Opinion
Case No. 2:03-CV-19 ST
May 6, 2003
ORDER DENYING DEFENDANTS' MOTION TO DISMISS
On March 5, 2003, Defendants filed a Motion to Dismiss Plaintiff's Complaint on multiple grounds. On March 31, 2003, Plaintiff filed the response asserting that the defects in the Complaint had been cured with a Verified Amended Complaint, filed with the Court on April 8, 2003. In the reply, the Defendants conceded the Verified Amended Complaint cured all but one of the defects in the original Complaint. Defendants contend that the third cause of action in the Amended Complaint should be dismissed on the basis of Eleventh Amendment Immunity.
DISCUSSION
In considering a motion to dismiss under Federal Rule of Civil Procedure, Rule 12(b)(6), all well-pleaded factual allegations in the complaint are accepted as true and viewed in the light most favorable to Plaintiff as the nonmoving party. Sutton v. Utah State School for the Deaf and Blind, 173 F.3d 1226, 1236 (10th Cir. 1999). "A 12(b)(6) motion should not be granted `unless it appears beyond doubt that the plaintiff can prove no set of facts in support of his claim which would entitle him to relief.'" GFF Corp. v. Associated Wholesale Grocers, Inc., 130 F.3d 1381, 1384 (10th Cir. 1997) (quoting Conley v. Gibson, 355 U.S. 41, 45-46 (1957)). Applying the above standard, the Court will DENY Defendants' Motion to Dismiss the third cause of action for the reasons set forth below.
"The Eleventh Amendment bars a suit for damages against a state in federal court, absent a waiver of immunity by the state." Watson v. Universiy of Utah Medical center, 75 F.3d 569, 574 (10th Cir. 1996). Immunity only extends to the states and the "governmental entities that are `arms of the state.'" Id. (internal citation omitted). The Tenth Circuit has held that the University of Utah Medical Center "is an arm of the state entitled to Eleventh Amendment immunity." Id. at 577. However, the State has waived immunity "as to any contractual obligation." UTAH CODE ANN. § 63-30-5(1) (1997). Additionally, "Utah recognizes, as a general principle of contract law, that `every contract is subject to an implied covenant of good faith.'" Brown v. Weis, 871 P.2d 552, 563 (Utah Ct. App. 1994).
Plaintiff's third cause of action is for breach of employment contract and implied covenant of good faith and fair dealing. The State has clearly waived immunity for such causes of action. The Court therefore DENIES Defendants' Motion to Dismiss Plaintiff's third cause of action on the basis of Eleventh Amendment Immunity.
The Court further finds unpersuasive Defendants' argument in their reply that the third cause of action should be dismissed because the Plaintiff failed to respond to the Eleventh Amendment Immunity argument in the response. The Verified Amended Complaint was filed after the Plaintiff submitted her response and therefore the Plaintiff could not respond to the Defendants' argument. Additionally, in the Verified Amended Complaint the Plaintiff submitted what appears to be a new, third cause of action, breach of contract and the covenant of good faith and fair dealing.
The Defendants' Motion to Dismiss Plaintiff's Third Cause of Action is therefore DENIED without prejudice.
SO ORDERED.