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Haller v. Advanced Industrial Computer Inc.

Citations: 13 F. Supp. 3d 1027; 2014 WL 1356242; 2014 U.S. Dist. LEXIS 47750Docket: No. CV-13-02398-PHX-DGC

Court: District Court, D. Arizona; April 7, 2014; Federal District Court

Narrative Opinion Summary

In this case, a California corporation, AIC, faced a lawsuit filed by former employee Mr. Haller and his spouse in Arizona. The plaintiffs alleged violations of the Arizona Civil Rights Act, Title VII, breach of contract, unjust enrichment, breach of good faith and fair dealing, and sought damages under A.R.S. 23-355. The court was presented with a motion for judgment on the pleadings filed by AIC concerning claims three through six of the amended complaint. The court granted the motion, determining that AIC was not a party to the agreement in question, thus precluding liability for breach of contract and unjust enrichment. The court found no factual basis to support claims of AIC acting as an alter ego of another company involved in the agreement. The plaintiffs did not follow the procedural requirements to amend their complaint but were granted leave to amend by the court. The motion also addressed the lack of allegations supporting claims under A.R.S. 23-355 and breach of the covenant of good faith and fair dealing. Consequently, the court granted the motion, allowing plaintiffs an opportunity to amend their complaint while denying the request for oral argument, as the issues had been sufficiently briefed.

Legal Issues Addressed

Alter Ego and Piercing the Corporate Veil

Application: The plaintiffs' argument that AIC was bound by the Agreement as an alter ego of T-Win was dismissed due to a lack of allegations regarding T-Win or corporate veil piercing.

Reasoning: The first amended complaint does not reference T-Win or assert that AIC is T-Win’s alter ego, leading to a dismissal of the plaintiffs' alter ego argument as unpersuasive.

Breach of Contract Claims

Application: To establish a breach of contract claim, a plaintiff must demonstrate a contractual relationship with the defendant; AIC was not a party to the Agreement, and thus, it was not liable for breach of contract.

Reasoning: To establish a breach of contract claim, a plaintiff must demonstrate a contractual relationship with the defendant, meaning non-parties cannot be held liable.

Breach of the Covenant of Good Faith and Fair Dealing

Application: The court dismissed the claim for breach of the covenant of good faith and fair dealing due to lack of allegations that AIC hindered Mr. Haller from receiving benefits from the Agreement.

Reasoning: The Defendant counters that no facts have been alleged showing it prevented Mr. Haller from receiving the Agreement's benefits and notes it is not a party to the Agreement, negating any obligation to provide the shares or breach the covenant.

Consideration of Evidence in Motions

Application: The court emphasized that it cannot consider evidence outside the pleadings unless treating the motion as one for summary judgment, which requires the opportunity for all parties to present pertinent material.

Reasoning: The court clarified that it cannot consider evidence outside the pleadings unless treating the motion as one for summary judgment, which would require the opportunity for all parties to present pertinent material.

Federal Rule of Civil Procedure 15(a)(2)

Application: The plaintiffs failed to properly move to amend their complaint under Rule 15(a)(2), but the court allowed amendment at its discretion.

Reasoning: Under Federal Rule of Civil Procedure 15(a)(2), amendment requires either consent from the opposing party or the Court’s permission, along with a copy of the proposed amended complaint.

Judicial Notice of Public Records

Application: The court can take judicial notice of undisputed public records, including documents from federal or state courts, without converting the motion into one for summary judgment.

Reasoning: The Court can take judicial notice of undisputed public records, including documents from federal or state courts, without altering the motion.

Liability under A.R.S. 23-355

Application: AIC was not considered an employer under A.R.S. 23-355 as the plaintiffs failed to provide factual allegations demonstrating AIC as Mr. Haller’s employer.

Reasoning: Plaintiffs have not provided factual allegations demonstrating that AIC was Mr. Haller’s employer, thus precluding liability for A.R.S. 23-355.

Motion for Judgment on the Pleadings under Rule 12(c)

Application: The court granted the motion for judgment on the pleadings by taking all allegations in the non-moving party's pleadings as true and determining that the moving party is entitled to judgment as a matter of law.

Reasoning: The court established that, under Rule 12(c), a motion for judgment on the pleadings is granted when the moving party is entitled to judgment as a matter of law, taking all allegations in the non-moving party's pleadings as true.

Unjust Enrichment

Application: The claim for unjust enrichment was dismissed because AIC, not being a party to the Agreement, did not enrich itself improperly at the expense of the plaintiffs.

Reasoning: The defendant contends that the claim fails due to the presence of justification since it was not a party to the agreement and thus did not act improperly.