JOHN A. MENDEZ, District Judge.
Plaintiff Gloria Freeman ("Plaintiff") alleges that the pharmacy where she worked terminated her employment in retaliation for her complaints about patient and staff safety. Plaintiff now moves to amend the complaint to add the hospital where the pharmacy was located as a defendant. For the reasons stated below, the Court grants the motion and remands the case to state court.
Plaintiff worked for Defendant Cardinal Health Pharmacy Services ("Defendant") in Sierra Vista Hospital ("Sierra Vista") as Director of Pharmacy. FAC ¶ 8. At the alleged direction of Sierra Vista's CEO, Michael Zauner ("Zauner"), Plaintiff participated in "management rounds" with the hospital's psychiatric patients. FAC ¶ 10. During rounds, she experienced "violent incidents," one of which caused her to hurt her knee. FAC ¶¶ 10, 21.
After the injury, Plaintiff requested that Defendant and Sierra Vista accommodate her by allowing her to use crutches and to relocate "important items" in the pharmacy. FAC ¶¶ 22, 31, 36. These requests were denied and Plaintiff instead went on medical leave.
Plaintiff claims that she was terminated because of her complaints about dangerous hospital conditions, including "placing untrained staff . . . in contact with sometimes violent psychiatric patients" and other complaints she had made about salary discrepancies between men and women, improper storage of medications, and electrical failures. FAC ¶¶ 11, 17-20, 49, 64-65.
Plaintiff sued Defendant, her supervisor, and Sierra Vista in state court alleging eight causes of action (Doc. #1). Sierra Vista demurred, and Plaintiff responded by voluntarily dismissing Sierra Vista from the action.
Two months later, Defendant removed the case to this Court (Doc. #1). Discovery commenced, including the deposition of Zauner.
Generally, a court assesses subject matter jurisdiction as it existed at the time of removal.
Courts consider numerous factors in deciding whether to allow joinder under section 1447(e), including (1) whether the party to be joined is a necessary party under Federal Rule of Civil Procedure 19(a); (2) whether the statute of limitations would prevent the plaintiff from filing a new action against the defendant she hopes to join; (3) whether there has been an "unexplained delay in seeking the joinder"; (4) whether the plaintiff's purpose is solely to defeat federal jurisdiction; (5) whether the claim against the new defendant "seems valid"; (6) "possible prejudice" to the existing parties; and (7) the new defendant's "notice of the pending action."
Plaintiff argues that Sierra Vista is a necessary party under Rule 19, because the matter "cannot be fully adjudicated" without the hospital. Reply at 1:22. Defendant counters that that Sierra Vista does not fall under this rule because "[t]here is no overlap between parties or causes of action[.]" Opp. at 8:6.
Sierra Vista is not a necessary party. Plaintiff appears to argue that Sierra Vista falls under Rule 19(a)(1)(A), which defines a party as necessary if, "in that person's absence, the court cannot accord complete relief among existing parties[.]" "In considering the Rule 19(a)(1) analysis, the court asks whether the absence of the party would preclude the district court from fashioning meaningful relief as between the parties."
Plaintiff here seeks only money damages.
The parties agree that the statute of limitations has not yet run, such that Plaintiff could file her claims against Sierra Vista in a separate case. This factor too weighs against joinder.
The parties dispute whether Plaintiff improperly delayed bringing this motion. Defendant contends that Plaintiff should have attempted to keep Sierra Vista in the action in state court rather than waiting until removal to file this motion.
The Court agrees with Plaintiff. The following timeline illustrates that Plaintiff has diligently pursued joinder:
This timeline evidences no unexplained delay, so this factor weighs in favor of allowing joinder.
Defendant asserts that Plaintiff's "underlying motive is to destroy diversity and delay the case." Opp. at 9:24. This motive is apparent, according to Defendant, because Plaintiff had the necessary information to "raise the theory at the time she filed her initial pleading[.]" Opp. at 9:20-21. But as discussed above, the record supports Plaintiff's contention that she first learned essential facts about Sierra Vista during Zauner's deposition. The parties' correspondence also demonstrates that Plaintiff's counsel candidly acknowledged that there were not enough facts to support a claim against Sierra Vista in June 2014, and disclosed their intention to seek facts supporting amendment.
The parties urge the Court to scrutinize the proposed amended complaint and Zauner's deposition testimony to determine whether Plaintiff can ultimately succeed in a dual-employer liability theory. Mot. at 16-19; Opp. at 10-14. But this is not a motion to dismiss or a motion for summary judgment; under section 1447(e), the Court need only determine whether the claim "seems" valid.
Applying the proper standard, the Court determines that the new claim against Sierra Vista "seems valid." This claim alleges a violation of California Health and Safety Code section 1278.5, which prohibits a "health facility" from "retaliat[ing], in any manner, against any patient, employee, member of the medical staff, or any other health care worker of the health facility because the person has . . . [p]resented a grievance, complaint or report to the facility . . . or the medical staff of the facility. . . ." Cal. Health & Safety Code § 1278(b)(1). Retaliation can include "discharge, demotion, suspension, or any unfavorable changes in, or breach of, the terms or conditions of a contract, employment, or privileges of the employee, member of the medical staff, or any other health care worker of the health care facility, or the threat of any of these actions." Cal. Health & Safety Code § 1278(d)(2).
Plaintiff's amended complaint alleges that she reported unsafe conditions to Sierra Vista and because of those reports, Sierra Vista denied her valid requests for accommodation, and ultimately directed her termination. Proposed SAC ¶¶ 11, 16, 19, 22, 28, 31, 37, 45. This claim appears valid, and so this factor weighs in favor of granting the amendment.
Both parties assert that they will suffer prejudice if the Court does not resolve the motion in their favor. Defendant argues that amendment would require "new and additional discovery after [it] has completed its written discovery." Opp. at 15:11-12. But Defendant has not explained what additional discovery is needed, or why doing additional discovery would be prejudicial since discovery is still open.
Plaintiff contends that she will be prejudiced if the court denies amendment because of the possibility of inconsistent outcomes. Mot. at 15; Reply at 5. The Court is not persuaded, however, that Plaintiff will suffer any such prejudice. Indeed, the single cause of action she seeks against Sierra Vista is independent of her claims against Cardinal Health.
Because neither party is likely to suffer prejudice based on the outcome of this motion, this factor is neutral.
The parties did not address this factor, but it weighs in favor of amendment. Sierra Vista has had notice of this action because it used to be a party to the state court action and because its CEO has already been deposed.
As described above, four of the seven factors weigh in favor of allowing joinder. Two factors weigh in favor of denying joinder and one factor is neutral. The Court therefore exercises its discretion to permit joinder and remand this action to state court.
The Court GRANTS Plaintiff's motion to amend and remand.