Barrus v. Dick's Sporting Goods, Inc.
Decision Date | 05 August 2010 |
Docket Number | No. 05-CV-6253 CJS,05-CV-6253 CJS |
Citation | 732 F.Supp.2d 243 |
Parties | Tamara BARRUS, on behalf of herself and others similarly situated, et al., Plaintiffs, v. DICK'S SPORTING GOODS, INC. and Galyan's Trading Company, Inc., et al., Defendants. |
Court | U.S. District Court — Western District of New York |
Patrick Solomon, Esq., Michael Lingle, Esq., Thomas & Solomon LLP, Rochester, NY, for the Plaintiffs.
Daniel J. Moore, Esq., Harris Beach LLP, Pittsford, NY, Matthew W. Lampe, Esq., Jones Day, New York, NY, for the Defendants.
DECISION AND ORDER
This Fair Labor Standards Act ("FLSA") matter is before the Court on Defendants' motions (Docket Nos. 255 and 293): to deny certification of state law classes; to strike state law class allegations: and to dismiss preempted state common law claims, ERISA claims, and RICO claims. For the reasons set out below, the motions are granted in part and denied in part.
Defendants Dick's Sporting Goods and Galyan's Trading Company, Inc. ("Galyan's") are national sporting goods retailers who merged in 2004 and currently operate under the Dicks Sporting Goods ("DSG") name. DSG operates 255 stores in 34 states with approximately 16,000 employees who are subject to the Fair Labor Standards Act ("FLSA") wage and hour requirements. ( See Falce Aff. (Docket No. 43) at 1-2.) According to Plaintiffs, DSG and Galyan's implemented formal and informal wage and hour policies which were in direct contravention of the protections afforded employees under the FLSA. Specifically, Plaintiffs have identified three different policies utilized by Defendants which allegedly violate the FLSA. Plaintiffs are suing both stores, now merged, along with individual defendants, alleging violations of the FLSA, state law and the Employee Retirement Income Security Act ("ERISA") and the Racketeer Influenced Corrupt Organization Act ("RICO").
In the subject application, as indicated above, Defendants seek dismissal of the state common law overtime claims arguing that they are preempted by FLSA, denial of class certification of all the state law claims, dismissal of the ERISA claims and dismissal of the RICO claims.
The U.S. Supreme Court, in Bell Atl. Corp. v. Twombly, 550 U.S. 544, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007), clarified the standard to be applied to a 12(b)(6) motion:
Federal Rule of Civil Procedure 8(a)(2) requires only a short and plain statement of the claim showing that the pleader is entitled to relief, in order to give the defendant fair notice of what the claim is and the grounds upon which it rests. While a complaint attacked by a Rule 12(b)(6) motion to dismiss does not need detailed factual allegations, a Plaintiff's obligation to provide the grounds of his entitlement to relief requires more than labels and conclusions, and a formulaic recitation of the elements of a cause of action will not do. Factual allegations must be enough to raise a right to relief above the speculative level, on the assumption that all the allegations in the complaint are true (even if doubtful in fact).
Id. at 1964-65 (citations and internal quotations omitted). See also, ATSI Communications, Inc. v. Shaar Fund, Ltd., 493 F.3d 87, 98 (2d Cir.2007) () (quoting Bell Atl. Corp. v. Twombly ) (footnote omitted); Iqbal v. Hasty, 490 F.3d 143 (2d Cir.2007) ( )
When applying this standard, a district court must accept the allegations contained in the complaint as true and draw all reasonable inferences in favor of the nonmoving party. Burnette v. Carothers, 192 F.3d 52, 56 (1999), cert. denied, 531 U.S. 1052, 121 S.Ct. 657, 148 L.Ed.2d 560 (2000). On the other hand, "[c]onclusory allegations of the legal status of the defendants' acts need not be accepted as true for the purposes of ruling on a motion to dismiss." Hirsch v. Arthur Andersen & Co., 72 F.3d 1085, 1092 (2d Cir.1995) ( ). As the Supreme Court clarified in Ashcroft v. Iqbal, --- U.S. ----, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009):
Threadbare recitals of the elements of a cause of action, supported by mere conclusory statements, do not suffice. Id., at 555, 127 S.Ct. 1955, (Although for the purposes of a motion to dismiss we must take all of the factual allegations in the complaint as true, we "are not bound to accept as true a legal conclusion couched as a factual allegation" (internal quotation marks omitted)). Rule 8 marks anotable and generous departure from the hyper-technical, code-pleading regime of a prior era, but it does not unlock the doors of discovery for a plaintiff armed with nothing more than conclusions. Second, only a complaint that states a plausible claim for relief survives a motion to dismiss. Id., at 556, 127 S.Ct. 1955. Determining whether a complaint states a plausible claim for relief will, as the Court of Appeals observed, be a context-specific task that requires the reviewing court to draw on its judicial experience and common sense. 490 F.3d at 157-158. But where the well-pleaded facts do not permit the court to infer more than the mere possibility of misconduct, the complaint has alleged-but it has not "show [n]"-"that the pleader is entitled to relief." Fed. Rule Civ. Proc. 8(a)(2).
Plaintiffs allege that they have sufficiently plead a class action maintainable under Federal Rule of Civil Procedure 23(b)(1), (2), and (3). Rule 23(a) and the relevant (b) subsections state:
Fed.R.Civ.P. 23(a), (b)(1)(A), (b)(1)(B), (b)(2) and (b)(3)(A)-(C)(2009). The party seeking class certification has the burden of demonstrating that Rule 23's requirements are satisfied. Caridad v. Metro-North Commuter Railroad, 191 F.3d 283, 291 (2d Cir.1999) (citation omitted), cert. denied,529 U.S. 1107, 120 S.Ct. 1959, 146 L.Ed.2d 791 (2000); see also, 5 James Wm. Moore et al., Moore's Federal Practice § 23.60[2] () (citation omitted). It is well settled that before certifying a class, a district court must conduct a "rigorous analysis" to determine whether or not Rule 23's requirements have been met.1
Caridad, 191 F.3d at 291. However, the court should not inquire into the merits of the plaintiffs' underlying claims. Id. (citation omitted). Moreover, courts are required to construe Rule 23's requirements liberally. Eisen v. Carlisle & Jacquelin, 391 F.2d 555, 563 (2d Cir.1968). Courts should resolve doubts about whether Rule 23 has been satisfied in favor of certification. In re Industrial Diamonds Antitrust Litigation, 167 F.R.D. 374, 378 (S.D.N.Y.1996) (citations omitted).
Defendants' memorandum of law in support of their motion (Docket No. 255) states for an introduction, the following:
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