Rodriguez v. U.S. Healthworks, Inc.
Decision Date | 17 May 2019 |
Docket Number | Case No. 17-cv-06924-KAW |
Parties | Catrina R. RODRIGUEZ, on Behalf of Herself, All Others Similarly Situated, Plaintiff, v. U.S. HEALTHWORKS, INC., a Delaware Corporation, et al., Defendants. |
Court | U.S. District Court — Northern District of California |
Alexandra Rochelle McIntosh, William Matthew Pao, Chaim Shaun Setareh, Setareh Law Group, Beverly Hills, CA, Howard Scott Leviant, Moon & Yang, APC, Los Angeles, CA, for Plaintiff.
Fraser Angus McAlpine, Hardev Singh Chhokar, Jackson Lewis P.C., San Francisco, CA, Hazel Uy Poei, Jackson Lewis P.C., Los Angeles, CA, for Defendants.
ORDER DENYING MOTION TO REMAND; GRANTING MOTION FOR SUMMARY JUDGMENT
Re: Dkt. Nos. 40, 45
Plaintiff Catrina R. Rodriguez filed the instant putative class action against Defendants U.S. Healthworks, Inc. and U.S. Healthworks Medical Group, asserting violations of the Fair Credit Reporting Act ("FCRA") and similar California laws. (Compl. ¶ 1, Dkt. No. 1-2.) Pending before the Court are Defendants' motion for summary judgment and Plaintiff's motion to remand. (Defs.' Mot. for Summary Judgment, Dkt. No. 40; Plf.'s Mot. to Remand, Dkt. No. 45.)
Upon consideration of the parties' filings, the relevant legal authority, and the arguments presented at the May 16, 2019 hearing, the Court DENIES Plaintiff's motion to remand and GRANTS Defendants' motion for summary judgment.
On July 16, 2013, Plaintiff applied for employment with Defendants1 through an online employment application. (Arnds Decl. ¶ 4, Dkt. No. 40-1; Rodriguez Decl. ¶ 3.) The online application system includes several stand-alone pages. (See Arnds Decl. ¶¶ 7-9, Exhs. D-F.) First, there is a "Certification" standalone webpage which requires applicants to certify the truth of their statements, "authorize the company and/or its agents, including consumer reporting bureaus, to verify any of this information," and "release the Company and all parties providing information to the Company about [the applicant's] background and experience from any liability whatsoever arising therefrom." (Arnds Decl., Exh. C.) To continue, the applicant must select "I Agree" or "I Disagree" before clicking "Save and Continue." (Id. )
Second, there is a standalone webpage "Notice and Disclosure Statement, which states:
(Arnds Decl., Exh. D.) The "Click here to view" text links to separate pamphlets that summarize an applicant's rights under the FCRA and California Civil Code § 1786.22. (See Arnds Decl., Exhs. F-G.) Again, to continue, the applicant must select "I Agree" or "I Disagree" before clicking "Save and Continue." (Arnds. Decl., Exh. D.) Between the options "I Agree" or "I Disagree" and the "Save and Continue" button, the webpage states: "*I have received a copy of the following documents via links in the above Background Check Disclosure and Authorization Form: A Summary of Your Rights, A Summary of Your Rights under the Provisions of California Civil Code Section 1786.22 ." (Id. )
Third, there is the "Application Statement," the final webpage in Defendants' application. (Arnds Decl., Exh. E.) This webpage requires that applicants "understand and agree that any job offer is also contingent upon the successful completion of a background check to include motor vehicle report, credit report and criminal records report." (Id. ) Applicants were required to select "I Agree," and provide their name and the date of electronic signature. (Id. )
As part of her application, Plaintiff selected "I Agree" as to the Certification, the Notice and Disclosure Statement, and the Application Statement. (Arnds Decl., Exh. A at 6-8.)
On July 17, 2013, Plaintiff received an offer letter from Defendants. (Arnds Decl., Exh. I.) The offer letter stated that the "offer of employment is contingent on ... A satisfactory background and reference check." (Id. ) On July 24, 2013, Defendant USH requested that ADP perform a background check, ordering a social security number check, a criminal history report from Alameda County, and a "smart scan." (Arnds Decl., Exh. H at 1-2.) The background check was completed on July 25, 2013. (Id. at 1.)
Plaintiff's first day of employment was July 26, 2013. (Arnds Decl. ¶ 5.) That day, Plaintiff was required to acknowledge that she had received her offer letter and the "[s]atisfactory completion of pre-employment screening." (Arnds Decl., Exh. J.) On April 4, 2016, Plaintiff's employment was terminated. (Arnds Decl. ¶ 5.) During Plaintiff's employment, Plaintiff states that she did not know that Defendants had obtained a background check report, nor was she provided with a report. (Rodriguez Decl. ¶¶ 6, 8.)
On October 24, 2017, Plaintiff filed the instant putative class action in state court. (Compl. at 1.) Plaintiff brought four causes of action based on Defendants' alleged failure to: (1) make proper disclosures in violation of FCRA § 1681b(b)(2)(A); (2) give a proper summary of rights in violation of FCRA §§ 1681d(a)(1) and 1681g(c); (3) make proper disclosures in violation of California's Investigative Consumer Reporting Agencies Act ("ICRAA"); and (4) make proper disclosures in violation of California's Consumer Credit Reporting Agencies Act ("CCRAA"). (Compl. ¶¶ 32-34, 49-50, 52-57, 66, 81.) Plaintiff also brings a cause of action for violation of California's Unfair Competition Law ("UCL"), which "incorporates by reference" Plaintiff's other four causes of action. (Compl. ¶ 91.)
On December 4, 2017, Defendants removed the case to federal court based on federal question jurisdiction. (Not. of Removal ¶ 5, Dkt. No. 1.) On May 1, 2018, the Court held a case management conference, setting the fact discovery deadline for November 30, 2018. (Dkt. No. 17.) On December 19, 2018, the Court granted the parties' stipulation extending the fact discovery deadline to February 1, 2019. (Dkt. No. 39.)
On April 1, 2019, Defendants filed the instant motion for summary judgment. (Defs.' Mot. for Summary Judgment, Dkt. No. 40.) On April 2, 2019, the parties filed a case management conference statement, in which Plaintiff for the first time suggested that the Court lacked subject-matter jurisdiction over the case because there was no Article III standing. (Dkt. No. 41 at 2.) On April 8, 2019, Plaintiff filed her motion to remand. (Plf.'s Mot. to Remand, Dkt. No. 45.)
On April 15, 2019, Plaintiff filed her opposition to Defendants' motion for summary judgment. (Plf.'s Opp'n, Dkt. No. 51.) On April 16, 2019, Plaintiff filed a motion to extend the fact discovery cut-off. (Dkt. No. 55.) On April 22, 2019, Defendants filed their opposition to Plaintiff's motion to remand and their reply in support of their motion for summary judgment. (Defs.' Opp'n, Dkt. No. 58; Defs.' Reply, Dkt. No. 59.) On April 29, 2019, Plaintiff filed her reply in support of her motion to remand. (Plf.'s Reply, Dkt. No. 61.)
Federal courts exercise limited jurisdiction. A "federal court is presumed to lack jurisdiction in a particular case unless the contrary affirmatively appears." Stock W., Inc. v. Confederated Tribes , 873 F.2d 1221, 1225 (9th Cir. 1989) (citation omitted). A defendant may remove a civil action from state court to federal court if original jurisdiction would have existed at the time the complaint was filed. See 28 U.S.C. § 1441(a). "[R]emoval statutes are strictly construed against removal." Luther v. Countrywide Homes Loans Servicing, LP , 533 F.3d 1031, 1034 (9th Cir. 2008). "Federal jurisdiction must be rejected if there is any doubt as to the right of removal in the first instance," such that courts must resolve all doubts as to removability in favor of remand. Gaus v. Miles, Inc. , 980 F.2d 564, 566 (9th Cir. 1992). The burden of establishing that federal jurisdiction exists is on the party seeking removal. See id. at 566-67.
Federal district courts have original jurisdiction over actions that present a federal question or those based on diversity jurisdiction. See Wayne v. DHL Worldwide Express , 294 F.3d...
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