Flores v. Act Event Services, Inc.

55 F. Supp. 3d 928, 2014 U.S. Dist. LEXIS 149466, 2014 WL 5343322
CourtDistrict Court, N.D. Texas
DecidedOctober 21, 2014
DocketCivil Action No. 3:14-CV-2412-G
StatusPublished
Cited by15 cases

This text of 55 F. Supp. 3d 928 (Flores v. Act Event Services, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Flores v. Act Event Services, Inc., 55 F. Supp. 3d 928, 2014 U.S. Dist. LEXIS 149466, 2014 WL 5343322 (N.D. Tex. 2014).

Opinion

MEMORANDUM OPINION AND ORDER

A. JOE FISH, Senior District Judge.

Before the court are the defendants’ motions to dismiss under Federal Rule of Civil Procedure 12(b)(6) (docket entries 13, 15). For the reasons stated below, the motions are granted with respect to the putative collective action and all named plaintiffs, except for Rosa Hernandez. With respect to Hernandez, the motions are denied. On its own motion, the court grants leave to amend the entire complaint no later than November 10, 2014.

I. BACKGROUND

A. Factual Background

The plaintiffs accuse the defendants, ACT Event Services, Inc. (“ACT”), Roman Luis Gaona, and Final & Touch Cleaning Services (“Final Touch”), of violating the Fair Labor Standards Act (FLSA). First Amended Collective Action Complaint (“Complaint”) ¶¶ 1, 7, 9 (docket entry 11). ACT advertises itself as a “multi-dimen-sional event and rental production company.” Id. ¶ 21. According to the plaintiffs, Gaona owns and operates Final Touch solely to provide workers for ACT.1 Id. ¶¶ 9, 22, 23. The named plaintiffs are among those individuals referred to ACT by Final Touch, d. ¶ 27.

The plaintiffs believe their interactions with both ACT and Final Touch establish an employer-employee relationship as defined in 29 U.S.C. § 203(d). See id. ¶¶28-34. To support this characterization, the plaintiffs highlight the defendants’ “substantial control over the actions of Named Plaintiffs and Collective Plaintiffs.” Id. ¶ 29. The defendants told the plaintiffs the “specific hours during which they would be expected to perform their work,” “set the pay amount” the plaintiffs would receive, and “maintained employment records” of the plaintiffs. Id. ¶¶ 29-31.

During the last three years of this relationship, the plaintiffs allege, the defendants violated the FLSA by failing to pay compensable travel time, abide by federal [932]*932minimum wage laws, and provide overtime compensation. Id. ¶¶ 45-49, 50-58, 59-68. In addition to presenting their own FLSA claims, the named plaintiffs “bring this action as a collective action for and on behalf of ... those employees similarly situated pursuant to the opt-in’ provisions of the FLSA....” Id. ¶ 19.

B. Procedural Background

The plaintiffs filed an initial complaint on July 3, 2014. Collective Action Complaint (docket entry 1). After receiving service, both defendants responded by filing motions to dismiss pursuant to Rule 12(b)(6). ACT Event Services, Ine.’s Motion to Dismiss (docket entry 6); Defendant Roman Gaona’s Motion to Dismiss (docket entry 9). The defendants argued that the complaint lacked sufficient factual allegations to establish three essential elements of an FLSA claim: (1) that the defendants qualified as the plaintiffs’ employers; (2) that the defendants were FLSA covered employers; and (3) that the defendants actually violated the FLSA. ACT Event Services, Inc.’s Brief in Support of its Motion to Dismiss at 2-4 (docket entry 7); Defendant Roman Gaona’s Brief in Support of Motion to Dismiss Plaintiffs’ Collective Action Complaint at 3-6 (docket entry 10).

The plaintiffs filed their First Amended Collective Action Complaint on August 12, 2014, rendering the above motions moot. See Order Denying Motions to Dismiss (docket entry 12). Still believing that the plaintiffs had failed to assert a claim for relief, the defendants filed new motions to dismiss. ACT Event Services, Inc.’s Motion to Dismiss Plaintiffs’ First Amended Collective Action Complaint (docket entry 13); Roman Gaona’s Motion to Dismiss Plaintiffs’ First Amended Collective Action Complaint (docket entry 15). In the briefs supporting these motions, the defendants reduce their argument to a single contention: that the amended complaint has not alleged any violation of the FLSA.2 ACT Event Services, Inc.’s Brief in Support of its Motion to Dismiss (“ACT’s Brief in Support”) at 2-3 (docket entry 14); Roman Gaona’s Brief in Support of its Motion to Dismiss (“Gaona’s Brief in Support”) at 2-3 (docket entry 16). They noted that the specific factual details in the complaint pertained only to an unnamed plaintiff— Rosa Hernandez. ACT’s Brief in Support at 3; Gaona’s Brief in Support at 3. This led the plaintiffs to add Hernandez as a named plaintiff through a notice of consent. First Notice of Filing Consents to Join Collective Action (docket entry 17).

The plaintiffs believe that this addition cured the complaint’s deficiencies. Brief in Support of Response to Roman Gaona’s Motion to Dismiss ¶ 6 (docket entry 19); Brief in Support of Response to ACT Event Services’ Motion to Dismiss ¶ 6 (docket entry 21) (collectively “Briefs in Support of Response”). However, in then-reply brief, the defendants still aver that the allegations fail to state a claim for relief. See Defendants’ Joint Reply to Plaintiffs’ Responses to Defendants’ Motions to Dismiss (“Defendants’ Reply”) (docket entry 22). The court now turns to the disposition of these motions.

II. ANALYSIS

A. Applicable Law
1. General Motion to Dismiss Standard

“To survive a Rule 12(b)(6) motion to dismiss, the plaintiff must plead ‘enough [933]*933facts to state a claim to relief that is plausible on its face.’ ” In re Katrina Canal Breaches Litigation, 495 F.3d 191, 205 (5th Cir.2007) (quoting Bell Atlantic Corporation v. Twombly, 550 U.S. 544, 570, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007)), cert. denied, 552 U.S. 1182, 128 S.Ct. 1230, 1231, 170 L.Ed.2d 63 (2008). “While a complaint attacked by a Rule 12(b)(6) motion to dismiss does not need detailed factual allegations, a plaintiffs obligation to provide the grounds of his entitlement to relief requires more than labels and conclusions, and a formulaic recitation of the elements of a cause of action will not do.” Twombly, 550 U.S. at 555, 127 S.Ct. 1955 (citations, quotation marks, and brackets omitted). “Factual allegations must be enough to raise a right to relief above the speculative level, on the assumption that all the allegations in the complaint are true (even if doubtful in fact).” In re Katrina Canal, 495 F.3d at 205 (quoting Twombly, 550 U.S. at 555, 127 S.Ct. 1955) (internal quotation marks omitted). “The court accepts all well-pleaded facts as true, viewing them in the light most favorable to the plaintiff.” Id. (quoting Martin K. Eby Construction Company, Inc. v. Dallas Area Rapid Transit, 369 F.3d 464, 467 (5th Cir.2004)) (internal quotation marks omitted).

The Supreme Court has prescribed a “two-pronged approach” to determine whether a complaint fails to state a claim under Rule 12(b)(6). See Ashcroft v. Iqbal, 556 U.S. 662, 678-79, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009).

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Bluebook (online)
55 F. Supp. 3d 928, 2014 U.S. Dist. LEXIS 149466, 2014 WL 5343322, Counsel Stack Legal Research, https://law.counselstack.com/opinion/flores-v-act-event-services-inc-txnd-2014.