Canterbury v. Dick

385 F. Supp. 1004, 1973 U.S. Dist. LEXIS 15154
CourtDistrict Court, S.D. Texas
DecidedJanuary 30, 1973
DocketCiv. A. 70-V-26
StatusPublished
Cited by3 cases

This text of 385 F. Supp. 1004 (Canterbury v. Dick) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Canterbury v. Dick, 385 F. Supp. 1004, 1973 U.S. Dist. LEXIS 15154 (S.D. Tex. 1973).

Opinion

MEMORANDUM AND ORDER

OWEN D. COX, District Judge.

Plaintiffs, Jack Canterbury and others, former employees of Defendants Albert Dick and C. E. Erwin, d/b/a Bayer’s Shell Service, have brought suit to recover unpaid minimum wages and overtime compensation for labor performed during the period from December 22, 1967, to November 28, 1970. Defendants have admitted by their original answer that their employees were, during said period, engaged in commerce and were employed by an enterprise engaged in commerce.

The Plaintiffs contend Fair Labor Standards Act coverage, the primary ground being that Bayer’s Shell Service was a commercial truck stop as defined by the Act and the regulations promulgated by the Secretary of Labor, and thus not entitled to exemption from the Act as a retail filling station under 29 U.S.C. § 213(a)(2). In the alternative, Plaintiffs contend that Defendants’ operations constituted an enterprise engaged in commerce as defined in 29 U.S.C. § 203(s)(1).

First, we’ll discuss the physical assets of the service station as it existed during the period of time here in question. It was located at the juncture of U.S. Highways 77 and 59 south in the City of Victoria, Texas. These were major traffic arteries carrying interstate traffic. It had ten gasoline pumps in the front of the station and two Diesel pumps in the rear. It was not associated with a restaurant or with a motel or with any other similar facility. It advertised coffee for truckers, but the coffee was available for all customers. Its restrooms were air-conditioned and this service was advertised. But, there were no showers available for the drivers, nor places for the drivers to sleep. It had no garage or repair shop, and the employees made no significant repairs to vehicles of customers, although the employees have called for mechanics to assist truckers upon request. The only special equipment was for changing truck tires. It offered no specialized services other than the sale of motor fuels.

The front of the filling station along the highway, although perhaps broader than many, was a ten-pump station to serve automobiles, small trucks, pickups, and the sort, and, generally speaking, gave the appearance of the ordinary retail filling station.

As to the pumps in the rear of the station building, originally one pump was for regular gas and the other for Diesel. But, in recent years, that is, the last two or three, both pumps have dispensed Diesel fuel, and it was here that the large trucks, five axle and better, were fueled, oiled, and tires changed when necessary. Two customers parked trucks on the premises in the back of the station, and perhaps seven trucks were parked there from time to time. The station advertised Diesel fuel by large signs. These two pumps in the rear could service the trucks without interfering in any way with the normal routine service that *1006 was given vehicles at the pumps in the front area of the filling station.

The station advertised Diesel fuel by large signs and also Coca-Cola. There were other signs indicating it was a Ryder fuel stop. As a Ryder, fuel stop, the station handled Ryder rental trucks, and there was no discount in connection with such business, but there was a discount granted to the trucking groups that used the station.

Secondly, we need to review the operations of the service station. The Plaintiffs were involved in doing the work called for. More than fifty percent of the station’s sales was gasoline, and less than fifty percent of its sales was Diesel fuel, and it offered a rebate or a discount on all sales of gasoline or Diesel fuel. The Diesel pump price had been 32.5^ but later 33 0, and the sale of that fuel carried a discount of 50 and later carried one of 60 for all sales over 25 gallons. This discount was also applicable to gasoline. However, it is well to note here that while Diesel truck purchases averaged about 150 gallons, the passenger car tank usually doesn’t hold much more than 20 gallons, and the average gasoline purchases are less than a full tank.

The rebate above referred to ranged from two to six percent per gallon, depending on the market conditions, and was generally paid directly to the driver of the vehicle, whether the sale was a cash sale or on credit. Bayer’s Shell Service had approximately thirty credit customers, other than credit cards, most of which were light or short accounts. There was no additional or special discount to fleet accounts, other than the rebate or discount which has already been mentioned. There were some retail Diesel sales, but the large truck Diesel customers have increased in number during the past years.

The Diesel trucks had an oil capacity of approximately 48 quarts, while the , ordinary automobile or small truck had an oil capacity of 5 quarts. So, it seems obvious more oil was sold to the Diesel trucks than to other customers.

The filling station had cards printed which advertised air-conditioned restrooms and free coffee to truck drivers, and obviously these cards were to solicit truck business. The station sold innertubes for truck tires and also hand-cleaner, flashlights, cushions, and flashers.

It was open 24 hours a day and serviced trucks, tourists, and persons in the neighborhood. It had account customers, other than oil company credit-card holders, which were mostly commercial, ■ rather than passenger-car customers. The sales to private passenger automobiles were not insignificant.

The Court, having discussed the physical property of Plaintiffs and their operations and made findings of fact relating thereto, now must be concerned with the question of whether or not Defendants’ service station is a retail establishment. ,We must keep in mind that the burden is on the employer to bring his employees within the scope of the exemption; and, the exemptions are to be narrowly construed against the employer. Arnold v. Ben Kanowsky, Inc., 361 U.S. 388, 393, 80 S.Ct. 453, 4 L.Ed.2d 393 (1959).

If Bayer’s Shell Service is a retail establishment, then Defendants are exempt from the Act by virtue of the provisions of 29 U.S.C. § 213(a)(2). To answer this quesion, we will first refer to the pamphlet designated “Part 779 — The Fair Labor Standards Act, as Applied to Retailers of Goods for Services,” consisting of regulations promulgated by the Administrator, and in evidence as Plaintiffs’ Exhibit 1. The Administrator’s regulations, while not binding on the courts, are entitled to careful consideration and considerable weight. Skidmore v. Swift & Co., 323 U.S. 134, 65 S.Ct. 161, 89 L.Ed. 124 (1944); Wirtz v. Keystone Readers’ Service, Inc., 418 F.2d 249 (5th Cir. 1969).

Section 779.312 of the pamphlet defines “retail or service establishment” as “an establishment 75 per centum of *1007

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385 F. Supp. 1004, 1973 U.S. Dist. LEXIS 15154, Counsel Stack Legal Research, https://law.counselstack.com/opinion/canterbury-v-dick-txsd-1973.