SPACK v. TRANS WORLD ENTERTAINMENT
3:17-cv-02687
D.N.J.Dec 8, 2017Background
- Plaintiff Carol Spack filed a collective action in D.N.J. alleging FLSA, New Jersey Wage & Hour Law, and Pennsylvania Minimum Wage Act violations based on defendants’ use of the fluctuating workweek to calculate overtime.
- Defendants are Trans World Entertainment Corp., Record Town, Inc., and Record Town USA, LLC; their principal offices (payroll/HR) are in Albany, New York.
- The Shavitz Firm had threatened nationwide FLSA litigation and entered a pre-suit tolling agreement with Defendants; the Shavitz Firm subsequently filed a related suit (Roper) in the Northern District of New York.
- Defendants moved to transfer the New Jersey action to the Northern District of New York under 28 U.S.C. § 1404(a) and also moved to stay, dismiss Record Town USA LLC for lack of personal jurisdiction, and dismiss Count Three as time-barred.
- Spack opposed transfer, sought leave to amend, and moved for equitable tolling; she later voluntarily dismissed Record Town USA, LLC.
- The Court granted Defendants’ transfer motion, denied the stay as moot, administratively terminated several pending motions without prejudice to refiling in the transferee court, and noted Record Town USA, LLC’s voluntary dismissal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether case should be transferred to the Northern District of New York under § 1404(a) | Spack: her forum choice (first-filed) and concentration of likely class members in NJ/PA weigh against transfer | Defs: headquarters, payroll/HR, key witnesses, and a related action already pending in N.D.N.Y. make transfer more convenient and promote judicial efficiency | Granted — transfer to N.D.N.Y. is warranted (interests of justice, convenience of parties/witnesses, judicial economy) |
| Whether transferee court has personal jurisdiction over Defendants (precondition to transfer) | Spack disputed relevance of tolling agreement and emphasized local contacts | Defs: reside in N.D.N.Y. (principal place in Albany); § 1391 venue proper there | N.D.N.Y. has proper venue/personal-jurisdiction for Defendants; transfer permissible |
| Personal jurisdiction over Record Town USA, LLC | Spack did not oppose continuing litigation with that defendant | Defs moved to dismiss it for lack of jurisdiction | Moot — Record Town USA, LLC voluntarily dismissed without prejudice; motion denied as moot |
| Whether to equitably toll the statute of limitations and disposition of other pending motions (amendment, dismissal of Count Three, stay) | Spack argued court delay and class members’ lack of awareness justify tolling; sought to amend complaint | Defs opposed tolling, argued potential plaintiffs could file independently | Court did not decide on tolling or merits of dismissal/amendment — those motions were administratively terminated without prejudice and may be refiled in N.D.N.Y.; motion to stay denied as moot |
Key Cases Cited
- Jumara v. State Farm Ins., 55 F.3d 873 (3d Cir. 1995) (establishes multi-factor test for § 1404(a) transfer analysis)
- Park Inn Int’l, L.L.C. v. Mody Enters., Inc., 105 F. Supp. 2d 370 (D.N.J. 2000) (discusses deference to forum choice and transfer considerations)
- Liggett Grp., Inc. v. R.J. Reynolds Tobacco Co., 102 F. Supp. 2d 518 (D.N.J. 2000) (outlines private and public interests for convenience transfer analysis)
- Danka Funding LLC v. Page, Scranton, Sprouse, Tucker & Ford, P.C., 21 F. Supp. 2d 465 (D.N.J. 1998) (quoting Jumara factors)
- Job Haines Home for the Aged v. Young, 936 F. Supp. 223 (D.N.J. 1996) (transfer convenience discussion)
- Yocham v. Novartis Pharma. Corp., 565 F. Supp. 2d 554 (D.N.J. 2008) (federal courts regularly interpret out-of-state law in diversity-related contexts)