Bergemann v. Rhode Island

676 F.Supp.2d 1

Scott BERGEMANN, et al., Plaintiffs v. The State of RHODE ISLAND, The Department of Environmental Management, and Frank T. Caprio in his official capacity as Treasurer of the State of Rhode Island, Defendants.

C.A. No. 09-150ML.

United States District Court, D. Rhode Island.

December 16, 2009.

Jeffrey D. Sowa, Marshall M. Raucci, Laplante Sowa Goldman, Providence, RI, for Plaintiffs.

Thomas A. Palombo, Attorney General's Office, Providence, RI, for Defendants.

MEMORANDUM AND ORDER

MARY M. LISI, Chief Judge.

This case represents the second effort by a group of Rhode Island Environmental Police Officers ("EPOs") to challenge certain wage practices by the Rhode Island Department of Environmental Management ("RIDEM") under the Fair Labor Standards Act ("FLSA"), 29 U.S.C. §§ 201 to 219. Plaintiff Scott Bergemann and approximately 20 of the original plaintiffs from the first litigation in 1997, see Bergemann v. Rhode Island, 958 F.Supp. 61 (D.R.I.1997), are joined by a new group of EPO plaintiffs in this suit. As before, the plaintiffs assert violations of the FLSA related to wage compensation, for which they seek damages and enjoinment of future violations. The case is now before this Court on the plaintiffs' motion to remand and the defendants' motion to dismiss Count I of the EPOs' complaint. For the reasons set forth herein, the plaintiffs' motion is DENIED, and the defendants' motion is GRANTED.

Background

On December 23, 2008, the plaintiffs, who are employed by RIDEM as law enforcement personnel, commenced legal action against the State of Rhode Island, RIDEM, and the State Treasurer in Rhode Island Superior Court, asserting (Count I) violation of the FLSA; (Count II) breach of contract; (Count III) violation of R.I. Gen. Laws § 36-8-1 et seq.;¹ and (Count IV) unjust enrichment. The plaintiffs alleged that (1) they receive no compensation for their daily thirty minute lunch periods, during which they are required "to monitor, address and respond to all calls for law enforcement duties," Complaint ¶ 47; and (2) the defendants have refused to include holiday pay in the plaintiffs' retirement contribution totals. Id. ¶ 67. The plaintiffs filed an amended complaint on February 9, 2009, but failed to serve it on the defendants.

In their answer to the original complaint, the defendants submitted that the plaintiffs "are in on-call status during their lunch breaks and are only required to respond in the event of an emergency," Answer ¶ 47. Defendants denied plaintiffs' assertion regarding the holiday pay. Id. ¶ 67. Further, the defendants asserted the affirmative defense of sovereign immunity as well as "the benefit of all expressed and implied exceptions to the waiver of sovereign immunity." Answer 11. Within days of filing their response, the defendants removed the case pursuant to 28 U.S.C. § 1441(a), asserting federal question jurisdiction of this Court.

On April 24, 2009, the plaintiffs filed a motion to remand, in which they disputed this Court's subject matter jurisdiction. Specifically, the plaintiffs argued that the Eleventh Amendment protects the State from litigation in federal court without the State's consent, Pls.' Mot. 2, and that the Rhode Island Superior Court has jurisdiction over the case pursuant to 29 U.S.C. § 216(b).² Id. at 3. A footnote in plaintiffs' motion also suggested that defendants' removal of the case may have effected a waiver of immunity. Pls.'s Mot. 3 n. 2. On May 1, 2009, the defendants filed their objection to the plaintiffs' motion to remand. The defendants maintained that sovereign immunity under the Eleventh Amendment protected them from suit in state and federal court and stated that they "made a mindful, reasoned decision" to remove this FLSA action to Federal Court in order "to have Plaintiffs' Federal claim decided by a United States district judge." Defs.' Obj. Mot. Remand 2-3.

On May 4, 2009, while the plaintiffs' motion to remand was still pending, the defendants filed a motion to dismiss Count I of the original complaint on the grounds that this Court lacks subject matter jurisdiction over the FLSA claim and that the complaint fails to state a claim upon which relief can be granted. Defs.' Mem. Mot. Dismiss 2. The defendants further asserted that "the removal from State to Federal Court is of no consequence to the issue of the State's sovereign immunity." Id. at 3.

After a hearing on plaintiffs' motion for remand on June 11, 2009, the Court took the motion under advisement. Following the hearing, the Court conducted a conference with counsel in chambers. In the course of that conference, the Court asked counsel for the defendants to consider whether purposeful availment of the federal courts in order to establish lack of federal jurisdiction over the FLSA claim might be construed as the type of litigation conduct that could result in waiver of the defendants' sovereign immunity.

Pursuant to a mutual stipulation filed on June 24, 2009, the defendants accepted service of the first amended complaint and had until July 27, 2009 to answer or otherwise respond to plaintiffs' first amended complaint.³ On July 27, 2009, the defendants filed a motion to dismiss Count I of the first amended complaint. As before, the State argues that the FLSA claim is barred by sovereign immunity, which is not waived by removal. Defs.' Mem. 3.

On September 3, 2009, the plaintiffs filed an objection to defendants' motion to dismiss. The plaintiffs argue that (1) the State's "voluntary invocation of federal jurisdiction" results in a waiver of its sovereign immunity; (2) the State has effectively adopted the FLSA through its wage and labor statutory scheme; and (3) under the principle of equitable estoppel, the State should be precluded from asserting sovereign immunity.

Discussion

I. Standards of Review

A civil action filed in state court may be removed to a federal court if the case is one over which the federal court has original jurisdiction. 28 U.S.C. § 1441(a). Pursuant to 28 U.S.C. § 1447(c), the Court must grant a motion to remand "if at any time before final judgment it appears that the district court lacks subject matter jurisdiction." 28 U.S.C. § 1447(d). Because the removal statute must be narrowly interpreted, any doubt should be resolved in favor of remand. Wilbert v. UNUM Life Ins. Co., 981 F.Supp. 61, 62-63 (D.R.I. 1997).

Rule 12(b)(1) provides for dismissal of an action for lack of federal subject matter jurisdiction. Because the subject matter jurisdiction of the federal courts is limited, courts are encouraged to resolve the jurisdictional issue before weighing the merits of a pending action. Morales Feliciano v. Rullan, 303 F.3d 1, 6 (1st Cir.2002)("A court, when confronted with a colorable challenge to its subject-matter jurisdiction, should resolve that question before weighing the merits of a pending action.").

A motion brought under Rule 12(b)(6) for failure to state a claim upon which relief can be granted is subject to the same standard of review as a Rule 12(b)(1) motion. See e.g. Negron-Gaztambide v. Hernandez-Torres, 35 F.3d 25, 27 (1st Cir. 1994). In a jurisdictional challenge, "the party invoking federal court jurisdiction bears the burden of proving its existence." Pejepscot Indus. Park, Inc. v. Maine Cent. R.R. Co., 215 F.3d 195, 200 (1st Cir.2000).

II. Sovereign Immunity

A state's immunity from suit is a "fundamental aspect of the sovereignty which the States enjoyed before the ratification of the Constitution, and which they retain today." Alden v. Maine, 527 U.S. 706, 713, 119 S.Ct. 2240, 2246-47, 144 L.Ed.2d 636 (1999). In recognition of the States as sovereign entities in the federal system, the Eleventh Amendment provides that a state is immune from suit in federal court. Alden, 527 U.S. at 712-13, 119 S.Ct. at 2246. Pursuant to the Eleventh Amendment, "the Judicial power of the United States shall not be construed to extend to any suit in law or equity, commenced or prosecuted against one of the United States by Citizens of another State, or by Citizens or Subjects of any Foreign State." U.S. Const. amend. XI. Although the amendment refers to citizens of another state, the Supreme Court has consistently held that "an unconsenting State is immune from suits brought in federal courts by her own citizens as well as by citizens of another State." Edelman v. Jordan, 415 U.S. 651, 662-63, 94 S.Ct. 1347, 1355-56, 39 L.Ed.2d 662 (1974) (emphasis added).

There are two recognized exceptions to a state's immunity from suit under the Eleventh Amendment: "(1) Congress may abrogate a state's sovereign immunity through a statutory enactment, see Fitzpatrick v. Bitzer, 427 U.S. 445, 452-56, 96 S.Ct. 2666, 2669-71, 49 L.Ed.2d 614 (1976); and (2) a state may waive its immunity and agree to be sued in federal court, see Atascadero State Hosp. v. Scanlon, 473 U.S. 234, 238, 105 S.Ct. 3142, 3145, 87 L.Ed.2d 171 (1985)." Close v. New York, 125 F.3d 31, 36 (2d Cir.1997).

In order to abrogate a state's sovereign immunity, Congress must (1) "unequivocally express its intent to abrogate the immunity;" and (2) act "pursuant to a valid exercise of power." Seminole Tribe of Florida v. Florida, 517 U.S. 44, 55, 116 S.Ct. 1114, 1123, 134 L.Ed.2d 252 (1996). On its part, a state's decision to waive its sovereign immunity must be voluntary. College Sav. Bank v. Florida Prepaid Postsecondary Educ. Expense Board, 527 U.S. 666, 675, 119 S.Ct. 2219, 2226, 144 L.Ed.2d 605 (1999) ("Generally, we will find a waiver either if the State voluntarily invokes our jurisdiction ... or else if the State makes a `clear declaration' that it intends to submit itself to jurisdiction.")(internal citations omitted).

III. The Fair Labor Standards Act

The FLSA was enacted by Congress to provide regulation of minimum wage, maximum hour, and record keeping requirements. Mills v. Maine, 118 F.3d 37, 42 (1st Cir.1997). The language of the FLSA indicates congressional...