Arunachalam v. Shori Services, LLC

CourtDistrict Court, D. Maryland
DecidedMarch 26, 2024
Docket8:23-cv-00046
StatusUnknown

This text of Arunachalam v. Shori Services, LLC (Arunachalam v. Shori Services, LLC) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Arunachalam v. Shori Services, LLC, (D. Md. 2024).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MARYLAND (SOUTHERN DIVISION)

KALIYAMOORTHY ARUNACHALAM, ) ) Plaintiff, ) ) v. ) Civil Case No. GLS-23-0046 ) SHORI SERVICES, LLC, et al., ) ) Defendants. ) __________________________________________)

AMENDED MEMORANDUM OPINION

Pending before the Court1 are the following: (1) “Defendants’ Motion to Dismiss (FRCP 12(b)(6)” and memorandum in support thereto (“Motion to Dismiss” or “the Motion”) (ECF Nos. 29, 29-1), filed by Defendants Shori Services, LLC and Arokiyaselvam Ganapakasam; (2) an “Opposition to Defendants’ Motion to Dismiss” (“Plaintiff’s Opposition”) (ECF No. 30), filed by Plaintiff Kaliyamoorthy Arunachalam; and (3) the “Defendants’ Reply to Plaintiff’s Opposition to Motion to Dismiss” (“Reply”) (ECF No. 33). The issues raised by the Motion to Dismiss have been fully briefed and no hearing is necessary. See Local Rule 105.6 (D. Md. 2023). For the reasons set forth below, the Court will DENY Defendants’ Motion. I. BACKGROUND A. Procedural Background On January 9, 2023, Plaintiff, Kaliyamoorthy Arunachalam (“Plaintiff”) filed suit against Defendants Shori Services, LLC (“Shori”) and Arokiyaselvam Ganapakasm (“Ganapakasm”),

1 The parties have consented to the jurisdiction of this Court pursuant to 28 U.S.C. § 636(c). (ECF No. 21). collectively “the Defendants,” asserting the following causes of action: Count I, violation of the Fair Labor Standards Act (“FLSA”), 29 U.S.C. § 201 et seq., minimum wage violation; Count II, violation of the FLSA, overtime wage violation; Count III, violation of Md. Code Ann. Lab. & Empl. § 3-401 (“MWHL”), minimum wage and overtime wage violations; Count IV, violation of

the Maryland Wage Payment and Collection Law, Md. Code Ann. Lab. & Empl. § 3-501 (“MWPCL”), failure to pay wages due; Count V, breach of contract; and Count VI, unjust enrichment. (ECF No. 1, “Complaint”). Specifically, Plaintiff alleges that Defendants failed to pay him approximately $107,050 in earned minimum and overtime wages as required by federal and state law. (Id.) On January 17, 2023 and January 30, 2023, Plaintiff served summonses and the Complaint upon Defendants Ganapakasam and Shori, respectively. (ECF Nos. 8, 9). On February 7, 2023, Defendants filed a “Consent Motion to Extend Time for Defendants’ Response to Plaintiff’s Complaint.” (ECF No. 15). Thereafter, the Court granted Defendants’ Consent Motion to Extend Time, setting the deadline for Defendants to file their responsive pleading to the Complaint for

February 24, 2023. (ECF No. 24). On February 23, 2023, Defendants filed their Notice of Intent to file a motion to dismiss. (ECF No. 25). On March 10, 2023, Plaintiff filed his letter response thereto, per the Court’s order. (ECF Nos. 26, 27). On April 7, 2023, the Court granted Defendants’ request to file a motion to dismiss. (ECF No. 28). Thereafter, Defendants filed the Motion, to which they attached as an exhibit an “Operating Agreement of Shori Services, LLC” (“the Agreement”). (ECF No. 29; ECF No. 29-1, the “Agreement”). Plaintiff filed his Opposition, and Defendants filed their Reply. (ECF Nos. 30, 33). B. Factual Background2 Plaintiff was employed at Shori Services, LLC d/b/a Kaveri South Indian Restaurant (“the Restaurant”) from approximately November 2019 through June 2021. (Complaint, ¶ 1).3 On or about November 2019, Defendant Shori acquired the Restaurant. (Complaint ¶¶ 2, 7). During the

relevant time period, Defendant Ganapakasam served as the principal owner and operator of the Restaurant. (Complaint, ¶ 4). According to Plaintiff, “through its agents, owners, officers and/or members,” Defendant Shori directly “hired him, set his rate of pay, set the terms and conditions of his employment, set his schedule, directed him in the performance of his work, assigned the work, maintained employment records for Plaintiff and paid his wages.” (Id., ¶ 3). Specifically, Defendant Ganapakasam, as Shori’s agent, hired Plaintiff as a general manager, after Defendant Ganapakasam assumed ownership of the Restaurant. (Id., ¶¶ 4, 9, 11). As general manager, Plaintiff performed duties as a chef, dishwasher, and host at the Restaurant. (Id., ¶¶ 9, 48, 56). Plaintiff also helped order and maintain Restaurant supplies. (Id., ¶ 9).

Defendant Ganapakasam promised to make Plaintiff a “partner.” (Id., ¶¶ 9, 11). To that end, Defendant Ganapakasam promised to give Plaintiff “CLASS B stock” and 25% of Restaurant profits. (Id., ¶¶ 11, 52, 53). However, Plaintiff never received any profits or benefits “of an alleged partner” during his employment. (Id., ¶¶ 16, 52-54). As Plaintiff’s supervisor, Defendant Ganapakasam had the authority to fire and discipline Plaintiff and set his work schedule; Defendant Ganapakasam also maintained Plaintiff’s

2 Unless otherwise noted, the facts are taken from the Complaint, ECF No. 1, and are construed in the light most favorable to the non-moving party, Plaintiff. This Court assumes Plaintiff’s version of facts to be true. See Baltimore Scrap Corp. v. Exec. Risk Specialty Ins. Co., 388 F. Supp. 3d 574, 584 (D. Md. 2019) (“In reviewing a 12(b)(6) motion, a court must accept as true all of the factual allegations contained in the complaint and must draw all reasonable inferences from those facts in favor of the plaintiff”). 3 Plaintiff also alleges that he worked at the Restaurant since 2016 as a franchise manager, but under previous management and not for either Defendant. (Complaint, ¶ 8). employment records. (Complaint, ¶¶ 4, 9). Defendant Ganapakasam also enforced employee pay and benefits policies, which involved setting employees’ rate of pay and managing the Restaurant’s funds. (Id., ¶ 4). Defendant Ganapakasam used the Restaurant’s funds for his personal gain rather than to pay Plaintiff’s wages. (Id., ¶¶ 4, 58, 59).

During the relevant time period, Plaintiff typically worked approximately 12-14 hours per day, seven days a week. (Complaint, ¶ 12). As such, Plaintiff worked approximately 84 to 98 hours per week. (Id., ¶¶ 13, 35). Defendant Ganapakasam promised to pay Plaintiff $7,000 per month in $3,500 bi-weekly payments. (Id., ¶¶ 10, 52). However, Defendant Ganapakasam failed to maintain accurate time records, and he did not pay Plaintiff the agreed-upon amount of $7,000 per month. (Id., ¶¶ 14, 15, 22, 53). Because Plaintiff did not receive his biweekly $3,500 wages from November 2019 through October 2020, Plaintiff was at least entitled to minimum wage and overtime time wages under the FLSA, MWHL, and MWPCL. (Id., ¶¶ 21-23, 27-30, 35-37, 42-44, 48-50). However, Defendant Ganapakasam failed to pay Plaintiff any wages during that time period. (Id., ¶ 16) (emphasis in

original). In addition, in April 2021 and May 2021, Defendant Ganapakasam only paid $4,000 of Plaintiff’s wages. (Id., ¶¶ 16, 17). Thus, Defendants owe him approximately $107,050 in unpaid wages. (Id., ¶¶ 18-20, 49, 50, 54, 57-59). Plaintiff has requested that Defendant Ganapakasam pay these unpaid wages to no avail. (Id., ¶ 20). Plaintiff continued to work for Defendants without pay until he was forced to resign due to financial hardship. (Complaint, ¶¶ 18, 56-59). II. LEGAL STANDARDS A. Motion to Dismiss-12(b)(6) A defendant who files a motion to dismiss pursuant to Fed. R. Civ. P.

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