Kim Luz, Individually and on Behalf of All Others Similarly Situated v. Bayada Home Health Care, Inc.; David Baiada; And Mark Baiada

CourtMassachusetts Superior Court
DecidedJune 26, 2024
Docket2184CV01383-BLS2
StatusPublished

This text of Kim Luz, Individually and on Behalf of All Others Similarly Situated v. Bayada Home Health Care, Inc.; David Baiada; And Mark Baiada (Kim Luz, Individually and on Behalf of All Others Similarly Situated v. Bayada Home Health Care, Inc.; David Baiada; And Mark Baiada) is published on Counsel Stack Legal Research, covering Massachusetts Superior Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Kim Luz, Individually and on Behalf of All Others Similarly Situated v. Bayada Home Health Care, Inc.; David Baiada; And Mark Baiada, (Mass. Ct. App. 2024).

Opinion

SUPERIOR COURT

KIM LUZ, INDIVIDUALLY AND ON BEHALF OF ALL OTHERS SIMILARLY SITUATED v. BAYADA HOME HEALTH CARE, INC.; DAVID BAIADA; AND MARK BAIADA

Docket: 2184CV01383-BLS2
Dates: June 3, 2024
Present: Kenneth W. Salinger
County: SUFFOLK
Keywords: DECISION AND ORDER ON MOTIONS FOR SUMMARY JUDGMENT AND CLASS CERTIFICATION

Kim Luz worked as a home health aide for BAYADA Home Health Care, Inc. (“Bayada”) for about two years. David Baiada is Chief Executive Officer of the company; Mark Baiada is chair of its board of trustees.

Ms. Luz claims that Defendants violated Massachusetts wage statutes by not paying her for travel time and overtime based on her regular hourly rate, by not paying sufficient mileage reimbursement or any cell phone reimbursement, and by not keeping accurate records of hours worked. In addition, Luz claims that Bayada is liable for breach of contract and on a theory of unjust enrichment. Luz seeks to represent a proposed class only as to her statutory claims.

Defendants have moved for summary judgment in their favor on all claims. Luz has moved for partial summary judgment as to liability on the statutory and breach of contract claims, and for class certification as to the four claims under various wage statutes.

The Court concludes that Luz is entitled to partial summary judgment as to liability on her claims that Bayada violated the Wage Act and breached her employment agreement by not paying the agreed-upon hourly rate for travel time. It cannot resolve on summary judgment whether Bayada failed to pay Luz all overtime she was entitled to receive, or whether David or Mark Baiada is personally liable under the Wage Act. Defendants are entitled to summary judgment in their favor on the claims concerning reimbursements, alleging inadequate recordkeeping, and for unjust enrichment.

The Court will allow class certification only as to the claim that Defendants violated the Wage Act by not paying wages earned for travel time; it will deny class certification as to Luz’s other statutory claims.

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1. Summary Judgment Motions.

1.1. Failure to Pay Promised Rate for Travel Time. In Counts 1, 2, and 5 of her complaint, Luz contends that Bayada did not pay the agreed-upon hourly rate for time she spent travelling from one client to another, and also did not pay her for overtime hours based on that rate. Luz asserts that David and Mark Baiada are personally liable for these alleged statutory violations.

1.1.1. Wage Act Claim. Luz is entitled to partial summary judgment as to liability on Count 1. The summary judgment record establishes that Bayada agreed to pay Luz $15.50 per hour, and agreed that she would be paid that rate for time spent providing client care, completing required documentation, and travelling from one client’s home to another. Rather than live up to that agreement, Bayada considered travel time only in calculating whether Luz was being paid at least the minimum wage for all hours worked (including travel time) and whether she was eligible for overtime pay, but otherwise did not pay Luz anything for travel time. That constitutes a violation of the Wage Act, because it is inconsistent with what Bayada promised to pay when it hired Luz.

1.1.1.1. Construing the Orientation Checklist and Agreement of Standards. When Luz was first hired by Bayada, at the end of January 2019, Luz signed an Orientation Checklist that said she would be paid “for time spent providing client care, documentation[,] and travel between cases.” Luz also signed Bayada’s Agreement of Standards that similarly said her “pay, whether hourly or per visit, will include time spent for client care, charting/documentation[,] and travel time.” The Agreement of Standards indicates, just above the signature line, that by signing the document Luz was acknowledging that she read, understood, and agreed to this provision.

These provisions mean what they say. Both of them informed Luz that she would be paid her regular hourly rate for all time worked, whether she was at a client’s home providing care, completing required documentation, or travelling from one client to another. They were an integral part of the at-will employment agreement between Luz and Bayada.

The summary judgment record makes clear that these documents were contracts of adhesion that any home health aide had to accept, with no changes, if they wanted to work for Bayada. “A contract of adhesion is one that is ‘drafted unilaterally by the dominant party and then presented on a ‘take-it-or-leave-it’ basis to the weaker party who has no real opportunity to bargain about its

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terms.’ ” Empire Loan of Stoughton, Inc. v. Stanley Convergent Security Solutions, Inc., 94 Mass. App. Ct. 709, 715 (2019), quoting Restatement (Second) of Conflict of Laws § 187, comment b (1971).

The Court must therefore interpret the Orientation Checklist and the Agreement of Standards in the way they would be understood by a typical, reasonable home health aide. When interpreting a standard form contract that was not subject to negotiation, courts must construe the agreement “to effectuate the reasonable expectations of the average member of the public who accepts it.” Brown v. Savings Bank Life Ins. Co., 93 Mass. App. Ct. 572, 581 (2018), quoting James B. Nutter & Co. v. Estate of Murphy, 478 Mass. 664, 670 (2018), quoting in turn Restatement (Second) of Contracts § 211, comment e (1981).

The Court finds that any reasonable home health aide who went to work for Bayada, was told that they would be paid by the hour at a specified rate, and was asked to agree to the same provisions would reasonably understand that they would receive their hourly wage for all work time, including travel time.

To the extent that these provisions are at all ambiguous, they must be construed “strongly against” Bayada, because Bayada is the party that drafted the Orientation Checklist and the Agreement of Standards. See Leblanc v. Friedman, 438 Mass. 592, 599 n.6 (2003), quoting Bowser v. Chalifour, 334 Mass. 348, 352 (1956). “The author of the ambiguous term is held to any reasonable interpretation attributed to that term which is relied on by the other party.” James B. Nutter & Co., 478 Mass. at 669, quoting Merrimack Valley Nat’l Bank v. Baird, 372 Mass. 721, 274 (1977).

This rule applies with particular force where, as here, individuals must accept contract language without change if they wish to do business with a business entity. See, e.g., Lechmere Tire & Sales Co. v. Burwick, 360 Mass. 718, 720–721 (1972) (adhesion contract must be “construed strictly against” party for whom it had been drafted); accord Chase Commercial Corp. v. Owen, 32 Mass. App. Ct. 248, 253 (1992).

This canon of construction “resolves ambiguity against the drafter” and turns what otherwise would be an uncertain instrument into an unambiguous contract. Boland v. George S. May Int'l Co., 81 Mass. App. Ct. 817, 827 (2012); accord, e.g., Costa v. Brait Builders Corp., 463 Mass. 65, 76 (2012); RCS Group, Inc. v. Lamonica Const. Co., Inc., 75 Mass. App. Ct. 613, 620º621 (2009).

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Kim Luz, Individually and on Behalf of All Others Similarly Situated v. Bayada Home Health Care, Inc.; David Baiada; And Mark Baiada, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kim-luz-individually-and-on-behalf-of-all-others-similarly-situated-v-masssuperct-2024.