Chavez v. Roosevelt Tropical, Corp.

District Court, E.D. New York·Decided August 21, 2024·No. 1:23-cv-02413·Unknown

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK -------------------------------------------------------------- x RUBEN CHAVEZ, REPORT AND Plaintiff, RECOMMENDATION

-against- 23-CV-2413 (EK) (PK)

ROOSEVELT TROPICAL CORP. d/b/a TROPICAL RESTAURANT and JAIME “JIMMY” ILLESCAS, individually,

Defendants. -------------------------------------------------------------- x

Peggy Kuo, United States Magistrate Judge: Plaintiff Ruben Chavez (“Plaintiff”) brought this action against Roosevelt Tropical Corp. d/b/a Tropical Restaurant (“Tropical Restaurant”) and Jaime “Jimmy” Illescas (“Illescas”) (collectively “Defendants”) for violations of the Fair Labor Standards Act (“FLSA”), 29 U.S.C. §§ 201 et seq., and the New York Labor Law (“NYLL”), N.Y. Lab. Law §§ 650 et seq. (See “Compl.,” Dkt. 1.) Plaintiff has moved for default judgment against Defendants. (“Motion,” Dkt. 21.) The Honorable Eric R. Komitee referred the Motion to me for a report and recommendation. For the reasons stated herein, I respectfully recommend that the Motion be granted in part and denied in part, as set forth below. BACKGROUND I. Factual Background The following facts are taken from the Complaint (Dkt. 1), Plaintiff’s Memorandum of Law in Support of Application for Default Judgment (“Pl. Mem.,” Dkt. 21-1), and the Declaration of Diego Barros (“Barros Decl.,” Dkt. 21-2), and are accepted as true for purposes of the Motion. See Finkel v. Romanowicz, 577 F.3d 79, 84 (2d Cir. 2009). Tropical Restaurant is a New York corporation that operates as an Ecuadorian restaurant in Woodside, New York. (Compl. ¶ 10.) In the three years prior to the filing of this suit, Tropical Restaurant had an annual gross volume of sales of at least $500,000. (Id. ¶ 13.) Illescas is the owner of Tropical Restaurant. (Id. ¶ 14.) Illescas had the power to hire and fire employees, determine rates and methods of pay, determine work schedules, and supervise work of employees, including Plaintiff. (Id. ¶ 17.) Illescas personally hired and supervised Plaintiff. (Id. ¶ 16.) Plaintiff worked for Tropical Restaurant in various capacities from approximately October

2009 to March 27, 2022. (Id. ¶¶ 18–19.) Plaintiff’s responsibilities included working as a restaurant cashier, cooking and prepping food, serving food, bussing tables, and cleaning the restaurant. (Id. ¶¶ 18–19.) Plaintiff typically began work at 11:30 a.m., and worked until 11:00 p.m., Monday through Wednesday and Friday through Sunday, i.e., a total of six days per week, sixty-nine hours per week. (Id. ¶ 20.) Plaintiff was paid a set amount on a weekly basis, regardless of the exact number of hours worked. (Id. ¶¶ 22–25; Barros Decl. ¶ 23.) From 2013 to 2016, Plaintiff was paid approximately $375 per week; from 2017 to 2018, Plaintiff was paid approximately $400 per week; and from 2019 to 2022, Plaintiff was paid approximately $500 per week. (Compl. ¶¶ 23–25; Barros Decl. ¶ 24.) II. Relevant Procedural Background Plaintiff filed the Complaint on March 29, 2023, alleging causes of action against Defendants for failure to pay minimum wages under the NYLL, failure to pay overtime wages under the FLSA and the NYLL, failure to provide spread of hours pay under Section 655 of the NYLL and the New York State Department of Labor Regulations, failure to provide wage notices under Section 195(1) of

the NYLL, and failure to provide wage statements under Section 195(3) of the NYLL. Defendants’ counsel executed waivers of service on April 6, 2023, which had been sent to Defendants on March 29, 2023, setting a deadline to respond by May 29, 2023.1 (Dkts. 8, 9.)

1 Defendants’ counsel in this action is E. Dubois Raynor, Esq. Attorney Raynor did not appear in this action on behalf of Defendants until April 29, 2024, when the Court granted his April 26, 2024 motion to appear pro hac vice. Before that, Plaintiff’s counsel made filings on Attorney Raynor’s behalf. Defendants failed to answer or otherwise respond to the Complaint. Plaintiff requested a Certificate of Default against Defendants (Dkt. 11), which the Clerk of Court entered on June 29, 2023. (Dkt. 13.) Plaintiff filed a motion for default judgment seeking a judgment against Defendants on July 27, 2023. (Dkt. 16.) On August 1, 2023, Tropical Restaurant filed a voluntary petition for bankruptcy under Chapter 11 (Dkt. 17-1), requiring an automatic stay of this action. See 11 U.S.C. § 362 (“[A] petition

filed under . . . this title . . . operates as a stay, applicable to all entities, of the commencement or continuation . . . of a judicial . . . action or proceeding against the debtor . . . .”). The bankruptcy court dismissed the petition on November 21, 2023 for failure to file a list of creditors, and the Court lifted the stay. (November 30, 2023 Order.)2 On February 23, 2024, Plaintiff’s motion for default judgment was denied based on his failure to provide proof of damages, failure to file proof of mailing of the motion to the Defendants as required by Local Rule 55.2(c), and failure to present any legal analysis to establish Defendants’ liability as a matter of law. (January 29, 2024 Report and Recommendation; February 23, 2024 Order Adopting January 29, 2024 Report and Recommendation.) Plaintiff filed a renewed motion for default judgment (the “Motion”) against Defendants on March 20, 2024. (Dkt. 21.) Defendants have not responded to the Motion. (Dkt. 20.) DISCUSSION I. Default Judgment Standard Rule 55 of the Federal Rules of Civil Procedure prescribes a two-step process for entry of a

default judgment. First, when a defendant “has failed to plead or otherwise defend,” the Clerk of Court enters the defendant’s default. Fed. R. Civ. P. 55(a). The plaintiff may then move the court for

2 Defendants refiled a voluntary petition for bankruptcy on November 30, 2023, which was dismissed on March 11, 2024 for failure to be represented by counsel. (Dkt. 21-7.). The Court was not notified of this second petition until the renewed motion for default judgment was filed. (Dkt. 21.) an entry of default judgment. Fed. R. Civ. P. 55(b)(2). “[J]ust because a party is in default, the plaintiff is not entitled to a default judgment as a matter of right.” GuideOne Specialty Mut. Ins. Co. v. Rock Cmty. Church, Inc., 696 F. Supp. 2d 203, 208 (E.D.N.Y. 2010). The court “may first assure itself that it has personal jurisdiction over the defendant.” City of New York v. Mickalis Pawn Shop, LLC, 645 F.3d 114, 133 (2d Cir. 2011) (internal quotations omitted). The plaintiff must demonstrate proper service of the summons and complaint, see Advanced Capital Commercial Grp., Inc. v. Suarez, No. 09-CV-5558

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