Summary
The United States District Court for the Western District of Washington grants John Milito’s motion to remand a putative class action against Wizards of the Coast LLC and Hasbro Inc. to King County Superior Court. The court concludes that Milito failed to plead a concrete injury sufficient to establish Article III standing, and that the defendants’ proposed counterclaim could not establish federal jurisdiction. The court also explains that a recent Washington Supreme Court decision concerning the meaning of “job applicant” under Washington’s Equal Pay and Opportunities Act does not alter the federal standing analysis.
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Practice areas
Questions Presented
- Whether Milito adequately alleged an injury in fact sufficient to establish Article III standing and federal subject matter jurisdiction.
- Whether Defendants' proposed counterclaim under the Declaratory Judgment Act could supply original federal jurisdiction.
- Whether the action had to be remanded to state court because the federal district court lacked subject matter jurisdiction.
Holdings
- Milito failed to allege a concrete and particularized injury in fact. Allegations that he lost time, was unable to evaluate compensation, and suffered conclusory economic and noneconomic harm were insufficient because the complaint did not allege actual harm resulting from the nondisclosure.
- Branson's interpretation of who qualifies as a statutory 'job applicant' did not eliminate the separate requirement that a plaintiff establish an injury in fact for Article III purposes.
- A counterclaim, including a proposed counterclaim under the Declaratory Judgment Act, cannot supply original federal jurisdiction over the plaintiff's civil action.
Key quotations
“But a plaintiff must still show an injury-in-fact for Article III purposes.” (at 8)
“A counterclaim is irrelevant to whether the district court had ‘original jurisdiction’ over the civil action.” (at 9)
“Federal courts are courts of limited jurisdiction, and “[i]f at any time before final judgment it appears that the district court lacks subject matter jurisdiction,” the case must be “remanded” to state court.” (at 9)
Factual background
Milito applied for a job opening with Wizards of the Coast LLC and Hasbro Inc. in King County, Washington. He alleged that the job posting did not disclose the wage scale or salary range and that he completed the application without learning the rate of pay, losing time and impairing his ability to negotiate compensation. He sought to represent a putative class of more than forty similarly situated applicants.
Procedural history
John Milito filed a putative class action in King County Superior Court alleging that Defendants violated Washington's Equal Pay and Opportunities Act by failing to disclose the wage scale or salary range in a job posting. Defendants removed the case to federal court. After staying the case pending the Washington Supreme Court's decision in Branson, the district court granted Milito's motion to remand because the complaint failed to allege a concrete injury sufficient for Article III standing.
Remand instructions
The case is remanded to King County Superior Court for further proceedings.