Bermejo Sanango v. Ruby Nails Tarrytown, Inc.

District Court, S.D. New York·Decided March 30, 2023·No. 7:20-cv-08245·Unknown

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK MARIA CONCEPCION BERMEJO SANANGO, on her own behalf and on behalf of others similarly situated, Plaintiffs, OPINION AND ORDER

-against- 20-CV-08245 (PMH) RUBY NAILS TARRYTOWN, INC. (d/b/a Ruby Nail) and MI YOUNG KAL, Defendants. PHILIP M. HALPERN, United States District Judge: Maria Concepcion Bermejo Sanango (“Plaintiff”) commenced this action against Ruby Nails Tarrytown, Inc. (“Ruby Nail”), Mi Young Kal (“Kal”), and Edwin Keh (“Keh” and together, “Defendants”) on October 4, 2020, pressing claims under the Fair Labor Standards Act (“FLSA”) and New York Labor Law (“NYLL”). The claims arose from Defendants’ alleged failure to pay minimum wage, overtime compensation, and spread-of-hours pay, as well as various record- keeping violations. (Doc. 1). Pending before the Court is Plaintiff’s application for a default judgment against Ruby Nail.1 (Doc. 106). For the reasons set forth below, Plaintiff’s motion for default judgment against Ruby Nail is GRANTED and Plaintiff is awarded damages, attorneys’ fees, and costs as set forth herein.

1 Plaintiff initially sought a default judgment against Defendants Ruby Nail and Keh, but subsequently moved to dismiss Defendant Keh on February 2, 2023 pursuant to Fed. R. Civ. P. 41(a). (Doc. 113, Doc. 114). The Court granted Plaintiff’s motion to dismiss Defendant Keh on February 3, 2023, and as such, Plaintiff’s default judgment application proceeds only against Defendant Ruby Nail. (Doc. 116). BACKGROUND Plaintiff effected personal service of the Summons and Complaint upon Defendants on October 23, 2020. (Doc. 7, Doc. 8, Doc. 9). On November 10, 2020, counsel for Defendants filed an appearance in this action. (Doc. 10). Defendants, after one extension, filed an Answer to the

Complaint on December 1, 2020. (Doc. 11, Doc. 12, Doc. 14). Counsel for all parties appeared for an initial conference on January 12, 2021 and a Civil Case Discovery Plan and Scheduling Order was entered thereafter. (Doc. 17). On June 1, 2021, Defendants’ counsel moved to withdraw from the case in light of Kal’s forthcoming bankruptcy filing. (Doc. 23). The Court granted that motion on June 23, 2021, and directed Defendants to retain new counsel within thirty days. The Court further directed that should Defendants fail to retain new counsel, then Defendants Kal and Keh shall proceed pro se, and Plaintiff may seek a default judgment against Ruby Nail as a corporation may only appear in federal court through a licensed attorney. (Doc. 27). Defendant Kal filed a Chapter 7 bankruptcy case in the U.S. Bankruptcy Court for the Eastern District of New York on August 7, 2021 and all claims against her were automatically

stayed pursuant to 11 U.S.C. § 362. (Doc. 45, Doc. 46). The Court, pursuant to the Civil Case Discovery Plan and Scheduling Order, held a case management conference on November 4, 2021. (Doc. 51). Only counsel for Plaintiff appeared. (Id.). Neither Defendants nor counsel for them appeared. (Id.). The Court set another case management conference for November 23, 2021 and ordered that should Keh fail to appear at that conference as well, the Court would hold him in default. (Id.). Defendant Keh failed to appear for the November 23, 2021 status conference and the Court directed that Plaintiff seek a Certificate of Default from the Clerk of Court as to him. (Doc. 58). On January 6, 2022, in light of the bankruptcy court’s order lifting the automatic stay, the Court lifted the stay in this action as to Defendant Kal. (Doc. 69). Plaintiff then requested, and the Clerk of Court issued, certificates of default as to each of the Defendants. (Doc. 59 (Certificate of Default as to Defendant Ruby Nail), Doc. 77 (Certificate of Default as to Defendant Kal), Doc. 80 (Certificate of Default as to Defendant Keh)). Plaintiff requested that the Court enter a default judgment against all Defendants on

February 28, 2022. (Doc. 87). On August 9, 2022, the Court denied Plaintiff’s application for default judgment without prejudice to renewal for failure to comply with Rule 4(B) and Attachment A of this Court’s Individual Practices. (Doc. 95). Plaintiff took no action in this case during the next four months and did not move to renew her application for a default judgment. The Court consequently entered an Order to Show Cause on December 2, 2022 directing Plaintiff to “show cause in writing on or before January 4, 2023 why this action should not be dismissed without prejudice for want of prosecution under Rule 41(b).” (Doc. 99). Plaintiff failed to respond to the December 2, 2022 Order to Show Cause and the case was dismissed pursuant to Rule 41(b) on January 10, 2023. (Doc. 100). Plaintiff filed a request for an extension of time to respond to the December 2, 2022 Order

to Show Cause on January 10, 2023, which the Court granted on January 11, 2023. (Doc. 101, Doc. 102). On January 18, 2023, Plaintiff filed a response to the December 2, 2022 Order to Show Cause, stating that Plaintiff’s counsel had “missed the Court’s original denial of Plaintiff’s Order to Show Cause on August 9, 2022, and failed to take steps to remedy the issues the Court identified,” and requesting that the case be reopened to allow Plaintiff to renew its default judgment application. (Doc. 104). On January 19, 2023 the Court conditionally reopened the case to permit Plaintiff to renew its default judgment application, warning that “failure to file the Order to Show Cause by January 26, 2023 will result in denial of the motion to reopen the case.” (Doc. 105). Plaintiff filed a Proposed Order to Show Cause why a default judgment should not be entered against Ruby Nail and Keh on January 20, 2023.2 (Doc. 106). The Court signed the Order to Show Cause on January 24, 2023 and directed that the Order to Show Cause be served “upon the Defendant Ruby Nail Tarrytown, Inc. by regular mail addressed to them at 423 Tarrytown

Road, Route 119, White Plains, New York 10607 and by serving copies of the foregoing upon them by way of the Office of the Secretary of State of the State of New York; and upon the Defendant Edwin Keh by personal service.” (Doc. 113). Plaintiff served Ruby Nail with a copy of the Order to Show Cause via First-Class Mail on January 31, 2023 and via the Office of the Secretary of State on February 7, 2023. (Doc. 115, Doc. 117). On February 2, 2023, Plaintiff moved to dismiss Keh from the case pursuant to Federal Rule of Civil Procedure 41(a), which the Court granted on February 3, 2023. (Doc. 114, Doc. 116). STANDARD OF REVIEW “When a party against whom a judgment for affirmative relief is sought has failed to plead or otherwise defend, and that failure is shown by affidavit or otherwise, the clerk must enter the

party’s default.” Fed. R. Civ. P. 55(a). “While a party’s default is deemed to constitute a concession of all well pleaded allegations of liability, it is not considered an admission of damages.” Cement & Concrete Workers Dist. Council Welfare Fund, Pension Fund, Annuity Fund, Educ. & Training Fund & Other Funds v. Metro Found. Contractors Inc., 699 F.3d 230, 234 (2d Cir. 2012).3 “Instead, the plaintiff bears the burden of substantiating his claim with evidence to prove the extent of damages.” Garcia v. Francis Gen. Constr. Inc., No. 20-CV-04323, 2022 WL 2698434, at *3

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Bermejo Sanango v. Ruby Nails Tarrytown, Inc., (S.D.N.Y. 2023).

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