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Abraham Magallanez v. Engineers and Scientists of California

December 5, 2012

ABRAHAM MAGALLANEZ,
PLAINTIFF,
v.
ENGINEERS AND SCIENTISTS OF CALIFORNIA, LOCAL 20, INTERNATIONAL FEDERATION OF PROFESSIONAL AND TECHNICAL ENGINEERS; AND THE PERMANENTE MEDICAL GROUP, INC., A CALIFORNIA CORPORATION,
DEFENDANTS.



The opinion of the court was delivered by: Garland E. Burrell, Jr. Senior United States District Judge

ORDER GRANTING IN PART AND DENYING IN PART MOTION TO DISMISS FIRST AMENDED COMPLAINT

Defendant The Permanente Medical Group, Inc. ("TPMG") moves for an order dismissing with prejudice Plaintiff's claims in his First Amended Complaint ("FAC"), in which Plaintiff alleges breach of contract and breach of the duty of fair representation. TPMG argues these claims should be dismissed because they are time barred since Plaintiff "failed to plead sufficient grounds to equitably toll the limitations period or estop TPMG from raising a limitations defense." (Mot. to Dismiss, ECF No. 26 ("Mot.") 11:25-26.) TPMG also asserts that Plaintiff cannot state a fair representation claim against it since employers "do not owe employees a duty of fair representation." (Mot. 11:11-12.) Plaintiff Abraham Magallanez opposes the motion, arguing that his administrative grievance equitably tolled the limitations period and that TPMG's knowledge that Engineers and Scientists of California, Local 20, International Federation of Professional and Technical Engineers (the "Union") had misstated the statute of limitations equitably estops it from asserting a limitations defense. (Opp'n to Def.'s Mot. to Dismiss, ECF No. 28 ("Opp'n") 4:5-8:5.) Plaintiff also opposes the portion of the motion seeking dismissal of his duty of fair representation claim against TPMG.

I. LEGAL STANDARD

Decision on a Federal Rule of Civil Procedure ("Rule") 12(b)(6) dismissal motion requires determination of "whether the complaint's factual allegations, together with all reasonable inferences, state a plausible claim for relief." Cafasso, United States ex rel. v. Gen. Dynamics C4 Sys., Inc., 637 F.3d 1047, 1054 (9th Cir. 2011) (citing Ashcroft v. Iqbal, 556 U.S. 662, 678-79 (2009)). "A claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged." Iqbal, 556 U.S. at 678 (citing Bell Atl. Corp. v. Twombly, 550 U.S. 544, 556 (2007)).

In evaluating a Rule 12(b)(6) motion, the court "accepts the complaint's well-pleaded factual allegations as true and draws all reasonable inferences in the light most favorable to the plaintiff." Adams v. U.S. Forest Serv., 671 F.3d 1138, 1142-43 (9th Cir. 2012) (citing Twombly, 544 U.S. at 555-56). However, this tenet does not apply to "legal conclusions . . . cast in the form of factual allegations." Fayer v. Vaughn, 649 F.3d 1061, 1064 (9th Cir. 2011) (internal quotation marks omitted). "Therefore, conclusory allegations of law and unwarranted inferences are insufficient to defeat a motion to dismiss."

Id. (internal quotation marks omitted); see also Iqbal, 556 U.S. at 678 (quoting Twombly, 550 U.S. at 555) ("A pleading that offers 'labels and conclusions' or 'a formulaic recitation of the elements of a cause of action will not do.'").

A statute of limitations defense may be raised in a Rule 12(b)(6) motion if the expiration of the statute of limitations is apparent on the face of the complaint. Jablon v. Dean Witter & Co., 614 F.2d 677, 682 (9th Cir. 1980). Such dismissal motions "based on the running of the statute of limitations period may be granted only 'if the assertions of the complaint, read with the required liberality, would not permit the plaintiff to prove that the statute was tolled.'" Supermail Cargo, Inc. v. United States, 68 F.3d 1204, 1206 (9th Cir. 1995) (quoting Jablon, 614 F.2d at 682).

II. FACTUAL AND PROCEDURAL BACKGROUND

The factual allegations in Plaintiff's FAC and the procedural background are the following.*fn1 For approximately four years, Plaintiff worked as a staff optometrist for TPMG. (FAC ¶ 10.) "In November 2010, Plaintiff received a positive performance evaluation." (Id. ¶ 11.) On December 30, 2010, he was fired because he used his "employee electronic [medical records] access to view his family's medical records" with their consent. (Id. ¶¶ 10, 18.)

After his termination, Plaintiff requested that his Union initiate a grievance against TPMG to dispute his termination. (Id. ¶¶ 7, 12.) The Union advised Plaintiff that "he had an approved right to Union representation at all times . . . and that the Union would . . . proceed with grievance procedures as necessary through all levels." (Id. ¶ 12.) However, the Union did not successfully restore Plaintiff's employment, and in a letter dated March 22, 2011, the Union informed Plaintiff of its "withdrawal of Plaintiff's grievance, as against [TPMG]" and "notified Plaintiff that he had one year from December 20, [2010] to file suit against [TPMG]." (Id. ¶¶ 13, 14.) Plaintiff requested review of the Union's decision by the Union's Optometry Unit Board, and on July 21, 2011, he received a written notification reaffirming the Union's prior decision to withdraw his grievance and forgo arbitration of his claim. (Id. ¶¶ 15, 16; ECF No. 18, Ex. D.) Plaintiff again requested reconsideration of this decision, this time via an appeal to the Union Executive Board, and on August 22, 2011, the Union's decision was again reaffirmed. (FAC ¶ 17; ECF No. 18, Exs. D, F.) The Union Constitution prescribes the procedures for such "appeals from Unit Executive Board decisions [to] the Union Executive Board." (ECF No. 27, art. XVI, § 2.) Throughout, TPMG "was aware [the] Union was advising its employees of the one year statute of limitations," and it "allowed these false statements to continue over the years." (FAC ¶¶ 14, 24.)

On December 29, 2011, over eight months after the Union first informed Plaintiff that it would pursue his grievance no further, Plaintiff filed this lawsuit against TPMG and against the Union. In the Order filed on July 11, 2012, Plaintiff's claims against TPMG in Plaintiff's initial complaint were dismissed, and Plaintiff was granted leave to amend his complaint consistent with the Court's Order. (ECF No. 22.) Subsequently, Plaintiff filed the FAC; the Union answered; and TPMG filed the instant dismissal motion.

III. DISCUSSION

A. Breach of the Duty of Fair Representation

TPMG argues Plaintiff does not allege that it owed him a duty of fair representation, "let alone breached such a duty," since "[e]mployers are adverse to employees and unions during the grievance procedure," and "they do not owe employees a duty of fair representation." (Mot. 11:17, 11:10-12.) Plaintiff responds generally that "TPMG had a contractual obligation under the Collective Bargaining Agreement not to terminate Plaintiff without just cause." (Opp'n 8:4-5.) TPMG is correct. "The union owes [a] duty of fair representation to the employees it represents-the duty does not run to the employer . . . ." Bowen v. U.S. Postal Serv., 459 U.S. 212, 240 (1983) (White, J., concurring); accord Breininger v. Sheet Metal Workers Int'l Ass'n Local Union No. 6, 493 U.S. 67, 84 (1989) (stating "a fair representation claim is a separate cause of action from any possible suit against the employer"); Vaca v. Sipes, 386 U.S. 171, 190 (1967) ("A breach of the statutory duty of fair representation occurs only when a union's conduct . . . is arbitrary, discriminatory, or in bad faith.") (emphases added). Since employers do not owe employees a duty of fair representation, TPMG's motion to dismiss Plaintiff's duty of fair representation claim against it is granted. Further, because fair representation claims are not cognizable against employers, Plaintiff's "'pleading could not possibly be cured by the allegation of other ...


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