CLAIRE C. CECCHI, District Judge.
This matter comes before the Court on the motion of Defendant Mercedes-Benz USA, LLC ("MBUSA") (ECF No. 4) to dismiss the Complaint (ECF No. 1-2), and the motion of Plaintiff Ronald Sims ("Plaintiff') to amend the Complaint (ECF No. 12). The Court has considered all submissions made supporting and opposing the instant motions, including Plaintiff's reply brief (ECF No. 14) and MBUSA's sur-reply brief (ECF No. 15-1). The motions are decided without oral argument pursuant to Fed. R. Civ. P. 78(b).
MBUSA terminated Plaintiff's employment on August 15, 2014, for what Plaintiff claims were discriminatory reasons. The Complaint describes Plaintiff as "an African-American, age 38 (born in June 1978), a native-born U.S. citizen, and an `out' gay man." (ECF No. 1-2 ¶ 6). MBUSA's parent company is a wholly owned subsidiary of Defendant Daimler AG, a German company, which has yet to appear in this action.
Plaintiff commenced this action on October 26, 2016, in the Superior Court of New Jersey, Essex County Law Division. (ECF No. 1-2). The Complaint brings four claims under the New Jersey Law Against Discrimination, N.J.S.A. § 10:5-1 et
MBUSA removed to this Court on December 7, 2016, invoking diversity jurisdiction. (ECF No. 1). On December 9, 2016, MBUSA moved to dismiss the Complaint, arguing the NJLAD claims were filed outside the two-year statute of limitations. (ECF No. 4). With MBUSA's consent, Plaintiff sought and was granted a series of extensions of time to oppose the motion to dismiss. (ECF Nos. 6-10). On February 7, 2017, through new counsel, Plaintiff submitted a letter conceding his NJLAD claims are time barred, and seeking leave to file the attached Proposed Amended Complaint ("PAC") pursuant to Fed. R. Civ. P. 15. (ECF Nos. 12, 12-1). The Court construes this as a motion to amend. The PAC asserts two claims under 42 U.S.C. § 1981, for discriminatory termination based on race and national origin. MBUSA's reply brief also opposed Plaintiff's request to file the PAC, both as procedurally improper and on futility grounds. (ECF No. 13). Further briefing followed from both parties. (ECF Nos. 14, 15).
The factual allegations in the PAC are largely similar to those in the Complaint, and are set forth here to the extent they bear on whether amending the Complaint would be futile.
MBUSA hired Plaintiff in 2007 as a process-improvement consultant in Montvale, New Jersey. (PAC ¶¶ 6-7). Early in 2011, Plaintiff applied for another position within the company as a customer satisfaction specialist. (
In April 2014, Plaintiff applied for another position within MBUSA to manage a training program in Alabama. (PAC ¶ 21). Plaintiff interviewed for the position in June 2014, and his interviewers "communicated how impressed they were" with the interview. (
On the morning of August 15, 2014,
Later that day, one of Plaintiff's managers, Hendrik Hynekamp, called Plaintiff to ask him to report to a conference room in the Human Resources Department ("HR"), where Plaintiff met with Hynekamp and HR executive Jennifer Ahrens. (PAC ¶¶ 26-27). Ahrens told Plaintiff he was being terminated because Plaintiff had taken oatmeal and sausage from the cafeteria that morning without paying. (
According to Plaintiff, his termination bypassed MBUSA's "progressive discipline process[.]" (PAC ¶ 41). Plaintiff had never been disciplined before, and was unaware of previous accusations against him for taking food from the cafeteria without paying. (
Plaintiff claims MBUSA "favor[s] the employment and promotion of Germans to the prejudice of U.S. citizens and residents, particularly racial minorities." (PAC ¶ 44). According to Plaintiff, "[n]o African-American has ever worked for MBUSA long enough to retire from the company," or been promoted above a certain level, and "only a miniscule number of African-Americans" make more than the two lowest-paid wage bands. (
Plaintiff's job was filled by Maximilian Klube, a white, 22-year-old German national of German descent. (PAC ¶¶ 46, 51). Klube was originally hired as an intern in November 2011, but Hynekamp, who is also a white man of German descent, promoted Klube to salaried employee. (
For a complaint to survive dismissal pursuant to Fed. R. Civ. P. 12(b)(6), it "must contain sufficient factual matter, accepted as true, to `state a claim to relief that is plausible on its face.'"
MBUSA contends the NJLAD claims in the Complaint are untimely because they were filed over two years after Plaintiff was terminated. Plaintiff agrees these claims should be dismissed as untimely (ECF No. 12 at 1). The Court agrees as well. See
MBUSA contends the Court should deny Plaintiff's motion to amend both because it is procedurally improper and because amendment would be futile. The Court discusses these arguments in turn.
Leave to amend "shall be freely given when justice so requires," Fed. R. Civ. P. 15(a)(2), unless "plaintiff's delay in seeking amendment is undue, made in bad faith, prejudicial to the opposing party, or [the amendment] fails to cure the jurisdictional defect[.]"
Under Rule 15(a)(1)(B), Plaintiff had until December 30, 2016, twenty-one days after MBUSA's motion was filed, to amend as a matter of course. Plaintiff's February 9, 2017 motion was thus filed thirty-nine days after the right to amend expired. Under the circumstances, given that Plaintiff obtained new counsel and redrafted his Complaint to assert timely claims, the Court does not find the delay to be undue.
The Court also finds the delay was not prejudicial to MBUSA. MBUSA argues Plaintiff's motion to amend caused it to waste substantial resources moving to dismiss the admittedly untimely NJLAD claims. (ECF No. 13 at 4). But Rule 15(a)(1)(B) specifically allows an amended complaint to be filed in response to a motion to dismiss, thus recognizing that some motions to dismiss may be "wasted" in the way that Defendant's was here. Defendant's argument is further undercut by the fact that the body of Defendant's initial moving brief was less than eight full pages long. (ECF No. 4-3). Nor is the Court persuaded that Defendant was prejudiced by having to respond to the motion to amend on a shorter briefing schedule than it would have had on a motion to dismiss (ECF No. 13 at 4 n.1), both because Defendant's briefing reflects a thorough examination of the issues and because Defendant never requested an extension of time. Finally, contrary to Defendant's argument (ECF No. 15-1 at 2), Defendant was not prejudiced by Plaintiff filing a reply brief (ECF No. 14) because the Court herein considers Defendant's sur-reply that, at seven pages, does not constitute a substantial waste of resources. To the contrary, as set forth below, in only five relatively short briefs, the parties have enabled the Court to adjudicate fully both the merits of Defendant's motion to dismiss and the viability of Plaintiff's PAC.
"To evaluate futility, [the Court] appl[ies] the same standard of legal sufficiency as would be applied to a motion to dismiss under Rule 12(b)(6)."
The Court addresses each of MBUSA's futility arguments in turn.
First, MBUSA contends Plaintiff cannot bring a claim for wrongful termination under 42 U.S.C. § 1981 because, as an at-will employee with no contractual right not to be terminated, Plaintiff's termination did not interfere with Plaintiff's contractual rights. (ECF No. 13 at 5-7). Section 1981 states that "[a]ll persons within the jurisdiction of the United States shall have the same right in every State and Territory to make and enforce contracts . . . as is enjoyed by white citizens[.]" 42 U.S.C. § 1981(a). "Make and enforce contracts" includes "the making, performance, modification, and termination of contracts, and the enjoyment of all benefits, privileges, terms, and conditions of the contractual relationship."
Although no Third Circuit case directly addresses MBUSA's argument, the great weight of authority within this circuit and in other circuits holds that terminating an at-will employee on the basis of racial discrimination is actionable under § 1981. See
Second, MBUSA argues Plaintiffs second claim under § 1981 for national origin discrimination is futile because there is no such claim under § 1981. (ECF No. 13 at 7-9). The Court agrees that the only proper claim under § 1981 is for racial discrimination. See
Finally, MBUSA argues Plaintiff's § 1981 claim is futile because he has not alleged facts that give rise to an inference of discriminatory intent. (ECF No. 13 at 10-12). The Court disagrees.
"[T]he substantive elements of a claim gilder section 1981 are generally identical to the elements of an employment discrimination claim under Title VII."
The fact that Plaintiff, an African-American man, was replaced by Klube, a white, ethnically German man who was allegedly less qualified than Plaintiff is sufficient to give rise to an inference of intentional discrimination at this early stage of the litigation.
Accordingly, the PAC's racial discrimination claim under § 1981 is not futile.
For the reasons discussed above, MBUSA's motion to dismiss (ECF No. 4) is GRANTED, and Plaintiff's motion to amend (ECF No. 12) is GRANTED as to the claim alleging racial discrimination but DENIED as to the claim alleging national origin discrimination.
Plaintiff will be granted fourteen (14) days from the date of this Opinion to file an Amended Complaint omitting the national origin discrimination claim in the PAC. If appropriate, Plaintiff may include factual allegations underlying the purported national origin discrimination claim in support of his racial discrimination claim, in accordance with this Opinion.
An appropriate Order accompanies this Opinion.
Nor is the Court persuaded by MBUSA's argument in the sur-reply (ECF No. 15-1 at 3-4) that the Third Circuit's decision in