Aspiras v. Adams & Associates, Inc.
Filing
22
ORDER signed by District Judge Troy L. Nunley on 7/13/17, ORDERING that plaintiff's 6 Motion to Remand is DENIED. (Kastilahn, A)
1
2
3
4
5
6
7
8
UNITED STATES DISTRICT COURT
9
EASTERN DISTRICT OF CALIFORNIA
10
11
ROLANDO ASPIRAS,
12
13
14
15
Plaintiff,
v.
ORDER DENYING PLAINTIFF’S
MOTION FOR REMAND
ADAMS & ASSOCIATES, INC., a
Nevada a corporation
Defendant.
16
17
No. 2:16-cv-00958-TLN-KJN
This matter is before the Court pursuant to Plaintiff Rolando Aspiras’s (“Plaintiff”)
18
Motion for Remand to State Court. (ECF No. 6.) Defendant Adams & Associates, Inc.
19
(“Defendant”) opposes. (ECF No. 12.) The Court has carefully considered the arguments raised
20
by the parties’ briefing. For the following reasons, Plaintiff’s Motion for Remand to State Court
21
(ECF No. 6) is DENIED.
22
I.
FACTUAL AND PROCEDURAL BACKGROUND
23
Plaintiff brings claims against Defendant, his former employer, alleging (i) age
24
discrimination, (ii) race and national origin discrimination, (iii) wrongful termination, (iv)
25
retaliation, (v) failure to prevent discrimination, and (vi) intentional infliction of emotional
26
distress. (ECF No. 1 at 18–25.) Plaintiff filed this action with the Superior Court of the State of
27
California for the County of Sacramento on February 19, 2016. (ECF No. 1 at 11.) On May 5,
28
2016, Defendant removed this action to the United States District Court for the Eastern District of
1
1
California, alleging diversity jurisdiction pursuant to 28 U.S.C. §§ 1332 and 1441(b). (ECF No. 1
2
at 1–2.) Plaintiff filed the instant motion asserting that Defendant has not met its burden in
3
showing diversity, specifically that Defendant is a citizen of Nevada and not California. (ECF
4
No. 6 at 3–4.) Plaintiff adds that Defendant’s Notice of Removal is deficient because it was not
5
timely filed within 30 days of service of process. (ECF No. 6 at 5.)
6
II.
LEGAL STANDARD
7
A civil action brought in state court, over which the district court has original jurisdiction,
8
may be removed by the defendant to federal court in the judicial district and division in which the
9
state court action is pending. 28 U.S.C. § 1441(a). The district court has original jurisdiction
10
over civil actions between citizens of different states in which the alleged damages exceed
11
$75,000. 28 U.S.C. § 1332(a)(1). The party asserting federal jurisdiction bears the burden of
12
proving diversity. Lew v. Moss, 797 F.2d 747, 749 (9th Cir. 1986) (citing Resnik v. La Paz Guest
13
Ranch, 289 F.2d 814, 819 (9th Cir. 1961)). Diversity is determined as of the time the complaint
14
is filed and removal effected. Strotek Corp. v. Air Transp. Ass’n of Am., 300 F.3d 1129, 1131
15
(9th Cir. 2002). Once jurisdiction attaches, a party cannot thereafter, by its own change of
16
citizenship, destroy diversity. Id. at 1132. Removal statutes are to be strictly construed against
17
removal. Gaus v. Miles, Inc., 980 F.2d 564, 566 (9th Cir. 1992).
18
The amount in controversy is determined by reference to the complaint itself and includes
19
the amount of damages in dispute, as well as attorney’s fees, if authorized by statute or contract.
20
Kroske v. U.S. Bank Corp., 432 F.3d 976, 980 (9th Cir. 2005). Where the complaint does not
21
pray for damages in a specific amount, the defendant must prove by a preponderance of the
22
evidence that the amount in controversy exceeds $75,000. Singer v. State Farm Mut. Auto. Ins.
23
Co., 116 F.3d 373, 376 (9th Cir. 1997) (citing Sanchez v. Monumental Life Ins. Co., 102 F.3d
24
398, 404 (9th Cir. 1996)). If the amount is not facially apparent from the complaint, the Court
25
may “require parties to submit summary-judgment-type evidence relevant to the amount in
26
controversy at the time of removal.” Id. (citing Allen v. R & H Oil & Gas Co., 63 F.3d 1326,
27
1335–56 (5th Cir. 1995).
28
Diversity requires that the citizenship of each plaintiff be diverse from the citizenship of
2
1
each defendant (i.e., complete diversity). Caterpillar Inc. v. Lewis, 519 U.S. 61, 68 (1996). For
2
purposes of diversity, a corporation is a citizen of any state in which it is incorporated and any
3
state in which it maintains its principal place of business. 28 U.S.C. § 1332(c)(1).
4
III.
ANALYSIS
5
It is undisputed that Plaintiff is a citizen of California and the amount in controversy
6
exceeds $75,000. (ECF Nos. 6 at 3; 12 at 3.) The Court is left to determine Defendant’s
7
citizenship to decide whether the parties are diverse and to decide whether removal was timely.
8
9
A.
Defendant is a citizen of Nevada.
Plaintiff contends that Defendant’s Notice of Removal is insufficient because Defendant
10
has not provided the required information to determine its corporate citizenship, such as: “(1) the
11
number of employees it has in each state; (2) the percentage of its sales originating in each state;
12
and (3) the percentages of its assets held in each state.” (ECF No. 6 at 6–7.) Defendant asserts it
13
is a citizen of Nevada and argues that Plaintiff has applied the wrong legal test for corporate
14
citizenship. (ECF No. 12 at 2.) The Court agrees.
15
“The federal diversity jurisdiction statute provides that ‘a corporation shall be deemed to
16
be a citizen of any State by which it has been incorporated and of the State where it has its
17
principal place of business.’” Hertz Corp. v. Friend, 559 U.S. 77, 80 (2010) (quoting 28 U.S.C. §
18
1332(c)(1)). The Supreme Court has concluded that “the phrase ‘principal place of business’
19
refers to the place where the corporation’s high level officers direct, control, and coordinate the
20
corporation’s activities. Lower federal courts have often metaphorically called that place the
21
corporation’s nerve center.’” Id. at 80‒81.
22
Defendant’s General Counsel and Vice President of Human Resources has provided a
23
declaration in support of Defendant’s opposition which provides detail of Defendant’s operation.
24
(ECF No. 13.) Defendant is a corporation organized and existing under the laws of the State of
25
Nevada and has been since September 25, 1990. (ECF No. 13 ¶ 2.) Defendant holds annual
26
stockholder and Board of Directors meetings, usually in the first quarter of the year. (ECF No. 13
27
¶ 2.) These meetings take place at Defendant’s corporate office in Reno, as does Defendant’s
28
twice-annual meetings for its Job Corps Center Directors during which Directors meet with
3
1
corporate staff for training, evaluation and strategic planning. (ECF No. 13 ¶ 2.) As for
2
Defendant’s high level officers, Defendant alleges as follows:
3
4
5
6
7
8
9
All but one of Adams’ top executives are based out of the Reno
office, including President Roy Adams, Secretary and Vice
President of Administration Leslie Adams, Treasurer and Executive
Director Dan Norem, Vice President of Finance Magdalena
Cleveland, Vice President of Information Technology Dino Cabal
and [General Counsel and Vice President of Human Resources,
Tiffinay Pagni]. The single exception, President of Operations
Susan Larson, currently resides in Maryland but spends 30 percent
of her time at the Reno office. Ms. Larson has purchased a home in
Reno and will soon relocate there permanently.
(ECF No. 13 ¶ 4.) Defendant further alleges that although each of Defendant’s Job Corps Centers
10
has its own local administrative departments for day-to-day operations, “policy decisions for the
11
entire company are made by the executives resident in the Reno corporate office. All job
12
descriptions, personnel policies, employee terminations, benefits plans, retirement plans and
13
insurance policies are reviewed and approved in the Reno corporate office.” (ECF No. 13 ¶ 3.)
14
Plaintiff has not disputed these facts in its motion nor filed a reply. (ECF No. 6.)
15
The Court finds that Defendant has shown facts sufficient to support removal, having
16
shown that Defendant is incorporated in Nevada, has its principle place of business in Nevada,
17
and is a citizen of Nevada, while Plaintiff is a citizen of California. See Frontline Processing
18
Corp. v. Barack Ferrazzano Kirschbaum Perlman & Nagelberg LLP, 571 F. App'x 586, 587 (9th
19
Cir. 2014) (finding the defendant’s notice of removal alleged sufficient facts — which the
20
plaintiff never challenged — to establish the requisite diversity jurisdiction because the plaintiff
21
was a citizen of one state and the defendants were citizen of another)
22
23
B.
Defendant timely filed its Notice of Removal.
Plaintiff also argues that Defendant filed its Notice of Removal after the 30-day deadline
24
for removing a case to federal court. (ECF No. 6 at 5.) Plaintiff asserts that Defendant was
25
served with the summons and complaint on April 4, 2016. (ECF No. 6-1 ¶ 5.) Defendant filed its
26
Notice of Removal on May 5, 2016. (ECF No. 1.) Plaintiff argues that removal was 31 days after
27
initial service, beyond the 30-day period permitted under 28 U.S.C. § 1446. (ECF No. 6 at 5.)
28
Defendant replies that it has never been properly served, so the 30-day period never ran,
4
1
and thus its Notice of Removal was timely. (ECF Nos. 12 at 7–8; 13 ¶ 6.) Defendant states that
2
on April 5, 2016, Plaintiff attempted to serve a security guard employed by a contractor which
3
provides guards for Defendant’s facilities, and who was not authorized to accept service for
4
Defendant. (ECF No. 13 ¶ 6.) Defendant argues it answered the complaint out of an abundance
5
of caution but has not been properly served. (ECF No. 12 at 8.)
6
Title 28 U.S.C. 1446(b), requires removal of a case within 30 days of formal service. 28
7
U.S.C. § 1446. “[A] defendant is not obliged to engage in litigation unless notified of the action,
8
and brought under a court's authority, by formal process.” Destfino v. Reiswig, 630 F.3d 952, 956
9
(9th Cir. 2011) (quoting Murphy Bros., Inc. v. Michetti Pipe Stringing, Inc., 526 U.S. 344, 347
10
(1999), allowing a defendant to remove more than 30 days after he received a faxed courtesy
11
copy of the complaint, because the defendant removed within 30 days of being formally served
12
by certified mail).
13
Pursuant to California Code of Civil Procedure § 416.10, “[a] summons may be served on
14
a corporation by delivering a copy of the summons and the complaint…[t]o the president, chief
15
executive officer, or other head of the corporation, a vice president, a secretary or assistant
16
secretary, a treasurer or assistant treasurer, a controller or chief financial officer, a general
17
manager, or a person authorized by the corporation to receive service of process. CAL. CIV.
18
PROC. CODE § 416.10. A ‘general manager’ under the California statute includes “any agent of
19
the corporation of sufficient character and rank to make it reasonably certain that the defendant
20
will be apprised of the service made.” Gibble v. Car-Lene Research, Inc., 67 Cal. App. 4th 295
21
(1998) (quoting Eclipse Fuel Engineering Co. v. Superior Court, 148 Cal. App. 2d 736, 745-46
22
(1957)) (internal quotation marks omitted).
23
Plaintiff has not attached proof of service to his motion. (ECF No. 6.) Defendant’s
24
General Counsel and Vice President of Human Resources has provided additional detail in her
25
declaration about the attempted service. (ECF No. 13.) The security guard whom Plaintiff
26
attempted to serve works at Defendant’s Sacramento facility. (ECF No. 13 ¶ 6.) He is employed
27
by a contractor which provides security services to that facility and is not employed by
28
Defendant. (ECF No. 13 ¶ 6.) Therefore, the security guard was not authorized by Defendant to
5
1
receive service of process. (ECF No. 13 ¶ 6.) The Court finds that Defendant’s removal was not
2
untimely because service of process was not effectively served on the April 4, 2016, date as
3
alleged by Plaintiff and because Plaintiff has failed to allege any further facts in support of his
4
claim that removal was untimely.
5
IV.
6
For the foregoing reasons, the Court finds that Defendant has met its burden of showing
7
that the parties are diverse within the meaning of 28 U.S.C. § 1332. As such, Plaintiff’s Motion
8
for Remand to State Court (ECF No. 6) is hereby DENIED.
9
CONCLUSION
IT IS SO ORDERED.
10
11
Dated: July 13, 2017
12
13
Troy L. Nunley
United States District Judge
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
6
Disclaimer: Justia Dockets & Filings provides public litigation records from the federal appellate and district courts. These filings and docket sheets should not be considered findings of fact or liability, nor do they necessarily reflect the view of Justia.
Why Is My Information Online?