CRUZ v. ASPEN LANDSCAPING CONTRACTING, INC.

CourtDistrict Court, D. New Jersey
DecidedFebruary 8, 2021
Docket2:20-cv-08546
StatusUnknown

This text of CRUZ v. ASPEN LANDSCAPING CONTRACTING, INC. (CRUZ v. ASPEN LANDSCAPING CONTRACTING, INC.) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
CRUZ v. ASPEN LANDSCAPING CONTRACTING, INC., (D.N.J. 2021).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW JERSEY

ANGEL CRUZ, EMANUEL RUPERTO Civ. No. 20-8546 (KM) (JBC) LOPEZ, EUCLIDES RUPERTO MENDEZ, LUIS OBANDO, JOSE ADOLFO BARRAZA, EFRAIN OPINION MORALES, WALTER CHAVARRIA, ANGEL E. CALVA SALA, JOSE VERA VALDEZ, ANTONIO M. DA ROSA, and WILFREDO SANCHEZ

Plaintiffs,

v.

ASPEN LANDSCAPING CONTRACTING, INC., EASTERN LANDSCAPE CONTRACTORS, INC., MARIA FUENTES, and DONALD FUENTES

Defendants.

KEVIN MCNULTY, U.S.D.J.: Plaintiffs were employees of Defendant Aspen Landscaping Contracting, Inc. (“Aspen”). (Third Am. Compl. ¶23).1 In 2018, Plaintiffs commenced an action against Aspen in the Superior Court of New Jersey, Essex County

1 Citations to the record will be abbreviated as follows. Citations to page numbers refer to the page numbers assigned through the Electronic Court Filing system, unless otherwise indicated: “DE” = Docket entry number in this case. “Third Am. Compl.” = Plaintiffs’ Third Amended Complaint (DE 1, Ex. A) “Notice of Removal” = Defendants’ Notice of Removal (DE 1) (Docket No. ESX-L-8360-16) (the “State Court Action”).2 (Notice of Removal ¶2). On November 20, 2019, Aspen filed a Chapter 11 petition for relief in the United States Bankruptcy Court for the District of New Jersey (the “Bankruptcy Action”). (Notice of Removal ¶5; Third Am. Compl. ¶ 19). On February 28, 2020, Plaintiffs amended their Complaint to add Maria Fuentes, who at all relevant times was Aspen’s sole shareholder and managing officer. (Notice of Removal ¶12; Third Am. Compl. ¶16). On April 20, 2020, Aspen, Maria Fuentes, and Donald Fuentes, who at all relevant times was an equitable owner and managing officer of Aspen, entered into a Settlement Agreement regarding the Bankruptcy Action.3 (Notice of Removal ¶12; Third Am. Compl. ¶17). Among other things, that agreement “provided for a mutual release of all known or unknown claims existing at the time of the execution of the Agreement, except those claims which were enumerated in the Settlement Agreement.” (Notice of Removal ¶16). The Settlement Agreement was approved by the Bankruptcy Court on May 6, 2020. (Notice of Removal ¶20). One day prior, on May 5, 2020, Plaintiffs had filed a motion to add Donald Fuentes to the State Court Action, in the form of a Third Amended Complaint. (Notice of Removal ¶21). The Third Amended Complaint in the State Court Action also added Eastern Landscape Contractors, Inc. (“Eastern”), a successor entity formed by Defendant Donald Fuentes after his departure from Aspen. (Third Am. Compl. ¶¶ 18,43). The motion to amend was granted by the state court on May 22, 2020, and the Third Amended Complaint was filed on June 22, 2020.4 (Notice of Removal ¶22).

2 Plaintiffs filed a First Amended Complaint on July 9, 2018 and a Second Amended Complaint on September 10, 2018. (Notice of Removal ¶¶3-4). Both filings asserted claims solely against Aspen. (Id.) 3 As alleged in the Notice of Removal, “Aspen’s bankruptcy was predicated in large part upon an Order to Show Cause seeking the appointment of a custodial receiver in a two (2) party divorce disputed between [Maria] Fuentes and [Donald] Fuentes.” (Notice of Removal ¶ 6). 4 Defendant Maria Fuentes filed a motion to reconsider the order granting Plaintiffs leave to amend and file the Third Amended Complaint. (Notice of Removal Shortly thereafter, on July 9, 2020, Defendants Donald Fuentes and Eastern removed the State Court Action to the United States District Court for the District of New Jersey based on federal question jurisdiction. (Notice of Removal ¶¶25-26). (Notice of Removal ¶23). Defendant Maria Fuentes consented to the removal. (Notice of Removal ¶28). Plaintiffs now move for an order (1) granting leave to file an amended complaint; (2) remanding the matter to state court; and (3) awarding attorneys’ fees and costs. (DE 15). For the reasons stated in this opinion, I will grant Plaintiffs leave to file a Fourth Amended Complaint and will remand the matter to state court. However, I decline to impose attorneys’ fees and costs. I. Summary As alleged in the Third Amended Complaint, Plaintiffs’ employment with Aspen was governed by certain contracts, “of which plaintiffs were either signatories and/or third-party beneficiaries.” (Third Am. Compl. ¶25). Specifically, with the exception of Plaintiffs Walter Chavarria and Luis Obando, “Plaintiffs were members of unions who were intended third-party beneficiaries of their respective union’s collective bargaining agreements.” (Third Am. Compl. ¶ 26). By virtue of the relevant contracts and/or collective bargaining agreements, Aspen was required to pay its employees, including Plaintiffs, hourly wages, overtime wages, and “benefits and other renumeration . . . set forth in said contracts and/or collective bargaining agreements.” (Third Am. Compl. ¶27). However, at all relevant times including from 2006 through 2017, Plaintiffs “were routinely required to work hours for Aspen that they were not paid for, which included hours that should have been paid at overtime rates.” (Third Am. Compl. ¶28). The Third Amended Complaint in this now-removed action asserts three causes of action against Eastern, Maria Fuentes, and Donald Fuentes. (Third Am. Compl. ¶20). Upon the filing of the Bankruptcy Action, the claims against

¶25). It appears that, after removal, the motion for reconsideration has not been adjudicated. Aspen were automatically stayed. Plaintiffs therefore made clear their intention “to pursue Eastern, Mrs. Fuentes, and Mr. Fuentes only at this time.” (Id.). The First Count asserts breach of contract. (Third Am. Compl. ¶¶32-36). Plaintiffs allege that (1) Aspen was bound by contracts and/or collective bargaining agreements which “required Aspen to pay Plaintiffs specified wages,” including “additional wages for overtime worked”; (2) Aspen breached those contracts “by failing to pay Plaintiffs for all the hours they worked and by failing to pay Plaintiffs’ overtime wages”; (3) “As a result of Aspen’s breaches, Plaintiffs suffered damages”; and (4) “As a successor entity, Eastern is liable for all damages accruing to Aspen.” (Id.). The Second Count alleges a violation of the New Jersey Wage and Hour Laws (“NJWHL”), N.J. Stat. Ann. §§ 34:11-1 et seq., and asserts: (1) “At all relevant times, Plaintiffs were employees pursuant to the [NJWHL]”; (2) Aspen’s conduct violated the NJWHL; (3) “Upon filing a petition for bankruptcy, Aspen defaulted on its wages payment obligation”; (4) “By virtue of her position as Aspen’s sole shareholder and managing officer, [Maria] Fuentes is personally liable for unpaid wages, and all damages set forth in the statute”; (5) “By virtue of his position as an equitable owner and managing officer of Aspen, [Donald] Fuentes is personally liable for unpaid wages, and all damages set forth in the statute” (6) “As a successor entity, Eastern is liable for all damages accruing to Aspen”; and (7) As a result of Aspen’s conduct, “Plaintiffs have suffered damages and are entitled to relief under the [NJWHL]”. (Third Am. Compl. ¶¶ 37-44). Finally, the Third Count alleges a violation of the Fair Labor Standards Act (“FLSA”), 29 U.S.C. §§ 201 et seq., and asserts: (1) “Plaintiffs were ‘non- exempt’ employees pursuant to the [FLSA]”; (2) “Aspen was bound by the FLSA with respect to Plaintiffs employment”; (3) “Aspen’s conduct . . . violated the FLSA”; (4) “As a result of said conduct, Plaintiffs have suffered damages and are entitled to relief under the FLSA”; and (5) “As a successor entity, Eastern is liable for all damages accruing to Aspen.” (Third Am. Compl. ¶¶45-50).

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CRUZ v. ASPEN LANDSCAPING CONTRACTING, INC., Counsel Stack Legal Research, https://law.counselstack.com/opinion/cruz-v-aspen-landscaping-contracting-inc-njd-2021.