Potter v. Cardinal Health 200, LLC.
Potter v. Cardinal Health 200, LLC.
Opinion of the Court
MEMORANDUM OPINION AND ORDER
Before the Court is Defendant Cardinal Health 200, LLC's ("Cardinal Health") Rule 12(b)(6) Motion to Dismiss, Or in The Alternative Rule 12(e) Motion for More Definite Statement (the "First Demurrer") with respect to Plaintiff David Potter's ("Potter") Original Complaint (Dkt. No. 1). (Dkt. No. 4 at 1.) Also before the Court is Cardinal Health's Rule 12(b)(6) Motion to Dismiss, Or in The Alternative Rule 12(e) Motion for More Definite Statement (the "Second Demurrer") with respect to Potter's First Amended Complaint (Dkt. No. 5). (Dkt. No. 10 at 1.) Additionally, Cardinal has filed a 12(b)(6) Motion to Dismiss, Or in The Alternative Rule 12(e) Motion for More Definite Statement (the "Third Demurrer") with respect to Potter's Second Amended Complaint (Dkt. No. 20). (Dkt. No. 21 at 1.) For the reasons discussed herein, the First Demurrer is DENIED-AS-MOOT and the Second and Third Demurrers are together GRANTED-IN-PART and DENIED-IN-PART .
I. BACKGROUND
Potter, who is currently 70 years old, was employed as a mold maker at Cardinal Health's facility in Jacksonville, TX. (Dkt.
*733No. 1 ¶¶ 6, 10, 11; Dkt. No. 5 ¶¶ 7, 11, 12; Dkt. No. 20 ¶¶ 7, 11, 12.) Cardinal Health terminated Potter's employment on August 31, 2018. (Dkt. No. 5 ¶ 39; Dkt. No. 20 ¶ 42.)
On January 8, 2019, Potter filed his Original Complaint (Dkt. No. 1) against Cardinal Health asserting claims under the Age Discrimination in Employment Act of 1967 ("ADEA"),
Potter subsequently filed his First Amended Complaint on February 19, 2019. (Dkt. No. 5.) Potter again asserted ADEA and FLSA claims. (Id. ¶¶ 1-4.) On March 15, 2019, Cardinal Health filed its Second Demurrer directed at Potter's First Amended Complaint, seeking dismissal or a more definite statement under Rule 12(b)(6) and (e) as to Potter's FLSA claims. (Dkt. No. 10.)
Potter again amended his Complaint on May 2, 2019, asserting ADEA and FLSA claims. (Dkt. No. 20 ¶¶ 1-4 (Second Amended Complaint).) On May 10, 2019, Cardinal Health filed its Third Demurrer directed at Potter's Second Amended Complaint, again seeking dismissal or a more definite statement under Rule 12(b)(6) and (e) as to Potter's FLSA claims. (Dkt. No. 21.)
II. LEGAL STANDARD
A. Motion to Dismiss
Rule 8(a)(2) requires that the pleading contain "a short and plain statement of the claim showing that the pleader is entitled to relief." Fed. R. Civ. P. 8(a)(2). To survive a Rule 12(b)(6) motion to dismiss, a plaintiff must plead sufficient facts "to state a claim to relief that is plausible on its face." Ashcroft v. Iqbal ,
A court must accept the complaint's factual allegations as true and must "draw all reasonable inferences in the plaintiff's favor." Lormand v. U.S. Unwired, Inc. ,
B. Motion for More Definite Statement
A court may also require a plaintiff to amend a complaint to include a more *734definite statement "of its claim." See 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...before responding." Swierkiewicz v. Sorema N.A. ,
III. DISCUSSION
A. First Demurrer
In light of Potter's First and Second Amended Complaints (Dkt. No. 5; Dkt. No. 20) superseding his Original Complaint (Dkt. No. 1), Cardinal Health's First Demurrer (Dkt. No. 4) is hereby DENIED-AS-MOOT . See Bosarge v. Miss. Bureau of Narcotics ,
Although Cardinal Health's First Demurrer sought dismissal of the ADEA and FLSA claims set forth in Potter's Original Complaint (Dkt. No. 4 at 3-6), Cardinal Health's Second and Third Demurrers only sought dismissal of the FLSA claims set forth in Potter's First and Second Amended Complaints. (See generally Dkt. No. 10; Dkt. No. 21.) Cardinal Health did not urge dismissal of the ADEA claims set forth in Potter's First and Second Amended Complaints. (See generally Dkt. No. 10; Dkt. No. 21.) Indeed, Potter's Response to the Second Demurrer notes that "[i]t is unclear if Defendant is attempting to dismiss the entire lawsuit again or just the claims based on the [FLSA]." (Dkt. No. 11 at 1.) Cardinal Health did not file a Reply in support of its Second Demurrer to clarify the issue. Accordingly, the Court finds that Cardinal Health's Second and Third Demurrers do not encompass the ADEA claims set forth in Potter's First and Second Amended Complaints.
B. Second and Third Demurrer
Having reviewed Potter's First and Second Amended Complaints, the Court finds that the two complaints are substantially similar, aside from paragraphs detailing a discovery dispute between the parties. (See Dkt. No. 20 ¶¶ 52-66.) See also Charette v. Box , No. 4:10-cv-98-ALM,
1. FLSA Overtime Claim
Cardinal Health argues that "[d]isjointed and vague references to alleged unlawful FLSA practices render Cardinal Health unable to craft a responsive pleading." (Dkt. No. 11 at 7; see also Dkt. No.
*73521 at 3 ("[A]bsent any allegation that the FLSA overtime or minimum wage provisions were violated, Potter has failed to state a cognizable FLSA claim.").) Cardinal Health also argues that "[t]o the extent Potter is attempting to state a claim for violation of the FLSA's recordkeeping requirement...the FLSA does not provide a private right of action for alleged recordkeeping violations." (Dkt. No. 11 at 3.)
In response, Potter argues that he has "sufficiently pleaded facts to place [Cardinal Health] on notice that it has been sued for overtime and minimum wages under the FLSA." (Dkt. No. 17 at 5.)
The FLSA requires covered employers to compensate nonexempt employees at overtime rates for time worked in excess of statutorily defined maximum hours.
As an initial matter, Cardinal Health's characterization of Potter's FLSA claim as a private action for recordkeeping violations ignores the plain language of the Amended Complaint. Both the First and Second Amended Complaints expressly allege that Potter (1) "is an [sic] qualified employee who has been denied employment including wages and benefits due him," and (2) "brings this [suit] in part for violations of the Fair Labor Standards Act, in that [Cardinal Health] has failed to pay [him]...his unpaid wages, overtime, liquidated damages...." (See Dkt. No. 5 ¶¶ 2, 4; Dkt. No. 20 ¶¶ 2, 4.) Specifically, the Amended Complaint alleges that (1) Potter "was employed by [Cardinal Health until he]...was terminated on or about August 31, 2018," (2) Cardinal Health "has been an employer subject to the wage and hour provisions of the FLSA," and (3) Potter's job as a mold maker "is not exempt from the requirement that he be compensated for his hours worked...and overtime." (Dkt. No. 5 ¶¶ 38-40; Dkt. No. 20 ¶¶ 41-43.) See also Hoffman ,
The Amended Complaint also alleges that Cardinal Health "has repeatedly and consistently failed to pay [Potter] overtime wages." (Dkt. No. 5 ¶ 40; see also id. ¶ 46 (stating that Potter "sent an email to Scott Martin stating in part [that his] time sheet d[id] not show any hours for 8/28 and 8/29"); Dkt. No. 20 ¶¶ 43, 49.) Potter's "normal working hours were from 7:00 a.m. to 3:00 p.m.", yet "[o]n certain occasions [Potter] would show up early to begin working." (Dkt. No. 5 ¶¶ 43- 44; Dkt. No. 20 ¶¶ 46-47.) "Based on a wage of $ 26.88 per hour x 1.5 hours = $ 40.32 a week for 128 weeks [sic] is $ 5,160.92 due and owing, when the records show 1.5 hours a week was not paid." (Dkt. No. 5 ¶ 48; Dkt. No. 20 ¶ 51.)
Based on these alleged facts and making reasonable inferences in favor of Potter as the non-movant, the Court finds that Potter has sufficiently pled an FLSA claim for overtime wages. Accordingly, Cardinal Health's Second and Third Demurrers are hereby DENIED as to Potter's FLSA wage claim.
*7362. FLSA Collective Relief Claim
Cardinal Health argues that "non-specific allegation[s] hinting at collective relief" render Potter's First and Second Amended Complaints "so vague and ambiguous that it is unclear whether Potter is bringing this lawsuit as an individual or collective action under the FLSA." (Dkt. No. 10 at 4; Dkt. No. 21 at 4.) Potter's allegation that he "was the only employee required to keep time records....simply underscores that others are not similarly situated to him, making collective relief improper." (Dkt. No. 21 at 3.) Cardinal Health also argues that Potter "does not allege a particular policy or practice that supposedly resulted in him not being paid for all hours he supposedly worked." (Dkt. No. 10 at 4-5; Dkt. No. 21 at 5.) Cardinal Health faulted Potter's Original Complaint for the same reasons and requested that the Court order Potter to provide a more definite statement. (Dkt. No. 4 at 4.)
Potter does not offer any response as to whether he is seeking collective relief. (See generally Dkt. No. 11.) Nor does Potter's First Amended Complaint expound upon or clarify the basis for a collective action in view of his Original Complaint. (Compare Dkt. No. 1 ¶ 4, with Dkt. No. 5 ¶ 4, with Dkt. No. 20 ¶ 4.) However, Potter's Second Amended Complaint includes nine paragraphs detailing the parties' dispute over the scope of discovery as to collective relief under the FLSA. (See Dkt. No. 20 ¶¶ 55-63.)
Section 216(b) of the Fair Labor Standards Act authorizes a plaintiff to bring a collective action on behalf of similarly situated persons.
Under the Lusardi two-step approach, certification for a collective action is divided into two phases: (1) the notice stage; and (2) the opt-in, or merits, stage. Mooney ,
No specific definition of the term "similarly situated" exists in the FLSA. In the Fifth Circuit, however, some district courts have recognized that a key consideration for satisfying this standard is whether substantial allegations exist that potential members were together the victims of a single decision, policy, or plan. See, e.g. , *737Richardson v. Wells Fargo Bank, N.A. , No. 4:11-cv-00738,
In view of Lusardi , courts are split on whether an FLSA collective relief claim may be properly challenged under Rule 12(b)(6). See Creech v. Holiday CVS, LLC , No. 11-CV-46,
Other courts "have found that a 12(b)(6) analysis of class allegations is appropriate" because " Rule 12(b)(6) requires that a plaintiff give the defendant fair notice of the putative class, which is a much different inquiry than that at the conditional class certification stage." Huchingson v. Rao , No. 5:14-cv-1118,
While this Court agrees that, at the pleading stage, plaintiffs asserting FLSA collective actions must make plausible allegations that similarly situated employees exist, this requirement is a low bar under Federal Rule of Civil Procedure 8. So long as the plaintiff's complaint contains "sufficient factual matter, accepted as true, to 'state a claim to relief that is plausible on its face,' " see Iqbal ,
However and on balance, this Court is persuaded that Potter's First and Second *738Amended Complaints do not provide Cardinal Health with fair notice of a collective action under the FLSA. The Complaints simply allege that Cardinal Health "has failed to pay [Potter] and others similarly situated for continuous workday activities which are integral and indispensable to their principal activities," without providing Cardinal Health notice as to the scope of Potter's proposed class. (Dkt. No. 5 ¶ 4; Dkt. No. 20 ¶ 4.) Cf. Ridley v. Regency Vill., Inc. , No. CV H-17-974,
Additionally, the Court is persuaded that dismissal under Rule 12(b)(6) is warranted instead of ordering Potter to provide a more definite statement under Rule 12(e). Potter has had the benefit of Cardinal Health's vagueness objection as set forth in the First Demurrer and the Second Demurrer, yet Potter did not provide a more definite statement as to a collective relief claim in his Second or Third Amended Complaints. Moreover, the parties' June 20, 2019, discovery deadline is looming, and Cardinal Health has yet to file an Answer in this case nor has Cardinal Health engaged in substantive discovery as to Potter's other FLSA claims. (See Dkt. No. 12 at 3; see also Dkt. No. 20-10 ("We will not be producing information related to the FLSA allegations until the court rules on our most recent 12b6 [sic] motion.") (Email from counsel for Cardinal Health to counsel for Potter).) Accordingly, the Court hereby ORDERS that any claim for collective relief set forth in Potter's First or Second Amended Complaints is DISMISSED WITHOUT PREJUDICE .
3. FLSA Retaliation Claim
Cardinal Health argues that "Potter does not allege facts that demonstrate he engaged in protected activity" that supports an FLSA retaliation claim. (See Dkt. No. 10 at 2, 3; Dkt. No. 21 at 2.) The activities set forth in the Complaint are "informal, nonspecific complaints that do not directly invoke FLSA violations," and thus are not protected activities. (See Dkt. No. 10 at 2; Dkt. No. 21 at 3.)
In response, Potter argues that both his email and oral complaints sufficiently put Cardinal Health on notice that it could be subject to a later claim of retaliation. (Dkt. No. 11 at 7.) Potter also argues that "[t]wo days after [he] sen[t] [an] email [complaining *739of missing hours on his timesheet], [he] was asked to sign a severance agreement that he ha[d] been paid for all time worked." (See id. at 6.)
It is unlawful under the FLSA for an employer to "discharge or in any other manner discriminate against any employee because such employee has filed any complaint or instituted or caused to be instituted any proceeding under or related to this chapter."
Fifth Circuit law "allows an informal, internal complaint to constitute protected activity under Section 215(a)(3), because it better captures the anti-retaliation goals of that section."
The First and Second Amended Complaints allege that "[o]n or about August 29, 2018, or shortly thereafter, [Potter] complained that he was not being paid correctly[, and a]pproximately two days later [Potter] was terminated." (Dkt. No. 5 ¶ 49; Dkt. No. 20 ¶ 67.) Additionally, the Complaints contains several pre-termination emails from Potter complaining to Cardinal Health that: (1) "[m]y time sheet does not show any hours for 8/28 and 8/29. I had PTO for 8/27"; and (2) "I am a victim of [my supervisor's] retaliation for my previous complaint to corporate." (See, e.g. , Dkt. No. 5-7 at 1; Dkt. No. 20-7 at 1.) But see Hagan ,
Drawing all reasonable inferences in favor of Potter, the Court finds that Potter's First and Second Amended Complaints sufficiently allege an FLSA retaliation claim. Accordingly, Cardinal Health's Second and Third Demurrers are hereby DENIED as to this claim.
IV. CONCLUSION
For the foregoing reasons, Cardinal Health's First Demurrer (Dkt. No. 4) is *740DENIED-AS-MOOT . Additionally, Cardinal Health's Second Demurrer (Dkt. No. 10) and Third Demurrer (Dkt. No. 21) are GRANTED-IN-PART and DENIED-IN-PART as set forth herein. To the extent Potter's First and Second Amended Complaints (Dkt. No. 5; Dkt. No. 20) set forth any claim for collective relief under the FLSA, such claims are hereby DISMISSED . However, this dismissal is without prejudice to Potter filing a third amended complaint after Cardinal Health has filed an Answer to Potter's Second Amended Compliant and before the June 27, 2019, deadline to file amended pleadings. (See Dkt. No. 12 at 3.) Cardinal Health's request for dismissal or a more definite statement of Potter's FLSA retaliation and individual overtime claims is DENIED . It is therefore ORDERED that Cardinal Health shall file an Answer to Potter's Second Amended Complaint with 14 days of this Order. See Fed. R. Civ. P. 4(A).
SIGNED this 19th day of December, 2011.
So ORDERED and SIGNED this 15th day of May, 2019.
Reference
- Full Case Name
- David POTTER v. CARDINAL HEALTH 200, LLC.
- Cited By
- 7 cases
- Status
- Published