Brown v. Zymey Industries et al

Filing 5

FIRST SCREENING ORDER. Order signed by Magistrate Judge Sheila K. Oberto on 8/1/2022. (Kusamura, W)

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UNITED STATES DISTRICT COURT

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FOR THE EASTERN DISTRICT OF CALIFORNIA

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JEREMY JAMES BROWN,

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Plaintiff,
v.

Case No. 1:22-cv-00712-AWI-SKO
FIRST SCREENING ORDER
ORDER FOR PLAINTIFF TO:

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ZYMEY INDUSTRIES, et al.,

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Defendants.

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(1) FILE A FIRST AMENDED COMPLAINT;
(2) NOTIFY THE COURT THAT HE
WISHES TO STAND ON HIS
COMPLAINT; OR
(3) FILE A NOTICE OF VOLUNTARY
DIMISSAL

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(Doc. 1)

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THIRTY-DAY DEADLINE

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ORDER VACATING SCHEDULING
CONFERENCE

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Plaintiff Jeremy James Brown is proceeding pro se and in forma pauperis in this action.
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Plaintiff filed his complaint on June 14, 2022. (Doc. 1). Upon review, the Court concludes that
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the complaint is deficient.
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Plaintiff has the following options as to how to proceed. Plaintiff may file an amended

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complaint, which the Court will screen in due course. Alternatively, Plaintiff may file a statement

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with the Court stating that he wants to stand on this complaint and have it reviewed by the presiding

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district judge, in which case the Court will issue findings and recommendations to the district judge

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consistent with this order. The third option is that Plaintiff may file a notice of voluntary dismissal

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of this action so that he may pursue his case in state court. If Plaintiff does not file anything, the

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Court will recommend that the case be dismissed.
I.

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SCREENING REQUIREMENT

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In cases where the plaintiff is proceeding in forma pauperis, the Court is required to screen

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each case and shall dismiss the case at any time if the Court determines that the allegation of poverty

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is untrue, or that the action or appeal is frivolous or malicious, fails to state a claim upon which

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relief may be granted, or seeks monetary relief against a defendant who is immune from such relief.

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28 U.S.C. § 1915(e)(2). See also Calhoun v. Stahl, 254 F.3d 845 (9th Cir. 2001) (dismissal required

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of in forma pauperis proceedings which seek monetary relief from immune defendants); Cato v.

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United States, 70 F.3d 1103, 1106 (9th Cir. 1995) (district court has discretion to dismiss in forma

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pauperis complaint under 28 U.S.C. § 1915(e)); Barren v. Harrington, 152 F.3d 1193 (9th Cir.

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1998) (affirming sua sponte dismissal for failure to state a claim). If the Court determines that a

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complaint fails to state a claim, leave to amend may be granted to the extent that the deficiencies

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of the complaint can be cured by amendment. Lopez v. Smith, 203 F.3d 1122, 1130 (9th Cir. 2000)

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(en banc).

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In determining whether a complaint fails to state a claim, the Court uses the same pleading

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standard used under Federal Rule of Civil Procedure 8(a). A complaint must contain “a short and

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plain statement of the claim showing that the pleader is entitled to relief. . . .” Fed. R. Civ. P.

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8(a)(2). Detailed factual allegations are not required, but “[t]hreadbare recitals of the elements of

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a cause of action, supported by mere conclusory statements, do not suffice.” Ashcroft v. Iqbal, 556

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U.S. 662, 678 (2009) (citing Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 555 (2007)). . A

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complaint may be dismissed as a matter of law for failure to state a claim for two reasons: (1) lack

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of a cognizable legal theory; or (2) insufficient facts under a cognizable legal theory. See Balistreri
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v. Pacifica Police Dep’t, 901 F.2d 696, 699 (9th Cir. 1990). Plaintiff must allege a minimum factual

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and legal basis for each claim that is sufficient to give each defendant fair notice of what the

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plaintiff’s claims are and the grounds upon which they rest. See, e.g., Brazil v. U.S. Dep’t of the

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Navy, 66 F.3d 193, 199 (9th Cir. 1995); McKeever v. Block, 932 F.2d 795, 798 (9th Cir. 1991).

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In reviewing the pro se complaint, the Court is to liberally construe the pleadings and accept

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as true all factual allegations contained in the complaint. Erickson v. Pardus, 551 U.S. 89, 94

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(2007). Although a court must accept as true all factual allegations contained in a complaint, a

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court need not accept a plaintiff’s legal conclusions as true. Iqbal, 556 U.S. at 678. “[A] complaint

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[that] pleads facts that are ‘merely consistent with’ a defendant’s liability . . . ‘stops short of the

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line between possibility and plausibility of entitlement to relief.’” Id. (quoting Twombly, 550 U.S.

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at 557).
II.

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SUMMARY OF PLAINTIFF’S COMPLAINT

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Plaintiff drafted his complaint using the general complaint form provided by this Court.

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The complaint lists two defendants, Ahmad Foroutanaliabad and Zymey Industries. (Doc. 1 at 2.)

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Plaintiff states that subject matter jurisdiction is based on federal question. (Id. at 3.) The section

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in which he is asked to indicate which of his federal constitutional or federal statutory rights have

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been violated is blank. (Id. at 4.) The statement of claim section of the complaint states “Ahmad

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Foroutanaliabad fraudulently had me sign an Invention Assignment Agreement thinking it was a

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Non-disclosure Agreement at the start of my employment. He then transferred ownership of

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Invention from Zymey Industries into his name, then made my work environment impossible to

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work in so I would quit.” (Id. at 5.) In the “Relief” section of the complaint, Plaintiff writes: “I’m

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still suffering as a result of Ahmad [sic] actions. I invented something that he agreed to pay me

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for. He also agreed to give me credit for my inventions while reimbursing me an amount that is

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reasonable. Now I can hardly weld for a company. And have back issues.” (Id. at 6.)
III.

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A.

DISCUSSION

Plaintiff Has Not Pleaded Any Cognizable Federal Claims
Jurisdiction is a threshold inquiry that must precede the adjudication of any case before the

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district court. Morongo Band of Mission Indians v. Cal. State Bd. of Equalization, 858 F.2d 1376,

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1380 (9th Cir. 1988). Federal courts are courts of limited jurisdiction and may adjudicate only

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those cases authorized by federal law. Kokkonen v. Guardian Life Ins. Co., 511 U.S. 375, 377

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(1994); Willy v. Coastal Corp., 503 U.S. 131, 136-37 (1992). “Federal courts are presumed to lack

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jurisdiction, ‘unless the contrary appears affirmatively from the record.’” Casey v. Lewis, 4 F.3d

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1516, 1519 (9th Cir. 1993) (quoting Bender v. Williamsport Area Sch. Dist., 475 U.S. 534, 546

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(1986)).

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Lack of subject matter jurisdiction may be raised by the court at any time during the

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proceedings. Attorneys Trust v. Videotape Computer Prods., Inc., 93 F.3d 593, 594-95 (9th Cir.

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1996). A federal court “ha[s] an independent obligation to address sua sponte whether [it] has

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subject-matter jurisdiction.” Dittman v. California, 191 F.3d 1020, 1025 (9th Cir. 1999). It is the

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obligation of the district court “to be alert to jurisdictional requirements.” Grupo Dataflux v. Atlas

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Global Group, L.P., 541 U.S. 567, 593 (2004). Without jurisdiction, the district court cannot decide

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the merits of a case or order any relief. See Morongo, 858 F.2d at 1380.

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The basic federal jurisdiction statutes are 28 U.S.C. §§ 1331 and 1332, which confer

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“federal question” and “diversity” jurisdiction, respectively. Federal jurisdiction may also be

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conferred by federal statutes regulating specific subject matter. “[T]he existence of federal

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jurisdiction depends solely on the plaintiff’s claims for relief and not on anticipated defenses to

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those claims.” ARCO Envtl. Remediation, LLC v. Dep’t of Health & Envtl. Quality, 213 F.3d 1108,

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1113 (9th Cir. 2000).

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District courts have diversity jurisdiction only over “all civil actions where the matter in

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controversy exceeds the sum or value of $75,000, exclusive of interest and costs,” and the action is

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between: “(1) citizens of different States; (2) citizens of a State and citizens or subjects of a foreign

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state; (3) citizens of different States and in which citizens or subjects of a foreign state are additional

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parties; and (4) a foreign state ... as plaintiff and citizens of a State or of different States.” 28 U.S.C.

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§ 1332. “To demonstrate citizenship for diversity purposes a party must (a) be a citizen of the

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United States, and (b) be domiciled in a state of the United States.” Lew v. Moss, 797 F.2d 747,

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749 (9th Cir. 1986). “Diversity jurisdiction requires complete diversity between the parties-each
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defendant must be a citizen of a different state from each plaintiff.” In re Digimarc Corp.

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Derivative Litigation, 549 F.3d 1223, 1234 (9th Cir. 2008).

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Here, the complaint asserts that the court has federal question jurisdiction over this action.

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However, liberally construed, Plaintiff alleges Defendant Foroutanaliabad fraudulently obtained

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assignment of an invention to Defendant Zymey Industries, causing Plaintiff harm. At best, this

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alleges a claim(s) under state law for fraud, breach of contract, and/or breach of fiduciary duty.

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Such allegations do not give rise to any federal claim.

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The only allegation that could present a federal question is that Defendant Foroutanaliabad

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“made [Plaintiff’s] work environment impossible to work in so [he] would quit.” Title VII of the

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Civil Rights Act of 1964, 42 U.S. C. § 2000e et seq. (“Title VII”) imposes liability for creating a

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hostile work environment. To state a hostile work environment claim under Title VII, Plaintiff

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must allege that he was subjected to unwelcome verbal or physical conduct on the basis of either

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his race, color, religion, sex, or national origin that was sufficiently severe or pervasive to alter the

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condition of his employment and create an abusive work environment. See Kang v. U. Lim Am.,

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Inc., 296 F.3d 810, 817 (9th Cir. 2002). Here, there are no allegations in the complaint that Plaintiff

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was subjected to verbal or physical conduct on the basis of any protected class membership.

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B.

Leave to Amend Will Be Granted

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For the reasons stated above, Plaintiff’s complaint is subject to dismissal. The undersigned

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has carefully considered whether Plaintiff may amend the complaint to state a claim upon which

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relief can be granted. “Valid reasons for denying leave to amend include undue delay, bad faith,

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prejudice, and futility.” California Architectural Bldg. Prod. v. Franciscan Ceramics, 818 F.2d

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1466, 1472 (9th Cir. 1988); see also Klamath-Lake Pharm. Ass’n v. Klamath Med. Serv. Bureau,

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701 F.2d 1276, 1293 (9th Cir. 1983) (holding that while leave to amend shall be freely given, the

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court does not have to allow futile amendments).

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However, when evaluating the failure to state a claim, the complaint of a pro se plaintiff

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may be dismissed “only where ‘it appears beyond doubt that the plaintiff can prove no set of facts

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in support of his claim which would entitle him to relief.’” Franklin v. Murphy, 745 F.2d 1221,

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1228 (9th Cir. 1984) (quoting Haines v. Kerner, 404 U.S. 519, 521 (1972)); see also Weilburg v.
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Shapiro, 488 F.3d 1202, 1205 (9th Cir. 2007) (“Dismissal of a pro se complaint without leave to

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amend is proper only if it is absolutely clear that the deficiencies of the complaint could not be

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cured by amendment.”) (quoting Schucker v. Rockwood, 846 F.2d 1202, 1203-04 (9th Cir. 1988)).

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Given the complaint’s lack of supporting factual allegations, the undersigned cannot yet

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determine whether it appears beyond doubt that leave to amend would be futile. Plaintiff will

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therefore be granted leave to file an amended complaint. Plaintiff is cautioned, however, that if he

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elects to file an amended complaint “the tenet that a court must accept as true all of the allegations

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contained in a complaint is inapplicable to legal conclusions. Threadbare recitals of the elements

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of a cause of action, supported by mere conclusory statements, do not suffice.” Iqbal, 556 U.S. at

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678. “While legal conclusions can provide the complaint’s framework, they must be supported by

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factual allegations.” Id. at 679. Those facts must be sufficient to push the claims “across the line

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from conceivable to plausible[.]” Id. at 680 (quoting Twombly, 550 U.S. at 557).

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Plaintiff is also reminded that the court cannot refer to a prior pleading in order to make an

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amended complaint complete. Local Rule 220 requires that any amended complaint be complete

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in itself without reference to prior pleadings. The amended complaint will supersede the original

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complaint. Lacey v. Maricopa County, 693 F 3d. 896, 907 n.1 (9th Cir. 2012) (en banc). Thus, in

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an amended complaint, just as if it were the initial complaint filed in the case, each defendant must

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be listed in the caption and identified in the body of the complaint, and each claim and the

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involvement of each defendant must be sufficiently alleged. Any amended complaint that Plaintiff

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may elect to file must also include concise but complete factual allegations describing the conduct

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and events which underlie Plaintiff’s claims.

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Plaintiff has a choice on how to proceed. Plaintiff may file an amended complaint if he

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believes that additional true factual allegations would state cognizable federal claims. If Plaintiff

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files an amended complaint, the Court will screen that complaint in due course. Alternatively,

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Plaintiff may choose to stand on his complaint subject to the Court issuing findings and

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recommendations to a district judge consistent with this order. Lastly, Plaintiff may file a notice

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of voluntary dismissal so that he may pursue this action in state court.

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IV.

ORDER

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Based on the foregoing, IT IS ORDERED that:

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Within thirty (30) days from the date of service of this order, Plaintiff shall either:

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a. File a First Amended Complaint;

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b. Notify the Court in writing that he wants to stand on this complaint; or

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c. File a Notice of Voluntary Dismissal of his complaint.
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If Plaintiff chooses to file an amended complaint, Plaintiff shall caption the amended

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complaint “First Amended Complaint” and refer to case number 1:22-cv-00712-

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AWI-SKO.

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3.

Failure to comply with this order may result in the dismissal of this action; and

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4.

To afford Plaintiff time to comply with this order, the Scheduling Conference set

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September 20, 2022, is hereby VACATED, to be reset once the pleadings are settled,

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if appropriate.

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IT IS SO ORDERED.
Dated:

/s/ Sheila K. Oberto

August 1, 2022

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UNITED STATES MAGISTRATE JUDGE

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