3:25-cv-05164
W.D. Wash.May 28, 2025Background
- Dennis Hager filed a putative class action against Metro One Loss Prevention Services and affiliates, alleging violations of Washington's Noncompete Act (NCA) and Silenced No More Act (SNMA).
- Hager, a former employee, claims he was required to sign an employment agreement with both a noncompetition covenant (restricting future employment) and a non-disparagement clause.
- Hager seeks statutory damages and injunctive relief to prevent enforcement of these clauses.
- Defendants removed the case to federal court, asserting jurisdiction under the Class Action Fairness Act.
- Hager moved for remand to state court, alleging lack of Article III standing since he had not suffered a concrete injury.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Article III Injury Under NCA | No concrete or particularized injury; only technical violation | Inclusion of noncompetition clause harms workplace mobility, a concrete interest | Hager has concrete injury due to mobility restriction |
| Article III Injury Under SNMA | SNMA provides remedy absent any specific harm | Non-disparagement clause infringes concrete contractual rights | Hager has standing—contractual rights implicated |
| Procedural Standing in Class Actions | None alleged as Plaintiff lacks individual standing | Violation of statutory rights can confer standing | Standing requirement satisfied |
| Remand to State Court | No subject matter jurisdiction due to no standing | Standing exists, so federal jurisdiction proper | Motion to remand denied; case stays in federal court |
Key Cases Cited
- Lujan v. Defs. of Wildlife, 504 U.S. 555 (Article III standing requires injury-in-fact, causation, and redressability)
- Spokeo, Inc. v. Robins, 578 U.S. 330 (Statutory violations require a concrete injury for standing)
- TransUnion LLC v. Ramirez, 594 U.S. 413 (Concrete injuries are required even in the class action context)
- Warth v. Seldin, 422 U.S. 490 (Standing is a threshold jurisdictional question)
- Cantrell v. City of Long Beach, 241 F.3d 674 (State law-created interests can support federal standing)