MEMORANDUM OF DECISION AND ORDER
The Plaintiff in this case, Robinson Ulysse, commenced an action in New York State court pursuant to New York State Labor Law § 740 for retaliation in the work place. The Defendants, AAR Aircraft Component Services, AAR Parts
I. BACKGROUND
The following facts are derived from the pleadings and the parties’ submissions on the motions.
On August 18, 1998, the Plaintiff commenced his employment as a mechanic with the Defendants AAR in Garden City, New York. AAR is in the business of repairing and replacing commercial aircraft parts. The individually named Defendants were employed by AAR in supervisory capacities.
The Plaintiff alleges that in 2008, his supervisors required and directed him to use substandard, unserviceable and faulty aircraft parts, which was in contradiction to an instruction book he had previously received which described, among other things, whether to repair or replace airliner parts. The Plaintiff claims that this directive from his supervisors was also in violation of the rules governing the use of replacement parts as delineated by the Federal Aviation Administration (FAA) rules and regulations. Ulysse further alleges that he complained to his supervisors on several occasions with regard to the quality of the replacement parts, warning that it could interfere with a plane’s ability to operate which would endanger the plane’s occupants. However, in response to these complaints, the Plaintiff claims that his supervisors retaliated against him by criticizing his work and that he was eventually terminated on April 17, 2009.
On March 26, 2010, the Plaintiff filed an action against the Defendants in the Supreme Court of the State of New York, County of Kings, alleging a cause of action for violations of New York State Labor Law § 740 (the "whistleblower statute" or "Section 740"). Under Section 740, "[a]n employer shall not take any retaliatory personnel action against an employee because such employee ... (a) discloses, or threatens to disclose to a supervisor or to a public body an activity, policy or practice of the employer that is in violation of law, rule or regulation which violation creates and presents a substantial and specific danger to the public health or safety." In order to maintain an action under Section 740, a plaintiff must: "`establish a violation of a law, rule or regulation, which violation must be actual and not merely possible,’" and (2) demonstrate "`that the lack of compliance presents a substantial and specific danger to the public health or safety.’" Perez v. Consol. Edison Corp. of N.Y., No. 02 Civ. 2832,
On March 17, 2011, the state court action was dismissed, without prejudice, for failure to allege the violation of a law, rule, or regulation with the requisite particularity and specificity necessary to support a cause of action under Section 740. See § 740(l)(c) (“ ‘Law, rule or regulation’ includes any duly enacted statute or ordinance or any rule or regulation promulgated pursuant to any federal, state or local statute or ordinance.”)
On May 5, 2011, the Plaintiff commenced a second civil action against the
On June 1, 2011, the Defendants filed a notice of removal to the United States District Court for the Eastern District of New York, pursuant to 28 U.S.C. §§ 1441 and 1446. According to the Defendants, the action is removable because the Court has federal question jurisdiction pursuant to 28 U.S.C. § 1331 because the Plaintiffs New York Labor Law § 740 claim is completely preempted by federal law, specifically the Airline Deregulation Act of 1978. In addition, the Defendants assert as an alternative basis for removal that there is diversity jurisdiction pursuant to § 1332 because AAR resides outside of New York and the Plaintiff is a New York resident. According to the Defendants, the Plaintiff fraudulently joined the individual in-state Defendants in order to defeat federal jurisdiction.
On June 17, 2011, the Plaintiff filed a motion pursuant to 28 U.S.C. § 1447(c) to remand this action back to the Supreme Court for the State of New York, County of Kings, alleging that it was improperly removed to federal court.
II. DISCUSSION
A. Legal Standard for Removal
A cause of action that was initially filed in state court may be removed by a defendant where “the district courts of the United States have original jurisdiction.” 28 U.S.C. § 1441(a). Accordingly, one requirement of removal jurisdiction is that there must exist a basis for the exercise of the district court’s original jurisdiction.
Pursuant to 28 U.S.C. § 1331, the district courts have original jurisdiction over all civil actions arising under the Constitution and laws or treaties of the United States. However, where removal is predicated upon federal question jurisdiction, the "well-pleaded complaint rule" governs. Caterpillar Inc. v. Williams,
Whether a case is one arising under the Constitution or a law or treaty of the United States, in the sense of the jurisdictional statute ... must be determined from what necessarily appears in the plaintiffs statement of his own claim in the bill or declaration, unaided by anything alleged in anticipation of avoidance of defenses which it is thought the defendant may interpose.
Taylor v. Anderson,
“There are several well-established principles governing the propriety of removal petitions under Section 1446, which the court must keep in mind...." Town of Moreau, et al. v. New York State Dept. of Envtl. Conservation, et al., No. 96 Civ. 983,
B. As to Whether the Plaintiff’s State Law Claim is Preempted by Federal Law
1. Preemption Generally
The federal preemption doctrine stems from the Supremacy Clause, U.S. Const. art. VI, cl. 2, and the "fundamental principle of the Constitution [ ] that Congress has the power to preempt state law." Crosby v. Nat’l Foreign Trade Council
There are three types of preemption:
(1) express preemption, where Congress has expressly preempted local law; (2) field preemption, where Congress haslegislated so comprehensively that federal law occupies an entire field of regulation and leaves no room for state law; and (3) conflict preemption, where local law conflicts with federal law such that it is impossible for a party to comply with both or the local law is an obstacle to the achievement of federal objectives.
New York SMSA Ltd. P’ship v. Town of Clarkstown,
The preemption analysis begins "with the assumption that the historic police powers of the States were not to be superseded by the Federal Act unless that was the clear and manifest purpose of Congress." Wyeth v. Levine,
2. The Airline Deregulation Act and the Whistleblower Protection Program
The Defendants argue that remand is improper and that removal of the Plaintiffs case to federal court was appropriate because although the Complaint is pleaded in terms of state law, it is in reality a claim based on federal law. In particular, the Defendants claim that a state law claim based on allegations that an airline servicer retaliated against a whistleblower is preempted by the federal Airline Deregulation Act, as amended by the Whistle-blower Protection Program.
The Airline Deregulation Act of 1978 ("ADA") was enacted to encourage air transportation systems to rely on competitive market forces to determine the quality, variety and price of air services after Congress concluded that market forces would promote the "`efficiency, innovation, and low prices’" as well as the "variety [and] quality of ... air transportation services." Morales v. Trans World Airlines,
Except as provided in this subsection, a State, political subdivision of a State, or political authority of at least 2 States may not enact or enforce a law, regulation, or other provision having the force and effect of law related to a price, route, or service of an air carrier that may provide air transportation under this subpart.
49 U.S.C. § 41713(b)(1) (emphasis added).
In 2000, the ADA was amended by the Whistleblower Protection Program, 49 U.S.C. § 42121 ("WPP"). The WPP "protects air-carrier employees who report actual or alleged air-carrier safety violations or who file proceedings regarding actual or alleged air-carrier safety violations." Botz v. Omni Air Int’l,
3. Supreme Court Precedent
The Supreme Court has not directly addressed the issue at hand—whether a state law claim based on allegations that an airline servicer retaliated against a whistleblower falls within the preemption of the ADA—but has addressed the interpretation, scope, and application of the ADA’s preemption provision in other contexts.
In Morales v. Trans World Airlines, Inc.,
The Court in American Airlines, Inc. v. Wolens,
4. The Circuit Split
Whether a wrongful discharge claim based on allegations that an airline or an airline servicer retaliated against a whistleblower falls within the preemption of the ADA has not been conclusively decided by the Second Circuit. However, several other circuit courts, namely the Third, Eighth, Ninth, and Eleventh circuits, have addressed the issue explicitly, although they have reached divergent conclusions.
The Eighth Circuit first discussed the phrases “related to” and “a price, route, or service of an air carrier” within the context of the ADA’s express preemption provision, and found from this plain language that the provision had a broad preemptive effect. The court also found the Supreme Court’s decision in Morales to support the expansive scope of the preemption provision. Thus, when viewing the facts surrounding Botz’s discharge, the Eighth Circuit found the Minnesota whistleblower statute to have a “forbidden connection with air-carrier services”. Id. at 494. This forbidden connection stemmed almost exclusively from the fact that the state law at issue included broad authorization for flight attendants to refuse flight assignments, and thus the court found that this jeopardized an air carrier’s ability to complete its scheduled flights. Furthermore, the Eighth Circuit found support in the WPP, because according to the court, its protections illustrated the types of claims Congress intended the ADA to preempt. Id. at 497 (“In fashioning a single, uniform standard for dealing with employee complaints of air-safety violations, Congress furthered its goal of ensuring that the price, availability, and efficiency of air transportation rely primarily upon market forces and competition rather than allowing them to be determined by fragmented and inconsistent state regulation.”). The court did not address implied preemption, because it concluded that the ordinary meaning of the language of the ADA’s preemption provision adequately demonstrated Congress’s intent to preempt the plaintiffs claims under the state whistle-blower statute. See Botz,
However, the Botz case has been criticized and its reasoning rejected by the three other circuits to have faced this precise issue. See, e.g., Gary v. Air Group,
In Branche v. Airtran Airways, Inc.,
In Gary v. Air Group, Inc.,
Finally, in Ventress v. Japan Airlines,
5. Arguments For and Against Preemption
In the motion at issue, the Plaintiff argues that remand is appropriate because New York Labor Law § 740 is not preempted by the ADA and therefore there is no federal question raised by his complaint. He urges this Court to follow the reasoning of Branche, Gary, and Ventress, and contends that the relationship between his claim and the prices, routes, and/or services of the entities serviced by AAR is tenuous at best. In particular, Ulysse argues that even if he were to prevail in his suit against AAR, “it is un
On the other hand, the Defendants argue that the Plaintiffs whistleblower claim relates to the “service” element of the ADA’s express preemption provision and that this Court should follow the logic of Botz. The Defendants cite to several cases which have found that the maintenance of jet bridges and aircraft generators sufficiently related to “service” in the context of preemption, and contends that the Plaintiffs complaints concerning the proper maintenance of airplanes likewise implicates air services. In addition, the Defendants argue that implied preemption must be found and thus remand is alternatively improper on this basis.
6. Express Preemption: Whether the New York Labor Law Claim is “Related to a Price, Route, or Service of an Air Carrier” Within the Express Terms of the ADA Preemption Provision
a. As to the Definition of “Related To”
The first issue that must be addressed is whether the Plaintiff’s state labor law claim is "related to a price, route, or service of an air carrier" so as to fall within the ADA’s express preemption provision. Thus, the Court must determine the import of the phrase "related to". As set forth above, this key language ordinarily has a broad meaning and thereby expresses a "broad pre-emptive purpose." Morales,
The New York State labor law at issue does not itself expressly refer to the rates, routes, or services of air carriers. In fact, Section 740 does not reference the airline industry whatsoever. However, that alone is not determinative. The Supreme Court has articulated that “related to” in the context of the ADA means that state enforcement actions need only have a connection with or reference to airline “rates, routes, or services” to be preempted. See Morales,
Thus, it is irrelevant that Section 740 is one of general applicability because such state laws are routinely preempted when they merely concern the price, routes and services of an air carrier. See Wolens,
b. As to the Definition of “Services”
Accordingly, the crucial determination comes down to whether the Plaintiffs claims have a connection to or a forbidden significant effect upon airlines “rates, routes, or services.” Neither party here disputes that the only relevant concept here is that of “services”, as opposed to “rates” or “routes”.
The ADA does not define the term "service", nor has the Supreme Court interpreted it. "While some variation has arisen among the courts regarding the definition of the term `services’ under the ADA, every court attempting to define the term has included point-to-point transportation within its definition as a bargained-for aspect of air travel." Miller v. Raytheon Aircraft Co.,
Although the Second Circuit has yet to precisely define the term “services” as used in the ADA, the court has clearly indicated that it is broader than such point-to-point transportation, as limited by the Third and Ninth Circuits, and thus extends beyond prices, schedules, origins, and destinations. For instance, in 2008, the Second Circuit explicitly refused to define the term “services” in this context but had little difficulty concluding that requiring airlines to provide food, water, electricity, and restrooms to passengers during lengthy ground delays related to the “services” of an air carrier. See ATAA,
Moreover, a broad interpretation of the term “services” is appropriate for several reasons. First, there is a lack of textual justification for a more truncated reading. See Webster’s Third New International Dictionary 2075 (3d ed. 1961) (listing an extremely broad definition of “service”: “a useful labor that does not produce a tangible commodity”); Branche,
However, a recent case rendered by the Second Circuit has also indicated that the definition of “services” as utilized in the ADA is not without limit. In Good-speed Airport, LLC v. East Haddam Inland Wetlands and Watercourses Commission,
Therefore, this Court finds that some limitation on the definition of “services” is appropriate. One such constraint which this Court now imposes is that “services” is limited to the bargained-for aspects of airline operations over which carriers compete. “[T]he purpose of the ADA’s preemption provision is to increase reliance on competitive market forces rather than pervasive federal regulation ... plainly this purpose is not served by interpreting the term ‘services’ to include those aspects of airline operations that are not bargained-for by carriers and their passengers.” Branche,
This conclusion seems especially justified in light of the Second Circuit’s citing to Rowe with approval, by stating that “[t]he [Rowe ] Court emphasized that Congress’s ‘overarching goal’ with regard to the ADA was helping to assure that transportation rates, routes, and services ‘reflect[ed] maximum reliance on competitive market forces,’ thereby stimulating not only ‘efficiency, innovation, and low prices,’ but also ‘variety’ and ‘quality’ in transportation services.” ATAA,
In sum, the Court’s inquiry as to whether the claim at issue is preempted by the express preemption provision of the ADA turns on whether it is related to the services of an air carrier, meaning it has a connection with or a forbidden effect upon the elements of air travel that are bargained for by passengers with air carriers,
c. Whether the Plaintiffs Claim Relates to the “Services” of an Air Carrier
The Court finds that the Plaintiffs claim is not related to services of an
First, even assuming that the Plaintiffs whistleblower claim is mainly considered as concerning airline safety, as opposed to a pure workplace retaliation claim, safety is not the type of bargained-for service that would fall under the definition of “services” pursuant to the ADA which this Court has now adopted. In a case with nearly identical facts—an alleged retaliation for an employee’s complaints regarding the safety of certain aircraft parts—• the Eleventh Circuit found that “safety is not a basis on which airlines compete for passengers, and as such is not something for which air travelers bargain; it is implicit in every ticket sold by every carrier.” Branche,
Second, the one circuit court to have found preemption in the context of a state whistleblower claim upon which the Defendants rely, did so largely because the employee’s actions in refusing to take certain flights as a flight attendant actually affected air craft services. Her actions had the result of grounding certain flights, thereby literally disrupting service to an airline’s passengers. See generally Botz,
Furthermore, unlike in Botz, New York’s whistleblower statute does not permit an employee to refuse to perform an action that he believes to be in violation of federal or state regulations. Rather, Section 740 simply protects an employee from retaliation by an employer for reporting actual or possible 'violations of federal or state law to his/her supervisor and/or appropriate government official. Thus, an employee is not permitted to disrupt the services of his/her employer but is merely protected for reporting a violation. Accord Schumacher v. Amalgamated Leasing, Inc.,
In addition, it appears from the allegations in the Complaint that the Plaintiff engaged in only the post hoc reporting of a possible safety violation, and the Defendants do not indicate otherwise in their papers. See Branche,
The possibility of an effect on aircraft services seems even more remote under the facts of this case as opposed to others, because Ulysse is not himself an employee of the airlines and thus does not provide services directly to consumers. Rather, his role is more attenuated in that AAR merely contracts with airline companies to do repair work on their planes. It is hard to imagine how a third-party repair servicer could have the same impact on the services of an airline as, for example, a flight attendant or a baggage carrier, who is a direct employee of the airlines. See Jimenez-Ruiz v. Spirit Airlines, Inc.,
Moreover, the Court is doubtful that the whistleblower claim at issue is even related to airline services at all, and finds instead that it is more properly considered as simply a species of employment retaliation. The Second Circuit has plainly held that discrimination claims are not preempted by the ADA. For example, in Abdu-Brisson v. Delta Airlines,
In Sakellaridis v. Polar Air Cargo, Inc.,
Finally, the Court notes that resolution of the Plaintiff’s Labor Law claim will likely have no impact on airline services whatsoever. Section 740 only allows recovery of compensatory damages by an aggrieved employee, and provides for injunctive relief to restrain continued violation, reinstatement of the aggrieved employee, and reinstatement of the aggrieved employee’s fringe benefits and seniority rights (see, Labor Law § 740(5)). The law does not impose new safety standards or require that the facility cease or alter its operations in any way after a complaint regarding safety is made. "All that Section 740 does is prohibit [AAR] from punishing plaintiff for reporting safety violations. Clearly such a tangential relationship does not constitute direct regulation." Bordell v. Gen. Elec. Co.,
In sum, this Court now follows the reasoning of the Eleventh, Third, and Ninth Circuits and declines to follow the logic of the Eighth Circuit with regard to the issue of ADA’s express preemption of state whistleblower claims. “[A]t its root, this case involves a simple employment discrimination claim, with the prohibited basis for termination being not any inherent characteristic of the employee such as race, gender or disability, but rather his undertaking of protected activity.” Branche,
7. Implied Preemption
Although the Court does not find that the express preemption provision of the ADA precludes the instant whistleblower case from being remanded to state court, it must still address whether implied preemption is present so that remand would be improper.
In general, the existence of an express preemption provision means that implied preemption is not present. See Freightliner Corp. v. Myrick,
Implied preemption is particularly relevant in this the Second Circuit has noted that "the intent to centralize air safety authority and the comprehensiveness of these regulations pursuant to that authority have led several other circuits (and several courts within this Circuit) to conclude that Congress intended to occupy the entire field and thereby preempt state regulation of air safety." ATAA,
Nevertheless, this does not end this Court’s inquiry. See id. (“concluding that Congress intended to occupy the field of air safety does not end our task.”). While there is a clear congressional intent to preempt air safety, this Court’s task is to now determine the scope of that preemption and decide whether the state whistle-blower law at issue here falls within its confines. ‘“The key question is thus at what point the state regulation sufficiently interferes with federal regulation that it should be deemed pre-empted.’ ” Id. at 211 (quoting Gade v. Nat’l Solid Wastes Mgmt. Ass’n,
As in Goodspeed, this Court concludes that “although Congress intended to occupy the entire field of air safety, the state laws at issue here do not interfere with federal laws and regulations sufficiently to fall within the scope of the preempted field.” Id. A state’s protection for whistleblowers against retaliation in the workplace is not an intrusion of state authority on the preempted field of air safety. The New York whistleblower statute is a labor law that does not refer to aviation or airports. See id. (“Moreover, IWWA and CEPA are environmental laws that do not refer to aviation or airports.”). It is also not limited to retaliation in a particular field of employment, and thus would apply equally to those employed by aircraft servicers, fast food chains, or even the state court system. The statute, while providing protection for those who may conceivably raise concerns about flight dangers, does not itself prohibit, allow, or otherwise regulate any incident of airline safety. Moreover, the state statute itself does not protect the reporting of a violation of only federal law, but rather “any duly enacted statute or ordinance or any rule or regulation promulgated pursuant to any federal, state or local statute or ordinance.” The language is simply too broad, and the scope is too general and universal, for this Court to find that it intrudes on the preempted field of air safety.
The Defendants could argue that the actual act of whistleblowing in the circum
In order to maintain an action under Section 740, Ulysse would undisputedly be required to “establish a violation of a law, rule or regulation, which violation must be actual and not merely possible, and (2) demonstrate that the lack of compliance presents a substantial and specific danger to the public health or safety.” See Frank v. Walgreens Co., No. 09 Civ. 955,
However, the purpose of Section 740 is not to actually impact or somehow regulate the concerns that are raised under its protections. Its direct purpose is to protect the whistleblower that makes a complaint relating to such, and thereby indirectly encourages these complaints to be made. See Kramsky v. Chetrit Group LLC, No. 10 Civ. 2638,
Of course, the promotion of enforcement of the law is one of the goals of Section 740, as is the general protection of the public welfare. See Executive Memorandum, S. 10074 (N.Y. 1984) ("Encouraging employees to bring violations to the attention of their employers and shielding them from employer retaliation if they disclose wrongful conduct to authorities, will protect the welfare of the people of this State, promote enforcement of the law, and give needed protection to employees who wish to act as law-abiding citizens without fear of losing their jobs."); Attorney General’s Memorandum, S. 10074 (N.Y. 1984) ("By encouraging employees to bring violations to the attention of their employers and by shielding them from dismissal if they disclose wrongful conduct to authorities, this bill will protect the welfare of the people of this state [and] promote enforcement of the law"). However, the general public policy goals underlying the whistleblower statute do not provide a sufficiently direct intrusion upon the safety regulations concerning air travel. The state is not intending to prescribe standards of airline safety — only to bring certain conduct to light to provide protection for employees who do so.
This conclusion is buttressed by the fact that “[r]elief available under the Act ... is limited to specifically-defined statutory remedies. A plaintiff who sues under the Act may only seek an injunction
While there are certainly broader public policy goals at play which underlied the enactment of Section 740, in the context of actual civil litigation, the Plaintiffs case is purely a garden variety employment case. “[A]t its root, this case involves a simple employment discrimination claim, with the prohibited basis for termination being not any inherent characteristic of the employee such as race, gender or disability, but rather his undertaking of protected activity.” Branche,
The Court agrees that “employment discrimination actions typically have been held to fall outside the scope of the ADA’s preemption clause.” Branche,
Lastly, this Court’s conclusion is supported by the notion that employment standards fall squarely within the traditional police powers of the states, and as such should not be disturbed lightly. See Hawaiian Airlines, Inc. v. Norris,
8. As to the WPP
As the final consideration with regard to preemption, the Court must determine whether the amendments enacted by the WPP have changed any of its above analysis, either with regard to express or implied preemption. As stated above, the WPP essentially provides a federal cause of action for whistleblowing with regard to airline related safety violations. The Defendants argue that the WPP supports the notion that either express or implied preemption by the ADA exists. See Botz,
The WPP represents a federal analog to New York’s whistleblower statute. However, the procedures described in the two laws are completely different. For example, under the WPP, a plaintiff cannot directly file a civil action against his employer, but must instead file a complaint with the Secretary of Labor. See 49 U.S.C. § 42112(b)(1). Then, the Secretary assesses the merits of the complaint and can either find it to be without merit and deny it, or, if it finds it to be meritorious, can order the abatement of the violation, reinstatement with back pay and/or compensatory damages. See 49 U.S.C. § 42121(a)(2) and (3). Thereafter, any party that is aggrieved by the Secretary’s order may obtain review of that order in the appropriate circuit court of appeals. By contrast, under Section 740, Plaintiffs are not “required to negotiate these administrative obstacles to the adjudication of their claim in a judicial forum.” Branche,
In addition, the WPP “says nothing whatsoever about preemption, which is an omission susceptible to more than one interpretation.” Branche,
The addition of a federal law remedy for whistleblowing has been found by a few district courts to completely preempt a corresponding state whistleblower claim because of the belief that the WPP provides an exclusive remedy. See Wright v. Nordam Group, Inc., No. 07 Civ. 699,
The relevant question remains whether Section 740 is related to air carrier services, which the Court finds it is not. See Branche,
Therefore, after surveying the case law on federal preemption generally and specifically in relation to the ADA, this Court finds that complete federal preemption does not exist in this dispute and accordingly, there is no federal question, so that remand on this ground is appropriate.
C. As to Whether Completely Diversity Exists
In addition to the federal question issue discussed above in the context of preemption, the Defendants assert that remand is also improper because complete diversity exists as between all of the parties to this action. Although the notice of removal concedes that the three individual Defendants are New York residents as is the Plaintiff, the Defendants argue that these individuals were fraudulently joined by the Plaintiff to defeat diversity jurisdiction and therefore their citizenship should not be considered by this Court. In support of their fraudulent joinder argument, the Defendants contend that based upon the pleadings, no possibility exists that the Plaintiff can state a cause of action against the non-diverse individual Defendants in state court.
On the other hand, the Plaintiff argues that the Defendants fail to meet their burden to demonstrate that complete diversity exists as to all parties. In particular, the Plaintiff notes that Section 740 does not prohibit a cause of action against the individuals involved in the alleged retaliatory acts against the Plaintiff and therefore they are proper Defendants.
1. Relevant Law
It is "axiomatic ... that diversity jurisdiction is available only when all adverse parties to a litigation are completely diverse in their citizenships." Herrick Co., Inc. v. SCS Commns., Inc.,
A party that is seeking to remove a plaintiff’s suit to federal court bears "the burden of establishing that the requirements for diversity jurisdiction were met." Mehlenbacher v. Akzo Nobel Salt, Inc.,
There is no dispute in the present case that if the individual Defendants are proper parties, then as citizens of New York, their presence would destroy diversity citizenship, and thereby would deprive this Court of diversity subject matter jurisdiction under 28 U.S.C. § 1332, in light of the lack of federal question jurisdiction as set forth above. However, "a plaintiff may not defeat a federal court’s diversity jurisdiction and a defendant’s right of removal by merely joining as defendants parties with no real connection with the controversy." Pampillonia v. RJR Nabisco, Inc.,
Under the doctrine of fraudulent joinder, "courts overlook the presence of a non-diverse defendant if from the pleadings there is no possibility that the claims against that defendant could be asserted in state court." Briarpatch Ltd. v. Phoenix Pictures, Inc.,
Whenever removal of an action to federal court is contested, "the burden falls squarely upon the removing party to establish its right to a federal forum by `competent proof.’" Stan Winston Creatures, Inc. v. Toys "R" Us, Inc.,
The Defendants here do not allege any outright fraud by the Plaintiff. Therefore, the Court turns to the issue of whether it is possible, based on the pleadings, that the Plaintiff has a claim against the individual Defendants. This standard has been strictly applied by courts in this circuit. See Stan Winston,
2. Whether Individuals Can Be Held Liable Under Section 740
The issue of under what circumstances an individual defendant may be held liable as an "employer" pursuant to Section 740 is particularly thorny because of the dearth of precedent under New York law. However, the few cases that have addressed this issue seem to make it clear that individuals can, theoretically, be held liable under the statute. See Noble v. 93 Univ. Place Corp.,
Further, this notion seems self-evident in light of the text of the statute, in which "employer" is defined to include "any person firm, partnership, institution, corporation, or association that employs one or more employees." § 740(1)(b) (emphasis added). See Geldzahler v. New York Med. College,
Nevertheless, the precise contours of individual liability under this particular statute have not been adequately explored, at least by New York state courts. Cf. Chen v. Street Beat Sportswear, Inc.,
3. Whether There is “No Possibility” to State a Claim Against the Individual Defendants Pursuant to Section 740
Under the “economic realities” test, whether the individual Defendants are considered an “employer” within the meaning of Section 740 may turn on a number of factors, included whether these supervisors exercised control over the employee’s conduct and the incidents of his employment. For example, in Noble, the Court found it sufficient that one of the individual defendants retained supervisory, hiring, and firing powers over the employees and was also the person to whom the plaintiff reported. Noble, 303 F.Supp.2d at 376.
Here, as the Defendants point out, the Plaintiffs Complaint makes several factual allegations solely against the Defendant company AAR and not the individual Defendants (See Compl. at ¶ 17) (“The aforementioned acts of AAR constitute unlawful discriminatory retaliation against the plaintiff ... ”). However, he also makes certain allegations against the individually named Defendants, albeit in general and at times in barebones language. He alleges that: the three individual Defendants were supervisors (Compl. at ¶ 4) (“At all relevant times herein, Joe DeLardi, Ian Smith, and Salim Kemzy (supervisors) were and are in the employ of co-defendant AAR and were employed in supervisory positions.”); they required him to use substandard, unserviceable, and faulty parts (Compl. at ¶9); this directive given by these supervisors was in direct contradiction to the rules governing the use of replacement parts (Compl. at ¶ 10); he complained to “them” about the use of the substandard and faulty parts and “they” began to heavily criticize his work (Compl. at ¶ 11); the “Defendants” refused to abate, ameliorate, or attempt to control the use of substandard airline parts (Compl. at ¶ 14); the “Defendants” retaliated against the Plaintiffs complaints (Compl. at ¶ 15); and that the conduct of certain AAR supervisory personnel, presumably the individually named defendants, caused his workplace to be “infected with hostile conduct and retaliation.” (Compl. at ¶ 6.)
Thus, the Court finds that based on the individuals’ status as “supervisors” and the other general allegations regarding their criticisms and retaliatory conduct, there is enough of a basis upon which the Plaintiff can conceivably recover against the individual Defendants under Section 740. The recovery is subject to the Plaintiff demonstrating that the individual Defendants Joe DeLardi, Ian Smith, and Salim Kemzy actually exercised control over the Plaintiffs working conditions and/or participated in the alleged “retaliation for the Plaintiffs whistleblowing.” Based on the pleadings, the Court cannot say that there is no possibility, that the Plaintiff cannot state a cause of action against the individual Defendants.
Here, the Defendants claim that because the Complaint does not allege that individual Defendants were “employers” or contain sufficient allegations regarding their conduct to state a claim that they could be considered employers, that the Plaintiffs cause of action cannot stand. However, it is important to note that the present determination is being made in the context of a motion to remand, not on a motion to dismiss or summary judgment. Thus, “[t]he strength of plaintiffs’ case ... is not relevant in the present context.” Arseneault,
Thus, it is not sufficient for the Defendants to show that the Plaintiffs Section 740 cause of action against the individually named Defendants would not survive a motion to dismiss. See Stan Winston,
The Court’s conclusion is further reinforced by the rule that removal should be construed strictly by federal courts. Indeed, "[o]ut of respect for the independence of state courts, and in order to control the federal docket, `federal courts construe the removal statute narrowly, resolving any doubts against removability.’" Stan Winston,
Finally, the fact that the Plaintiffs counsel acknowledged in an affidavit submitted in state court in opposition to Defendants’ motion to dismiss his initial complaint, that he failed to state a whistleblower claim against the individual defendants, does not change this result. First, that initial complaint is not at issue in the present case, although it is substantially similar. Second, regardless of the Plaintiffs statements in that affidavit, the state court dismissed the initial complaint only for failure to plead his cause of action with the requisite particularity and specificity; the state court made no mention of individual liability under the statute. Thus, the state court's determination in this regard has no bearing on whether the individually named Defendants were fraudulently joined.
Therefore, assuming for the sake of argument that the “economic realities” test governs the analysis here, the Court finds that the Plaintiffs allegations survive the limited “no possibility” inquiry for the purpose of assessing fraudulent joinder. “Whatever the underlying merits of plaintiffs’ claims against [the individual Defendants, Defendants have not demonstrated that it is legally impossible for [them] to be held liable under New York law.” Stan Winston,
The Court is remanding the case to state court. Therefore, it will not delve into the substantive merits of the Plaintiffs state law claim and therefore declines to address the Defendants’ cross motion to dismiss the complaint. See Gleizer v. Diaz, Reus & Targ, LLP, No. 10 Civ. 7516,
Nevertheless, the Court notes that the Defendants’ argument that the case should be dismissed because the Plaintiff did not timely pursue his exclusive remedy under the WPP is without merit. As stated above, the WPP does not provide an exclusive remedy for whistleblowing under the facts of this case.
III. CONCLUSION
For the foregoing reasons, it is hereby
ORDERED that the Plaintiffs motion to remand this action to the New York State Supreme Court is granted; and it is further
ORDERED that the Defendants’ cross motion to dismiss is denied without prejudice and as moot; and it is further
ORDERED that the Clerk of the Court is directed to close the case.
SO ORDERED.
