Macbagito v. PricewaterhouseCoopers LLP

Background

Charlotte Macbagito brought a self-represented action against PricewaterhouseCoopers LLP, Mizuho Securities USA LLC, and MBO Partners, Inc. She asserted claims under the Fair Labor Standards Act, the Fair Credit Reporting Act, and state law. Macbagito alleged that she had an employment relationship with the defendants while residing in Maryland; that PwC was the primary worksite employer, Mizuho was the end client, and MBO was a payroll processor; that the defendants misclassified her as an independent contractor; and that they conducted an unauthorized background check.

Venue analysis

The court applied the general federal venue statute, 28 U.S.C. § 1391. Macbagito did not provide the defendants’ addresses or allege facts showing that at least one defendant resided in the Southern District of New York and that all defendants resided in New York. Her allegation that the defendants conducted business operations there was not enough to show that the court had personal jurisdiction over them for these claims.

The court also found no facts showing that a substantial part of the events underlying the claims occurred in the Southern District of New York. Macbagito was not employed there, and she did not allege that the defendants made employment-related decisions there. The court stated that the harm was likely experienced at her residence in Annapolis, Maryland. It further concluded that venue was proper in the District of Maryland because substantial events occurred there and the defendants likely became subject to Maryland’s jurisdiction by hiring Macbagito there.

Transfer decision

The court explained that 28 U.S.C. § 1404(a) permits transfer to another district where the case could have been brought when transfer would serve the convenience of the parties and witnesses and the interests of justice. Applying that standard, the court found transfer appropriate because Macbagito experienced the alleged harm in Maryland, the defendants were likely subject to Maryland’s jurisdiction, and relevant documents and witnesses were reasonably expected to be there.

Disposition

The court ordered the Clerk of Court to transfer the action to the United States District Court for the District of Maryland. It stated that the transferee court would decide whether Macbagito could continue without prepaying filing fees. The court directed that no summons issue from the Southern District of New York and closed the case in that court. It also certified that any appeal would not be taken in good faith and denied permission to appeal without prepaying fees.