Castillo v. Taco Bell of America, LLC

960 F. Supp. 2d 401, 2013 WL 1120829, 2013 U.S. Dist. LEXIS 37165
CourtDistrict Court, E.D. New York
DecidedMarch 18, 2013
DocketNo. CV 12-3786
StatusPublished
Cited by13 cases

This text of 960 F. Supp. 2d 401 (Castillo v. Taco Bell of America, LLC) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Castillo v. Taco Bell of America, LLC, 960 F. Supp. 2d 401, 2013 WL 1120829, 2013 U.S. Dist. LEXIS 37165 (E.D.N.Y. 2013).

Opinion

MEMORANDUM AND ORDER

WEXLER, District Judge.

Plaintiff Agustine Castillo (“Plaintiff’ or “Castillo”) commenced this case individually, and on behalf of a similarly situated class of individuals. The complaint seeks overtime compensation pursuant to the Fair Labor Standards Act, 29 U.S.C. § 207 (the “FLSA”), and a parallel provision of New York State law. Defendants are Taco Bell of America, LLC and Taco Bell Corp. (collectively “Defendants” or “Taco Bell”). Presently before the court is Defendants’ motion, pursuant to Rule 12(b)(6), to dismiss the class/eolleetive claims without prejudice to Plaintiff pursuing an individual action or, in the alternative to stay the putative class claims pending the final outcome of a collective action being pursued in the United States District Court for the District of Colorado.

BACKGROUND

I. The Parties and the Allegations of the Complaint

Plaintiff is a citizen of the State of New York. Defendant Taco Bell of America, LLC is a limited liability corporation existing under the laws of the State of Delaware with its principle place of business in the state of Kentucky. Defendant Taco Bell Corp. is a California corporation with its principle place of business in that state. Defendants are alleged to operate a chain of approximately 1,240 restaurants throughout the United States.

Plaintiff was employed as an assistant general manager at a company-owned Taco Bell restaurant located in Bay Shore, New York. The complaint defines a “com[403]*403pany-owned” restaurant as a restaurant that is owned and operated by Defendants, as opposed to Taco Bell restaurants that are operated by independent franchisees. Plaintiff was employed by Taco Bell from September 9, 2009 through March 23, 2011. His claim in this matter is for the period of time from approximately May 4, 2010 until approximately March 23, 2011.

Plaintiff describes the duties of an assistant general manager (“AGM”) as including bussing tables, cooking, checking inventory, cleaning, cashiering and helping customers. He states specifically that his AGM duties did not include hiring, firing, scheduling and/or disciplining of other employees. Plaintiff alleges that his AGM duties were substantially similar to those of Taco Bell employees who are not exempt from the overtime provisions of law. Accordingly, Plaintiff alleges that he and similarly situated AGM’s were wrongfully denied payment of overtime compensation when they worked in excess of forty hours per week. The failure to pay such compensation is alleged to violate both the FLSA and a parallel provisions of the New York State Labor Law.

II. The Colorado Action

In 2010, prior to commencement of this 2011 action, the same attorney representing Plaintiff Castillo commenced a collective/class action in the United States District Court for the District of Colorado. That action was commenced individually, and on behalf of a all Taco Bell AGM’s seeking the payment of overtime compensation pursuant to the FLSA and Colorado state law. See Whittington v. YUM! Brands, Inc., Taco Bell of America, Inc. And Taco Bell Corp., No. 10-1884 (REB-MEH) (“Whittington ” or the “Whittington Action”). Like this action, the Whittington Action seeks the payment of overtime compensation for AGM’s employed at Taco Bell restaurants. The class period in Whittington is defined to include AGM’s employed from August 4, 2007, through entry of judgment in that case. Plaintiff in Whittington describes her AGM duties to include and exclude the same duties set forth by Plaintiff, as described above, in this matter. Thus, the duties of an AGM are defined in Whittington to include bussing tables, cooking, checking inventory, cleaning, cashiering and helping customers, and to exclude hiring and firing of other employees.

On January 10, 2012, Whittington was conditionally certified as an FLSA collective action by the Colorado court. Shortly thereafter, on February 22, 2012, notice of the action was sent to 4,000 potential class members. The Whittington court set May 12, 2012, as the date by which potential plaintiffs could opt-in to that action. As of that date, there were approximately 400 individuals who opted to be a part of the Whittington plaintiff class. Pursuant to discussions and an agreement among counsel, Taco Bell agreed to accept additional opt-in plaintiffs in the Whittington Action after the May 21, 2012 cut-off date, until June 8, 2012. The parties in the Whittington Action are engaged in discovery, which is set to be concluded by May 21, 2013.

III. Plaintiff’s Attempt to Opt-in to Whittington and This Action

Plaintiff states that Taco Bell refused to allow him to opt-in to the Whittington Action after the extended agreed upon cutoff date of June 8, 2012. Taco Bell characterizes Plaintiff as “electing” not to opt-in to Whittington. The court accepts Plaintiffs version of the facts for the purpose of this motion, but notes that Taco Bell has now made clear that Plaintiff, and the two individuals who have opted into this lawsuit may join as a part of the plaintiff class in Whittington. In any event, on July 30, 2012, after Plaintiff either elected, or was [404]*404refused entry into the Plaintiff class in Whittington, he commenced this action.

TV. The Motion

Taco Bell moves to dismiss Plaintiffs collective /class action complaint without prejudice to pursuing an individual action, or in the alternative to stay the putative class claims pending the outcome of Whittington. In support of the motion, Taco Bell argues that because this matter is substantially duplicative of the Whittington Action, dismissal is appropriate pursuant to the first-filed action rule. Plaintiff opposes the motion on the ground that the first filed rule has no application because the plaintiffs in this action differ from those in Whittington. After outlining applicable law, and upon consideration of the facts set forth above in light of that law, the court will decide the merits of the motion.

DISCUSSION

I. General Principles: First Filed Rule

The “first-filed” rule stands for the general proposition “where there are two competing lawsuits, the first suit should have priority .... ” Wyler-Wittenberg v. MetLife Home Loans, Inc., 899 F.Supp.2d 235, 243 (E.D.N.Y.2012), quoting, First City Nat. Bank and Trust Co. v. Simmons, 878 F.2d 76, 79 (2d Cir.1989) (citations omitted). Pursuant to this rule, a district court has broad discretion to dismiss a lawsuit that is duplicative of a prior action. Byron v. Genovese Drug Stores, Inc., 2011 WL 4962499 *2 (E.D.N.Y.2011). This discretion arises from the court’s power to administer its docket to conserve judicial resources, and to promote the efficient and comprehensive disposition of cases. Id., see Curtis v. DiMaio, 46 F.Supp.2d 206, 214 (E.D.N.Y. 1999), aff'd., 205 F.3d 1322 (2d Cir.2000); Wyler-Wittenberg, 899 F.Supp.2d at 242-44.

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960 F. Supp. 2d 401, 2013 WL 1120829, 2013 U.S. Dist. LEXIS 37165, Counsel Stack Legal Research, https://law.counselstack.com/opinion/castillo-v-taco-bell-of-america-llc-nyed-2013.