Garza v. Fusion Industries, LLC

CourtDistrict Court, W.D. Oklahoma
DecidedMarch 31, 2023
Docket5:20-cv-00336
StatusUnknown

This text of Garza v. Fusion Industries, LLC (Garza v. Fusion Industries, LLC) is published on Counsel Stack Legal Research, covering District Court, W.D. Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Garza v. Fusion Industries, LLC, (W.D. Okla. 2023).

Opinion

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

JAVIER GARZA, on behalf of himself, ) and on behalf of all others similarly ) situated, ) ) Plaintiff, ) Case No. CIV-20-336-D ) v. ) ) FUSION INDUSTRIES, LLC, ) ) Defendant. )

ORDER

Before the Court is Plaintiff Javier Garza’s Motion for Leave to Amend Original Complaint [Doc. No. 78]. Defendant Fusion Industries, LLC timely responded [Doc. No. 88], and Plaintiff replied [Doc. No. 89]. The matter is fully briefed and at issue. Background Defendant Fusion Industries provides services to the oil and gas industry. As part of its business, Defendant hires welders to work on various oil and gas equipment, including oil rigs and natural gas compressors. Defendant classifies some of these welders as independent contractors, paying them on an hourly basis. On January 24, 2020, Plaintiff Javier Garza brought a collective action on behalf of himself and a putative class to recover unpaid overtime wages and other damages under the Fair Labor Standards Act, 29 U.S.C. §§ 201 et seq. (“FLSA”) and the New Mexico Minimum Wage Act, N.M. Stat. Ann. §§ 50-4-1 et seq. He alleges that Defendant misclassified him and other welders as independent contractors when they should have been classified as employees and thus, paid overtime wages.

The case was initially filed in the United States District Court for the District of New Mexico, and later transferred to the Western District of Oklahoma on April 13, 2020. Defendant filed a motion to dismiss, which caused Plaintiff to submit an amended complaint. See [Doc. Nos. 28, 32].1 Defendant answered Plaintiff’s amended complaint on June 19, 2020. See [Doc. No. 34]. The Court entered a scheduling order on September 21, 2020, which required that motions to amend pleadings be filed within fourteen days.

In January of 2022, Plaintiff filed a Motion for Conditional Certification and to Facilitate Notice under 29 U.S.C. § 216(b). See [Doc. No. 52]. The Court granted the motion, and determined that those entitled to receive notice of the suit included: All current and former welders who were paid on an hourly rate basis and were classified as independent contractors by Defendant at any time between April 13, 2017 and April 11, 2022.

See 4/25/22 Order [Doc. No. 63]. Four additional individuals consented to join the collective action: Sergio Reyes, Nathaniel Arrisola, Eden Cantu, and Aaron Estrada. Their consents were filed with the Court on June 2, 2022, June 3, 2022, June 3, 2022, and August 31, 2022, respectively. See [Doc. Nos. 70, 71, 72]. These four individuals, as well as Ronnie Hernandez, are collectively referred to herein as the “Opt-in Plaintiffs.” Due to the limited number of opt-ins, Plaintiff now seeks to withdraw the Rule 23 class action and collective action aspects of the lawsuit and amend his pleading to include

1 Opt-in Plaintiff Ronnie Hernandez consented to join the collective action shortly before Plaintiff filed his amended complaint. See [Doc. No. 31]. the Opt-in Plaintiffs as additional named plaintiffs, which would allow them to pursue their overtime claims on an individual basis. Defendant opposes Plaintiff’s motion, arguing that

the proposed amendment is untimely, prejudicial, and futile, and thus, fails to satisfy Fed. R. Civ. P. 16(b)(4) and 15(a)(2).2 Discussion A plaintiff seeking leave to amend after the deadline imposed by the scheduling order “must demonstrate (1) good cause for seeking modification under Fed. R. Civ. P. 16(b)(4) and (2) satisfaction of the Rule 15(a) standard.” Birch v. Polaris, 812 F.3d 1238,

1247 (10th Cir. 2015) (internal citation omitted). The Court addresses each rule in turn. I. Fed. R. Civ. P. 16(b)(4) Under Fed. R. Civ. P. 16(b)(4), “[a] schedule may be modified only for good cause and with the judge’s consent.”3 In practice, a movant must show that “the scheduling deadlines cannot be met despite the movant’s diligent efforts.” Gorsuch, Ltd., B.C. v. Wells

Fargo Nat. Bank Ass’n, 771 F.3d 1230, 1240 (10th Cir. 2014) (internal quotation and alteration omitted); see also Husky Ventures, Inc. v. B55 Invs., Ltd., 911 F.3d 1000, 1020 (10th Cir. 2018) (“[G]ood cause obligates the moving party to provide an adequate explanation for delay.”) (internal quotation omitted). This requirement may be satisfied “if

2 Additionally, Defendant has filed a motion for summary judgment in which it argues that the claims of Sergio Reyes, Nathaniel Arrisola, Eden Cantu, and Aaron Estrada are time- barred pursuant to the statutes of limitations set forth in the FLSA and the New Mexico Minimum Wage Act. See [Doc. No. 77].

3 A district court’s determination of whether good cause is shown is “afford[ed] ‘wide discretion.’” Perez v. Denver Fire Dep’t, 724 F. App’x 646, 650 (10th Cir. 2018) (quoting Bylin v. Billings, 568 F.3d 1224, 1231 (10th Cir. 2009)). a plaintiff learns new information through discovery or if the underlying law has changed,” but not if a plaintiff simply fails to raise a claim. Gorsuch, Ltd., B.C., 771 F.3d at 1240; see

also Pumpco, Inc. v. Schenker Intern., Inc., 204 F.R.D. 667, 668 (D. Colo. 2001) (“Carelessness is not compatible with a finding of diligence and offers no reason for a grant of relief.”) (internal quotation omitted). “Good cause is likely to be found when the moving party has been generally diligent, the need for more time was neither foreseeable nor its fault, and refusing to grant the continuance would create a substantial risk of unfairness to that party.” Tesone v. Empire Mktg. Strategies, 942 F.3d 979, 988 (10th Cir. 2019) (internal

quotation and alteration omitted). Plaintiff contends that good cause exists because he “did not, and could not, have known what the final composition for the putative collective would look like” until the end of the opt-in period, which was beyond the deadline to amend pleadings under the Court’s scheduling order. Pl.’s Mot. for Leave at 9. In total, only five individuals—Hernandez,

Reyes, Arrisola, Cantu, and Estrada—have consented to join the collective action. At the close of the opt-in period, these Opt-in Plaintiffs expressed “intentions to be named as individual plaintiffs in the case.” Id. After considering the requests of the Opt-in Plaintiffs, as well as “the risks of final certification of the collective in light of the limited number of opt-ins,” Plaintiff sought leave to amend. Id.

Upon review of Plaintiff’s actions, the Court concludes that Plaintiff, to this point, has acted diligently. Although Plaintiff seeks amendment well after the deadline set forth in the Court’s scheduling order, Plaintiff’s request is not a product of carelessness. Indeed, Plaintiff was unable to seek leave to amend his complaint in the manner requested until the opt-in period closed in late 2022.

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Garza v. Fusion Industries, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/garza-v-fusion-industries-llc-okwd-2023.