Harbold v. Smash Restro & Bar, LLC

CourtDistrict Court, N.D. Ohio
DecidedJune 20, 2023
Docket5:22-cv-01583
StatusUnknown

This text of Harbold v. Smash Restro & Bar, LLC (Harbold v. Smash Restro & Bar, LLC) is published on Counsel Stack Legal Research, covering District Court, N.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Harbold v. Smash Restro & Bar, LLC, (N.D. Ohio 2023).

Opinion

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF OHIO EASTERN DIVISION

KOTI HARBOLD, ) CASE NO. 5:22-cv-1583 ) ) PLAINTIFF, ) JUDGE SARA LIOI ) vs. ) ) MEMORANDUM OPINION & ) ORDER SMASH RESTRO & BAR, LLC, et al., ) ) ) DEFENDANTS. )

Presently before the Court is plaintiff’s motion for the entry of default judgment against defendants and an award of damages, attorney’s fees, and costs, pursuant to the Fair Labor Standards Act (“FLSA”) and state law. (Doc. No. 11.) The motion is unopposed. For the reasons that follow, default judgment is granted in favor of plaintiff and against defendants on plaintiff’s federal and state wage and hour claims, and plaintiff is awarded damages, attorney’s fees, and costs as set forth below. I. BACKGROUND Defendant Smash Restro & Bar LLC (“SR&B”) is a limited liability company registered in the State of Ohio and doing business in Dover, Ohio. Defendant Jorge Vazquez (“Vazquez”) is an Ohio resident, living in Bolivar, Ohio. (Doc. No. 1 (Complaint) ¶¶ 8–9.) At all times relevant to the complaint, SR&B and Vazquez jointly operated a restaurant in Dover, Ohio. (Id. ¶ 14.) Further, SR&B was an enterprise within the meaning of the FLSA, 29 U.S.C. § 203(r), the Ohio Constitution, and the Ohio wage and hour laws. (Id. ¶ 12.) On or about April 1, 2021, defendants jointly hired plaintiff Koti Harbold (“plaintiff” or “Harbold”) to work as a manager at their restaurant. (Id. ¶ 15.) Her managerial duties included supervising other employees, interviewing applicants, running errands off the restaurant’s premises, tracking liquor sales and placing new orders for liquor, responding to customer complaints, and addressing employee concerns. (Doc. No. 1 ¶ 19; Doc. No. 11-1 (Declaration of Koti Harbold) ¶ 7.) Plaintiff was “frequently” tasked with these managerial duties, which amounted to at least 20% of her workweek. (Doc. No. 1 ¶ 17; Doc. No. 11-1 ¶ 6.) While plaintiff was also asked at times to perform the duties of a server and bartender, her “primary job duties were predominately that of a non-customarily and non-regularly tipped employee.” (Doc. No. 1 ¶ 16; Doc. No. 11-1 ¶ 5.)

Despite a “significant portion” of plaintiff’s workweek devoted to responsibilities associated with employees who do not regularly receive tips, defendants “jointly applied a tip- credit to [Harbold’s] wages for the entirety” of Harbold’s employment. (Doc. No. 1 ¶ 21; Doc. No. 11-1 ¶ 3.) As a result of this treatment, plaintiff’s hourly rate while jointly employed by defendants was $4.40, well “below the federal and state minimum wage.” (Doc. No. 1 ¶ 26; Doc. No. 11-1 ¶ 3.) Moreover, despite the fact that plaintiff often worked fifty (50) or more hours in a week, she was not compensated for this addition time at 150% of her regular hourly rate. (Doc. No. 1 ¶¶ 24– 25; Doc. No. 11-1 ¶¶ 4–5.) Plaintiff complained to defendants about these pay practices “to no avail.” (Doc. No. 1 ¶ 27.)

On September 7, 2022, plaintiff filed the present action in federal court, raising claims under the FLSA, Section 34A of the Ohio Constitution, Ohio Minimum Fair Wage Standards Act (“OMFWSA”), and Ohio Rev. Code § 4111, for failure to pay overtime and minimum wages. 2 Plaintiff also presented a claim under the Ohio Prompt Pay Act (“OPPA”), Ohio Rev. Code § 4113.51, for failure to page wages in a timely fashion; as well as a claim for civil penalties for criminal acts, under Ohio Rev. Code § 2307.60. (See generally Doc. No. 1.) In her prayer for relief, plaintiff sought compensatory, liquidated, punitive, and treble damages; interest; and attorney’s fees and costs. (Id. at 141–15.) On September 14, 2022, plaintiff perfected service on SR&B. (Doc. No 4 (Return of Service).) She perfected service on Vazquez on September 23, 2022. (Doc. No. 5 (Return of Service).) On October 5, 2022, defendants, through counsel, moved unopposed for an extension of time until October 26, 2022 to answer or otherwise respond to the complaint. (Doc. No. 6 (Motion for Extension).) Also on October 5, 2022, defendants’ counsel moved to withdraw his

representation. (Doc. No. 7 (Motion to Withdraw).) The Court granted both motions. (Order [non- document], 10/12/2022.) Despite the grant of additional time, neither defendant filed an answer or otherwise responded to the complaint. Plaintiff applied to the Clerk for an entry of default (see Doc. No. 8 (Application for Default)) and, on November 28, 2022, the Clerk entered default against defendants. (Doc. No. 10 (Entry of Default).) Plaintiff’s motion for default judgment followed, seeking damages, attorney’s fees, interest, and costs. (Doc. No. 11.) The motion is supported by the declaration of plaintiff (Doc. No. 11-1); a spread sheet, arranged by workweek, listing actual pay and hours worked, and calculating unpaid hourly and overtime pay (Doc. No. 11-2); the declaration of Attorney Robert

1 All page number references herein are to the consecutive page numbers applied to each individual document by the Court’s electronic filing system.

3 E. DeRose II, and attachments, including billing sheets (Doc. No. 11-3); and a proposed order (Doc. No. 11-4). II. STANDARD OF REVIEW Federal Rule of Civil Procedure 55 governs default and default judgment. Default has been entered by the Clerk against defendants pursuant to Rule 55(a). (See Doc. No. 10.) Once default is entered, the defaulting party is deemed to have admitted all the well-pleaded factual allegations in the complaint regarding liability, including jurisdictional averments. Ford Motor Co. v. Cross, 441 F. Supp. 2d 837, 846 (E.D. Mich. 2006) (citation omitted); see also Thomas v. Miller, 489 F.3d 293, 299 (6th Cir. 2007) (noting that default “conclusively establishes every factual predicate of a claim for relief[]”); Fed. R. Civ. P. 8(b)(6) (“An allegation—other than one relating to the amount

of damages—is admitted if a responsive pleading is required and the allegation is not denied.”). Under Rule 55(b)(2), the Court may enter default judgment without a hearing, but may conduct a hearing if the Court needs to: (1) conduct an accounting; (2) determine the amount of damages; (3) establish the truth of any allegations by evidence; or (4) investigate any other matter. In this case, the Court has examined the record before it and plaintiff’s submissions in support of her motion for default judgment and concludes that a hearing is not necessary to rule upon the motion. The decision to grant default judgment is within the Court’s discretion. See AF Holdings LLC v. Bossard, 976 F. Supp. 2d 927, 929 (W.D. Mich. 2013) (citing, among authority, 10A

Charles A. Wright et al., Federal Practice and Procedure § 2685 (3d ed. 1998) (“This element of discretion makes it clear that the party making the request is not entitled to a default judgment as

4 of right, even when defendant is technically in default and that fact has been noted under Rule 55(a).”)). Thus, defendants’ default does not automatically entitle plaintiff to relief.

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Bluebook (online)
Harbold v. Smash Restro & Bar, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harbold-v-smash-restro-bar-llc-ohnd-2023.