.B. Hunt Transport, *1143Inc. ("J.B. Hunt") and Does 1-20 based on plaintiff's employment with defendant and subsequent termination. Before the court is plaintiff's Motion to remand (Docket No. 6) and defendant J.B. Hunt's Motion to stay plaintiff's eighth through thirteenth causes of action (Docket No. 9.)
On October 18, 2017, plaintiff filed a Complaint in the Superior Court of the State of California, County of San Joaquin containing the following claims: (1) Disability Discrimination; (2) Failure to Reasonably Accommodate; (3) Failure to Engage in Interactive Process; (4) Retaliation in Violation of Fair Employment and Housing Act ("FEHA") [ Gov't Code 12940, et seq. ]; (5) Failure to Prevent Discrimination and Retaliation; (6) Retaliation in Violation of Government Code § 12945.2 ; (7) Wrongful Termination in Violation of Public Policy; (8) Failure to Pay Overtime Wages; (9) Failure to Provide Meal Periods; (10) Failure to Provide Rest Periods; (11) Failure to Provide Accurate Wage Statements; (12) Failure to Pay All Wages Due Upon Separation; and (13) Unfair Business Practices in Violation of Business and Professions Code § 17200. Defendants removed the case under
I. Motion to Remand
Pursuant to
Defendant asserts, and plaintiff does not dispute, that J.B. Hunt is a citizen of Georgia and Arkansas, and that plaintiff is a citizen of California. (Def.'s Notice of Removal at 2-4.) Thus, the only question before the court is whether the amount in controversy is over $75,000.
When the plaintiff does not dispute the amount in controversy, "[a] defendant's notice of removal need include only a plausible allegation that the amount in controversy exceeds the jurisdictional threshold." Dart Cherokee Basin Operating Co., LLC v. Owens, --- U.S. ----,
To determine if the amount in controversy requirement is met, the court looks to the amount demanded by the plaintiff in the Complaint. See St. Paul Mercury Indem. Co. v. Red Cab Co.,
A. Compensatory Damages
On plaintiff's FEHA and wrongful termination of public policy claims, plaintiff seeks compensatory damages or front pay and back pay. "Front pay" is "a measure of damages for loss of future income, as opposed to backpay, which is lost-wages damages through the time of trial." Andrade v. Arby's Rest. Grp., Inc.,
1. Back Pay
Defendant calculates plaintiff's back pay wages to be worth $36,512.00. (Def.'s Notice of Removal at 5.) Defendant arrived at this number by multiplying $11.41 (the estimated hourly rate of pay for plaintiff) by 40 (the estimated hours plaintiff worked per week
Thus, defendant has established evidence that the amount in controversy regarding plaintiff's back pay is $12,799.20. Accordingly, the court will consider that amount in determining whether the amount in controversy requirement is met.
2. Front Pay
Defendant estimates that plaintiff seeks at least $47,465.60 in front pay by estimating that plaintiff seeks front pay damages for two years.
*1145B. Labor Code Penalties
1. Overtime Violations
Plaintiff alleges defendant failed to pay overtime wages. (Compl. ¶¶ 86-91.) Defendant estimates that plaintiff seeks at least $14,804.48 in overtime wages. (Def.'s Notice of Removal at 7.) The Complaint is silent as to how many hours of overtime pay plaintiff is seeking. Therefore, defendant estimates that if plaintiff claims he did not receive 5 hours of overtime pay per week, multiplied by 1.5 times plaintiff's 52-week average hourly rate of pay of $11.41, then plaintiff has placed $14,804.48
Here, plaintiff alleges that he routinely worked in excess of eight hours per day and/or forty hours per week, and/or on a seventh consecutive day in a work week, but plaintiff does not provide any estimate as to the number of overtime hours he was allegedly not compensated for by defendant. (Compl. ¶ 90.) Thus, the court may not consider defendant's calculation of overtime because "the court may not base its jurisdiction on speculation and conjecture." Smith v. Brinker Int'l, Inc., Civ. No. 10-213 VRW,
2. Meal and Rest Break Violations
Plaintiff alleges that defendant failed to provide meal periods and rest periods in violation of Labor Code § 226.7. (Compl. ¶¶ 92-107.) Defendant estimates that plaintiff seeks at least $9,869.65 in meal period premiums and $9,869.65 in rest break periods. In order to arrive at those estimates, defendant assumed that plaintiff missed 1 rest break per day and 1 meal period per day.
The court finds that defendant's estimate that plaintiff missed one meal period and rest period every day is reasonable and supported by the Complaint. Here, the Complaint reasonably suggests that during the relevant time period, plaintiff regularly did not receive compliant meal periods and rest breaks. Moreover, as to rest periods, plaintiff alleges that he did not receive a ten minute rest period for "every" four hours worked and/or was not authorized to take his breaks. Thus, the court believes that defendant's assumption that plaintiff alleges he was denied these breaks every day is reasonable. See *1146Giannini v. Nw. Mut. Life Ins. Co., Civ. No. 12-77 CW,
Accordingly, the court will consider the $9,869.65 for meal period premiums and the $9,869.65 for rest break premiums to determine the amount in controversy.
3. Waiting Time Penalties
In his twelfth cause of action, plaintiff alleges a claim for failure to timely pay wages upon separation of employment pursuant to Labor Code section 203. (Compl. ¶¶ 115-120.) Defendant estimates a total amount in controversy of $2,738.40 in waiting time penalties under plaintiff's twelfth cause of action. (Def.'s Notice of Removal at 7.) Defendant calculates this number based on the statutory maximum permitted under the statute.
4. Wage Statement Penalties
Defendant estimates a total amount in controversy of $4,000 for wage statement penalties. The statutory penalty for such a violation is $50 for the first pay period and $100 for each subsequent pay period, up to a total maximum penalty of $4,000.
C. Other Damages and Fees
Defendant argues that each claim for emotional distress, punitive damages, and attorneys' fees could individually achieve the amount in controversy requirement. (Def.'s P. & A. at 15.)
1. Emotional Distress
"Emotional distress damages may be considered when calculating the amount in controversy even where not clearly pled in the complaint." Simmons v. PCR Tech.,
Here, the amount plaintiff seeks for emotional distress is unclear. Defendant cites several employment discrimination cases to "indicate[ ] that emotional distress *1147damages in a successful employment discrimination case may be substantial." Simmons,
Here, the court will conservatively consider a conservative estimate of $10,000, an amount even less than a 1:1 ratio of emotional distress damages to economic damages, to determine the amount in controversy. See Garfias v. Team Indus. Servs., Inc., Civ. No. 17-4282 JAK AGRX,
2. Punitive Damages
Plaintiff also seeks punitive damages. (Compl. Prayer for Relief.) Punitive damages are available in FEHA cases. Garfias,
Defendant cites cases in employment actions with sizable punitive damage awards. See Aucina v. Amoco Oil, Co.,
3. Attorneys' Fees
Plaintiff also seeks attorneys' fees pursuant to Labor Code §§ 1194, 226, 218.5 and Government Code Section 12965(b). (Compl. Prayer for Relief.) "[W]here an underlying statute authorizes an award of attorneys' fees, either with mandatory or discretionary language, such fees may be included in the amount in controversy." Galt G/S v. JSS Scandinavia,
"Employment claims have been found to 'require substantial effort from counsel.' " Sasso v. Noble Utah Long Beach, LLC, Civ. No. 14-9154-AB AJWX,
Courts have "held that a reasonable rate for employment cases is $300 per hour" and "100 hours is an appropriate and conservative estimate" of the number of hours expended through trial for an employment action. See Sasso,
D. Conclusion
Based upon the foregoing, the court concludes that defendant has presented sufficient evidence that plaintiff has put in issue the following: (1) $12,799.20 for back pay, (2) $9,869.65 for meal period premiums; (3) $9,869.65 for rest break premiums; (4) $2,738.40 of waiting time penalties; (5) $4,000 of wage statement penalties;(6) $10,000 in emotional distress damages; (6) $10,000 in punitive damages; and (7) $30,000 in attorneys' fees, totaling $ $89,276.90.
Because the amount in controversy is satisfied, defendants properly removed this action to federal court, and the court will deny plaintiff's Motion to Remand. The court next considers defendant's Motion to Stay.
II. Motion to Stay
Defendant asks the court to exercise its discretion to stay plaintiff's eighth through thirteenth causes of action-which assert various wage and hour claims-under the "First to File Rule." (Def.'s Mot. (Docket No. 9).) Defendant argues that this proceeding is similar to three other pending class actions: (1) Ortega, et. al. v. J.B. Hunt Transport, Inc., Civ. No. 07-8336 (C.D. Cal.) (the "Ortega action"); (2) Aceves v. J.B. Hunt Transport, Inc., Civ. No. 13-6133 (Cal. 2013) (the "Aceves action"); and Parks v. H.B. Hunt Transport, Inc., Civ. No. 16-9097 (C.D. Cal.) (the "Parks action"). (Def.'s Mot. at 3.) Thus, defendant asks that the court stay plaintiff's wage and hour claims pending final resolution of the Ortega, Aceves, and Parks class actions. (Def.'s Mem. of P. & A. at 1.)
A. Related Cases
1. The Ortega Action
On November 19, 2007, Ortega filed a class action to recover unpaid wages and penalties from defendant J.B. Hunt in the Superior Court of the State of California, Los Angeles. (Def.'s Request for Judicial Notice
On October 17, 2007, defendant removed the case to the United States District Court for the Central District of California. (RJN, Ex. E.) The district court granted defendant's Motion for judgment on the pleadings regarding plaintiffs' meal and rest break claims, and then granted J.B. Hunt's Motion for summary judgment on plaintiffs' minimum wage claims, stating these claims were preempted by the Federal Aviation Administration Authorization Act of 1994 ("FAAAA"). (See
2. The Aceves Action
Aceves asserts class-wide claims in the operative First Amended Complaint for (1) failure to provide meal periods; (2) failure to provide rest breaks; (3) failure to pay all accrued and vested vacation/Paid Time Off ("PTO"); (4) failure to provide accurate wage statements; (5) failure to pay all wages due upon separation; (6) unfair business practices; and (7) civil penalties under the Private Attorney General Act ("PAGA"). (See RJN, Ex. M.) Aceves seeks to represent "current and former employees of defendants who work as non-exempt truck drivers." (Id. ¶ 3.) Due to the overlap with Ortega, Aceves was stayed by the San Bernardino County Superior Court on September 29, 2013 as to all claims except plaintiff's putative class claim for failure to pay all accrued and vested vacation/PTO and claims for unfair business practices and for PAGA penalties to the extent they were based upon the unpaid vacation/PTO claim. (See RJN, Ex. N.)
3. The Parks Action
Parks asserts class-wide claims in the operative Complaint for (1) unfair business practices; (2) failure to pay minimum wages; and (3) failure to provide accurate itemized wage statements. (See RJN, Ex. O.) The plaintiffs in Parks seek to represent all California truck drivers employed by J.B. Hunt in California since February 1, 2012. (Id. ) On December 8, 2016, J.B. Hunt removed the action to federal court. (See RJN, Ex. P.) On January 30, 2017, the court stayed the entire action pending resolution of the appeal in Ortega. (RJN, Ex. Q.)
B. Discussion
The power to stay proceedings "is incidental to the power inherent in every court to control the disposition of the cases on its docket with economy of *1150time and effort for itself, for counsel, and for litigants." Landis v. N. Am. Co.,
As to prejudice to plaintiff, plaintiff argues a stay will simply delay litigation because the outcome of the class actions will have no bearing on plaintiff's claims. (Pl.'s Mot. at 5 (Docket No. 5).) Plaintiff submitted a sworn declaration of his intent to opt out of the Ortega, Aceves, and Parks class action. (Adkins Decl. (Docket No. 11-1).) Thus, plaintiff will not be bound by the judgment in any of the previously filed class actions. See Murphy v. J.B. Hunt Transp. Servs., Inc., Civ. No. 10-1568 WHA,
The court notes that there may be some hardship and inequity to defendant in denying the stay. Defendant argues that plaintiff's claims are substantially similar to those brought in the other actions and thus there is a risk of inconsistent rulings. However, "defendant's concern about the possibility of inconsistent court rulings on the legal issues if this matter proceeded simultaneously with the [other] action[s] does not constitute sufficient hardship to warrant a stay" because "[t]he analysis and ruling of one district is not binding on another district." See Cousins,
IT IS THEREFORE ORDERED that plaintiff's Motion to remand this action (Docket No. 6) be, and the same hereby is, DENIED.
*1151IT IS FURTHER ORDERED that defendant's Motion to stay (Docket No. 9) be, and the same hereby is, DENIED.
Plaintiff agrees that he worked 40 hours per week. (See Compl. ¶¶ 18, 90.)
104 workweeks x $456.40 per week = $47,465.60.
173 weeks x 5 hours overtime/week x 11.41/hr x 1.5 premium = $14,804.48
173 weeks x 5 meal period premiums/week x $11.41 = $9,869.65 and 173 weeks x 5 rest break premiums/week x $11.41 = $9,869.65.
30 days x $11.41/hr x 8/hr. per day = $2,738.40. (Def.'s Notice of Removal at 7.)
(1 initial violation x $50/initial violation) + (51 subsequent violations x $100/subsequent violations) = $5150, which is greater than $4,000.
Defendant requests the court take judicial notice of the following documents: (1) the plaintiff's Complaint; (2) the Ortega Complaint; (3) the Ortega Notice of Removal; (4) the Ortega First Amended Complaint (5) the Ortega Order Granting J.B. Hunt's Motion for Judgment on the Pleadings; (6) the Ortega Order Granting J.B. Hunt's Motion for Summary Judgment; (7) the Ortega Notice of Appeal; (8) the Ortega Memorandum Opinion by the Ninth Circuit; (9) the Ortega Petition for Rehearing En Banc; (10) the Ortega Order denying the Petition for Rehearing En Banc; (11) Ortega Order Setting Trial Date; (12) the Aceves Complaint; (13) the Aceves Amended Complaint; (14) the Aceves Order Granting Stay; (15) the Parks Complaint; (16) the Parks Notice of Removal; (17) the Parks Order Staying Action; and (18) the Ortega Order Granting Joint Stipulation to Continue the Trial Date. (See Docket Nos. 9-2, 14.) The court takes judicial notice of these documents because they are public records whose existence "can be accurately and readily determined from sources whose accuracy cannot readily be questioned." See Fed. R. Civ. P. 201(b); see also United States v. Black,
Reference
- Full Case Name
- Jeffrey ADKINS, an individual v. J.B. HUNT TRANSPORT, INC., a Georgia corporation and Does 1 through 20 inclusive
- Cited By
- 25 cases
- Status
- Published