Cassone v. Wm. Edgar John & Associates, Inc.

185 Misc. 573, 57 N.Y.S.2d 169, 1945 N.Y. Misc. LEXIS 2193
CourtNew York Supreme Court
DecidedJuly 23, 1945
StatusPublished
Cited by3 cases

This text of 185 Misc. 573 (Cassone v. Wm. Edgar John & Associates, Inc.) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cassone v. Wm. Edgar John & Associates, Inc., 185 Misc. 573, 57 N.Y.S.2d 169, 1945 N.Y. Misc. LEXIS 2193 (N.Y. Super. Ct. 1945).

Opinion

Patterson, J.

The plaintiff instituted this action to recover for overtime compensation under and pursuant to the Fair Labor Standards Act of 1938 (U. S. Code, tit. 29, § 201 et seq.), the purpose of which is to regulate wages and hours of employment by employees engaged in interstate commerce.

[574]*574The case was tried by the court without a jury, and during the trial, the parties stipulated with respect to all of the essential facts. There remains practically no issuable fact. • The defendant was engaged in the buying, selling, storing, repairing and servicing of boats and yachts, together with engines and accessories, which boats were used exclusively as pleasure craft, the greater part of which selling and servicing was for individual owners residing in the State of New York. Pursuant to the stipulation, plaintiff’s Exhibit 7 and defendant’s Exhibit H, the total amount of the business of the defendant during both years of the period involved was $94,132.79. The business was divided as follows:

(a) The defendant bought and sold vessels registered, enrolled or licensed pursuant to the laws of the United States as pleasure craft, which vessels theretofore had been used and operated, and were capable of being used and operated, and were intended thereafter to be used and operated for pleasure purposes upon the navigable waters of the United States. This business represented 14.32% of the total business of the defendant, and 96% thereof was for the sale of such vessels, which were delivered by the defendant at its boatyard at Eye, New York, to individuals, who were residents of the State of New York, for their own use.

(b) The defendant stored for hire vessels of the type and character above specified for which it received 7.88% of its total income, and 94.75% thereof was for vessels owned and used by individuals who were resident's of the State of New York.

(e) Defendant made repairs including reconstruction of and repairs to hulls, engines, machinery and other equipment, which amounted to 53.95% of its total income, 93.5% of which was for repairs made by defendant to vessels owned and used by individuals who were residents of this State. Said vessels were delivered by each owner thereof at defendant’s boatyard, and called for by them upon completion of repairs.

(d) Defendant sold materials and accessories for use on vessels of the character specified for which it received 4.7% of its total income, 95.5% thereof having been sold and delivered to individuals who were residents of the State of New York, for their own use.

(e) As agent for a manufacturer of marine engines and parts located in a State other than New York, defendant sold or caused to be sold, engines and parts, and received commissions for said sales made direct by the manufacturer, which amounted [575]*575to 19.65% of the defendant’s total business. These engines and parts were shipped by the manufacturer thereof from the State of its location to customers located in the States of New York, New Jersey and Connecticut. Ninety-two and one-half per cent of said amount was sold to individual customers residing in the State of New York upon orders obtained in the State of New York.

On these facts, the defendant contends that it is exempt from the act because it is a retail and service establishment, the greater part of which servicing and selling is in intrastate commerce, and that in any event it was not engaged in commerce as defined by the act, that is in interstate commerce, or the production of goods for commerce.

The plaintiff contends that the defendant was engaged in interstate commerce because its business totally involved the sale, servicing, storing and repair of vessels, which of necessity had to be licensed by the United States before they could operate in navigable waters, and hence they were instrumentalities of interstate commerce.

The answer denies that the defendant was engaged in interstate commerce, and sets up two affirmative defenses.

First, that the plaintiff was employed by the defendant in an executive, administrative or professional capacity, and hence that the minimum wage and maximum hour provisions of the act did not apply to him.

Second, that the defendant was a retail and service establishment within the meaning of the act, and was therefore exempt from the provisions thereof.

Of course if the defendant was not engaged in “ commerce ”, then this action must fall. Commerce ” as defined by the act means trade, commerce, transportation, transmission, or communication among the several States, or from any State to any place outside thereof (Act, § 3, subd. [b]; U. S. Code, tit. 29, § 203, subd. [b]).

From a reading of the conceded facts one would say, having in mind our ordinary concept of what is interstate commerce, that the defendant was not engaged therein. Our highest courts, having in mind the purpose of the act, have repeatedly and consistently given the most liberal and all-inclusive interpretation and meaning as to what constitutes interstate commerce. In view of these decisions, it is rather difficult to conceive of any business or trade which is not in some degree or respect related to interstate commerce. Indeed, the court said in Walling v. Jacksonville Paper Co. (317 U. S. 564, 567): “ It is [576]*576clear that the purpose of the Act was to extend federal control in this field throughout the farthest reaches of the channels of interstate commerce.”

For instance, it has been held that the act was applicable to the employees of a cigar box factory because the boxes were intended to be.used, in part at least, for cigars to be shipped in interstate commerce. Again, the act was held applicable to the employees of an ice plant because the ice was intended to be sold for use by interstate carriers. And again, employees of an independent contractor hired to drill a well to locate oil because the oil, if discovered was intended to be moved in interstate commerce, were themselves engaged in interstate commerce. And again in the oft-cited case of Kirschbaum Co. v. Walling (316 U. S. 517) it was held that the act covered building and service employees operating an elevator in a building, the owner of which rented it to various tenants, some of whom were engaged in the production of goods for interstate commerce.

It must be borne in mind that the test of coverage is not the business of the employer, but the work of the employee. In other words, the application of the act depends upon the character of the employee’s activities.

As the court said in Kirschbaum Co. v. Walling (supra, p. 524): * But the provisions of the Act expressly make its application dependent upon the character of the employees’ activities. And, in any event, to the extent that his employees are ‘ engaged in commerce or in the production of goods for commerce,’ the employer is himself so engaged.”

The plaintiff’s work was that of a bookkeeper, to supervise the billing of customers and the collecting of accounts, to purchase materials and supplies to be used by the defendant, etc.

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Bluebook (online)
185 Misc. 573, 57 N.Y.S.2d 169, 1945 N.Y. Misc. LEXIS 2193, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cassone-v-wm-edgar-john-associates-inc-nysupct-1945.