Hivner v. Active Elec., Inc.

• Decision Date: 23 July 2012
• Docket Number: Case No. 12–cv–001.
• Citation: 878 F.Supp.2d 897
• Parties: Robert HIVNER, Jr., Thomas Reynolds, and Shane Brooks, Plaintiffs, v. ACTIVE ELECTRIC, INC., and Jack E. Tincher, Defendants.
• Court: U.S. District Court — Southern District of Ohio

878 F.Supp.2d 897

Robert HIVNER, Jr., Thomas Reynolds, and Shane Brooks, Plaintiffs,

v.ACTIVE ELECTRIC, INC., and Jack E. Tincher, Defendants.

Case No. 12–cv–001.

United States District Court,

S.D. Ohio,

Western Division.

July 23, 2012.

Ryan Keith Hymore, Mangano Law Offices Co., LPA, Cincinnati, OH, Basil W. Mangano, Joseph J. Guarino, III, Mangano Law Offices Co., LPA, Cleveland, OH, for Plaintiffs.

Victoria L. Nilles, Taft Stettinius & Hollister LLP, Dayton, OH, for Defendants.

ENTRY AND ORDER DENYING DEFENDANTS ACTIVE ELECTRIC INC. AND TINCHER'S MOTION TO DISMISS (DOC. 6).

THOMAS M. ROSE, District Judge.

Pending before the Court for decision is Defendants Active Electric Inc. and Jack E. Tincher's Motion to Dismiss. Doc. 6. Therein, Defendants assert Plaintiffs' Complaint should be dismissed for failure to state a claim pursuant to Federal Rule of Civil Procedure 12(b)(6). Plaintiffs are Robert Hivner, Jr., Thomas Reynolds, and Shane Brooks (hereinafter “Plaintiffs”). Defendants are Active Electric, Inc. and Jack E. Tincher (hereinafter “Defendants”).

The present case is before the Court pursuant to 28 U.S.C. § 1331 and the Court exercises jurisdiction over the Ohio state law claims pursuant to 28 U.S.C. § 1367(a). Plaintiffs' claims assert Defendants have violated their obligation to pay correct overtime rates under the Fair Labor Standards Act, 29 U.S.C. § 207 and Ohio R.C. 4111.03. Defendants move the Court to dismiss these claims, asserting they are subject to res judicata, or claim preclusion, as the Plaintiffs had the opportunity, but failed to litigate the claims in Hivner v. Active Electric, Inc. Case No. 3:11–cv–00226 (S.D.Ohio 2011), a case in which Plaintiffs accepted Defendants' Federal Rule of Civil Procedure Offer of Judgment. In this case, Plaintiffs brought an action seeking basic Health and Welfare plan documentation under the Employee Retirement Income Security Act, 29 U.S.C. § 1132(c)(1), copies of all their earnings and deductions reports, all documents that reflect hours worked, and all paystubs for a three year period under Section 34a of Article II, Ohio Constitution and Ohio R.C. 4111.14(F)-(G). Hivner I doc. 7. Defendants also assert Plaintiffs' Amended Complaint alleges facts in direct contradiction to the original Complaint. Doc. 10. Because the contested Federal Rule of Civil Procedure 68 Offer of Judgment is not a final decision on the merits, does not arise out of the same transaction, and should not have been brought in Hivner I, and because the Amended Complaint does not contain facts in direct contradiction of the original Complaint, Defendants' Motion to Dismiss pursuant to Federal Rule of Civil Procedure 12(b)(6) will be denied.

I. Factual Background

Plaintiffs Hivner, Reynolds, and Brooks filed a lawsuit against Defendants Active Electric, Inc. and Tincher on June 29, 2011 in the United States District Court Southern District of Ohio. Hivner et al v. Active Electric, Inc., Case No. 11–cv–226 (S.D.Ohio 2011)(hereinafter “ Hivner I ”). Hivner I was a demand by Plaintiffs for Defendants to provide documentation detailing basic Health and Welfare plan documentation under ERISA, copies of all their earnings and deductions reports, all documents that reflect hours worked, and all paystubs for a three year period under Section 34a of Article II, Ohio Constitution and Ohio R.C. 4111.14(F)-(G). Hivner I doc. 7. The action arose out of Plaintiffs' questioning paycheck deductions and wage calculations on their paychecks. Hivner I doc. 7 ¶ 1, 10, 12, 13. Defendants provided Plaintiffs the requested documentation on November 2, 2011. Doc. 7 ¶ 2. The case did not go to trial, but was instead concluded with a Federal Rule of Civil Procedure 68 Offer of Judgment. Hivner I doc. 10. Per the offer of judgment, Plaintiffs obtained the detailed information and a judgment in the amount of $6,801.06, which included costs and accrued attorney's fees. Hivner I doc 10. The offer stated, “[t]his offer of judgment is made for the purposes specified in Rule 68, and is not to be construed either as an admission that Defendant is liable in this action or that Plaintiffs have suffered any damage or are entitled to any penalty.” Hivner I Doc. 10, Ex. 1. The offer was accepted and entered by plaintiffs on November 30, 2011. Hivner I doc. 10. Final judgment was entered by the Court on December 30, 2011. Hivner I doc. 11.

On November 30, 2011, the same day Plaintiffs accepted Defendants' offer of judgment, Plaintiffs filed suit in the Montgomery County Court of Common Pleas. Doc. 1. The suit was subsequently removed to the United States District Court Southern District of Ohio on January 3, 2012. Doc. 1. Plaintiffs' original Complaint, which Defendants now claim contradicts the Amended Complaint currently before the Court, asserts “Plaintiffs regularly were paid different rates for the same kind of work during workweeks in which they worked in excess of forty hours.” Doc. 4 ¶ 22, 33. It further asserts “The amounts of Plaintiff's respective rates of pay depended on whether the construction project was a public improvement or a private project.” Doc. 4 ¶ 23, 34.

Defendants filed a Motion to Dismiss for failure to state a claim under Federal Rule of Civil Procedure 12(b)(6). Doc. 6. Subsequent to Defendants' Motion to Dismiss, Plaintiffs filed an Amended Complaint on February 3, 2012, doc. 7, and a Response in Opposition to Defendants' Motion to Dismiss. Doc. 8. Plaintiffs Amended Complaint phrases the claim differently, stating “Plaintiffs were paid different rates for the different types of work during workweeks in which they worked in excess of forty hours.” Doc. 7 ¶ 34, 45.

Upon receipt of Plaintiffs' Amended Complaint and Response in Opposition to their Motion to Dismiss, Defendants filed an Answer to the Amended Complaint, doc. 9, and a Reply to Plaintiffs' Response to their Motion to Dismiss. Doc. 10. Defendants' Motion to Dismiss argues Plaintiffs' claims should be dismissed under the principle of res judicata and also that Plaintiffs' Amended Complaint asserts facts in contradiction with the original Complaint. Doc. 10.

II. Standard of Review

The purpose of a motion under Federal Rule of Civil Procedure 12(b)(6) is to test the sufficiency of the complaint. When considering a motion to dismiss pursuant to Rule 12(b)(6), a court must construe the complaint in the light most favorable to the plaintiff and accept all well-pleaded material allegations in the complaint as true. Scheuer v. Rhodes, 416 U.S. 232, 236, 94 S.Ct. 1683, 1686, 40 L.Ed.2d 90 (1974); California Motor Transp. Co. v. Trucking Unlimited, 404 U.S. 508, 515, 92 S.Ct. 609, 614, 30 L.Ed.2d 642 (1972). Although the Court must liberally construe the complaint in favor of the party opposing the motion to dismiss, Kugler v. Helfant, 421 U.S. 117, 125–26 n. 5, 95 S.Ct. 1524, 1531 n. 5, 44 L.Ed.2d 15 (1975), it will not accept conclusions of law or unwarranted inferences cast in the form of factual allegations. Blackburn v. Fisk Univ., 443 F.2d 121, 124 (6th Cir.1971); Sexton v. Barry, 233 F.2d 220, 223 (6th Cir.1956). The Court will, however, indulge all reasonable inferences that might be drawn from the pleading. Fitzke v. Shappell, 468 F.2d 1072, 1076–77 n. 6 (6th Cir.1972).

The Court is mindful that “a complaint should not be dismissed for failure to state a claim unless it appears beyond doubt that the plaintiff can prove no set of facts in support of his claim which would entitle him to relief.” Conley v. Gibson, 355 U.S. 41, 45–46, 78 S.Ct. 99, 102, 2 L.Ed.2d 80 (1957). See also McLain v. Real Estate Bd., 444 U.S. 232, 246, 100 S.Ct. 502, 511, 62 L.Ed.2d 441 (1980); Windsor v. The Tennessean, 719 F.2d 155, 158 (6th Cir.1983). Because a motion under Rule 12(b)(6) is directed solely to the complaint itself, Roth Steel Prods. v. Sharon Steel Corp., 705 F.2d 134, 155 (6th Cir.1983); Sims v. Mercy Hosp., 451 F.2d 171, 173 (6th Cir.1971), the focus is on whether the plaintiff is entitled to offer evidence to support the claims, rather than on whether the plaintiff will ultimately prevail. Scheuer, 416 U.S. at 236, 94 S.Ct. at 1686;McDaniel v. Rhodes, 512 F.Supp. 117, 120 (S.D.Ohio 1981).

A complaint need not set down in detail all the particularities of a plaintiff's claim against a defendant. United States v. School District of Ferndale, 577 F.2d 1339, 1345 (6th Cir.1978). Federal Rule of Civil Procedure 8 requires only a “short and plain statement of the claim showing that the pleader is entitled to relief.” Fed.R.Civ.P. 8(a)(2). However, a complaint must afford the defendant fair notice of the plaintiff's claim and the grounds upon which it rests. See Dunn v. State of Tennessee, 697 F.2d 121, 125 (6th Cir.1982); Westlake v. Lucas, 537 F.2d 857, 858 (6th Cir.1976). Thus, this Court will grant a motion for dismissal under Rule 12(b)(6) if there is an absence of law to support a claim of the type alleged, if the facts alleged are insufficient to make a valid claim, or if on the face of the complaint there is an insurmountable bar to relief indicating that the plaintiff does not have a claim. See Rauch v. Day & Night Mfg., 576 F.2d 697, 702 (6th Cir.1978); Brennan v. Rhodes, 423 F.2d 706 (6th Cir.1970). In ruling on a motion to dismiss, the court may consider the complaint as well as (1) documents referenced in the pleadings and central to plaintiff's claims, (2) matters of which a court may properly take notice, (3) public documents, and (4) letter decisions of government agencies may be appended to a motion to dismiss. Tellabs, Inc. v. Makor Issues & Rights, Ltd., 551 U.S. 308, 322–23, 127 S.Ct. 2499, 168 L.Ed.2d 179 (2007).

III. Analysis

Defendants' Motion to Dismiss contains two arguments; first, that Plaintiffs' claim is barred by the doctrine of res judicata, or claim preclusion, doc. 6, doc. 10, and second, that Plaintiffs' Amended Complaint directly contradicts their original Complaint. Doc. 10. Because of this, Defend...