Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-casd-3_11-cv-01880/USCOURTS-casd-3_11-cv-01880-0/pdf.json

Nature of Suit Code: 790
Nature of Suit: Other Labor Litigation
Cause of Action: 42:1983 Civil Rights (Employment Discrimination)

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UNITED STATES DISTRICT COURT 

SOUTHERN DISTRICT OF CALIFORNIA 

HELEN L. HORVATH, dba HW ASSOC., 

 Plaintiff, 

vs. 

ANTHONY TONEY, dba UPTOP GROUP 

LLC; CAVA CUP SOCCER 

TOURNAMENT; AMERICAS 

BASKETBAL INTERNATIONAL; and dba 

ABI SLAM FOUNDATION, 

Defendants. 

CASE NO: 11-CV-1880-IEG (BLM) 

ORDER: 

(1) GRANTING MOTION TO 

PROCEED IN FORMA PAUPERIS, 

(2) DISMISSING COMPLAINT 

WITHOUT PREJUDICE FOR 

FAILING TO STATE A CLAIM 

UPON WHICH RELIEF CAN BE 

GRANTED PURSUANT TO 28 

U.S.C. § 1915(e)(2)(B)(ii), and 

(3) DENYING MOTION TO 

APPOINT COUNSEL 

[Doc. Nos. 2 & 3] 

Plaintiff Helen L. Horvath, proceeding pro se, has filed a complaint asserting claims stemming 

from an alleged breach of contract. [Doc. No. 1.] Horvath has not paid the $350 civil filing fee 

required to commence this action, but has filed a motion to proceed in forma pauperis and a motion to 

appoint counsel. [Doc. Nos. 2 & 3.] For the reasons stated below, the Court (1) GRANTS Plaintiff’s 

motion to proceed IFP, (2) DISMISSES Plaintiff’s Action WITHOUT PREJUDICE pursuant to 

28 U.S.C. § 1915(e)(2)(B)(ii), and (3) DENIES Plaintiff’s request for appointment of counsel. 

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I. Motion to Proceed In Forma Pauperis

Parties instituting any civil action in a district court of the United States, except an application 

for writ of habeas corpus, must pay a filing fee of $350. See 28 U.S.C. § 1914(a). An action may 

proceed despite a plaintiff’s failure to prepay the entire fee only if the plaintiff is granted leave to 

proceed in forma pauperis (“IFP”) pursuant to 28 U.S.C. § 1915(a). See Rodriguez v. Cook, 169 F.3d 

1176, 1177 (9th Cir. 1999). This Court finds that Plaintiff’s affidavit of assets is sufficient to show 

that she is unable to pay the fees or post securities required to maintain this action. See CivLR 3.2(d). 

Plaintiff is currently employed, but lists no significant assets and receives government assistance. 

Furthermore, her loan debt and other monthly bills exceed her income. Thus, the Court GRANTS

Plaintiff’s Motion to Proceed IFP pursuant to 28 U.S.C. § 1915(a). 

II. Sua Sponte Screening per 28 U.S.C. § 1915(e)(2)(B)(ii) 

Any complaint filed pursuant to the IFP provisions of 28 U.S.C. § 1915(a) is subject to 

a mandatory and sua sponte review by the Court. The Court must dismiss any complaint it 

finds is “frivolous, malicious, failing to state a claim upon which relief may be granted, or 

seeking monetary relief from a defendant immune from such relief.” 28 U.S.C. 

§ 1915(e)(2)(B); Calhoun v. Stahl, 254 F.3d 845, 845 (9th Cir. 2001) (“[T]he provisions of 28 

U.S.C. § 1915(e)(2)(B) are not limited to prisoners.”). Prior to its amendment by the Prison 

Litigation Reform Act, the former 28 U.S.C. § 1915(d) permitted sua sponte dismissal of only 

frivolous and malicious claims. Id. at 1130. The newly enacted 28 U.S.C. § 1915(e)(2), however, 

mandates that the court reviewing a complaint filed pursuant to the IFP provisions of section 1915 

make and rule on its own motion to dismiss before directing that the complaint be served by the U.S. 

Marshal pursuant to Federal Rule of Civil Procedure 4(c)(2). Lopez, 203 F.3d 1127 (“[S]ection 

1915(e) not only permits, but requires a district court to dismiss an in forma pauperis complaint that 

fails to state a claim.”); see also Barren v. Harrington, 152 F.3d 1193, 1194 (9th Cir. 1998) (“The 

language of § 1915(e)(2)(B)(ii) parallels the language of Federal Rule of Civil Procedure 12(b)(6).”). 

Additionally, Federal courts are courts of limited jurisdiction and cannot hear every dispute 

presented by litigants. Stock West, Inc. v. Confederated Tribes of the Colville Reservation, 873 F.2d 

1221, 1225 (9th Cir. 1989). Federal courts may only adjudicate cases which the Constitution or 

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Congress authorize them to adjudicate: (1) those cases involving diversity of citizenship (where all 

plaintiffs are from different states from all defendants and the amount in controversy is at least 

$75,000), see 28 U.S.C. § 1332; (2) those cases raising a federal question, see 28 U.S.C. § 1331; or 

(3) those cases to which the United States is a party, see, e.g., 28 U.S.C. § 1346. Federal courts are 

presumptively without jurisdiction over civil cases and the burden of establishing the contrary rests 

upon the party asserting jurisdiction. Kokkonen v. Guardian Life Ins. Co. of Am., 511 U.S. 375, 377 

(1994).

Here, it is unclear what causes of action Plaintiff intends to present to the Court and what facts 

support those causes of action. Plaintiff appears to assert three claims in her complaint: (1) failure to 

pay, (2) breach of contract, and (3) “potential wire fraud (RICO),” but the Civil Cover Sheet she filed 

also lists claims under Title VII of the Civil Rights Act of 1964, the Interstate Commerce Act, and the 

Federal Labor Standards Act. Plaintiff essentially alleges that she entered into a contract to provide 

consulting services to Defendants, and that Defendants failed to compensate her as the agreement 

required. Those allegations are insufficient to support any of federal claims listed in her complaint or 

on the accompanying civil cover sheet. Accordingly, the Court DISMISSES Plaintiff’s federal claims 

with LEAVE TO AMEND. 

Furthermore, while Plaintiff’s allegations may be sufficient to support her state law claim for 

breach of contract, nothing in the complaint suggests the Court has jurisdiction to adjudicate that 

claim. In her complaint, Plaintiff asserts federal question jurisdiction. Because, however, Plaintiff has 

failed to state a federal claim, the Court does not have federal question jurisdiction over this action. 

See 28 U.S.C. § 1331. Plaintiff’s complaint alleges damages exceeding $75,000, but she makes no 

allegations regarding the citizenship of the parties. Plaintiff has not demonstrated the parties are 

completely diverse; thus, the Court does not have jurisdiction over Plaintiff’s breach of contract claim. 

See 28 U.S.C. § 1331. Plaintiff’s state-law claim for breach of contract must therefore be dismissed 

for lack of subject-matter jurisdiction. 

Because Plaintiff has failed to state a claim upon which relief can be granted, Plaintiff’s 

complaint is DISMISSED WITH LEAVE TO AMEND pursuant to 28 U.S.C. § 1919(e)(2)(B)(ii). 

See Calhoun, 254 F.3d at 845; Lopez, 203 F.3d at 1127. 

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III. Plaintiff’s Request for Appointment of Counsel Under 42 U.S.C. § 2000e-5(f)(1)

Plaintiff requests that the Court appoint counsel under 42 U.S.C. § 2000e-5(f)(1). Because the 

Court has dismissed this action, Plaintiff’s request is DENIED as moot 

The Court notes, however, that 42 U.S.C. § 2000e-5(f)(1) authorizes a district court to appoint 

counsel “[u]pon application by the complainant and in such circumstances as the court may deem just.” 

See also Johnson v. U.S. Dep’t of Treasury, 939 F.2d 820, 824 (9th Cir. 1991) (noting that whether to 

appoint counsel falls within the discretion of the district court). In deciding whether to appoint 

counsel, the Court must consider: (1) the plaintiff’s financial resources, (2) the plaintiff’s efforts to 

secure counsel, and (3) whether the plaintiff’s claim lacks merit. See Bradshaw v. Zoological Soc’y of 

San Diego, 662 F.2d 1301, 1318 (9th Cir. 1981). 

Here, Plaintiff satisfies the first factor but fails to satisfy the second and third factors. 

Regarding the first factor, the Court considered Plaintiff’s financial circumstances in granting IFP 

status. Regarding the third factor, as discussed above, Plaintiff failed to state a claim under Title VII. 

Finally, regarding the second factor, Plaintiff discussed her case with just one attorney, who demanded 

a $5,000 deposit that Plaintiff was unable to pay. Plaintiff does not appear to have investigated the 

possibility of retaining counsel on a contingency basis or from volunteer lawyer programs. 

Regarding Plaintiff’s other claims, the Constitution provides no right to appointment of counsel 

in a civil case unless an indigent litigant may lose his physical liberty if he loses the litigation. Lassiter 

v. Dep’t of Social Services, 452 U.S. 18, 25 (1981). Under 28 U.S.C. § 1915(e)(1), however, district 

courts have discretion to appoint counsel for indigent persons under “exceptional circumstances.” 

Palmer v. Valdez, 560 F.3d 965, 970 (9th Cir. 2009). A finding of exceptional circumstances requires 

an evaluation of both the “likelihood of success on the merits and the ability of the petitioner to 

articulate his claims pro se in light of the complexity of the legal issues involved. Neither of these 

considerations is dispositive and instead must be viewed together.” Id. (internal quotation marks and 

citations omitted). As currently pleaded, Plaintiff’s claims are not meritorious and they do they raise 

particularly complex legal issues. 

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CONCLUSION

For the reasons set forth above, the Court Orders as follows: 

(1) Plaintiff’s motion to proceed in forma pauperis is GRANTED. [Doc. No. 2.] 

(2) Plaintiff’s complaint is DISMISSED WITHOUT PREJUDICE pursuant to 28 U.S.C. 

§ 1915(e)(2)(B)(ii). If Plaintiff still wishes to continue to proceed with this matter she must, within 

thirty (30) days: (1) SUBMIT AN AMENDED COMPLAINT WHICH ADDRESSES ALL THE 

DEFICIENCIES OF PLEADING SET FORTH ABOVE; AND (2) ATTACH A COPY OF THIS 

ORDER. If Plaintiff’s Amended Complaint still fails to state a claim upon which relief can be granted, 

it will be dismissed without further leave to amend. See McHenry v. Renne, 84 F.3d 1172, 1177-79 

(9th Cir. 1996) (holding that court may dismiss action pursuant to Fed. R. Civ. P. 41(b) if Plaintiff fails 

to comply with previous court order regarding amendment). [Doc. No. 1.] 

(3) Plaintiff’s request for appointment of counsel is DENIED AS MOOT. [Doc. No. 3.] 

IT IS SO ORDERED. 

DATED: _______________________________ 

 IRMA E. GONZALEZ, Chief Judge 

 United States District Court 

 

8/27/11

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