Fozia Murphy v. Thomas Krens; Nicholas Krens; GCAM, LLC; GCAM 2, LLC; EMRCA, INC.

CourtDistrict Court, N.D. New York
DecidedOctober 22, 2025
Docket1:24-cv-01470
StatusUnknown

This text of Fozia Murphy v. Thomas Krens; Nicholas Krens; GCAM, LLC; GCAM 2, LLC; EMRCA, INC. (Fozia Murphy v. Thomas Krens; Nicholas Krens; GCAM, LLC; GCAM 2, LLC; EMRCA, INC.) is published on Counsel Stack Legal Research, covering District Court, N.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fozia Murphy v. Thomas Krens; Nicholas Krens; GCAM, LLC; GCAM 2, LLC; EMRCA, INC., (N.D.N.Y. 2025).

Opinion

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF NEW YORK

FOZIA MURPHY,

Plaintiff, 1:24-cv-01470 (AMN/PJE)

v.

THOMAS KRENS; NICHOLAS KRENS; GCAM, LLC; GCAM 2, LLC; EMRCA, INC.;

Defendants.

APPEARANCES: OF COUNSEL: SMITH HOKE, PLLC MEREDITH A. MORIARTY 16 Wade Road Latham, New York 12110 Attorneys for Plaintiff

Hon. Anne M. Nardacci, United States District Judge: MEMORANDUM DECISION AND ORDER

I. INTRODUCTION On December 4, 2024, plaintiff Fozia Murphy (“Plaintiff”) commenced this action against Defendants Thomas Krens, Nicholas Krens, GCAM, GCAM 2, and EMRCA (“Defendants”) pursuant to the Fair Labor Standards Act, 29 U.S.C. § 201 et seq. (“FLSA”), Equal Pay Act regulation 29 C.F.R. § 1620.33, New York Labor Law, N.Y. Lab. Law §§ 190 et seq., 650 et seq. (“NYLL”), and New York State common law. Dkt. No. 1 (“Complaint”). Presently before the Court is Plaintiff’s motion for a default judgment under Rule 55(b) of the Federal Rules of Civil Procedure. Dkt. No. 14 (“Motion”). For the reasons set forth below, the Motion is denied. II. BACKGROUND A. Parties

Plaintiff is an individual domiciled in Rensselaer County, New York who was employed by Defendant Thomas Krens. Dkt. No. 1 at ¶¶ 11-12, 15. At all relevant times, Defendant Thomas Krens was Chairman and CEO of GCAM, LLC, GCAM 2, LLC and EMRCA, Inc. (hereinafter “GCAM”, “GCAM 2”, and “EMRCA”, respectively; collectively, “the Companies”). Id. at ¶ 2. Likewise, Defendant Nicholas Krens was an officer, allegedly the Directory of Strategy, for those same Companies. Id. at ¶ 3. GCAM and GCAM 2 are international art and architecture firms that offer advice, expertise, and services relating to art, culture, and art museums for various kinds of clientele. Id. at ¶ 4. Both have their principal place of business in New York. Id. at ¶¶ 4-5. GCAM is organized under the laws of New York while GCAM 2 is organized under the laws of Delaware. Id. EMRCA

is a Delaware corporation formed for the purpose of developing an art museum and its principal place of business is in Massachusetts. Id. at ¶ 6. B. Plaintiff’s Factual Allegations In December 2021, Defendant Thomas Krens interviewed and hired Plaintiff to be his Executive Assistant and Office Manager. Id. at ¶¶ 11-12. Plaintiff alleges that Defendants offered her at-will employment with an initial payment rate of $33.65 per hour, forty hours per week. Id. at ¶¶ 13-14. Plaintiff also alleges that Defendants communicated that they would evaluate her performance and discuss increased compensation after three months. Id. at ¶ 14. Plaintiff alleges that Defendant companies GCAM, GCAM 2, and EMRCA were related entities and that the parties referred to them interchangeably. Id. at ¶ 15. Plaintiff worked full- time remotely for Defendants for approximately one and one-half years before the events leading to this suit. See id. at ¶¶ 15, 24, 26. Defendants initially used a payroll company and paid Plaintiff regularly out of accounts under both GCAM 2 and EMRCA. Id. at ¶¶ 15, 25. Plaintiff that alleges

she started at a salary of approximately $75,000 per year, which was soon increased to $80,000 per year. Id. at ¶ 22. In the spring and summer of 2023, however, Plaintiff alleges that Defendant Thomas Krens claimed that the Companies were short on money and stopped using the payroll company. Id. at ¶ 26. Instead, Defendant Thomas Krens started paying employees through wire transfers or personal checks. Id. At this point, Plaintiff alleges that Defendants started to pay her some, but not all, of her salary. Id. ¶ 28; see Dkt. No. 14-2 (payroll detailing from Nov. 11, 2022, to Dec. 21, 2023). Plaintiff next alleges that in October 2023, Defendant Thomas Krens told her that the Companies were insolvent. Dkt. No. 1 at ¶ 30. Plaintiff alleges that he then stopped paying most

employees, including Plaintiff. Id.; see Dkt. No. 14-2 at 4 (showing no payments between October 12, 2023 and December 21, 2023). Various other employees began to complain, and some quit. Dkt. No. 1 at ¶ 31. Plaintiff also complained at various points, requesting back pay through in- person communications, emails, and text messages to Defendants Thomas and Nicholas Krens. Id. at ¶¶ 29, 32. In response, they assured Plaintiff several times that they would pay her and all their employees what they were owed once Defendants had received enough money from their clients to become solvent. Id. at ¶¶ 29, 33, 44; see Dkt. No. 14-3 (text message conversation with Nicholas Krens). Plaintiff states that she continued to work for Defendants until the beginning of February 2024. Id. at ¶ 45. During the period when the Companies were allegedly short on money and then insolvent, Plaintiff states that Defendants never terminated her, did not ask her to stop working, and did not reduce her hours. Id. at ¶ 42. Rather, Plaintiff alleges that, despite not receiving a paycheck, she was in constant contact with clients and vendors, received and completed daily

administrative tasks from Thomas Krens, and provided information and status updates to Nicholas Krens. Id. at ¶¶ 38-42. As such, Plaintiff alleges that both Thomas and Nicholas Krens knew that she was working but did not pay her for that work. Id. at ¶ 43. As of the filing of this action, Plaintiff alleges that Defendants have never paid her full earned wages for the pay periods during which she was underpaid, or her salary for the months that she worked without receiving a paycheck. Id. at ¶¶ 46, 50. C. Procedural History On December 4, 2024, Plaintiff filed this suit claiming violations under the FLSA and NYLL, as well as state law claims for breach of contract, unjust enrichment, and promissory estoppel. Dkt. No. 1 at ¶¶ 47-106. Defendants have neither responded nor appeared in this action.

See generally Docket Sheet. Plaintiff’s attorney documented two brief interactions in which she spoke to an attorney who claimed to work for Defendants but who stated that he would not be representing them in this matter. Dkt. No. 7. The clerk of court made entry of default on April 14, 2025. Dkt. No. 12. Plaintiff subsequently moved for the entry of default judgment pursuant to Rule 55(b) of the Federal Rules of Civil Procedure and Local Rule 55.2. Dkt. No. 14. Plaintiff seeks to recover damages consistent with the underpayment of her wages, along with statutory fines, attorney’s fees, prejudgment interest, liquidated damages, and costs, totaling $193,216. Dkt. No. 14-4 at ¶¶ 15-35. III. STANDARD OF REVIEW Rule 55 of the Federal Rules of Civil Procedure “provides a ‘two-step process’ for the entry of judgment against a party who fails to defend: first, the entry of a default, and second, the entry

of a default judgment.” City of New York v. Mickalis Pawn Shop, LLC, 645 F.3d 114, 128 (2d Cir. 2011) (citing New York v. Green, 420 F.3d 99, 104 (2d Cir. 2005)).

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Fozia Murphy v. Thomas Krens; Nicholas Krens; GCAM, LLC; GCAM 2, LLC; EMRCA, INC., Counsel Stack Legal Research, https://law.counselstack.com/opinion/fozia-murphy-v-thomas-krens-nicholas-krens-gcam-llc-gcam-2-llc-nynd-2025.