Denny's, Inc. v. Cake

364 F.3d 521 (2004)

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Denny’s, Inc. v. Cake

United States Court of Appeals for the Fourth Circuit
364 F.3d 521 (2004)

  • Written by Rose VanHofwegen, JD

Facts

California officials (defendants) notified South Carolina-based restaurant chain Denny’s, Inc. (plaintiff) that its vacation-pay practices violated California labor law. Denny’s sued in South Carolina federal court for a declaration that the federal Employee Retirement Income Security Act (ERISA) preempted California state law and to enjoin the officials from enforcing those laws against Denny’s. Shortly thereafter, the officials sued Denny’s in California state court and moved to dismiss the federal lawsuit, arguing the federal court lacked personal jurisdiction over them or that the Anti-Injunction Act (AIA) and abstention doctrine compelled dismissal. The federal court dismissed, reasoning it lacked personal jurisdiction over the officials. Denny’s appealed.

Rule of Law

Issue

Holding and Reasoning (Motz, J.)

Concurrence (Williams, J.)

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