Gutierrez Negrete v. Commercial Roofing Solutions Inc.

CourtDistrict Court, D. Oregon
DecidedMarch 16, 2020
Docket3:18-cv-01999
StatusUnknown

This text of Gutierrez Negrete v. Commercial Roofing Solutions Inc. (Gutierrez Negrete v. Commercial Roofing Solutions Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gutierrez Negrete v. Commercial Roofing Solutions Inc., (D. Or. 2020).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF OREGON

SALVADOR GUTIERREZ NEGRETE, Case No. 3:18-cv-1999-SI JUVENTINO AGUILAR CRUZ, ROGELIO FLAVIAN MARTINEZ, OPINION AND ORDER EFREN HUITRON CRUZ, AND NOE HUITRON CRUZ, individuals,

Plaintiffs,

v.

COMMERCIAL ROOFING SOLUTIONS INC., an Oregon Domestic Business Corporation, KENNETH BURNS, an individual, and MISAEL NARANJO, an individual,

Defendants.

Kate Suisman and Corinna Spencer-Scheurich, NORTHWEST WORKERS’ JUSTICE PROJECT, 812 SW Washington St., Suite 225, Portland, OR 97205; D. Michael Dale, LAW OFFICE OF D. MICHAEL DALE, PO Box 1032, Cornelius, OR 97113. Of Attorneys for Plaintiffs.

Andrew E. Teitelman, LAW OFFICE OF ANDREW E. TEITELMAN, PC, 250 Princeton Avenue, Suite 201, Gladstone, OR 97027. Of Attorneys for Defendants Commercial Roofing Solutions Inc. and Kenneth Burns. Michael H. Simon, District Judge.

Plaintiffs are several construction workers who allege they are owed payment for roofing work they performed in early 2018. Plaintiffs assert that they were joint employees of Defendants Misael Naranjo (“Naranjo”), Commercial Roofing Solutions, Inc. (“CRS”), and CRS’s President, Kenneth Burns. Plaintiffs bring claims for unpaid wages under the Fair Labor Standards Act (“FLSA”) and Oregon’s wage and hour laws. Plaintiffs also claim that Defendants violated Oregon’s law requiring timely payment of wages. Finally, Plaintiffs allege that CRS and Burns violated the Oregon’s Contractor Registration Act (“OCRA”) by knowingly using the services of an unlicensed labor contractor. The Court has already entered an order of default against Naranjo. CRS and Burns have moved for summary judgment, and Plaintiffs has moved for partial summary judgment. For the reasons explained below, the Court grants Plaintiffs’ motion for partial summary judgment and denies Defendants’ motion for summary judgment. STANDARDS A party is entitled to summary judgment if the “movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.”

Fed. R. Civ. P. 56(a). The moving party has the burden of establishing the absence of a genuine dispute of material fact. Celotex Corp. v. Catrett, 477 U.S. 317, 323 (1986). The court must view the evidence in the light most favorable to the non-movant and draw all reasonable inferences in the non-movant’s favor. Clicks Billiards Inc. v. Sixshooters Inc., 251 F.3d 1252, 1257 (9th Cir. 2001). Although “[c]redibility determinations, the weighing of the evidence, and the drawing of legitimate inferences from the facts are jury functions, not those of a judge . . . ruling on a motion for summary judgment,” the “mere existence of a scintilla of evidence in support of the plaintiff’s position [is] insufficient . . . .” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 252, 255 (1986). “Where the record taken as a whole could not lead a rational trier of fact to find for the non-moving party, there is no genuine issue for trial.” Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 587 (1986) (citation and quotation marks omitted). When parties file cross-motions for summary judgment, the court “evaluate[s] each motion separately, giving the non-moving party in each instance the benefit of all reasonable inferences.” A.C.L.U. of Nev. v. City of Las Vegas, 466 F.3d 784, 790-91 (9th Cir. 2006)

(quotation marks and citation omitted); see also Pintos v. Pac. Creditors Ass’n, 605 F.3d 665, 674 (9th Cir. 2010) (“Cross-motions for summary judgment are evaluated separately under [the] same standard.”). In evaluating the motions, “the court must consider each party’s evidence, regardless under which motion the evidence is offered.” Las Vegas Sands, LLC v. Nehme, 632 F.3d 526, 532 (9th Cir. 2011). “Where the non-moving party bears the burden of proof at trial, the moving party need only prove that there is an absence of evidence to support the non-moving party’s case.” In re Oracle Corp. Sec. Litig., 627 F.3d 376, 387 (9th Cir. 2010). Thereafter, the non-moving party bears the burden of designating “specific facts demonstrating the existence of genuine issues for trial.” Id. “This burden is not a light one.” Id. The Supreme Court has directed

that in such a situation, the non-moving party must do more than raise a “metaphysical doubt” as to the material facts at issue. Matsushita, 475 U.S. at 586. BACKGROUND CRS signed an agreement with a customer to perform “tear-off” and shingle re-roofing work at Todd Village Apartments, a development near Portland. CRS then entered into a subcontract with Naranjo to carry out that work. The subcontract does not mention the provision of labor but Burns testified in deposition that Naranjo was “a labor only type subcontractor and we provide the material.” Burns also described Naranjo’s duties as providing “all the labor, all the personnel to complete the labor, and every – pretty much the whole – removal and installation of the project itself. And I was required to provide him this material and some equipment, such as a lift, debris boxes, that type of stuff.” Burns testified that he asked Naranjo to provide a license and certificates of insurance, but that Naranjo never did so, and Burns “didn’t think much about it. I thought, okay. You know, you get busy working.” Naranjo did not in fact hold a labor contractor license. Naranjo then recruited Plaintiffs to work at Todd Village. Naranjo did not disclose to

Plaintiffs, in writing or otherwise, the terms and conditions of employment before the work began. Naranjo negotiated Plaintiffs’ wages for the project based on the amount of work done. But Plaintiffs never were paid for their work on the project, which lasted for about three weeks. Plaintiffs eventually told Burns about the unpaid wages, which Plaintiffs calculated at $19,000. Burns then offered to pay Plaintiffs a portion of their claimed wages, but Plaintiffs refused the offer. During the conversation, Burns learned that Naranjo did not have a contractor’s license or certificates of insurance. Burns then terminated the subcontractor agreement with Naranjo, although he then hired Naranjo and several of the Plaintiffs as direct employees to complete the work.

DISCUSSION A. CRS Jointly Employed Plaintiffs Under the FLSA and Oregon Law Plaintiffs bring claims against CRS under the FLSA and Oregon wage laws to recover their unpaid minimum wages and overtime as well as statutory and penalty damages. CRS contends that it did not “employ” Plaintiffs. Whether an entity acted as a joint employer is a question of law, provided the underlying material facts are not in dispute1. See Torres-Lopez v. May, 111 F.3d 633, 638 (9th Cir. 1997). The FLSA defines “employer” as “any person acting directly or indirectly in the interest of an employer in relation to an employee.” 29 U.S.C.

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