Narayan v. Compass Grp. USA, Inc.

• Decision Date: 06 February 2018
• Docket Number: No. 2:17–cv–00999–MCE–CKD,2:17–cv–00999–MCE–CKD
• Citation: 284 F.Supp.3d 1076
• Court: U.S. District Court — Eastern District of California
• Parties: Atish NARAYAN, Plaintiff, v. COMPASS GROUP USA, INC., a Delaware Corporation; Ken Legault, an individual; and Does 1 through 25, inclusive, Defendants.

284 F.Supp.3d 1076

Atish NARAYAN, Plaintiff,

v.COMPASS GROUP USA, INC., a Delaware Corporation; Ken Legault, an individual; and Does 1 through 25, inclusive, Defendants.

No. 2:17–cv–00999–MCE–CKD

United States District Court, E.D. California.

Signed February 6, 2018

James Alan Clark, Tower Legal Group, APC, Sacramento, CA, A. Jacob Nalbandyan, Charles L. Shute, Jr., Employees' Legal Advocates, LLP, Los Angeles, CA, for Plaintiff.

Ashley Nadia Attia, Fisher and Phillips LLP, Los Angeles, CA, for Defendants.

MEMORANDUM AND ORDER

MORRISON C. ENGLAND, JR., UNITED STATES DISTRICT JUDGE

Plaintiff Atish Narayan seeks redress from his former employer, Compass Group USA, Inc., ("Compass"), for alleged disability discrimination, failure to accommodate, failure to engage in an interactive process, retaliation under both the Fair Employment and Housing Act ("FEHA") and the California Family Rights Act ("CFRA"), failure to prevent discrimination, wrongful termination in violation of public policy, and declaratory relief. He also asserts a claim for defamation against his manager at Compass, Defendant Ken Legault ("Legault"), and alleges he was in fact fired because of a disability he sustained while working for Compass.

Although Plaintiff initially filed his complaint in Sacramento County Superior Court, Defendants removed the case to this Court on diversity grounds pursuant to 28 U.S.C. §§ 1332(a) and 1441(a). Defendants claim that Legault's inclusion as a defendant, which would otherwise destroy the requisite diversity, has no legal basis and should be disregarded for jurisdictional purposes

There are currently two matters before the Court. First, Plaintiff moves for remand, arguing that Legault was properly named as a defendant and his presence in this case made removal to this Court improper. Alternatively, Plaintiff further contends that the amount in controversy requirement has not been met. Second, Legault moves to dismiss Plaintiff's Ninth Cause of Action, for defamation, pursuant to Rule 12(b)(6) of the Federal Rules of Civil Procedure. Legault asserts that since Plaintiff has failed to state a viable claim for defamation, and because defamation is the only cause of action asserted against Legault, he should be dismissed entirely as a defendant to this lawsuit.

For the reasons set forth below, Plaintiff's Motion to Remand (ECF No. 10) is DENIED and Legault's Motion to Dismiss (ECF No. 8) is GRANTED.¹

BACKGROUND

Plaintiff had worked for Compass for over 32 years when he was terminated on February 23, 2017. Pl.'s Compl. at ¶ 18. Previously, in October 2015, Plaintiff had injured his knee

at work. Id. at ¶ 20. Plaintiff received medical treatment for the knee-injury from October of 2015 until he had surgery to repair his knee on April 26, 2016. Id. at ¶ 21–22. After the surgery, Plaintiff applied for and obtained a medical leave of absence under the Family Medical Leave Act as well as its state law counterpart, the CFRA, through August 1, 2016. Id. at ¶ 22. On August 1, 2016, Plaintiff returned to work and allegedly resumed his full duties. Id. at ¶ 23.

The parties dispute whether Plaintiff did in fact perform his full duties from August 1, 2016 until February 23, 3017. Compass claims that sometime between Plaintiff's return to work and his termination in February, he received work restrictions through his worker's compensation claim. Def.'s Mot. to Dism., ECF No. 8, 2:9–11. These restrictions, according to Compass, precluded Plaintiff from performing the essential functions of his job. Def.'s Mot. to Dism., ECF No. 8, 2:9–11. Plaintiff neither confirms nor denies whether there were work restrictions, but instead maintains that he completed his duties, including all essential functions, at full capacity. Pl.'s Mem. Supp. Mot. to Remand, ECF No. 10, 2:16–18.

On February 23, 2017, Plaintiff met with Legault, his manager at Compass. Pl.'s Comp. at ¶ 25. Another Compass manager, Julie Berger, was also present. Id. At this meeting, Legault told Plaintiff that Compass was terminating his employment because he could not perform the essential functions of his position. Id. Plaintiff responded that he had been performing the essential functions of the position since August 1, 2016 and requested that Legault investigate accordingly. Id. Legault replied by representing that the decision to terminate was final and effective immediately. Id. at ¶ 26.

Plaintiff then sued both Compass and Legault on the basis of the foregoing allegations. He filed his complaint on or about April 7, 2017, and on May 12, 2017, Compass removed the case to this Court. Plaintiff is a citizen of California, Pl.'s Comp. at ¶ 1, and Compass is a Delaware corporation with its principal place of business in North Carolina. Def.'s Notice Rem., ECF No. 1, 4:18–20. Although Plaintiff included Legault, a California resident, in his complaint, Defendants alleged that Legault was a "sham" defendant named solely for the purpose of destroying diversity and that removal was therefore appropriate.

According to Compass, Legault's inclusion was a "sham" because: (1) Plaintiff cannot meet the prima facie elements of a defamation claim against Legault; (2) even if the prima facie elements are met, Legault's statements were privileged; (3) the statement is opinion; and (4) Plaintiff has not amended the complaint to further substantiate the defamation claim despite having the opportunity to do so. Specifically, Compass contends there is no person other than Plaintiff to whom the allegedly defamatory statement was made and that as such, defamation, by definition, cannot be proven. Moreover, Compass argues, even if there is a third person to whom Legault directed the allegedly defamatory statement, the statement is privileged because it was a statement about the reason for Plaintiff's termination made to another employee. Compass also notes that defamation requires a "false statement of fact," and maintains that Legault's allegedly defamatory statement was merely a nonactionable statement of opinion. Finally, Compass points to the fact that Plaintiff could have amended his complaint but has not. Such failure, Compass argues, demonstrates that there are no changes Plaintiff could make to further substantiate his defamation claim.

Plaintiff, on the other hand, moves to remand his case back to Sacramento County Superior Court on grounds that joining Legault was proper and, that regardless, that Defendant has failed to show that the requisite amount in controversy has been pled. Defendant concurrently moves to dismiss the Ninth Cause of Action for defamation on the same grounds outlined above. Further, Defendant requests that he be dismissed from this case in its entirety as a fraudulently joined defendant under Rule 21.

STANDARDS

A. Remand

When a case "of which the district courts of the United States have original jurisdiction" is initially brought in state court, the defendant may remove it to federal court "embracing the place where such action is pending." 28 U.S.C. § 1441(a). There are two bases for federal subject matter jurisdiction: (1) federal question jurisdiction under 28 U.S.C. § 1331, and (2) diversity jurisdiction under 28 U.S.C. § 1332. A district court has federal question jurisdiction in "all civil actions arising under the Constitution, laws, or treaties of the United States." Id. § 1331. A district court has diversity jurisdiction "where the matter in controversy exceeds the sum or value of $75,000, ... and is between citizens of different states, or citizens of a State and citizens or subjects of a foreign state ...." Id. § 1332(a)(1)–(2).

A defendant may remove any civil action from state court to federal district court if the district court has original jurisdiction over the matter. 28 U.S.C. § 1441(a). "The party invoking the removal statute bears the burden of establishing federal jurisdiction." Ethridge v. Harbor House Rest., 861 F.2d 1389, 1393 (9th Cir. 1988) (citing Williams v. Caterpillar Tractor Co., 786 F.2d 928, 940 (9th Cir. 1986) ). Courts "strictly construe the removal statute against removal jurisdiction." Gaus v. Miles, Inc., 980 F.2d 564, 566 (9th Cir. 1992) (internal citations omitted). "[I]f there is any doubt as to the right of removal in the first instance," the motion for remand must be granted. Id. Therefore, "[i]f at any time before final judgment it appears that the district court lacks subject matter jurisdiction, the case shall be remanded" to state court. 28 U.S.C. § 1447(c).

If the district court determines that removal was improper, then the court may also award the plaintiff costs and attorney's fees accrued in response to the defendant's removal. 28 U.S.C. § 1447(c). The court has broad discretion to award costs and fees whenever it finds that removal was improper as a matter of law. Balcorta v. Twentieth Century–Fox Film Corp., 208 F.3d 1102, 1106 n.6 (9th Cir. 2000).

B. Motion to Dismiss

On a motion to dismiss for failure to state a claim under Federal Rule of Civil Procedure 12(b)(6), all allegations of material fact must be accepted as true and construed in the light most favorable to the nonmoving party. Cahill v. Liberty Mut. Ins. Co., 80 F.3d 336,337–38 (9th Cir. 1996). Rule 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." Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007) (quoting Conley v. Gibson, 355 U.S. 41, 47, 78 S.Ct. 99, 2 L.Ed.2d 80 (1957) ). A complaint attacked by a Rule 12(b)(6) motion to dismiss does not require detailed factual allegations. However, "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." Id. (internal citations and quotations omitted). A court is not required to...