United States District Court, D. Nebraska
JAMES E. BACHMAN, ADELLA A. BACHMAN, ERIC J. BACHMAN, RACHEL A. BACHMAN, and MATTHEW R. BACHMAN, Plaintiffs,
JOHN Q. BACHMAN, and LEAF SUPREME PRODUCTS, LLC, Defendants.
MEMORANDUM AND ORDER
Smith Camp Senior United States District Judge.
matter is before the Court on the Motion for Preliminary
Injunction, Amended Motion for Preliminary Injunction, Motion
for Preliminary Injunction, and Second Amended Motion for
Preliminary Injunction, ECF Nos. 2, 7, 8, and 9, filed by
Plaintiffs James, Adella, Eric, Rachel, and Matthew Bachman.
Defendant Leaf Supreme Products, LLC (Leaf Supreme) filed a
response, captioned a “Motion to Deny Request for
Injunctive Relief.” ECF No. 5. For the reasons stated
below, the motions for preliminary injunctive relief will be
denied; Leaf Supreme's motion will be denied as moot, and
the parties will be ordered to show cause as to why this case
should not be stayed pending the resolution of parallel state
following facts are based on the pleadings, evidence, and
arguments submitted in support of the parties' various
Supreme is a Nebraska limited liability company formed in
June 2016. Defendant John Q. Bachman is a member and majority
owner of Leaf Supreme. The remaining members are three
minority shareholders who are not parties to this action.
Plaintiffs have been Leaf Supreme's only employees.
Plaintiffs assert that from October 1, 2016, to present, they
have not been paid any wages. Plaintiffs allege that John Q.
Bachman ordered that no wages would be paid until Leaf
Supreme had sufficient cash flow. Plaintiffs claim that
during the relevant period, each of them worked over 50 hours
January 17, 2019, the shareholders of Leaf Supreme entered
into a Memorandum of Understanding (MOU) to sell Leaf Supreme
to Contractor Metals, LLC. Although not specified in the
Complaint, Plaintiffs appear to own or be closely associated
with Contractor Metals. Contractor Metals agreed to assume
Leaf Supreme's liabilities and agreed to immediately
contribute funds to pay Leaf Supreme's operating
expenses. The sale was set to close on February 28, 2019. Due
to disagreements about John Q. Bachman's security
interests in Contractor Metals' assets, the sale did not
March 2019, John Q. Bachman informed Plaintiffs that he
intended to close Leaf Supreme. Plaintiffs filed a wage and
hour complaint with the United States Department of Labor.
From March 1, 2019, to July 3, 2019, Plaintiffs continued
working at Leaf Supreme to prevent it from closing because
they had loaned more than $500, 000 to Leaf Supreme.
6, 2019, Leaf Supreme filed an action in the District Court
of Douglas County, Nebraska, No. CI 19-4497 (the “State
Court Action”). In the State Court Action, Leaf Supreme
asserted that James and Adella Bachman did not have
permission to continue to act as employees or managers in
Leaf Supreme's operations. On June 14, 2019, Leaf Supreme
obtained a temporary restraining order (the
“TRO”) in the State Court Action, enjoining James
and Adella Bachman from conducting business on Leaf
Supreme's behalf and requiring them to turn over their
keys and allow Leaf Supreme's owners to enter Leaf
Supreme's premises. State Court Order at 1-2, ECF No. 5,
17, 2019, James and Adella Bachman removed the State Court
Action to this Court, asserting federal question jurisdiction
because the State Court Action was “a retaliatory labor
action . . . in violation of the Fair Labor Standards
Act.” Leaf Supreme Products, LLC v. Bachman et
al., No. 8:19-cv-00261, ECF No. 1 (D. Neb. Jun. 17,
2019). The Court remanded the case because the State Court
Action itself asserted no federal question and the parties
lacked diversity of citizenship. See id., ECF Nos.
25, 2019, Plaintiffs filed this action. Plaintiffs assert
three causes of action. First, they allege Defendants failed
to pay wages in violation of the Fair Labor Standards Act
(FLSA), 29 U.S.C. §§ 206 and 215(a)(2). Second,
they allege the State Court Action is a retaliatory action in
violation of the FLSA, 29 U.S.C. § 215(a)(3). They seek
back wages and other damages for both FLSA claims. Third,
they allege unjust enrichment based on Defendants'
alleged breach of the MOU after Contractor Metals contributed
funds for Leaf Supreme's operation.
to Plaintiffs, the Douglas County District Court re-entered
the TRO on July 3, 2019. In their pending Motions, the
Plaintiffs seek to enjoin “the Douglas County District
Court (CI 19-4497) until this lawsuit has been completely
adjudicated.” ECF No. 7, PageID.82. Plaintiffs also
request that the Court “[r]etain the Plaintiffs to
control of Leaf Supreme, ” place the parties in the
position they were in prior to the State Court Action,
prohibit further retaliatory action, and impose sanctions for
Defendants' alleged failure to release funds held by
Security National Bank. Plaintiffs request an emergency
Court has reviewed the pleadings, evidence, and the
parties' arguments, and concludes that a hearing on this
matter is unnecessary at this time and that the motions
appearing at ECF Nos. 8 and 9 should be denied.