Guajardo v. Deanda

690 F.Supp.2d 539

Domingo GUAJARDO, et al., Plaintiffs v. Juan M. DEANDA, et al., Defendants.

Civil Action No. M-09-153.

United States District Court, S.D. Texas, McAllen Division.

February 10, 2010.

Rodolfo David Sanchez, Texas Riogrande Legal Aid Inc., Weslaco, TX, Sarah E. Donaldson, Texas Riogrande Legal Aid Inc., San Antonio, TX, for Plaintiffs.

Austin D. Kennedy, Allison Marie Steuterman, Brick Gentry PC, West Des Moines, IA, for Defendants.

MEMORANDUM AND ORDER

DORINA RAMOS, United States Magistrate Judge.

Pending before the Court is the Defendants' Opposed Motion to Dismiss for Lack of Personal Jurisdiction and Improper Venue or, Alternatively, to Transfer Venue for Convenience and in the Interests of Justice, with memorandum of law in support.¹ (Dkt. Entry Nos. 12; 13.) The Plaintiffs have responded to the Motion, and both parties have filed supplemental briefing. The Court heard oral arguments on the matter.

After consideration of the pending motion, pleadings on file, arguments of counsel, and the relevant law, Defendants' Motion is DENIED for the reasons set forth in this Memorandum and Order.

I. Summary of the Case

This case was filed in federal court on June 8, 2009. Subject matter jurisdiction is premised on 28 U.S.C. § 1331, pursuant to the Agricultural Workers Protection Act ("AWPA"), codified at 29 U.S.C. § 1801 and § 1872. Additionally, the Plaintiffs assert state law claims under the Court's ancillary jurisdiction pursuant to 28 U.S.C. § 1367.

The Plaintiffs bring causes of action against the Defendants for (1) violation(s) of AWPA under 29 U.S.C. § 1801; (2) breach of contract; and (3) promissory estoppel. The Plaintiffs seek (1) a statutory damage award of $500.00 to each Plaintiff, or their actual damages, whichever is greater, for each violation of the AWPA pursuant to 29 U.S.C. § 1854(c); (2) actual, incidental, and consequential damages for the Defendants' breach of contract and breach of promises to each Plaintiff; and (3) further relief as this Court deems just and proper.

II. Facts Relevant to the Pending Motion

A. General Facts

Defendant Deanda Bean Walkers & Detasslers, Inc. ("BWD"), is a corporation incorporated under the laws of Iowa. (Dkt. Entry No. 13 at 1-2.)² BWD is co-owned and controlled by four Deanda brothers, including Juan, Refugio, Arturo and Jose. (Id. at 1-2.) Juan and Arturo are named defendants in the case at bar. All four Deanda brothers live in Sioux City Iowa, and BWD is headquartered there. (Id. at 2.) Defendant Arturo Deanda is listed with the Iowa Secretary of State as the President and Director of BWD, while Juan Deanda is listed as the Secretary and Director of BWD. (Dkt. Entry No. 19 at 8.) The Plaintiffs reside in Hidalgo County, Texas. (See id. at 2.)

BWD states that it uses a combination of domestic employees and employees in H-2A status (migrant workers) to perform temporary agricultural work in the states of Iowa, Minnesota, and South Dakota. (Dkt. Entry No. 13 at 3.) In 2007, as part of the Defendants' efforts to recruit a temporary or seasonal agricultural labor force, BWD submitted a Labor Certification Application and Labor Clearance Order to the U.S. Department of Labor. (Id. at 3.) According to the Defendants, although BWD filed an "interstate clearance order" to the Labor Department, the Defendants never requested or directed that such clearance order or labor certification application be sent to Texas. (Id.) The Defendants contend that the Department of Labor, OFLC Administrator determines and directs where such documentation is sent in order to effect interstate recruitment. (Id.) The Defendants contend that 2007 was the first year they submitted an Interstate Clearance Order in an attempt to acquire employees with H-2A status. (See id.) Defendant Juan Deanda, signed and filed, on behalf of and in his corporate position with BWD, a labor certification application and labor clearance order. (Dkt. Entry No. 19 at 3.) Mr. Juan Deanda is listed as "contractor" on the application for employment certification for Clearance Order No. 8871165. (Id. at 8-9.)

In the labor certification application and the labor clearance order, among other things, the Defendants stated that: they had 30 detasseler and bean walker openings; the job positions required zero experience; the job positions required zero education; the job paid $10 per hour for each hour worked each week up to 40; the job paid $15 per hour for each worked each week over 40; workers could expect to work 10 hours per day; that workers could expect to work 50 hours per week; work would last from June 25, 2007 through October 15, 2007; free, clean housing, that met applicable housing standards would be provided; and that the Defendants would accept referrals from the state workforce agency, word of mouth, gate hires, and other sources. (Dkt. Entry No. 19 at 3.) The Defendants also noted that individuals referred through state workforce agencies could call for interviews. (Id.) The Defendants also certified that the job opportunity was open to any qualified U.S. worker. (Id.)

In 2007, the Plaintiffs went to the Texas Workforce Solutions office in Mercedes, Texas, in search of work. (Dkt. Entry No. 16 at 4.) At the Texas Workforce Solutions office in Mercedes, they learned of the job opportunity with BWD. (Id.) A Texas Workforce Solutions worker called BWD to let BWD know that the Plaintiffs wanted to accept the positions offered by BWD. (Id.) Texas Workforce Commission ("TWC") employee Mario Galvan referred the Plaintiffs for employment with DWB. (Dkt. Entry No. 19 at 3.) The Plaintiffs were provided copies of job applications for work with the Defendants while in Texas. (Id. at 4.) The Plaintiffs contend that either Juan or Arturo Deanda faxed at least one "generic job application" to the Texas Workforce Solutions office in Mercedes Texas. (Dkt. Entry No. 16 at 4.) The Plaintiffs completed the generic job applications in Texas and copies of the completed applications were faxed from Texas to BWD in Iowa. (Id. at 4-5.) The Plaintiffs contend they accepted the Defendants' employment offer in Texas.³ (Id. at 5.)

After receiving the completed job applications, the Defendants claim they made one telephone call, or, at best, placed a maximum of two telephone calls and sent one fax letter to the Plaintiffs in Texas and invited the Plaintiffs to come to Iowa to apply for the job opportunity. (Dkt. Entry No. 13 at 12-13.) The Plaintiffs claim that after receiving the completed job applications, one of the individual Deanda Defendants called Plaintiff Domingo Guajardo at Mr. Guajardo's home in Weslaco, Texas, to discuss, among other things, the work being offered. (Dkt. Entry No. 16 at 5.) According to the Plaintiffs, either Juan or Arturo Deanda contacted a Plaintiff several more times in Texas to get information about the trip to Iowa and to provide driving directions. (Id.)

According to the Plaintiffs, after they accepted the employment, they drove to Iowa for the jobs. (Id.) The Defendants stress that they did not pay for or provide the Plaintiffs with any resources to come to Iowa, but rather that the Plaintiffs paid entirely their own way and drove their own car. (Dkt. Entry No. 13 at 3-4.) The Defendants claim that they merely invited the Plaintiffs to Iowa for an interview and that the Plaintiffs were not hired until they were actually and physically in Iowa. (Id.) The Defendants contend that once the Plaintiffs arrived in Iowa, on or about July 7, 2007, the Plaintiffs completed applications, questionnaires and contractual documents specifically tailored to BWD and were hired while physically located in Iowa. (Id. at 4.)

The Plaintiffs allege that after arriving in Iowa, the Plaintiffs found out that some of the terms and conditions of employment and housing that had been offered to them at the time they were recruited in Texas turned out to be false. (Dkt. Entry 16 at 5.) The Defendants contend that only Plaintiff Domingo Guajardo was terminated for cause—specifically, that Mr. Guajardo was "physically intimidating and threatening Bean Walkers's other employees." (Dkt. Entry No. 13 at 4.) The Defendants claim they made clear to the other Plaintiffs (Guillermo and Mark Anthony) that they were not terminated, but that they left with Mr. Domingo Guajardo anyhow. (Id.)

Because the Court must determine whether the Court has jurisdiction over each Defendant, the Court turns to more specific alleged facts regarding Juan and Arturo Deanda.

B. Juan Deanda

Juan Deanda submitted the clearance order in 2007, and it was received by the TWC. (Dkt. Entry No. 19 at 4.) Between June 12 and June 25, 2007, Defendant Juan Deanda communicated with TWC employee Carlos X. Pena regarding the recruitment of Texas farm workers and interviewed by phone five job applicants referred by Mr. Pena. (Id. at 4-5.) Defendant Juan Deanda faxed Mr. Pena job applications, which Mr. Pena helped Texas applicants to complete. (Id. at 5.) Mr. Pena then faxed the applications back to Defendant Juan Deanda. (Id.) On approximately June 12, 2007, Mr. Pena left a phone message for Defendant Juan Deanda, informing Defendant that a Texas applicant was interested in applying for work and asking that Defendant call him back. (Id.) The same day, Defendant Juan Deanda returned the call and told Mr. Pena that, contrary to the provision in the clearance order, no overtime would be paid. (Id.) On approximately June 13, 2007, either Defendant Juan or Arturo interviewed two Texas applicants referred to by Mr. Pena. (Id.) During the conversation, either Defendant Juan or Arturo told the applicants that, contrary to the clearance order, the applicants would need to work in various states other than Iowa and that workers would be paid by the acre rather than by the hour. (Id.) On approximately June 14, 2007, Mr. Pena contacted either Juan Deanda or Arturo Deanda to refer a Texas applicant, and the Defendant told Mr. Pena that ...