Hinkley v. Envoy Air, Inc., No. 19-10848 (5th Cir. 2020)Annotate this Case
Plaintiffs filed suit against Envoy in state court, alleging both disparate treatment and disparate impact based on age, in violation of the Age Discrimination in Employment Act (ADEA). On appeal, plaintiffs contend that the district court for the northern district erred: by sua sponte transferring this action to the western district instead of remanding it to state court; and, if remand was not required, by dismissing their Texas Labor Code claim with prejudice pursuant to Federal Rule of Civil Procedure 12(b)(6) instead of without prejudice pursuant to Rule 12(b)(1) (lack of jurisdiction).
The Fifth Circuit rejected both claims and held that removal to the incorrect judicial district is procedural error and does not divest the district court of jurisdiction over a removed action. Accordingly, plaintiffs' challenge to the district court for the northern district's transfer pursuant to 28 U.S.C. 1631 is moot, given the district court for the western district's transfer back to the northern district. The court also held that Texas Labor Code 21.202's 180-day filing requirement is mandatory but not jurisdictional. In light of this analysis, the court held that the district court, after concluding that plaintiffs failed to plausibly allege exhaustion of their mandatory administrative remedies, did not err by dismissing pursuant to Rule 12(b)(6). Furthermore, the district court did not err by dismissing with prejudice.