U.S. Equal Emp't Opportunity Comm'n v. Global Horizons, Inc.

• Decision Date: 08 November 2012
• Docket Number: CV. No. 11–00257 DAE–RLP.
• Citation: 904 F.Supp.2d 1074
• Court: U.S. District Court — District of Hawaii
• Parties: U.S. EQUAL EMPLOYMENT OPPORTUNITY COMMISSION, Plaintiff, v. GLOBAL HORIZONS, INC., d/b/a Global Horizons Manpower, Inc.; Captain Cook Coffee Company Ltd.; Del Monte Fresh Produce (Hawaii), Inc.; Kauai Coffee Company, Inc.; Kelena Farms, Inc.; Mac Farms of Hawaii, LLC n/k/a MF Nut Co., LLC; Maui Pineapple Company, Ltd. a/k/a Maui Pineapple Farms; Alexander & Baldwin, Inc.; Massimo Zanetti Beverage USA, Inc.; and Does 1–15, Inclusive, Defendants.

904 F.Supp.2d 1074

U.S. EQUAL EMPLOYMENT OPPORTUNITY COMMISSION, Plaintiff,

v.GLOBAL HORIZONS, INC., d/b/a Global Horizons Manpower, Inc.; Captain Cook Coffee Company Ltd.; Del Monte Fresh Produce (Hawaii), Inc.; Kauai Coffee Company, Inc.; Kelena Farms, Inc.; Mac Farms of Hawaii, LLC n/k/a MF Nut Co., LLC; Maui Pineapple Company, Ltd. a/k/a Maui Pineapple Farms; Alexander & Baldwin, Inc.; Massimo Zanetti Beverage USA, Inc.; and Does 1–15, Inclusive, Defendants.

CV. No. 11–00257 DAE–RLP.

United States District Court,

D. Hawai‘i.

Nov. 8, 2012.

Anna Y. Park, Elizabeth Esparza–Cervantes, Sue J. Noh, Derek W. Li, Lorena Garcia–Bautista, U.S. Equal Employment Opportunity Commission, Los Angeles, CA, Attorney(s) for Plaintiff(s).

Michael Jay Green, Honolulu, HI, Javier Lopez–Perez, Los Angeles, CA, Attorneys for Defendant Global Horizons, Inc.

Christie L. Kriegsfeld, Kristin R. Culbertson, Mark Ogden, Littler Mendelson, P.C., Phoenix, AZ, David W.H. Chee, Tom, Quitiquit, Chee, Watts & Yamamoto, LLP, Honolulu, HI, for Defendant Del Monte Fresh Produce (Hawaii).

Christopher J. DeGroff, Gerald L. Maatman, Jr., Laura J. Maechtlen, Seyfarth Shaw, LLP, Chicago, IL, Mark J. Bennett, Richard John Wallsgrove, Starn, O'Toole, Marcus & Fisher, Honolulu, HI, Robb D. McFadden, Robert Brian Wong, Seyfarth, Shaw, LLP, San Francisco, CA, for Defendants Kauai Coffee Company, Inc., Alexander & Baldwin, Inc., and Massimo Zanetti Beverage USA, Inc.

Dax B. Deason, Deason Law Group, P.C., Houston, Jim Darnell, El Paso, TX, Sarah O. Wang, Jennifer C.T. Woo, Marr, Jones & Wang, LLP, Honolulu, HI, for Defendant Kelena Farms, Inc.

Barbara A. Petrus, Anne T. Horiuchi, Carolyn K. Wong, Goodsill, Anderson, Quinn & Stifel, LLP, Honolulu, HI, for Defendant Mac Farms of Hawaii, LLC.

Christopher S. Yeh, Darin Robinson Leong, Marr, Jones & Wang, LLP, Sean K. Sanada, Hawaii Medical Service Association, Honolulu, HI, for Defendant Maui Pineapple Company, Ltd.

ORDER GRANTING IN PART AND DENYING IN PART DEFENDANT'S MOTION TO DISMISS THE THIRD AMENDED COMPLAINT AND SUBSTANTIVE JOINDERS THERETO

DAVID ALAN EZRA, District Judge.

On October 26, 2012, the Court heard Defendant Global's Motion to Dismiss and the Substantive Joinders thereto. Sue J. Noh, Esq., appeared on behalf of Equal Employment Opportunity Commission (“Plaintiff” or “EEOC”); Javier Lopez–Perez, Esq., appeared on behalf of Defendant Global Horizons, Inc. (“Global”); David W.H. Chee, Esq., appeared on behalf of Defendant Del Monte Fresh Produce (Hawaii), Inc. (“Del Monte”); Jennifer C.T. Woo, Esq., appeared on behalf of Defendant Kelena Farms, Inc. (“Kelena Farms”); Barbara A. Petrus, Esq., and Anne T. Horiuchi, Esq., appeared on behalf of Defendant Mac Farms of Hawaii, LLC (“Mac Farms”); and Christopher S. Yeh, Esq., appeared on behalf of Maui Pineapple Company, Ltd. (“Maui Pineapple”). Additionally, Kristin R. Culbertson, Esq., made a special appearance by telephone on behalf of Defendant Del Monte and Laura J. Maechtlen, Esq., made a special appearance by telephone on behalf of Defendants Kauai Coffee Company, Inc. (“Kauai Coffee”), Alexander & Baldwin, Inc. (“A & B”), and Massimo Zanetti Beverage USA, Inc. (“MZB”). After reviewing the Motion, the Substantive Joinders, and the supporting and opposing memoranda, the Court GRANTS IN PART and DENIES IN PART Global's Motion to Dismiss and the Substantive Joinders thereto.

BACKGROUND

I. Factual Allegations

On April 19, 2011, EEOC filed the instant action for recovery pursuant to Title VII of the Civil Rights Act of 1964 and Title 1 of the Civil Rights Act of 1991 to correct allegedly unlawful employment practices on the basis of national origin, race, and retaliation. Plaintiff claims that Defendants engaged in discrimination and a pattern or practice of discrimination when they subjected Marut Kongpia, Nookrai Matwiset, Jakarin Phookhiew, Mongkol Bootpasa, Janporn Suradanai, Suthat Promnonsri, Itthi Oa–Sot, and a class of similarly situated Thai and other Asian individuals (collectively, “Claimants”) to harassment, disparate treatment, retaliation, and constructive discharge on the basis of the Claimants' national origin and race. ( See “TAC,” Doc. # 263.)

The Third Amended Complaint (“TAC”) alleges that Defendant Global recruited foreign nationals under the U.S. Department of Labor H2–A guest worker program to work at farms in the United States, including farms owned by Defendants Captain Cook, Del Monte, Kauai Coffee, Kelena Farms, Mac Farms, Maui Pineapple, and A & B (collectively, “Farm Defendants”). Plaintiff alleges that Global used recruiters in Thailand to recruit Thai workers, and required them to pay substantial recruitment fees to be employed by Global. ( Id. ¶ 105.) Plaintiff further alleges that Global knew that the Claimants were impoverished and would have to borrow money, pledging family land as collateral, in order to pay the recruitment fees. ( Id.) Global allegedly “harassed and intimidated the Claimants on a regular basis” and “regularly threatened the Claimants with deportation, arrest, suspension, and/or physical violence.” ( Id. ¶¶ 108–109.) According to Plaintiff, Global “unlawfully confiscated the Claimants' identification documents” and “subjected the Claimants to uninhabitable housing; insufficient food and kitchen facilities; inadequate pay; significant gaps in work; visa and labor certification violations; suspension, deportation and/or physical violence.” ( Id. ¶ 111.) These “intolerable working conditions ... resulted in constructive discharge.” ( Id. ¶ 114.) Plaintiff claims that these conditions created a hostile work environment and that the Claimants were subject to these conditions because of their national origin and race. ( Id. ¶¶ 625, 646.) Plaintiff also alleges that when Claimants complained of the unlawful employment practices, Global subjected them to “adverse employment actions including without limitation, discipline, transfers, denial of work, threats, harassment, denial of transportation and food, and a hostile work environment.” ( Id. ¶ 678.) As a result of this alleged misconduct, Plaintiff claims that Global violated Sections 703(a) and 704(a) of Title VII, 42 U.S.C. §§ 2000e–2(a), 2000e–3. ( Id. ¶¶ 625, 646, 663, 677.)

With respect to the Farm Defendants, Plaintiff alleges that each of them are joint employers with Global and jointly controlled the terms and conditions of employment of the Claimants. ( Id. ¶¶ 7–61.) Plaintiff further alleges that each of them knew or should have known about Global's alleged misconduct and/or engaged in their own discriminatory misconduct toward the Claimants. ( Id. ¶¶ 7–61, 132–621.) Additionally, with respect to Defendant MZB, Plaintiff alleges that it is liable as a successor to A & B and/or Kauai Coffee. ( Id. ¶ 67.)

II. Procedural History

On April 19, 2011, Plaintiff filed its initial Complaint. (Doc. # 1.) On July 15, 2011, Plaintiff filed its First Amended Complaint. (Doc. # 12.) Between July 19, 2011 and September 19, 2011, each Farm Defendant filed a Motion to Dismiss the First Amended Complaint. (Docs. 20, 22, 29, 39, 46, 48.) On October 21, 2011, the EEOC filed a Motion to Stay this action pending the conclusion of the criminal proceedings involving employees of Defendant Global. (Doc. # 109.) The Motion to Stay was opposed by the Farm Defendants. (Docs. 111, 112, 113–116.) On November 2, 2011, 2011 WL 5325747, the Court issued an Order granting a stay with respect to Defendant Global and denying a stay with respect to the Farm Defendants. (Doc. # 124.) The Court also dismissed the First Amended Complaint Without Prejudice as to the Moving Defendants. (Doc. # 124.)

On December 16, 2011, Plaintiff filed a Second Amended Complaint (“SAC”). (Doc. # 128.) Defendants Captain Cook, Kauai Coffee, Maui Pineapple, Mac Farms, Del Monte, Kelena Farms, A & B, and MZB each filed a Motion to Dismiss the SAC. (Docs. 138, 141, 145, 146, 152, 153, 154, 155.) On March 16, 2012, after full briefing and a hearing, the Court issued an Order: (1) granting the motions to dismiss as to all of the claims against Defendant A & B and the retaliation claims against Defendants Mac Farms, Kelena Farms, Del Monte, Maui Pineapple, Kauai Coffee, A & B, and MZB, (2) denying the motions to dismiss as to the balance of Plaintiff's claims, and (3) granting Plaintiff leave to amend.

On March 30, 2012, Del Monte and Kelena Farms each filed a Motion for Reconsideration of this Court's March 16, 2012 Order. (Docs. 238, 239.) Defendants Mac Farms, Captain Cook, and Maui Pineapple subsequently filed Substantive Joinders in Del Monte's Motion for Reconsideration. (Docs. 242, 243, 245.) On April 12, 2012, Plaintiff filed an Opposition to both Motions for Reconsideration and each of the three Substantive Joinders. (Docs. 247–251.) On April 26, 2012, Del Monte and Kelena Farms filed a Reply in further support of their respective Motions. (Docs. 257, 260.) That same day, Mac Farms and Captain Cook each filed a Reply in further support of their respective Joinders. (Docs. 258, 259.) On May 31, 2012, the Court issued an Order: (1) denying Del Monte's Motion for Reconsideration and the Substantive Joinders thereto, (2) granting in part and denying in part Kelena Farms' Motion for Reconsideration, and (3) dismissing without prejudice the Plaintiff's constructive discharge claim against Kelena Farms. (Doc. # 261.)

On July 2, 2012, Plaintiff filed a Third Amended Complaint. On August 1, 2012, Defendants Kauai Coffee, A & B, MZB, Captain Cook, Mac Farms, Del Monte, Maui Pineapple, and Kelena Farms each filed a Motion to Dismiss the TAC. (Docs. 269, 272, 277, 285–289.) On August 8, 2012, Defendants Captain Cook, Maui Pineapple, and Kelena Farms filed Substantive Joinders in Kauai Coffee, A & B, and Mac Farms' Motions to Dismiss. (Docs. 296–298.) On August 27, 2012, Plaintiff filed an Opposition to each of the Defendants' Motions to Dismiss and to each of the three Substantive Joinders....