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Cordero v. Voltaire, LLC | 2013 WL 6415667 (2013)
It’s generally accepted that federal courts have supplemental jurisdiction over compulsory counterclaims brought in response to a plaintiff’s claim. But what about permissive counterclaims? In Cordero versus Voltaire, a magistrate judge considered whether a federal district court should dismiss a defendant’s counterclaims for lack of jurisdiction.
Carlos Cordero was the former vice-president of construction at Voltaire, where he approved the reported hours worked of numerous laborers working at Voltaire’s job sites. Cordero and four of the laborers sued Voltaire in federal district court under the federal Fair Labor Standards Act, or F L S A, to recover unpaid overtime wages. Voltaire counterclaimed based on state law, alleging that Cordero and the laborers were engaged in a fraudulent scheme to report more hours than they actually worked. Voltaire also counterclaimed for conversion and theft, alleging that Cordero and the laborers stole valuable materials and equipment from the company. Cordero and the laborers filed motions to dismiss, arguing that Voltaire’s counterclaims were permissive and lacked an independent basis for federal jurisdiction.
The district court judge referred the case to a magistrate judge to review the motions to dismiss and issue a recommendation.
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