Huseyin Cuhadar v. Savoya, LLC

CourtDistrict Court, E.D. New York
DecidedSeptember 11, 2024
Docket1:24-cv-03615
StatusUnknown

This text of Huseyin Cuhadar v. Savoya, LLC (Huseyin Cuhadar v. Savoya, LLC) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Huseyin Cuhadar v. Savoya, LLC, (E.D.N.Y. 2024).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK --------------------------------------------------------------------- x HENRY HUSEYIN CUHADAR, GURHAN ERGEER, and MAUREEN FREDERIQUE, individually and on behalf of others similarly situated, OPINION & ORDER Plaintiffs, 24-CV-3615 -against- (Marutollo, M.J.)

SAVOYA LLC, and DOES 1 THROUGH 50, inclusive,

Defendants.

--------------------------------------------------------------------- x JOSEPH A. MARUTOLLO, United States Magistrate Judge: Plaintiffs Henry Huseyin Cuhadar, Gurhan Ergezer, and Maureen Frederique,1 on behalf of themselves and others similarly situated (together, “Plaintiffs”) commenced this action on May 17, 2024 alleging that Defendant Savoya LLC misclassified Plaintiffs as independent contractors and, as a result, have failed to remit minimum wage, overtime wage, and spread-of-hours pay in contravention of the Fair Labor Standards Act (“FLSA”) and the New York Labor Law (“NYLL”). See generally Dkt. No. 1, 19. Plaintiffs also bring state law claims for unlawful deductions, improper kickback of wages, and violations of wage notice and statement requirements. Id. Currently before this Court is Plaintiffs’ request to lift a stay of discovery imposed by this Court on July 25, 2024 or, in the alternative, for an award of equitable tolling. See Dkt. No. 21. Defendant opposes the requested relief. Dkt. No. 23. For the reasons set forth below, Plaintiff’s request is GRANTED in part and DENIED in part. This action remains stayed pending the resolution of Defendant’s motion to dismiss. Therefore, in the interest of fairness, the Court holds

1 The Court notes that, while originally named in the Complaint, Maureen Frederique was removed from the caption of the Amended Complaint (Dkt. No. 19) and no longer figures as a party referenced in the Amended Complaint. No notice of voluntary dismissal has been filed as to Maureen Frederique. The Court therefore continues to list Maureen Frederique as a Plaintiff in this action. that the statute of limitations will be tolled for a period between September 11, 2024 and the date of the resolution of Defendant’s motion to dismiss. I. BACKGROUND Defendant operates a nationwide “chauffeured limousine and luxury car transportation

business” providing ground transportation services to high-end clients in New York City. Dkt. No. 19 at ¶¶ 1, 18. Plaintiffs are current and former drivers affiliated with Defendant who purport to have been intentionally misclassified as independent contractors. Id. at ¶¶ 5, 52. Specifically, Plaintiffs allege that Defendant misclassified Plaintiffs as independent contractors to justify the denial of minimum wage and overtime compensation due to its drivers, avoid remitting payment as reimbursement of costs incurred during the course of the parties’ relationship, and abstain from reporting and recordkeeping requirements mandated by state and federal law. Id. In support of their claims, Plaintiffs point to Defendant’s “extensive control” over them—including, inter alia, work assignments, penalization structures, and dress code requirements. Id. at ¶¶ 20-25. In sum, Plaintiffs purport to have been employees of Defendant’s business deserving of federal and state

protections—and not independent contractors. Id. at ¶ 18. On July 23, 2024, Defendant filed a pre-motion conference letter in anticipation of its motion to dismiss the Complaint pursuant to Fed. R. Civ. P. 12(b)(6). See Dkt. No. 12. In its submission, Defendant also requested a stay of discovery pending a decision on its motion to dismiss—noting that its forthcoming motion “will present meritorious and dispositive threshold challenges to the viability of [this] action.” Id. at 3. On July 25, 2024, a pre-motion conference was held before the undersigned. See Minute Entry dated July 25, 2024. During the conference, the Court adopted a briefing schedule for Defendant’s forthcoming motion to dismiss and granted a limited stay of discovery until August 20, 2024—a date when the Court intended the reassess whether a more substantial stay of discovery was warranted. Following the filing of an Amended Complaint (Dkt. No. 19), the Court held a status conference. See Minute Entry dated August 20, 2024. Following the conference, the Court maintained the stay of discovery but granted the parties leave to file a letter-motion

addressing whether the stay should be lifted and whether equitable tolling is warranted in this action. Id. On August 28, 2024, Plaintiffs filed a letter-motion requesting that this Court (i) permit limited discovery as to the identification of members of the collective action and (ii) toll the statute of limitations as the putative members of the collective and class. Dkt. No. 21. In support, Plaintiffs assert that Defendant has failed to assert sufficient facts to warrant a stay of discovery pending the resolution of the motion to dismiss. Id. at 1. Plaintiffs assert that Defendant has failed to make a showing that Plaintiffs’ claims lack merit—a threshold requirement imposed by a three- factor test applied by courts within the Second Circuit. Further, Plaintiffs assert that their request for pre-certification discovery is narrow with a minimal burden. Id. at 2. Finally, Plaintiffs assert

that unfair prejudice would ensue where the interests of potential putative collective/class action members (“Opt-in Plaintiffs”) may succumb to the FLSA’s statute of limitations while Defendant’s motion remains pending. Id. To that effect, Plaintiffs argue—in the alternative—that a grant of equitable tolling is warranted should the court decline to lift the stay of discovery. Id. Defendant opposes Plaintiffs’ request and asserts that there are substantial arguments for dismissal rooted in the dispositive nature of their forthcoming briefings. Dkt. No. 23. Specifically, Defendant argues that it seeks dismissal based on an alleged forum selection clause incorporated within a document governing the relationship between the parties. Id. at 1-2. Further, Defendant expresses concern that the nomenclature used by Plaintiffs—“initial discovery” (see e.g. Dkt. No. 21, at 2)—signals the potential for further burdensome discovery should a stay be lifted, especially in the course of dispositive motion practice. Id. Finally, Defendant opposes an grant of equitable tolling—noting that Plaintiffs have engaged in dilatory conduct by filing an action in this District which alleges conduct governed by a purportedly-enforceable forum selection clause. Id. at 3.

II. DISCUSSION “‘[T]he power to stay proceedings is incidental to the power inherent in every court to control the disposition of the cases on its docket with economy of time and effort for itself, for counsel, and for litigants.’” Thomas v. N.Y. City Dep’t of Educ., No. 09-CV-5167 (SLT), 2010 WL 3709923, at *2 (E.D.N.Y. Sept. 14, 2010) (quoting Landis v. N. Am. Co., 299 U.S. 248, 254 (1936)). In determining whether to grant a stay of discovery pending a motion, courts typically consider: “(1) whether the defendant has made a strong showing that the plaintiff’s claim is unmeritorious; (2) the breadth of discovery and the burden of responding to it; and (3) the risk of unfair prejudice to the party opposing the stay.” Id. (citation omitted). “The decision to continue or lift a stay is a matter within this Court’s discretion” and the Court should keep in mind the

factors it considered in “ordering the stay in the first place.” In re Kind LLC “Healthy & All Natural” Litig., No. 15-MC-2645 (WHP), 2019 WL 542834, at *2 (S.D.N.Y. Feb. 11, 2019); Brinkmann v. Town of Southold, New York, No. 21-CV-2468 (LDH) (JMW), 2022 WL 3912974, at *1 (E.D.N.Y. Aug. 31, 2022).

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Huseyin Cuhadar v. Savoya, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/huseyin-cuhadar-v-savoya-llc-nyed-2024.