Source: http://www.ecases.us/case/pamd/c2474372/knepper-v-rite-aid-corp
Timestamp: 2019-10-22 18:42:10
Document Index: 538719943

Matched Legal Cases: ['§ 216', '§ 1404', '§ 216', '§ 202', '§ 216', '§ 1332', '§ 1332']

Knepper v. Rite Aid Corp., Middle District of Pennsylvania, US Federal District Court Cases, Federal Courts, COURT CASE
Knepper v. Rite Aid Corp. , 764 F. Supp. 2d 707 ( 2011 )
764 F. Supp. 2d 707 (2011)
Daniel KNEPPER, Plaintiff,
No. 09-cv-2069.
*708 Fran L. Rudich, Seth R. Lesser, Klafter Olsen & Lesser LLP, Rye Brook, NY, Peter D. Winebrake, R. Andrew Santillo, Mark J. Gottesfeld, The Winebrake Law Firm, LLC, Dresher, PA, Robert E. Derose, Katherine A. Stone, Barkan Meizlish Handelman Goodin Derose Wentz, LLP, Robert Karl Handelman, Sanford Alan Meizlish, Shannon R. Baith, Barkan Neff Handelman Meizlish, LLP, Columbus, OH, for Plaintiff.
Brian P. Downey, Pepper Hamilton LLP, Harrisburg, PA, Clara H. Rho, John M. O'Connor, Patrick G. Brady, Suzanne K. Brown, Epstein Becker & Green, Newark, NJ, for Defendants.
Former Plaintiff Robert Vasvari ("Plaintiff" or "Vasvari") was employed as an Assistant Manager by Rite Aid Corporation ("Defendants") and, in this action,[1] seeks to recover "back wages for all hours worked . . . as well as for overtime work" under Ohio's Minimum Fair Wage Standards Act ("Ohio MFWSA"). Pursuant to an Order of the Court on December 3, 2010, Daniel Knepper was substituted for Robert Vasvari as Plaintiff because of Mr. Vasvari's death. Because Mr. Knepper replaced Mr. Vasvari but all claims and allegations remained the same, we shall refer to them interchangeably. Plaintiff also seeks to certify a class on behalf of all current and former Rite Aid Assistant Managers in the state of Ohio pursuant to Federal Rule of Civil Procedure 23. Presently before the Court is Defendants' Motion to Dismiss pursuant to Federal Rule of Civil Procedure 12(c) ("the Motion"). (Doc. 45). The Motion has been fully briefed by the parties, and thus is ripe for disposition. (See Doc. 72 (Defendants' Brief in Support); Doc. 74 (Plaintiff's Brief in Opposition); Doc. 76 (Defendants' Reply).) For the reasons articulated in this Memorandum, the Court will grant the Motion and dismiss the action without prejudice.
Federal Rule of Civil Procedure 12(c) provides that "after the pleadings are closed  but early enough not to delay trial  a party may move for judgment on the pleadings."[2] A "Rule 12(c) motion is little more than a relic of the common law and code era, and it only has utility when all the material allegations of fact are admitted in the pleadings and only questions of law remain. Granting a Rule 12(c) motion results in a determination on the merits at an early stage in the litigation, and thus this court requires the movant to clearly establish that no material issue of fact remains to be resolved and that he is entitled to judgment as a matter of law." Inst. for Sci. Info., Inc. v. Gordon & *709 Breach, Sci. Publishers, Inc., 931 F.2d 1002, 1005 (3d Cir.1991) (citing Jablonski v. Pan American World Airways, Inc., 863 F.2d 289, 290-91 (3d Cir.1988), punctuation omitted). A motion for judgment on the pleadings under Federal Rule of Civil Procedure 12(c) is subject to the same standard as a motion to dismiss for failure to state a claim under Federal Rule of Civil Procedure 12(b)(6). See Turbe v. Gov't of Virgin Islands, 938 F.2d 427, 428 (3d Cir. 1991).
A motion under Rule 12(b)(6) or 12(c) tests the sufficiency of the complaint against the pleading requirements of Rule 8(a). Rule 8(a)(2) requires that a complaint contain a short and plain statement of the claim showing that the pleader is entitled to relief, "in order to give the defendant fair notice of what the claim is and the grounds upon which it rests. Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555, 127 S. Ct. 1955, 167 L. Ed. 2d 929 (2007) (quoting Conley v. Gibson, 355 U.S. 41, 47, 78 S. Ct. 99, 2 L. Ed. 2d 80 (1957)). While a complaint attacked by a motion to dismiss need not contain detailed factual allegations, it must contain "sufficient factual matter, accepted as true, to `state claim to relief that is plausible on its face.'" Ashcroft v. Iqbal, ___ U.S. ___, ___, 129 S. Ct. 1937, 1949, 173 L. Ed. 2d 868 (2009). To survive a motion to dismiss, a civil plaintiff must allege facts that `raise a right to relief above the speculative level. . . .'" Victaulic Co. v. Tieman, 499 F.3d 227, 235 (3d Cir.2007) (quoting Twombly, 550 U.S. at 555, 127 S. Ct. 1955). Accordingly, to satisfy the plausibility standard, the complaint must indicate that defendant's liability is more than "a sheer possibility." Iqbal, 129 S.Ct. at 1949. "Where a complaint pleads facts that are `merely consistent with' a defendant's liability, it `stops short of the line between possibility and plausibility of entitlement to relief.'" Id. (quoting Twombly, 550 U.S. at 557, 127 S. Ct. 1955).
Vasvari was formerly employed by Rite Aid from November 2, 1998 until June 12, *710 2009. For approximately the last three years of his employment, Vasvari was classified as an Assistant Manager. Vasvari's employment was terminated on June 12, 2009 because of restructuring within the company.
On July 22, 2009, Vasvari initiated the instant action by filing a Complaint against Defendants in the United States District Court for the Northern District of Ohio in Vasvari v. Rite Aid, et al., No. 4:09-cv-1699, seeking damages and injunctive relief for alleged violations of the Ohio MFWSA.[3] (Doc. 1). Defendants filed an Answer to Vasvari's Complaint on October 2, 2009 (Doc. 11) and filed a Motion to Dismiss or Transfer on that same date (Doc. 12). A stipulation and order transferring the action to this Court was entered on October 19, 2009. (Doc. 14.)
On June 23, 2009, Vasvari consented to become a party-plaintiff in the Craig v. Rite Aid Corporation, 08-cv-2317, Fair Labor Standards Act, 29 U.S.C. § 216(b) ("FLSA") action before this Court, in which current and former Rite Aid assistant managers allege they were misclassified as exempt and thus improperly denied overtime compensation. Plaintiff advances the same argument under the Ohio MFWSA in the class-action Complaint presently before the Court (Doc. 1), filed on July 22, 2009 in the United States District Court for the Southern District of Ohio. To serve the convenience of the parties and witnesses, the action was transferred to this Court on October 19, 2009 pursuant to 28 U.S.C. § 1404(b). (Doc. 14.)
Defendants argue that Plaintiffs' action must be dismissed on several grounds because of its relation to the pending FLSA action in Craig v. Rite Aid, 8-cv-2317. First, Defendants argue that the OMFWSA *711 claims mirror the claims in Craig. Because of this parallel, Defendants argue that the OMFWSA claims must be dismissed because the applicable Rule 23 class-action scheme is inherently incompatible with the opt-in class-action scheme mandated by § 216(b). Further, Defendants argue that the state-law claims are preempted by the rights and standards articulated in the FLSA. Second, Defendants argue that the Ohio MFWSA class claims must be dismissed because application of a Rule 23 class action would abridge substantive FLSA rights, and thus violate the Rules Enabling Act.
In 1938, Congress made a finding that there were "labor conditions detrimental to the maintenance of the minimum standard of living necessary for the health, efficiency, and general well-being of workers. . ." and thus enacted the FLSA "correct and as rapidly as practicable eliminate the [above-named conditions] without substantially curtailing employment or earning power." 29 U.S.C. § 202. As we noted in our July 6, 2010 Memorandum and Order, Section 216(b) of the FLSA limits the scope of class actions for overtime pay by requiring that potential plaintiffs opt-in to the action. (See Doc. 53.) In Hoffmann-La Roche, the Supreme Court recited Congress's reasoning for amending the FLSA procedures via the Portal-to-Portal Act of 1947:
Hoffmann-La Roche v. Sperling, 493 U.S. 165, 173, 110 S. Ct. 482, 107 L. Ed. 2d 480 (1989). This reasoning demonstrates that the "FLSA's opt-in requirement codifies Congress's desire to: (1) control the volume of minimum wage and overtime litigation by eliminating representative (i.e., opt-out) actions; and (2) increase each individual's knowledge and involvement in the action by ensuring the no one's rights are litigated without their knowledge." (Doc. 72 p. 29; see also Doc. 53 pp. 16-17 (quoting Defendants' Brief, Doc. 46).)
In addition to the federal scheme, states have enacted their own labor-standards acts, including various wage and hour laws. Plaintiff thus asserts this action under the Ohio MFWSA and invokes federal court jurisdiction under CAFA.[5] The applicable section of the Ohio MFWSA provides, in pertinent part:
An employer shall pay an employee for overtime at a wage rate of one and one-half times the employee's wage rate for hours worked in excess of forty hours in one workweek, in the manner and methods provided in and subject to the exemptions *712 of section 7 and section 13 of the Fair Labor Standards Act of 1938.
A substantial body of case law has developed regarding the compatibility or otherwise of FLSA opt-in class-action claims and state wage and hour Rule 23 opt-out claims asserted in the same lawsuit. Various district courts have addressed whether these two schemes are "inherently incompatible" when asserted in a "dual-filed" or "hybrid" case, and there has emerged no set rule on the doctrine. At least one Circuit Court of Appeals and several district courts have rejected the inherent incompatibility argument. See, e.g. Ervin v. OS Rest. Serv., Inc., No. 09-3029, 632 F.3d 971, 2011 WL 135708, 2011 U.S.App. LEXIS 863 (7th Cir. Jan. 11, 2011); Cortez v. Neb. Beef, Ltd., 266 F.R.D. 275 (D.Neb.2010) (Thalken, J.); DiNardo v. Ned Stevens Gutter Cleaning & Installation, Inc., 2008 WL 565765, 2008 U.S. Dist. LEXIS 14946 (D.N.J. Feb. 28, 2008) (Chesler, J.); Lehman v. Legg Mason, Inc., 532 F. Supp. 2d 726 (M.D.Pa.2007) (Rambo, J.); Westerfield v. Washington Mutual Bank, 2007 WL 2162989, 2007 U.S. Dist. LEXIS 54830 (E.D.N.Y. July 26, 2007) (Amon, J.). The general argument utilized in support of rejection of the doctrine is that the FLSA is not intended to "limit the substantive remedies available to an employee under state law, nor to limit the procedural mechanism by which such a remedy may be pursued." Lehman, 532 F.Supp.2d at 732.
Otto v. Pocono Health Sys., 457 F. Supp. 2d 522, 524 (M.D.Pa.2006). See also Herring v. Hewitt Assocs., Inc., 2006 WL 2347875, 2006 U.S. Dist. LEXIS 56189 (D.N.J. August 11, 2006); Moeck v. Gray Supply Corp., 2006 WL 42368, 2006 U.S. Dist. LEXIS 511 (D.N.J. January 5, 2006); McClain v. Leona's Pizzeria, Inc., 222 F.R.D. 574, 577 (N.D.Ill.2004).
*713 The issue sub judice, however, is not whether our application of the inherent incompatibility doctrine in a dual-filed action is still viable; but rather whether it is appropriate to extend the underlying reasoning we adopted in Otto to a separate action. In support of such an extension, Defendants highlight that, pursuant to Federal Rule of Civil Procedure 23, certification of a class in this action would require that each putative member be provided notice and an opportunity to "optout" of the action, and any individual who fails to opt-out would be bound by a judgment, favorable or otherwise. (See Doc. 72 p. 20-21.) Defendants argue that the considerations that render a Rule 23 class incompatible with an FLSA opt-in class logically extend to separate actions because merely by filing a separate action plaintiffs could "`circumvent the [FLSA] opt-in requirement and bring unnamed parties into federal court by calling upon state statutes similar to the FLSA' and `undermine Congress's intent to limit these types of claims to collective actions.'" (Id. at 22 (quoting Otto, 457 F.Supp.2d at 523).)
Though Plaintiff disputes the validity of the inherent incompatibility doctrine in its entirety, he alternatively argues that, even if it is valid, it does not extend beyond a dual-filed lawsuit. Plaintiff argues that the substantial similarity between the Ohio MFWSA and FLSA and the identity between the two pending actions weigh against application of the inherent incompatibility doctrine because of the general principle that similar overtime claims are efficiently managed in a single proceeding. See, e.g. De Asencio v. Tyson Foods, Inc., 342 F.3d 301, 309-10 (3d Cir.2003) (recognizing this principle yet holding that the district court did not exercise sound discretion in granting supplemental jurisdiction because the state-law action substantially predominated over the FLSA action). Plaintiff highlights that at least one district court has "explicitly endorsed filing a separate lawsuit after the plaintiff's original Rule 23 state law claims were dismissed on incompatibility grounds." (Doc. 74 p. 10) (citing Sherhill v. Cellco Partnership, 2008 U.S. Dist. LEXIS 91477 (E.D.Pa. Apr. 7, 2008).) Plaintiff maintains that "it would be an especially draconian outcome if individuals lose their right to pursue state law class action claims whenever they exercise their right to merely join (rather than initiate) a separate FLSA lawsuit." (Doc. 74 p. 10.)
As we noted above, in abolishing the representative action under the FLSA Congress was responding to excessive litigation by plaintiffs who did not necessarily have a stake in the litigation. Thus, the opt-in requirement of the FLSA expresses Congress's intent to: "(1) control the volume of minimum wage and overtime litigation by eliminating representative (i.e., opt-out) actions; and (2) increase each individual's knowledge and involvement in the action by ensuring the no one's rights are litigated without their knowledge." (Doc. 72 p. 29; see p. 9, supra.) In other *714 words, § 216(b) is specifically designed to avoid litigation through representative action. If we allow Plaintiff to proceed in a separate action that is in contravention of the important policies underlying the federal statute, we would still "eviscerate the purpose of Section 216(b)'s opt-in requirement", Otto, 457 F.Supp.2d at 524, just as much as in a dual-filed action. Forcing a plaintiff to perform one procedural step differently  by filing a separate action rather than asserting the same, related claim in another action  has no practical remedial effect and still undermines the purposes of the FLSA. In essence, it is a distinction without a difference. Thus, we find that extension of the inherent incompatibility doctrine to separately filed FLSA and state wage and hour claims is warranted. We further find that this extension requires dismissal of the pending action because Plaintiff has no basis for relief in this Court. Accordingly, we shall grant Defendant's Motion to Dismiss (Doc. 69) on those grounds.
[1] Plaintiff is also an opt-in Plaintiff in another action before this Court, Craig v. Rite Aid, 08-cv-2317, that asserts claims pursuant to the Fair Labor Standards Act.
[2] Defendants filed an Answer on October 2, 2009 and, thus, the Motion is properly pursued under Federal Rule of Civil Procedure 12(c).
[3] Federal subject-matter jurisdiction is invoked under the Class Action Fairness Act, 28 U.S.C. § 1332(d).
[4] We note that our analysis will mirror that found in our Memorandum Opinion issued on today's date in Fisher v. Rite Aid, 10-1865, because each action shares the same determinative issue.
[5] The Class Action Fairness Act of 2005, enacted as a tort-reform measure, expanded a federal court's jurisdiction over large-scale class action law suits. See 28 U.S.C. §§ 1332(d); 1711-1715. Under CAFA, a district court that has diversity jurisdiction over at least one plaintiff and the defendants likewise has jurisdiction to hear an action in which the total amount in controversy exceeds 5 million dollars.
DocketNumber： 09-cv-2069
Citation Numbers： 764 F. Supp. 2d 707
Allan J. Jablonski v. Pan American World Airways, Inc , 863 F.2d 289 ( 1988 )