PERCY ANDERSON, District Judge.
Before the Court is a Notice of Removal filed by defendants JP Morgan Chase Bank, N.A. (erroneously sued as JP Morgan Chase Bank, Inc.) ("Chase Bank"), Jonathan Morales, D.J. Mercadel Jr., and Shaun McDougall ("Individual Defendants"). Defendants assert that this Court has jurisdiction over the action brought against them by plaintiff Lorraine McGuire ("Plaintiff") based on the Court's diversity jurisdiction.
Federal courts are courts of limited jurisdiction, having subject matter jurisdiction only over matters authorized by the Constitution and Congress.
In attempting to invoke this Court's diversity jurisdiction, Defendants must prove that there is complete diversity of citizenship between the parties and that the amount in controversy exceeds $75,000. 28 U.S.C. § 1332. To establish citizenship for diversity purposes, a natural person must be a citizen of the United States and be domiciled in a particular state.
For purposes of diversity, Plaintiff is a citizen of California; defendant JP Morgan Chase Bank is a citizen of Ohio; defendant Jonathan Morales is a citizen of California; defendant D.J. Mercadel is a citizen of California and defendant Shaun McDougall is a citizen of California. Since the Individual Defendants are citizens of California, removal is prohibited. Here, complete diversity has not been established. Even where the complete diversity requirement is met, removal is not permitted where one of the defendants is a "citizen of the State in which such action is brought." 28 U.S.C. § 1441(b). Defendants maintain that the Individual Defendants' citizenship should be ignored because they have been fraudulently joined. If a plaintiff "fails to state a cause of action against a resident defendant, and the failure is obvious according to the settled rules of the state, the joinder of the resident defendant is fraudulent."
"There is a presumption against finding fraudulent joinder, and defendants who assert that plaintiff has fraudulently joined a party carry a heavy burden of persuasion."
Defendants do not provide any evidence regarding why the Individual Defendants could not be found liable under California State law. Plaintiff's Complaint arises from an employment dispute with her employer, Chase Bank. Plaintiff alleges claims against the Individual Defendants for (1) "wrongful termination in violation of public policy"; (2) "age, race, and sex discrimination in violation of the Fair Employment and Housing Act ("FEHA")"; (3) "failure to take reasonable steps to prevent discrimination in the workplace in violation of the FEHA"; and (4) "aiding and abetting discrimination in the work place in violation of the FEHA."
The Court finds that Defendants have not met the "heavy burden of persuasion" that there is no possibility that Plaintiff may prevail on any of her claims against the Individual Defendants. While Defendants are correct that the first three causes of action can only be asserted against an employer, a harassment/hostile work environment claim can apply to individual persons. Some of the FEHA provisions, such as those involving harassment, apply to individual persons as well as employers. Cal. Gov. Code § 12940 (h)(1) (prohibiting "any other person" from harassing an employee). The discrimination provisions, however, apply only to employers.
Here, of the FEHA causes of action asserted, only the hostile work environment harassment claim can be asserted against an individual supervisor. Plaintiff's fourth cause of action for "aiding and abetting discrimination in the work place in violation of the FEHA" against the Individual Defendants alleges that the Individual Defendants contributed to "creating a hostile work environment." The California Supreme Court has stated, "acts of discrimination can provide evidentiary support for a harassment claim by establishing discriminatory animus on the part of the manager responsible for the discrimination, thereby permitting the inference that rude comments or behavior by that same manager was similarly motivated by discriminatory animus."
Defendants further argue that to the extent Plaintiff's Complaint alleges a harassment/hostile work environment claim, this theory also fails. To state a FEHA harassment claim, an employee must allege facts showing that workplace harassment was "severe enough or sufficiently pervasive to alter the conditions of employment and create a work environment that qualifies as hostile or abusive to employees."
Defendants have failed to show why it is obvious according to the settled rules of state that Plaintiffs cannot state a claim for harassment under FEHA against the Individual Defendants and have failed to show that there is not a possibility that Plaintiff may prevail on the cause of action against those in-state defendants. Thus, neither the Complaint nor the evidence submitted in support of the Notice of Removal forecloses the possibility of Plaintiff succeeding on her hostile work environment harassment claim.
Having removed this action from state court, Defendants voluntarily subjected themselves to the notice pleading standard of the Federal Rules of Civil Procedure.
Since Defendants have failed to meet their heavy burden of showing that the Individual Defendants were fraudulently joined, this action may not be removed because complete diversity is lacking and the Individual Defendants are citizens of the State in which the action is brought. Neither the "four corners" of the Complaint nor the Notice of Removal contain sufficient allegations concerning § 1332's requirements. Therefore, Defendants have not met their burden to establish this Court's jurisdiction.
IT IS SO ORDERED.