Michael v. La Jolla Learning Institute, Inc.
Filing
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ORDER granting in part and denying in part 21 Defendants' Motion to Dismiss. Signed by Judge Janis L. Sammartino on 9/30/2019. (jpp)
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UNITED STATES DISTRICT COURT
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SOUTHERN DISTRICT OF CALIFORNIA
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PAUL MICHAEL,
Case No.: 17-CV-934 JLS (MDD)
Plaintiff,
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ORDER GRANTING IN PART AND
DENYING IN PART DEFENDANTS’
MOTION TO DISMISS
v.
LA JOLLA LEARNING INSTITUTE,
INC., a California corporation;
BALBOA SCHOOL CORPORATION, a
California corporation,
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(ECF No. 21)
Defendants.
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Presently before the Court is Defendants La Jolla Learning Institute Inc. and Balboa
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School Corporation’s Motion to Dismiss. (“Mot.,” ECF No. 21). Also before the Court
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are Plaintiff Paul Michael’s Response in Opposition to (“Opp’n,” ECF No. 24) and
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Defendants’ Reply in Support of (“Reply,” ECF No. 25) the Motion, as well as Plaintiff’s
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Sur-Reply to Defendants’ Reply (“Sur-Reply,” ECF No. 29). The Court vacated the
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hearing and took the matter under submission without oral argument pursuant to Civil
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Local Rule 7.1(d)(1). ECF No. 26. Having considered the Parties’ arguments and the law,
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the Court GRANTS IN PART and DENIES IN PART Defendants’ Motion.
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///
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///
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17-CV-934 JLS (MDD)
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BACKGROUND
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Plaintiff is a former employee of Balboa City School, a company Plaintiff believes
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is wholly owned and operated by Defendant Balboa School Corporation doing business as
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Defendant La Jolla Learning Institute (together, “Defendants”).
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Complaint (“SAC”) ¶ 7, ECF No. 14. Plaintiff alleges that at all relevant times, Defendants
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employed twenty-five or more full-time employees. Id. ¶ 7–8.
Second Amended
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Defendants hired Plaintiff as a full-time Technical Coordinator in January 2001. Id.
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¶ 9. Throughout his employment with Defendants, Plaintiff participated in Defendants’
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employee beneficiary plans. Id. ¶ 12. In spring of 2016, Plaintiff submitted a letter of
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resignation and the employment relationship ended. Id. ¶ 13. On June 6, 2016, Defendants
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informed Plaintiff that his health insurance plan was terminated. Id. ¶ 14. Plaintiff’s final
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paycheck was dated June 15, 2016, id. ¶ 13, and his participation in Defendants’ health
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insurance plan officially ended June 30, 2016. Id. ¶ 15.
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Plaintiff alleges that “[b]etween June 15, 2016, and July 30, 2016, [he] did not
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receive a notice of his Consolidated Omnibus Budget Reconciliation Act (“COBRA”)
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election rights to continue coverage under [Defendants’] plan.” Id. ¶ 18. On July 1, 2016,
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Plaintiff wrote to Defendants alerting them that he had not received a COBRA notification
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or election notice and asked Defendants “to refrain from interfering with [his] rights under
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[the Employee Retirement Income Security Act of 1974 (“ERISA”)].” Id. ¶ 19.
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In late June and early July 2016, Plaintiff received two letters from Kaiser
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Permanente, the healthcare provider under Defendants’ health insurance plan, informing
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Plaintiff that his coverage was terminated but that Plaintiff may be eligible for, among other
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services, COBRA coverage. Id. ¶ 20. The letters stated that Plaintiff would need to contact
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his former employer to further explore his eligibility. Id.
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Between August and December 2016, Plaintiff reached out to Defendants multiple
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times regarding Defendants’ alleged failure to provide Plaintiff with a COBRA election
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notice.
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Id. ¶ 21.
On or about December 16, 2016, Plaintiff contacted Kaiser to
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17-CV-934 JLS (MDD)
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learn more about his COBRA rights; Kaiser told Plaintiff to contact Defendants for such
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information. Id. ¶ 23.
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On December 20, 2016, Defendants contacted Plaintiff to inform him that
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Defendants expected to receive documentation from Kaiser and, once received, that
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documentation would be sent to Plaintiff. Id. ¶ 24. In this letter, Defendants also provided
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Plaintiff with Kaiser’s phone number to call to find out more information about COBRA.
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Id.
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On the same day, Plaintiff asked Defendants in writing for the identity of the plan
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administrator. Id. ¶ 25. On or about December 23, 2016, Plaintiff contacted a Kaiser
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representative, who confirmed that Defendant La Jolla Learning Institute was the plan
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administrator and that Kaiser could provide no further information on Plaintiff’s COBRA
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rights. Id. ¶ 26.
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Plaintiff alleges that on January 16, 2017, he again requested in writing the identity
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of the plan administrator from Defendants. Id. ¶ 27. On January 18, 2017, Defendants
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responded that Kaiser was the healthcare provider and plan administrator; additionally,
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Defendants stated that they informed Kaiser about Plaintiff’s termination within the
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statutory time frame and that Kaiser sent Plaintiff information about his COBRA rights.
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Id. ¶ 28. As of November 27, 2018, Plaintiff claims he never received a COBRA notice.
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Id. ¶ 29.
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On May 8, 2017, Plaintiff filed suit against Defendants. See generally ECF No. 1.
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On November 27, 2018, Plaintiff filed the operative Second Amended Complaint, alleging
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two causes of action under ERISA and COBRA. ECF No. 14. Plaintiff seeks statutory
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penalties under 29 U.S.C. § 1132(c)(1), based on (1) Defendants’ alleged failure to provide
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requested ERISA plan documents as required under 29 U.S.C. § 1024(b)(4), and
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(2) Defendants’ failure to provide a COBRA notice and election form within thirty-days of
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Plaintiff’s termination as required under 29 U.S.C. § 1166(a). See generally SAC.
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Defendants then filed the present Motion to Dismiss under Federal Rules of Civil
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Procedure 12(b)(1) and 12(b)(6). See generally Mot. Defendants argue that both of
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Plaintiff’s causes of action fail to state claims upon which the Court can grant relief. Mot.
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at 3–6. Defendants also argue that Plaintiff does not have Article III standing because he
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failed to allege a concrete injury in fact. See Mot. at 6–7. The Court will address the
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standing issue first, moving then to the failure to state a claim.
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MOTION TO DISMISS UNDER RULE 12(b)(1)
I.
Legal Standard
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Federal courts are courts of limited jurisdiction, and as such have an obligation to
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dismiss claims for which they lack subject-matter jurisdiction. Demarest v. United States,
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718 F.2d 964, 965 (9th Cir. 1983).
Because the issue of standing pertains to the
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subject-matter jurisdiction of a federal court, motions raising lack of standing are properly
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brought under Federal Rule of Civil Procedure 12(b)(1). White v. Lee, 227 F.3d 1214, 1242
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(9th Cir. 2000). The plaintiff bears the burden of establishing he has standing to bring the
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claims asserted. Takhar v. Kessler, 76 F.3d 995, 1000 (9th Cir. 1996); see also In re
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Dynamic Random Access Memory Antitrust Litig., 546 F.3d 981, 984 (9th Cir. 2008) (“The
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party asserting jurisdiction bears the burden of establishing subject-matter jurisdiction on
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a motion to dismiss for lack of subject-matter jurisdiction.”).
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Rule 12(b)(1) motions may challenge jurisdiction facially or factually. Safe Air for
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Everyone v. Meyer, 373 F.3d 1035, 1039 (9th Cir. 2004). “In a facial attack, the challenger
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asserts that the allegations contained in a complaint are insufficient on their face to invoke
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federal jurisdiction. By contrast, in a factual attack, the challenger disputes the truth of the
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allegations that, by themselves, would otherwise invoke federal jurisdiction.” Id. Here,
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Defendants’ challenge is facial because it disputes whether Plaintiff alleged a sufficiently
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particularized injury to confer Article III standing. Accordingly, the Court will assume the
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truth of Plaintiff’s factual allegations and draw all reasonable inferences in favor of
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Plaintiff. See Whisnant v. United States, 400 F.3d 1177, 1179 (9th Cir. 2005).
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II.
Analysis
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Under Article III of the United States Constitution, a federal court may only
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adjudicate an action if it constitutes a justiciable “case” or a “controversy” that has real
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17-CV-934 JLS (MDD)
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consequences for the parties. Lujan v. Defenders of Wildlife, 504 U.S. 555, 560 (1992). A
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threshold requirement for justiciability in federal court is that the plaintiff have standing to
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assert the claims brought. Id. Article III standing requires that the plaintiff “(1) suffered
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an injury in fact, (2) that is fairly traceable to the challenged conduct of the defendant, and
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(3) that is likely to be redressed by a favorable judicial decision.” Spokeo, Inc. v. Robins,
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136 S. Ct. 1540, 1547 (2016) (citing Lujan, 504 U.S. at 560–61).
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In this case, Defendants attack only the injury in fact element. “To establish injury
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in fact, a plaintiff must show that he or she suffered ‘an invasion of a legally protected
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interest’ that is ‘concrete and particularized’ and ‘actual or imminent, not conjectural or
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hypothetical.’” Id. (quoting Lujan, 504 U.S. at 560). “Particularized injuries ‘affect the
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plaintiff in a personal and individual way,’ while a ‘concrete injury must be de facto; that
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is, it must actually exist.’” Fleming v. Charles Schwab Corp., 878 F.3d 1146, 1151 (9th
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Cir. 2017) (quoting Spokeo, 136 S. Ct. at 1548). Because Plaintiff is raising multiple
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claims, he “must demonstrate standing for each claim he seeks to press.” DaimlerChrysler
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Corp. v. Cuno, 547 U.S. 332, 352 (2006).
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Defendants contend that Plaintiff fails to allege standing because “Plaintiff has not
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suffered anything other than an abstract injury” caused by alleged procedural statutory
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violations. Mot. at 8. Defendants contend that Plaintiff’s allegations of statutory violations
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alone are insufficient to confer standing. Id. Defendants rely primarily on their reading of
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the Supreme Court’s decision in Spokeo to support these contentions. Id.
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In Spokeo, a consumer brought an action alleging that a website published inaccurate
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information about him, violating the Fair Credit Reporting Act. Spokeo, 136 S.Ct. at
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1544–45. The Ninth Circuit, focusing only on the particularity prong of the injury in fact
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element, found plaintiff’s alleged violations of his statutory rights alone were sufficient to
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satisfy the injury in fact requirement of Article III. Id. at 1546. The Supreme Court
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reversed, holding that “Article III standing requires a concrete injury even in the context
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of a statutory violation” and, thus, a plaintiff cannot “allege a bare procedural violation,
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17-CV-934 JLS (MDD)
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divorced from any concrete harm, and satisfy the injury-in-fact requirement of Article III.”
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Id. at 1549.
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The Supreme Court went on to explain, however, that “the violation of a procedural
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right granted by statute can be sufficient in some circumstances to constitute injury in fact.”
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Id.
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‘concreteness’ requirement of an injury in fact, it did not disturb the long-standing
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principle, invoked by [Plaintiff] here, that a plaintiff suffers an injury in fact when she is
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denied access to helpful information subject to disclosure under a statute.” McFarlane v.
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First Unum Life Ins. Co., 274 F. Supp. 3d 150, 162 (S.D.N.Y. 2017). Examples in which
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a violation of a procedural right constitutes injury in fact include a group voter’s “inability
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to obtain information” that the Federal Election Campaign Act requires to be made publicly
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available, see Fed. Election Comm’n v. Akins, 524 U.S. 11, 21 (1998), and the inability to
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receive documents from committees that are covered by the Federal Advisory Committee
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Act, which requires that certain documents and meetings be accessible to the public, see
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Pub. Citizens v. U.S. Dep’t of Justice, 491 U.S. 440, 449 (1989). In these instances, where
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a “plaintiff fails to obtain information which must be publicly disclosed pursuant to a
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statute,” Fed. Election Comm’n, 524 U.S. at 21, “a plaintiff . . . need not allege any
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additional harm beyond the one Congress has identified” to show injury in fact. Spokeo,
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136 S. Ct. at 1550.
Thus, “[w]hile Spokeo may have clarified certain principles regarding the
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In this case, Plaintiff’s allegations suffice to meet the injury in fact requirement.
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“[T]he Supreme Court has recognized that the purpose of ERISA’s disclosure requirement
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is to ‘ensure that the individual participant knows exactly where he stands with respect to
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the plan.’” McFarlane, 274 F. Supp. 3d at 162 (quoting Firestone Tire & Rubber Co. v.
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Bruch, 489 U.S. 101, 118 (1989) (internal alterations omitted)).
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complained of in Federal Election Commission and Public Citizens, Plaintiff’s injuries in
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this case stem from Defendants’ alleged failure to provide Plaintiff information required
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by statute, specifically the ERISA plan documents and COBRA benefit information. SAC
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¶¶ 29–31. Additionally, Plaintiff alleges that Defendants’ failure to provide COBRA
Like the injuries
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information and an election form resulted in a concrete injury because it prevented Plaintiff
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from obtaining COBRA continuation coverage. Id. at 31; Opp’n at 8–9. These are
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sufficiently concrete and particularized injuries to confer Article III standing.
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McFarlane, 274 F. Supp. 3d at 164 (holding plaintiff’s allegations of failure to provide
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ERISA plan documents sufficient to show injury in fact); see also Bryant v. Wal-Mart
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Store, Inc., No. 16-24818-CIV, 2019 WL 3542827, at *3 (S.D. Fla. Apr. 18, 2019) (holding
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plaintiff sufficiently alleged a concrete and particularized injury resulting from defendant’s
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failure to provide COBRA notice).
See
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The Court also finds that Plaintiff satisfies the remaining standing requirements of
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causation and redressability. Although Defendants do not challenge these elements, the
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Court concludes that Plaintiff’s injury is fairly traceable to Defendants’ conduct and this
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Court can provide the relief sought. Thus, the Court finds that Plaintiff has Article III
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standing to bring his claims and DENIES Defendants’ Motion under 12(b)(1).
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MOTION TO DISMISS UNDER RULE 12(b)(6)
I.
Legal Standard
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Federal Rule of Civil Procedure 12(b)(6) permits a party to raise by motion the
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defense that the complaint “fail[s] to state a claim upon which relief can be granted,”
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generally referred to as a motion to dismiss. The Court evaluates whether a complaint
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states a cognizable legal theory and sufficient facts in light of Federal Rule of Civil
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Procedure 8(a), which requires a “short and plain statement of the claim showing that the
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pleader is entitled to relief.”
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To survive a motion to dismiss, “a complaint must contain sufficient factual matter,
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accepted as true, to ‘state a claim to relief that is plausible on its face.’” Ashcroft v. Iqbal,
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556 U.S. 662, 677 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555 (2007));
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see also Fed. R. Civ. P. 12(b)(6). A claim is facially plausible when the facts pled “allow
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the court to draw the reasonable inference that the defendant is liable for the misconduct
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alleged.” Id. (citing Twombly, 550 U.S. at 556). The Court must accept as true all material
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allegations in the complaint and must construe the complaint and all reasonable inferences
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17-CV-934 JLS (MDD)
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drawn therefrom in the light most favorable to Plaintiff. See Thompson v. Davis, 295 F.3d
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890, 895 (9th Cir. 2002). Where a complaint does not survive 12(b)(6) analysis, the Court
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will grant leave to amend unless it determines that no modified contention “consistent with
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the challenged pleading . . . [will] cure the deficiency.” DeSoto v. Yellow Freight Sys.,
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Inc., 957 F.2d 655, 658 (9th Cir. 1992) (quoting Schriber Distrib. Co. v. Serv-Well
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Furniture Co., 806 F.2d 1393, 1401 (9th Cir. 1986)).
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II.
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Analysis
A.
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Request to Convert Defendants’ Rule 12(b)(6) Motion Into a Rule 56
Motion
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“In general, courts cannot consider material outside of the pleadings in ruling on a
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motion to dismiss.” In re Am. Cont’l Corp./Lincoln Sav. & Loan Sec. Litig., 102 F.3d 1524,
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1537 (9th Cir. 1996). Federal Rule of Civil Procedure 12(d), however, “gives courts the
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discretion to accept and consider extrinsic materials offered in connection with these
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motions, and to convert the motion to one for summary judgment when a party has notice
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that the district court may look beyond the pleadings.” Hamilton Materials, Inc. v. Dow
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Chem. Corp., 494 F.3d 1203, 1207 (9th Cir. 2007) (citing Portland Retail Druggists Ass’n
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v. Kaiser Found. Health Plan, 662 F.2d 641, 645 (9th Cir. 1981). Rule 12(d) specifically
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states that “if, on a motion under Rule 12(b)(6) or 12(c), matters outside the pleadings are
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presented to and not excluded by the court, the motion must be treated as one for summary
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judgment under Rule 56. All parties must be given a reasonable opportunity to present all
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the material that is pertinent to the motion.” Fed. R. Civ. P. 12(d).
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In their Reply, Defendants argue that the Court should convert the Motion to Dismiss
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under Rule 12(b)(6) into a Motion for Summary Judgement under Rule 56. Reply at 3–4.
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Defendants make this request because they submitted declarations and multiple exhibits,
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external to Plaintiffs SAC, that they rely on in support of the Motion to Dismiss. See
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generally ECF Nos. 21-1, 21-2. Defendants contend that Plaintiff had sufficient notice that
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the Court could convert the motion because Defendants attached the materials to their
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17-CV-934 JLS (MDD)
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Motion, Plaintiff argued against conversion in his Opposition, and “Plaintiff submit[ted]
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his own declaration (i.e., his own evidence) in support of the [O]pposition.” Reply at 4.
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Plaintiff argues that converting the Motion to Dismiss to a motion for summary
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judgment is not appropriate in this case. Opp’n at 6–7; Sur-Reply at 4–5. Plaintiff contends
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that discovery is necessary to uncover whether Defendants employed more than
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twenty-five employees. Sur-Reply at 5. Plaintiff further argues that the evidence submitted
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by Defendants is inadmissible and, thus, the Court could not consider it even if the Court
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were to convert the Motion. Id.
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The Court refuses to convert the Motion to Dismiss into a motion for summary
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judgment. “Converting Defendants’ Motion into one for summary judgment would be
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premature at this point in the case,” in part because “[t]he record discloses [that] no
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discovery [has been] conducted.” Lacey v. Malandro Commc’n, Inc., No. CV-09-01429-
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PHX-GMS, 2009 WL 4755399, at *4 (D. Ariz. Dec. 8, 2009). Plaintiff therefore has not
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been afforded a reasonable opportunity to respond to and present all material pertinent to
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Defendants’ contentions that it did not employ over twenty employees during the relevant
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period. See Grove v. Mead Sch. Dist. No. 354, 753 F.2d 1528, 1532 (9th Cir. 1985) (noting
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a reasonable opportunity to respond “must include time for discovery necessary to develop
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facts justifying opposition to the motion”) (citing Portland Retail, 662 F.2d at 645; Fed. R.
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Civ. P. 56) Accordingly, “the Court will not consider Defendant[s’] submissions that fall
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outside the pleadings in resolving the Motion to Dismiss.” See Lacey, 2009 WL 4755399,
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at *4.
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B.
Plaintiff’s First Cause of Action: Failure to Produce Plan Documents
Under ERISA
Plaintiff’s first cause of action alleges that Defendants failed to provide Plaintiff with
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documents and information he requested in writing, as required by ERISA.
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¶¶ 32–44. Under ERISA, the plan administrator is required to provide a copy of the “latest
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updated summary, plan description, and the latest annual report, any terminal report, the
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bargaining agreement, trust agreement, contract, or other instruments under which the plan
SAC
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is established or operated” upon written request of any participant or beneficiary. 29
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U.S.C. § 1024(b)(4). A plan administer that fails or refuses to provide the requested plan
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documents “may in the court’s discretion be personally liable to such participant or
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beneficiary in the amount of up to $100 a day.” 29 U.S.C. 1132(c)(1).
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Plaintiff asserts in his SAC that he made three separate written requests for
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information and plan documents, on July 1, 2016, December 20, 2016, and January 16,
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2017.1 SAC ¶ 42. In his Opposition, Plaintiff abandons the allegation he made such a
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request on July 1, 2016, focusing only on the later two alleged requests.2 Opp’n at 3–4.
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In the December 20, 2016 request, Plaintiff’s counsel, in response to an email from
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Defendants’ counsel regarding the COBRA benefits notification, wrote: “I still have [a]
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question: Who is the Plan Administrator for the Plan?” ECF No. 14-1 at 33. Defendants’
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counsel replied minutes later, stating “I do not understand the question.” Id. Plaintiff’s
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counsel responded: “A group benefits plan must have a designated Plan Administrator.
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Who is the Plan Administrator for the health insurance plan offered through [Balboa City
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School]?” Id. Defendants’ counsel did not respond. SAC ¶ 27.
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On January 20, 2016, Plaintiff emailed Defendants once again. The email states in
relevant part:
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It has been more than seven months since Mr. Michael requested
information regarding his COBRA election and notification
rights. To my knowledge, he still has not received that
documentation. I will be filing a complaint on his behalf in
federal court on Friday, January 20[,] unless I receive
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Plaintiff attached copies of the alleged requests made on December 20, 2016, and January 16, 2017, to
his SAC. See ECF No. 14-1 at 33–35, 37. As part of the complaint, the Court may consider these
documents. Lee v. City of Los Angeles, 250 F.3d 668, 688 (9th Cir. 2001) (“[A] court may consider
‘material which is properly submitted as part of the complaint’ on a motion to dismiss.”) (quoting Branch
v. Tunnell, 14 F.3d 449, 453 (9th Cir. 1994)).
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Even if Plaintiff did not abandon his allegation that he requested plan documents on July 1, 2016, based
on the allegations in his SAC, Plaintiff does not state a claim for the same reasons the Court finds the
December 20, 2016, and January 16, 2017 requests insufficient articulated below.
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information from you that actually demonstrates your client’s
compliance with [the] law.
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ECF No. 14-1 at 37.
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Defendants contend that Plaintiff’s written requests were insufficient to support a
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claim for failure to produce plan documents. Mot. at 5. Defendants assert that nowhere in
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these communications does Plaintiff actually request a document production and, even if
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the Court construes the requests as requests for documents, Plaintiff is referring to
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COBRA-related documents, not documents covered under section 1124(b)(4). Id.
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Plaintiff responds that the written requests are sufficient to fall under the mandatory
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production rule of section 1024(b)(4). Opp’n at 4. Plaintiff contends that the identity of
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the plan administrator is required to be in the summary plan documents governing any
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health plan. Id. Plaintiff argues that because the identity of the plan administrator must be
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contained in the summary plan document, Defendants were required to provide the
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summary plan document. Id. In support of his argument, Plaintiff contends that a
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“clear-notice” standard should apply and that, under this standard, Defendants had notice
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of his request. Opp’n at 4–5. (citing Cultrona v. Nationwide Life Ins. Co., 748 F.3d 698,
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707 (6th Cir. 2014) (adopting clear-notice standard) (citing Kollman v. Hewitt Assocs.,
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LLC, 487 F.3d 139, 145 (3d Cir. 2007) (adopting the standard and collecting similar cases
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from the Second, Fifth, Seventh, and Tenth Circuits)). The Court agrees that the clear-
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notice standard is appropriate in this case.
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“Under the clear-notice standard, claimants seeking documents pursuant to
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§ 1024(b)(4) must ‘provide clear notice to the plan administrator of the information they
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desire.’” Cultrona, 748 F.3d at 707 (quoting Kollman, 487 F.3d at 145); see also Williams
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v. Caterpillar, Inc., 944 F.2d 658, 667 (9th Cir. 1991) (“Some courts have suggested that
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where a pension plan participant fails to make a specific request for the information at
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issue, he has no litigable claim.”). In deciding whether there was clear-notice, the Court
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may consider all “the circumstances surrounding the document request.” Cultrona, 748
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F.3d at 707.
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The Court finds that Plaintiff’s request for the identity of the plan administrator
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failed to give clear notice to Defendants that Plaintiff sought the summary plan document.
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As the December 20, 2016 and January 16, 2017 communications show, Plaintiff never
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actually requested any document, let alone the summary plan document, by name. The
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Court declines to require Defendants to connect the dots of Plaintiff’s request, forcing them
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to determine that the information requested was included in the summary plan document
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and that, despite his silence, Plaintiff was in fact asking for that document. While there
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may be some requests for information that clearly indicate a document production is
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necessary, “who is the plan administrator” is not such a request. Considering the context
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of the communications, Plaintiff made the request in response to Defendants’ email
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concerning COBRA beneficiary notices, and neither party even mentioned the summary
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plan document. In fact, Defendants expressly indicated they did not understand the first
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request, and Plaintiff’s follow-up did not make clear that he was in fact requesting the
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summary plan document.
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Moreover, under section 1024(b)(4), only “plan administrators are required, upon
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the request of a participant or beneficiary, to provide the requesting party with a copy of
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various plan documents.” Becker v. Williams, 777 F.3d 1035, 1039 (9th Cir. 2015)
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(emphasis added). The fact that Plaintiff requested the identity of the plan administrator
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belies its argument that it was making a request to the plan administrator for the summary
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plan document.
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For these reasons, the Court concludes that Plaintiff failed to provide clear-notice to
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Defendants that he sought production of the summary plan document. See Williams, 944
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F.2d at 667 (holding that the district court did not abuse its discretion in finding that
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appellants “failed to offer any proof . . . that they had ever requested any plan descriptions
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from appellees”); see also Davenport v. Harry N. Abrams, Inc., 249 F.3d 130, 135 (2d Cir.
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2001) (denying civil penalties where plaintiff did not ask for the summary plan document
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but sought only specific information for type and amount of any vested benefits she had
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accrued). The Court therefore GRANTS Defendants Motion regarding Plaintiff’s first
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cause of action.
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C.
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Plaintiff’s second cause of action alleges that Defendants failed to send a qualified
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beneficiary notice following his termination, as required under COBRA. SAC ¶¶ 45–57.
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Under COBRA, employers are required to provide notice to employees of continuation
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rights within thirty days of a termination of coverage. 29 U.S.C. § 1161(a). That
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requirement, however, applies only to employers with over twenty employees. 29 U.S.C.
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§ 1161(b).
Plaintiff’s Second Cause of Action: Failure to Provide COBRA Notice
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Defendants contend that Plaintiff’s second cause of action for failure to provide
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COBRA notice must be dismissed because “Defendant[s] did not employ more than 20
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employees in any applicable pay period” and, thus, “COBRA does not apply.” Mot. at 6.
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Defendants support this argument entirely with the declarations and exhibits attached to
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their Motion. See generally ECF Nos. 21-1, 21-2. As explained above, the Court does not
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find these documents appropriate to consider at this time. See supra Section II.A. Without
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these documents, the Court is left with Plaintiff’s allegations in his SAC that “at all times
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relevant to [the] Complaint, Defendant[s] . . . employed 25 or more full-time employees.”
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SAC ¶¶ 7–8. For the purposes of this motion, the Court accepts these allegations as true,
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see Telesaurus VPC, LLC v. Power, 623 F.3d 998, 1003 (9th Cir. 2010) (quoting Iqbal,
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556 U.S. at 678), and finds Plaintiff adequately pled his second cause of action.
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Accordingly, the Court DENIES Defendants’ Motion to Dismiss Plaintiff’s second cause
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of action.
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CONCLUSION
Based on the forgoing, the Court GRANTS IN PART and DENIES IN PART
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Defendants’ Motion to Dismiss (ECF No. 21).
Specifically, the Court DENIES
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Defendants’ Motion under 12(b)(1) for lack of standing, GRANTS Defendants’ Motion
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under 12(b)(6) regarding Plaintiff’s first cause of action, and DENIES Defendants’ Motion
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under 12(b)(6) regarding Plaintiff’s second cause of action. Plaintiff may file an amended
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17-CV-934 JLS (MDD)
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complaint within 30 days of the date that this Order is electronically docketed.
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Should Plaintiff fail timely to file an amended complaint, this action will proceed on
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Plaintiff’s surviving second cause of action.
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IT IS SO ORDERED.
Dated: September 30, 2019
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17-CV-934 JLS (MDD)
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