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Yan v. General Pot, Inc.

United States District Court, N.D. California

January 13, 2015

LONGBAO YAN, Plaintiff,
v.
GENERAL POT, INC., et al., Defendants

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For Longbao Yan, Plaintiff: Xiaoyong X L Lai, Law Offices of X. Young Lai, San Jose, CA.

For General Pot, Inc., A California Corporation, Dianguo Wang, An Individual, Defendants: Johnathon La, LEAD ATTORNEY, Tsao-Wu, Chow and Yee LLP, San Francisco, CA.

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ORDER RE: MOTION TO SET ASIDE DEFAULT AND MOTION TO DISMISS

Re: Dkt. No. 21

MARIA-ELENA JAMES, United States Magistrate Judge.

INTRODUCTION

Pending before the Court is Defendants General Pot, Inc. and Dian Guo Wang's (" Defendants" ) Motion to Set Aside Default and Motion to Dismiss. Dkt. No. 21. Plaintiff Longbao Yan (" Plaintiff" ) filed an Opposition (Dkt. No. 25) and Defendants filed a Reply (Dkt. No. 26). The Court finds this matter suitable for disposition without oral argument and VACATES the January 29, 2015 hearing. See Fed.R.Civ.P. 78(b); Civil L.R. 7-1(b). Having considered the parties' positions, relevant legal authority, and the record in this case, the Court GRANTS Defendants' Motion to Set Aside Default and GRANTS Defendants' Motion to Dismiss for the reasons set forth below.

BACKGROUND

This action arises from alleged claims of failure to pay minimum wage and overtime wages in violation of the Fair Labor Standards Act (" FLSA" ), 29 U.S.C. § § 201-19, and related California state law claims. Defendant General Pot is a Chinese restaurant located in Fremont, California. Wang Decl. ¶ 5, Dkt. No. 21-1. Defendant Wang is the owner and sole shareholder of the restaurant. Id. ¶ 4. Plaintiff was employed at General Pot from June 16, 2012 through April 23, 2014, as a full-time non-exempt chef. Compl. ¶ 10, Dkt. No. 1. He filed the present Complaint on August 3, 2014, alleging eight causes of action: (1) Failure to Pay Minimum Wage under FLSA, 29 U.S.C. § § 206, 216; (2) Failure to Pay Overtime Compensation under FLSA, 29 U.S.C. § § 207, 216; (3) Failure to Pay Minimum Wage under California Labor Code sections 1182.12, 1194, 1194.2, and 1197; (4) Failure to Pay Overtime Compensation under California Labor Code sections 1194, 510, and 515; (5) Failure to Timely Pay Wages Due and Owning Upon Termination of Employment under California Labor Code sections 201-203 and 218.5; (6) Failure to Furnish Itemized Wage Statements under California Labor Code section 226; (7) Failure to Provide Rest and Meal Period under California Labor Code sections 226.7 and 512; and (8) Unfair Competition under California Business and Professions Code sections 17200-17210. Plaintiff alleges federal question jurisdiction under the FLSA. Compl. ¶ 1.

Plaintiff served General Pot with the summons and complaint on August 18, 2014, and the Clerk of Court entered default against it on September 23, 2014. Dkt. Nos. 7, 9. Although Wang filed an Answer on August 26, 2014, he subsequently failed to appear, and the Court directed that default be entered against him. Dkt. Nos. 6, 14. The Clerk of Court entered default against him on November 20, 2014. Dkt. No. 15.

On December 8, 2014, Plaintiff filed a Motion for Default Judgment as to both Defendants. Dkt. No. 16. Defendants responded by filing the present Motion on December 22, 2014. Dkt. No. 21. In their Motion, Defendants argue that federal question jurisdiction does not exist because Plaintiff's allegations lack the requisite presence of or an effect on interstate commerce. Mot. at 5. As jurisdiction is lacking, Defendants argue that the Court has no jurisdiction over the remaining state law claims. Id. ...


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