In re Hospital De Damas, Inc.

503 B.R. 543, 2014 WL 98675, 2014 Bankr. LEXIS 92
CourtUnited States Bankruptcy Court, D. Puerto Rico
DecidedJanuary 10, 2014
DocketNo. 10-08844 EAG
StatusPublished

This text of 503 B.R. 543 (In re Hospital De Damas, Inc.) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, D. Puerto Rico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Hospital De Damas, Inc., 503 B.R. 543, 2014 WL 98675, 2014 Bankr. LEXIS 92 (prb 2014).

Opinion

OPINION AND ORDER

EDWARD A. GODOY, Bankruptcy Judge.

Hospital de Damas, Inc. has operated since 1987 a not-for-profit hospital known as Hospital de Damas in Ponce, Puerto Rico (“Damas”). On September 24, 2010, Damas filed a petition for relief under chapter 11 of the Bankruptcy Code. Twenty-five employees or former employees of Damas filed together proof of claim 370, requesting the payment of the statutory penalty for work allegedly performed during meal periods in the years 1987 to 1992 (the “Claimants”).1 Damas objected to the proof of claim.

Pending before this court is a motion for summary judgment brought by Damas on its objection to proof of claim 370, Claimants’ opposition to the motion for summary judgment, and Damas’ reply in support of its motion for summary judgment. [Docket Nos. 1265, 1299 & 1308.] For the reasons stated below, Damas’ motion for summary judgment is hereby granted with respect to twenty-two of the Claimants so as to disallow the entirety of the relief sought by them in proof of claim 370. As to the three remaining Claimants, the motion for summary judgment is granted in part and denied in part.

Jurisdiction

This court has jurisdiction over the subject matter and the parties pursuant to 28 U.S.C. §§ 1334 and 157(a) and the General Order of Referral of Title 11 Proceedings to United States Bankruptcy Court for the District of Puerto Rico, dated July 19,1984 (Torruella, C.J.). This is a core proceeding in accordance with 28 U.S.C. § 157(b).

Procedural Background

The Claimants filed proof of claim 370 on January 28, 2011, requesting payment of the statutory penalty for work allegedly performed by them during meal periods from 1987 to 1992 (“POC 370”). The amount claimed in POC 370 was originally $1,289,097.52. Damas objected to POC 370 on October 13, 2011, arguing that the claims for unpaid wages were time barred by the applicable labor laws of Puerto Rico. [Docket No. 777.] On June 8, 2012, the Claimants amended POC 370, reducing the claim to $215,623.07, and opposed Da-mas’ objection, asserting that the time-bar [545]*545issue had already been litigated to their favor in the Puerto Rico courts. [Docket No. 1142.] On June 28, 2012, Damas replied to Claimants’ opposition, contending that the judgment of the local court actually supports Damas’ position and that the claims are in effect time barred. [Docket No. 1169.]

On December 12, 2012, Damas moved for summary judgment on its objection to POC 370, as amended. [Docket No. 1265.] In a hearing held on January 8, 2013, Damas requested disposition of this contested matter through summary judgment. [Docket No. 1298.] The court, thus, ordered the Claimants to file an opposition to Damas’ summary judgment motion. [Docket No. 1298.] On January 15, 2013, the Claimants filed their opposition to Da-mas’ motion for summary judgment. [Docket No. 1299.] Damas replied on February 1, 2013. [Docket No. 1308.]

Local Anti-Ferreting Rule

The local anti-ferreting rules “aid the court in identifying genuine issues of material fact which will necessitate denial of summary judgment....” Rosa Morales v. Santiago-Diaz, 338 F.Supp.2d 283, 294 n. 2 (D.P.R.2004) (citing D.P.R. Civ. R. 56(c) and Corrada Betances v. Sea-Land Serv. Inc., 248 F.3d 40, 43-44 (1st Cir.2001)). Puerto Rico Local Civil Rule 56(b) requires a party moving for summary judgment to file, annexed to its motion, “a separate, short and concise statement of the material facts, set forth in numbered paragraphs, as to which the moving party contends there is no genuine issue of material fact to be tried ... supported by a record citation....” D.P.R. Civ. R. 56(b). Local Civil Rule 56(c) then requires the nonmoving party to submit with its opposition a “separate, short, and concise statement of material facts,” admitting, denying or qualifying the facts by reference to each numbered paragraph with references to the record. D.P.R. Civ. R. 56(c). Local Civil Rule 56(e) provides that “[f]acts contained in a supporting or opposing statement of material facts, if supported by record citations as required by this rule, shall be deemed admitted unless properly controverted.” The anti-ferreting provisions of Local Civil Rule 56 also provide that the court has “no duty to search or consider any part of the record not specifically referenced in the parties’ separate statement of facts.” D.P.R. Civ. R. 56(e).

Damas complied with Local Civil Rule 56(b) by filing a separate statement of uncontested material facts supported by record citations. The Claimants, however, ran afoul of Local Civil Rule 56(c) by failing to submit an opposing statement of material facts. Therefore, as provided by Local Civil Rule 56(e), all properly supported facts set forth by Damas in its statement of facts are deemed admitted. See Cosme-Rosado v. Serrano-Rodriguez, 360 F.3d 42, 45-46 (1st Cir.2004) (“We have consistently upheld the enforcement of this rule, noting repeatedly that ‘parties ignore [it] at their peril’ and that ‘failure to present a statement of disputed facts, embroidered with specific citations to the record, justifies the court’s deeming the facts presented in the movant’s statement of undisputed facts admitted.’ ”) (quoting Ruiz Rivera v. Riley, 209 F.3d 24, 28 (1st Cir.2000) (citing prior cases)).

Uncontested Facts

The following facts are uncontested pursuant to Fed.R.Civ.P. 56 and D.P.R. Civ. R. 56, made applicable to these proceedings through Fed.R. Bankr.P. 9014(c) and 7056 and P.R. LBR 1001-l(b) and (d):

Claimants allege that for a period of five years, Damas unlawfully limited their meal periods to half an hour in violation of the legal provisions applicable to meal periods in Puerto Rico. [Damas’ Proposed Uncontested Facts at ¶ 2, Docket No. 1265; Da-[546]*546mas’ Exhibit A, Docket No. 1265-1.] The five years run from 1987 to 1992. [Damas’ Proposed Uncontested Facts at ¶ 3, Docket No. 1265; Damas’ Exhibits C-l & C-2, Docket No. 1265-1.]

Claimants further allege that they have been claiming, since 1987, payment of the statutory penalty. [Damas’ Proposed Uncontested Facts at ¶ 6, Docket No. 1265; Damas’ Exhibits A & F, Docket No. 1265-1.] The first claim related to this case was made by letter dated March 15, 1992, signed by twenty-two of the Claimants. [Damas’ Proposed Uncontested Facts at ¶ 11, Docket No. 1265; Damas’ Exhibits C-l, Docket No. 1265-1; Damas’ Exhibits H, Docket No. 1358.] A similar claim was made by two additional Claimants on March 19, 1992. [Damas’ Proposed Uncontested Facts at ¶ 11, Docket No. 1265; Damas’ Exhibit C-2, Docket No. 1265-1; Damas’ Exhibits H, Docket No.

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503 B.R. 543, 2014 WL 98675, 2014 Bankr. LEXIS 92, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-hospital-de-damas-inc-prb-2014.