Abbott v. Comme Des Garcons, Ltd.

CourtDistrict Court, S.D. New York
DecidedSeptember 11, 2024
Docket1:21-cv-04929
StatusUnknown

This text of Abbott v. Comme Des Garcons, Ltd. (Abbott v. Comme Des Garcons, Ltd.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Abbott v. Comme Des Garcons, Ltd., (S.D.N.Y. 2024).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK GABRIEL HERRERA, CURTIS HENNAGER, et al., individually and on behalf of all others similarly situated, DANIEL ABBOTT, ELIZABETH AMMERMAN,

AMIR AZARCON, SEAN CONWAY, BLAKE MARTIN, MADISON MURPHY, CARLIN ROLLENHAGEN, CIVIL ACTION NO. 21 Civ. 4929 (VEC) (SLC) WINSTON TOLLIVER, DAVID UNICH, DYLAN

WARMACK, FNAN YSAHAK, individually, REPORT AND RECOMMENDATION

Plaintiffs,

-v-

COMME DES GARÇONS, LTD., ET AL.,

Defendants.

SARAH L. CAVE, United States Magistrate Judge. TO THE HONORABLE VALERIE E. CAPRONI, United States District Judge: I.INTRODUCTION Before the Court in this putative collective and class action, in which thirteen Plaintiffs1 seek unpaid overtime compensation and other relief against two fashion companies and their principals, is Defendants’2 motion to dismiss certain claims in the third amended complaint (ECF No. 114 (the “TAC”)) for lack of standing and untimeliness. (ECF Nos. 127, 128 (the “Motion”)). Defendants also seek attorneys’ fees and costs under 28 U.S.C. § 1927 for having to bring the Motion. (ECF No. 128 at 18–20). For the reasons set forth below, we respectfully recommend

1 Plaintiffs are: Daniel Abbott; Elizabeth Ammerman; Amir Azarcon; Sean Conway; Curtis Hennager; Gabriel Herrera; Blake Martin; Madison Murphy; Carlin Rollenhagen; Winston Tolliver; David Unich; Dylan Warmack; and Fnan Ysahak. (ECF No. 114 ¶¶ 7–58). 2 Defendants are: Comme Des Garçons, Ltd. (“CDG”); Dover Street Market New York LLC (“DSMNY”); Elaine Beuther; and James Gilchrist. (ECF No. 114 ¶¶ 59–113). that the Motion be GRANTED IN PART and DENIED IN PART and that Defendants’ request for attorneys’ fees be DENIED. II.BACKGROUND

The factual and procedural background of this action is set forth in detail in the prior reported decisions in this action and is incorporated by reference. See Herrera v. Comme Des Garçons, Ltd., No. 21 Civ. 4929 (VEC), 2022 WL 3348099, at *1–2 (S.D.N.Y. Aug. 12, 2022) (“Herrera I”), vacated and remanded, 84 F.4th 110, 112–13 (2d Cir. 2023) (“Herrera II”). We set forth only the background pertinent to the Motion.

Plaintiffs, each of whom was employed as an assistant floor manager, floor manager, or sales manager at DSMNY, allege that Defendants misclassified them as exempt from the overtime pay requirements of the FLSA3 and NYLL4, and as a result, failed to pay them overtime. (ECF No. 114 ¶¶ 8–9, 12–13, 16–17, 20–21, 24–25, 28–29, 32–33, 36–37, 40–41, 44–45, 48–49, 52– 53, 56–57, 129–31, 217–29 (the “Overtime Claims”)). Seven of the Plaintiffs were hired before June 3, 2015: Ammerman (2014), Hennager (2013), Martin (2014), Murphy (2013), Tolliver

(2013), Unich (2013), and Warmack (before February 2015). (Id. ¶¶ 12, 24, 32, 36, 44, 48, 52). Abbott, Herrera, and Ysahak were each hired on an unspecified date in 2015. (Id. ¶¶ 9, 28, 56). Azarcon, Conway, and Rollenhagen were each hired after June 3, 2015. (Id. ¶¶ 16, 20, 40). Plaintiffs also allege that Defendants failed to provide them, at the time they were each hired, a notice containing the rate of pay and other information required by NYLL § 195(1)(a). (Id. ¶¶ 193–94, 230–33 (the “Wage Notice Claims”)). Finally, Plaintiffs allege that Defendants

3 Fair Labor Standards Act, 29 U.S.C. § 201 et seq. 4 New York Labor Law § 190 et seq. failed to provide them with each wage payment a statement containing the rates of pay and other information required by NYLL § 195(3). (Id. ¶¶ 195–96, 234–37 (the “Wage Statement Claims”)).

In support of their Wage Notice and Wage Statement Claims, Plaintiffs allege that, by failing to apprise them “of their non-exempt status, regular hourly rate, overtime rate, and regular hours and overtime hours, . . . Plaintiffs were deprived of overtime due.” (Id. ¶ 199). By failing to include the regular and overtime rate of pay and other required information in the wage notices and wage statements, Plaintiffs allege that Defendants denied them of both “the ability

to identify their wage deficiencies earlier, preventing efforts to correct the deficiency of being wrongfully deprived of overtime pay,” and “thousands of hours of overtime pay over a course of years.” (Id. ¶¶ 200–201). Had Defendants complied with NYLL §§ 195(1)(a) and (3), Plaintiffs allege that they “would have immediately realized they were entitled to overtime and would have identified the wage deficiency to Defendants and rectified it.” (Id. ¶ 201; see id. ¶ 200). Instead, “Plaintiffs labored under the false impression they were not eligible for overtime for

years.” (Id. ¶ 200). In addition, by omitting required information in the wage statements, Defendants “denied Plaintiffs the ability to track their hours worked, preventing them from seeking overtime payment for such hours.” (Id. ¶ 202). Finally, Plaintiffs contend that the deficient wage notices and wage statements enabled Defendants “to conceal their unilateral alteration of pay practices [], in furtherance of their wage theft schemes.” (Id. ¶ 203). Plaintiffs filed this action on June 3, 2021. (ECF No. 1). On August 12, 2022, the Honorable

Valerie E. Caproni granted Defendants’ motion to dismiss Plaintiffs’ Overtime Claims for failure to state a claim and declined to exercise supplemental jurisdiction over the Wage Notice and Wage Statement Claims. See Herrera I, 2022 WL 3348099. In October 2023, the Second Circuit vacated Herrera I and remanded the action. See Herrera II, 84 F.4th at 116–18. Following remand, Judge Caproni held a conference to discuss Plaintiffs’ proposed amendments, during

which Plaintiffs’ counsel argued that Plaintiffs had standing to assert the Wage Notice and Wage Statement Claims because Defendants’ omission of information from the wage notices and wage statements “caused a late payment.” (ECF No. 128-1 at 3). Judge Caproni cautioned Plaintiffs that they could not “tie that injury to the failure to have that information in the offering letter[,]” which was “not the type of damage that this Court in the Southern District and certainly the

Second Circuit, generally, have said are adequate[.]” (Id.). On March 29, 2024, Plaintiffs filed the TAC, their fourth pleading in this action. (ECF No. 114). On April 19, 2024, Defendants filed the Motion (ECF Nos. 127; 128; 128-1), on May 9, 2024, Plaintiffs filed their opposition (ECF No. 138), and on May 24, 2024, Defendants filed their reply. (ECF No. 143). Judge Caproni has referred the Motion for this Report and Recommendation. (ECF No. 120).

III.DISCUSSION A. Legal Standard To survive a motion to dismiss under Federal Rule of Civil Procedure 12(b)(6), “a complaint must allege sufficient facts . . . to state a plausible claim for relief.” Johnson v. Priceline.com, Inc., 711 F.3d 271, 275 (2d Cir. 2013) (citing Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555–56 (2007)). In assessing a motion to dismiss, the Court accepts all factual allegations in the complaint as true

and draws all reasonable inferences in the light most favorable to the plaintiffs. See Gibbons v. Malone, 703 F.3d 595, 599 (2d Cir. 2013). The Court is not required, however, “to accept as true a legal conclusion couched as a factual allegation.” Ashcroft v.

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