Raza v. Corrections Corporation of America, et al

Filing 33

ORDER, granting in part and denying in part Defendant's 2 , 4 Motion to Dismiss; we grant defendant's motion to dismiss as to counts three, four, and five with prejudice; we DENY defendant's motion to dismiss as to counts one and two; this, of course, is without prejudice to defendant's right to move for summary judgment at an appropriate time. Signed by Judge Frederick J Martone on 5/17/11. (REW)

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IN THE UNITED STATES DISTRICT COURT

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FOR THE DISTRICT OF ARIZONA

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Plaintiff,
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vs.
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Corrections Corporation of America, Inc.,)
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et. al.,
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Defendants.
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J. Alberto Gonzales Raza,

No. CV-11-00732-PHX-FJM
ORDER

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This action was transferred to the undersigned on April 27, 2011 (doc. 25). The court

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has before it defendant's motion to dismiss (docs. 2, 4), plaintiff's response (doc. 11), and

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defendant's reply (doc. 12).

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On August 1, 2006, plaintiff was arrested on a federal warrant for failure to appear

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before the United States District Court for the Central District of California. Plaintiff pled

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guilty and was incarcerated in the California City Correctional Center ("CCCC").

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Corrections Corporation of America ("defendant"), operated CCCC pursuant to a contract

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with the Federal Bureau of Prisons. Before plaintiff's scheduled release on May 1, 2007,

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Immigration and Customs Enforcement ("ICE") issued a detainer to take plaintiff into

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custody. Plaintiff was transferred to the Eloy Detention Center ("Eloy") in Arizona, also

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operated by defendant. Plaintiff remained at Eloy until May 27, 2008 when he was released

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on parole.

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Plaintiff filed this action on May 27, 2010 in the Superior Court of New Jersey

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alleging five claims for relief: (1) negligence–neglect of medical care; (2)

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negligence–facilities; (3) false imprisonment; (4) violation of 42 U.S.C. § 1983; and (5)

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breach of contract. Plaintiff named defendant, some of its corporate employees, and

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personnel of CCCC, Eloy, and ICE. According to the docket, defendant is the only party that

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has been served. Defendant removed the case to the United States District Court for the

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District of New Jersey on the basis of federal question jurisdiction and moved to dismiss the

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complaint or transfer venue to the District of Arizona. On April 8, 2011, the United States

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District Court for the District of New Jersey granted defendant's motion to transfer venue but

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declined to rule on the motion to dismiss (doc. 19). We now address defendant's motion to

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dismiss for failure to state a claim.

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Defendant first raises a statute of limitations defense for all claims except count five

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for breach of contract. Defendant argues that whether New Jersey, Arizona, or California

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law applies, plaintiff's claims are barred. Plaintiff's response only addresses his negligence

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and false imprisonment claims and relies solely on New Jersey law. Plaintiff contends that

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his claims are timely and should not be dismissed because a question of fact exists regarding

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when plaintiff discovered or should have discovered his injuries giving rise to his claims.

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A motion to dismiss based on statute of limitations grounds may be granted only if

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"the running of the statute is apparent on the face of the complaint.” Jablon v. Dean Witter

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& Co., 614 F.2d 677, 682 (9th Cir. 1980). We do not dismiss a complaint unless plaintiff

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cannot plausibly prove a set of facts demonstrating the timeliness of the claim. Ranch Realty

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v. DC Ranch Realty, 614 F. Supp. 2d 983, 987 (D. Ariz. 2007) (internal citations omitted).

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Counts one and two allege negligence. Count one alleges that defendant neglected

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plaintiff's medical care "[a]t all relevant times herein while detained in the California City

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Correctional Center and Eloy Detention Center" (doc. 1 at 10). Count two alleges that

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defendant breached its duty to properly operate and manage the facilities and thereby caused

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plaintiff serious physical injuries. The complaint fails to allege how defendant was negligent

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in providing medical care or operating its facilities. We do not know when or how plaintiff

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was injured. Defendant argues that plaintiff's injuries had to have occurred before he was
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released on May 27, 2008. By waiting to file until May 27, 2010 then, plaintiff's claims

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would be time barred under the New Jersey, Arizona, or California statutes of limitations.

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Plaintiff argues that the discovery rule applies to extend the accrual date until the date he

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discovered his injuries, which was sometime after his release.

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The parties fail to brief the choice of law issue. We therefore leave that determination

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for another day. Arizona, California, and New Jersey have a two year statute of limitations

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for negligence actions. See A.R.S. § 12-542; Cal.Civ.Proc.Code § 335.1; N.J.S.A. § 2A:14-

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2. Normally, the claim accrues on the date the alleged act or injury occurred. However,

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under the discovery rule, applicable in each state, the cause of action does not accrue until

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the injured party discovers, or should have discovered, the injury. Defendant contends that

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plaintiff's complaint indicates that plaintiff was aware of an injury while incarcerated.

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Plaintiff argues that the question of discovery is an issue of fact and that he did not discover

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his injury until he was released.

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Dismissal of a complaint is not warranted unless it is clear from the face of the

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complaint that plaintiff cannot plausibly plead a claim for relief. See Ranch Realty, 614 F.

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Supp. 2d at 987. Application of the discovery rule often raises factual issues not properly

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determined on a motion to dismiss. Id. at 989. Plaintiff's complaint does not allege when he

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was injured or when he discovered his injury. Because it is plausible that plaintiff may have

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been injured on May 27, 2008, or may not have discovered his injury until after that, he may

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be able to state a claim for relief. Moreover, in the event the actions giving rise to plaintiff's

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claims occurred in California and California law applies, plaintiff's claims would not be time

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barred. In California, a prisoner is entitled to statutory tolling for up to two years if the cause

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of action accrued during incarceration. Cal.Civ.Proc.Code § 352.1. This includes causes of

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action challenging conditions of confinement as long as plaintiff only seeks monetary

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damages. § 352.1(c). If California law applies, plaintiff's first two claims would be timely.

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Because it is not clear from the face of the complaint, and because California law may apply,

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we deny defendant's motion to dismiss counts one and two.

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Count Three alleges false imprisonment. Defendant moves to dismiss arguing that the
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claim is untimely and not cognizable because plaintiff cannot allege defendant falsely

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imprisoned him. Plaintiff contends that the claim is timely because it did not accrue until the

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date he was released from prison.

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Arizona and California both have a one year statute of limitations for false

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imprisonment claims. See A.R.S. § 12-541; Cal.Civ.Proc.Code § 340(c). Plaintiff's filing

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on May 27, 2008 is outside that time limit. Even under New Jersey's two year statute of

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limitations, plaintiff's claim is untimely because his cause of action accrued on the day he

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was incarcerated, August 1, 2006, not the day he was released. See N.J.S.A. § 2A:14-2; Rose

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v. Bartle, 871 F.2d 331, 3590-51 (3d Cir. 1989). We dismiss count three with prejudice.

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The fourth cause of action alleges violations of 42 U.S.C. § 1983. In his response to

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the motion to transfer venue, plaintiff offered to drop all claims against the individual

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defendants including his § 1983 claim if the action was not transferred. The District of New

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Jersey granted the motion to transfer and plaintiff has not abandoned the § 1983 claim. But

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§ 1983 provides redress for civil rights violations made under color of state law. Plaintiff

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was a federal prisoner, not a state prisoner, and no defendant was acting under color of state

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law. Accordingly, we dismiss count four with prejudice.

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Plaintiff's last claim alleges breach of contract. Plaintiff claims that while incarcerated

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he was guaranteed certain rights and privileges, such as medical care and clean facilities, as

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provided in the "Admission and Orientation Handbook." Plaintiff alleges that defendant

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deprived him of these rights and thereby breached the Handbook. Defendant argues that the

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Handbook is not a contract and that plaintiff is not a party to, or an intended beneficiary of,

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the correctional services contract under which the Handbook was created. Plaintiff fails to

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respond to this argument.

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The Handbook that plaintiff received upon being incarcerated is not a contract

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between plaintiff and defendant. Plaintiff does not allege that he is a third party beneficiary

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of the correctional services contract, much less an intended beneficiary. Plaintiff would need

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to point to language in the contract demonstrating the contracting parties' intent to make him

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an intended beneficiary and hold defendant liable for nonperformance. See County of Santa
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Clara v. Astra USA, Inc., 588 F.3d 1237, 1244 (9th Cir. 2009), rev'd on other grounds,

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__U.S. __, 131 S.Ct. 1342 (2011); see also Norton v. First Fed. Sav., 128 Ariz. 176, 178, 624

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P.2d 854, 856 (1981). We dismiss plaintiff's breach of contract claim.

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Accordingly, IT IS ORDERED GRANTING in part and DENYING in part

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defendant's motion to dismiss (docs. 2, 4). We GRANT defendant's motion to dismiss as to

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counts three, four, and five with prejudice. We DENY defendant's motion to dismiss as to

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counts one and two. This, of course, is without prejudice to defendant's right to move for

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summary judgment at an appropriate time.

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DATED this 17th day of May, 2011.

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