D'Arcy v. Essential Services Intermediate Holding Corporation

CourtDistrict Court, E.D. Oklahoma
DecidedFebruary 21, 2023
Docket6:22-cv-00144
StatusUnknown

This text of D'Arcy v. Essential Services Intermediate Holding Corporation (D'Arcy v. Essential Services Intermediate Holding Corporation) is published on Counsel Stack Legal Research, covering District Court, E.D. Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
D'Arcy v. Essential Services Intermediate Holding Corporation, (E.D. Okla. 2023).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF OKLAHOMA

BRANDON D’ARCY On behalf of himself and those similarly situated,

Plaintiff, vs. Case No. 6:22-cv-00144-EFM

ESSENTIAL SERVICES INTERMEDIATE HOLDING CORPORATION D/B/A TURNPOINT SERVICES; HUNTER SUPER TECHS SERVICE CORPORATION; DOE CORPORATION 1-25; JOHN DOE 1-25,

Defendants.

MEMORANDUM AND ORDER Before the Court is Defendant Essential Services Intermediate Holding Corporation d/b/a TurnPoint Services1 (“TurnPoint”)’s Motion to Dismiss Plaintiff Brandon D’Arcy’s claims against it for lack of personal jurisdiction. Plaintiff has brought claims for violation of the Fair Labor Standards Act (“FLSA”) and for recovery of unpaid wages under the Oklahoma Protection of

1 This case originally named TurnPoint as “Doe Corporation d/b/a/ TurnPoint Services,” as reflected in the case heading. TurnPoint first identified itself as “Essential Services Intermediate Holding Corporation d/b/a/ TurnPoint Services” in its Motion to Dismiss. Labor Act (“OPLA”). Plaintiff also seeks to bring a collective class action on behalf of similarly situated individuals. For the reasons stated below, the Court grants TurnPoint’s Motion.

I. Factual and Procedural Background2

Plaintiff is an Oklahoma resident who works for Defendant Hunter Super Techs Services Corporation (“Hunter”) as an HVAC technician. Hunter is a Delaware corporation with its principal place of business in Oklahoma which provides hearing, ventilation, air conditioning, plumbing, and electrical services to customers in Oklahoma and Texas. TurnPoint is a holding company incorporated in Delaware with its principal place of business in Kentucky. It created Hunter as an independent, wholly-owned subsidiary in 2018 to acquire the assets of a preexisting business, Hunter Heat & Air, LLC. Following the merger, the general manager and most of Hunter Heat & Air, LLC’s employees continued working for Hunter, maintaining essentially the same employment and payroll practices that existed under the previous corporation.

TurnPoint has no control over the day-to-day activities of Hunter’s technicians. Neither does TurnPoint set or negotiate pay or work schedules or determine the manner in which Hunter’s technicians, including Plaintiff, are paid. TurnPoint does, however, provide Hunter access to a Kronos software payroll system, which Hunter administers on its own. For a time, paystubs from this system listed TurnPoint at the bottom instead of Hunter. This was a system error detected and corrected in April 2022. TurnPoint requires Hunter’s technicians to complete NexStar, a training

2 The following facts are taken from Plaintiff’s Complaint and considered true except when controverted by affidavit. In the case of conflicting affidavits, the Court resolves all factual disputes in Plaintiff’s favor. resource, provides advertising for Hunter,3 and regularly sends an executive to visit Hunter’s main office. The main issue of this case is Hunter’s implementation of its “piece-rate” pay policy. Under this policy, technicians are paid a percentage of the customer price of the services they provide—namely 17% of each job completed. This results in situations where technicians work

more than 40 hours a week without receiving overtime compensation, despite allegedly being nonexempt employees entitled to overtime under the FLSA. Plaintiff also alleges that Hunter failed to abide by the terms of its contract, paying technicians as little as 6% of a job, as well as reducing wages whenever technicians brought along a helper. Plaintiff brought suit against both Hunter and TurnPoint on May 10, 2022, claiming they had jointly violated the FLSA and the OPLA and seeking to initiate a class action on behalf of other technicians employed by Hunter. Soon after, TurnPoint moved to dismiss all claims against it for lack of personal jurisdiction. In support of its Motion, TurnPoint submitted the affidavit of Daniel Godbey, TurnPoint’s CFO. Godbey averred that TurnPoint had no control over Plaintiff’s

policies, training, direction of its technicians’ day-to-day activities, and was not involved in Hunter’s pay policies or administration of its payroll at all.4 In response, Plaintiff submitted his own affidavit, stating that he regularly witnessed a TurnPoint executive visit Hunter’s office and that TurnPoint’s name appeared on company policies and other documents on Hunter’s company

3 Plaintiff avers that TurnPoint required NexStar training and provided advertising for Hunter—or at least he avers that Hunter’s regional supervisor told him TurnPoint did those things. Hunter’s CFO submits his own affidavit wherein he avers that NexStar training is not required by TurnPoint, but rather is a training implemented by Hunter alone. Likewise, the regional supervisor avers that TurnPoint does not provide advertising for Hunter. However, at this stage, the Court must resolve all factual disputes in favor of Plaintiff, and TurnPoint raises no hearsay objection to Plaintiff’s statement. 4 TurnPoint also submitted two affidavits in its Reply, controverting some of Plaintiff’s averments and further detailing the ways in which TurnPoint lacks control over Hunter and its employees. app. Plaintiff also averred, “I was told by individuals who worked for Hunter Heat & Air, LLC prior to the sale of the company to TurnPoint Services, that employees were paid on an hourly basis and that TurnPoint Services implemented the piece-rate pay policy when it created Hunter Super Techs.”

II. Legal Standard Under Rule 12(b)(2) of the Federal Rules of Civil Procedure, a defendant may move for dismissal of any claim where the court lacks personal jurisdiction over that defendant. A plaintiff opposing a motion to dismiss based on a lack of personal jurisdiction bears the burden of showing that jurisdiction over the defendant is appropriate.5 “Where, as in the present case, there has been no evidentiary hearing, and the motion to dismiss for lack of jurisdiction is decided on the basis of affidavits and other written material, the plaintiff need only make a prima facie showing that jurisdiction exists.”6 Once the plaintiff makes that showing, the defendant “must present a compelling case demonstrating ‘that the presence of some other considerations would render jurisdiction unreasonable.’ ”7

“[O]nly the well pled facts of [the] plaintiff’s complaint, as distinguished from mere conclusory allegations, must be accepted as true”8—and even then, only to the extent they are uncontroverted by the defendant’s affidavits.9 “If the parties present conflicting affidavits, all

5 Fox v. Cal. Franchise Tax Bd., 443 F. App’x 354, 359 (10th Cir. 2011). 6 Wenz v. Memery Crystal, 55 F.3d 1503, 1505 (10th Cir. 1995) 7 OMI Holdings, Inc. v. Royal Ins. Co. of Can., 149 F.3d 1086, 1091 (10th Cir. 1998) (quoting Burger King Corp. v. Rudzewicz, 471 U.S. 462, 477 (1985)). 8 Wenz, 55 F.3d at 1505. 9 Shrader v. Biddinger, 633 F.3d 1235, 1248 (10th Cir.2011). factual disputes must be resolved in the plaintiff’s favor, and the plaintiff’s prima facie showing is sufficient notwithstanding the contrary presentation by the moving party.”10

III. Analysis

A. Overview of personal jurisdiction law At issue before the Court is whether it may exercise personal jurisdiction over TurnPoint as a defendant in this case.

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Bluebook (online)
D'Arcy v. Essential Services Intermediate Holding Corporation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/darcy-v-essential-services-intermediate-holding-corporation-oked-2023.