Gamez v. Country Cottage Care & Rehab.

377 F. Supp. 2d 1103, 2005 U.S. Dist. LEXIS 14714, 2005 WL 1661806
District Court, D. New Mexico·Decided February 28, 2005·No. CIV. 04-719 JB/WCS·Published·Cited by 10 cases

Opinion

MEMORANDUM OPINION AND ORDER

BROWNING, District Judge.

THIS MATTER comes before the Court on Defendant Silverstone Healthcare of Hobbs, L.L.C. d/b/a Country Cottage Care and Rehab.’s Motion for Summary Judgment and Memorandum in Support of Motion for Summary Judgment, filed on January 14, 2005 (Docs. 22 & 23). The pro se Plaintiff, Maria R. Gamez, did not file a response to the motion. The Court held a hearing on this motion on February 18, 2005. Gamez did not appear in person or telephonieally for the February 18th hearing. The Court took the motion under advisement and did not rule at that time. Gamez still did not respond or attempt to contact the Court about this motion. The pretrial conference is set for today, February 28, 2005; the Court therefore needs to rule on this pending motion. The Court, after reviewing Silverstone’s 1 briefing and relevant caselaw, concludes that Silver-stone is entitled to summary judgment on the federal claims. Having dismissed all claims on which the Court has original jurisdiction, 2 the Court will remand all remaining claims — all of which sound in state law — to the Fifth Judicial District, County of Lea, State of New Mexico.

FACTS 3

1. Reduction in Hours.

Country Cottage is a fifty-five bed nursing home located in Hobbs, New Mexico. See Operations Transfer Agreement, § I, at 1. Since September, 1993, Gamez has worked at Country Cottage as a housekeeper, see Deposition of Maria R. Gamez at 10:12-14; id. at 14:18-19 (taken November 17, 2004)(hereinafter, “Gamez Depo.”), in the maintenance department. 4 Gamez *1108 is still employed in this position. 5 See Gamez Depo. at 10:12-14; Initial Pretrial Report (“IPTR”), ¶ 2, at 2, filed on August 4. 2004 (Doc. 8)(“Stipulations”).

At the time Gamez began working at Country Cottage, Silverstone alleges that Horizon Healthcare leased and operated the facility. See Gamez Depo. at 14:3-17; Affidavit of Ernest A. Schofield ¶ 2, at 1 (executed January 13, 2005)(hereinafter, “Schofield Aff.”); Application for Employment at 1 (indicating Gamez applied to the Horizon Healthcare Corporation). 6 Silver-stone contends that several different entities leased and operated Country Cottage during Gamez’ employment. See Schofield Aff. ¶ 3, at 1. In January, 2003, BNMHC I, L.L.G. (“BNMHC”) leased and operated Country Cottage. See id. 7

In January, 2003, the number of patients at Country Cottage declined, causing revenues to decrease. See White Aff. ¶ 2, at 1; Lozano Aff. ¶ 3, at 1. Because of the decreased revenue, BNMHC management decided that it was necessary to reduce expenses, including payroll expenses that the housekeeping, maintenance, dietary, and nursing departments incurred. See White Aff. ¶ 2, at 1; Lozano Aff. ¶ 3, at 1. Thus, management reduced the number of hours allocated to housekeepers. 8 See White Aff. ¶ 2, at 1; Lozano Aff. ¶ 3, at 1.

*1109 Gamez — in January, 2003 — was working an average of twenty-eight hours per week 9 — six hour shifts of four days on and two days off. See White Aff. ¶ 4, at 1-2; Lozano Aff. ¶ 4, at 1-2; Payroll Records of Rosa Gamez at 1 (“Payroll Records”). 10 On February 9, 2003, management reduced her shifts to five hour shifts, but the number of days Gamez worked remained the same. See White Aff. ¶ 5, at 2; Loza-no Aff. ¶ 5, at 2; Payroll Records at 2-3. Thus, management reduced her average hours per week from twenty-eight hours per week to twenty-four hours per week. See White Aff. ¶ 5, at 2; Lozano Aff. ¶ 5, at 2; Payroll Records at 1-3.

At that time, Country Cottage employed two other housekeepers, and each of the other two housekeepers worked the same number of hours per week as Gamez. See White Aff. ¶ 4, at 1-2; Lozano Aff. ¶ 4, at 1-2. Management reduced the other housekeepers’ hours the same amount it had reduced Gamez’s hours. See White Aff. ¶ 5, at 2; Lozano Aff. ¶ 5, at 2. BNMHC did not hire additional employees to assume these reduced hours. See White Aff. ¶ 5, at 2; Lozano Aff. ¶ 5, at 2. Manuel Lozano, Gamez’ supervisor and the person in charge of the housekeepers’ schedules, see Lozano Aff. ¶¶ 2, 4, at 1-2; Gamez Depo. at 9:1-2; id. at 15:7-23, explained to Gamez that the reason management was reducing her hours was because there were fewer residents in the facility. See Lozano Aff. ¶ 5, at 2; Gamez Depo. at 50:10-13.

Silverstone alleges that BNMHC’s group health care plan, Ballantrae Healthcare, L.L.C., defined an employee as “[a] regularly assigned, full-time Employee of the Company scheduled to work 32 or more hours per week.” 11 Ballantrae Healthcare, L.L.C. Summary Plan Description at 29 (effective March 1, 2003). *1110 The Ballantrae Healthcare plan that BNMHC offered, however, is effective March 1, 2003; there is no evidence in the record indicating the health care benefit plan available on or before February, 2003.

2. Successor Liability.

On August 1, 2003, Silverstone began leasing and operating Country Cottage from BNMHC. See Schofield Aff. ¶ 4, at 1; Operations Transfer Agreement, Art. 1, § 1.1, at l. 12 On that same date, Silver-stone entered into a contract with Peak Medical NM Management Services (“Peak Management”) whereby Peak Management would provide facility management services to Silverstone for Country Cottage’s operation. See Schofield Aff. ¶ 4, at 1-2. Thus, in August, 2003, Silverstone became Gamez’ employer. See IPTR ¶2, at 2 (“Stipulations”).

The transfer agreement between Silver-stone and BNMHC includes a contract provision which states that Silverstone does not assume BNMHC’s preexisting liabilities. See Operations Transfer Agreement, Art. 2, § 2.18, at 6; Schofield Aff. ¶ 6, at 2. The transfer agreement provides: “Other than as specifically set forth herein, [Silverstone] shall not assume and shall not be liable for any debts, liabilities or obligations of [BNMHC] including, but not limited to, any ... (b) liabilities or obligations of [BNMHC] with respect to any acts, events or transactions occurring prior to, on or after the Closing Date.” Operations Transfer Agreement, § 2.18, at 6.

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Gamez v. Country Cottage Care & Rehab., 377 F. Supp. 2d 1103, 2005 U.S. Dist. LEXIS 14714, 2005 WL 1661806 (D.N.M. 2005).

377 F. Supp. 2d 1103 (Gamez v. Country Cottage Care & Rehab.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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