Leonard Moore v. Appliance Direct,Inc.

708 F.3d 1233, 23 Fla. L. Weekly Fed. C 1877
CourtCourt of Appeals for the Eleventh Circuit
DecidedFebruary 13, 2013
Docket11-15227
StatusPublished
Cited by21 cases

This text of 708 F.3d 1233 (Leonard Moore v. Appliance Direct,Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Leonard Moore v. Appliance Direct,Inc., 708 F.3d 1233, 23 Fla. L. Weekly Fed. C 1877 (11th Cir. 2013).

Opinion

ALBRITTON, District Judge:

This is a suit for damages for retaliation under Chapter 8 of Title 29, the Fair Labor Standards Act of 1938, 29 U.S.C. §§ 201-219 (“FLSA”). The case presents cross-appeals. Defendant Sei Pak (“Pak”) appeals the district court’s entry of judgment against him individually and its denial of his renewed motions for judgment as a matter of law and remittitur. Plaintiffs Leonard Moore, Jason Evers, and Christopher Lungrin (“Plaintiffs”) appealed the court’s denial of their motion to add an award of liquidated damages so as to double the jury’s award of economic damages. For the reasons set forth below, we affirm both the district court’s entry of judgment against Pak and its denial of Plaintiffs’ motion for liquidated damages.

I. BACKGROUND

Prior to the filing of this action, on March 4, 2008, Plaintiffs filed a complaint alleging violations of the section 207 overtime provisions of the FLSA against their employer, Appliance Direct, Inc., and Pak, the Chief Executive Officer of Appliance Direct (“the overtime lawsuit”). Appliance *1236 Direct sells home appliances to customers, and the Plaintiffs were employed as delivery truck drivers. During the pendency of the overtime lawsuit, Appliance Direct began changing the employment status of its drivers from employees to independent contractors. Although other drivers formerly employed by Appliance Direct received offers to become independent contractors, the Plaintiffs did not, and their employment as truckdriver/employees was terminated as their jobs were outsourced.

The Plaintiffs then filed this separate suit, a one-count complaint alleging that Appliance Direct and Pak retaliated against them for filing the overtime lawsuit, in violation of section 215(a)(3) of the FLSA, by not giving them an opportunity to enter into independent subcontracts for delivery services and by interfering with the Plaintiffs’ ability to be hired by other subcontractors of delivery services for Appliance Direct. They alleged that other truckdriver/employees who had not joined in the overtime suit were given that opportunity. While this suit was pending trial, the overtime lawsuit was settled, and we held in a previous appeal that the earlier overtime lawsuit did not bar this retaliation suit on the basis of res judicata. Moore, et al. v. Pak, 402 Fed.Appx. 491 (11th Cir.2010).

This retaliation case was stayed as to Appliance Direct after it filed for bankruptcy, and it proceeded to a jury trial against Pak alone. At the conclusion of Plaintiffs’ case-in-chief, Pak moved for judgment as a matter of law, arguing that the Plaintiffs did not present sufficient evidence that Pak is an “employer” under the FLSA and that they did not present sufficient evidence as to their damages. This was denied. Pak renewed his motion after presenting his case, with the additional ground that the Plaintiffs had not presented sufficient evidence of causation between their protected activity and the adverse employment action. The district court denied the renewed motion, and the jury returned a verdict for the Plaintiffs with an economic damages award of $30,000 each.

After the trial, Pak filed two renewed motions for judgment as a matter of law and for remittitur or a new trial. In the motions he again argued that the Plaintiffs did not sufficiently prove their damages, that Pak had not been proved to be an employer, and that there was a lack of causation. Pak also argued that the court should reduce the Plaintiffs’ amount of damages to zero or order a new trial because the Plaintiffs did not prove their claim for lost profits. The district court found that there was sufficient evidence at trial on the issues raised by Pak and denied his motions. Pak filed this appeal claiming that: (1) he is not an employer under the FLSA, and (2) the Plaintiffs did not sufficiently prove their damages. 1

The Plaintiffs filed a post-trial motion seeking an additur of liquidated damages to the jury’s damages awards. The district court denied the motion, and the Plaintiffs cross-appealed on the issue of whether the district court was required to add liquidated damages to the judgment because Pak did not show that he was acting in reasonable good faith.

*1237 II. STANDARD OF REVIEW

We review the denial of a motion for judgment as a matter of law de novo. Wood v. Green, 323 F.3d 1309, 1312 (11th Cir.2003). The court considers the evidence and the inferences drawn from it in a light most favorable to the nonmoving party. Goldsmith v. Bagby Elevator Co., 513 F.3d 1261, 1275 (11th Cir.2008).

We review the denial of a motion for remittitur or new trial under an abuse of discretion standard. Gasperini v. Ctr. for Humanities, Inc., 518 U.S. 415, 435, 116 S.Ct. 2211, 135 L.Ed.2d 659 (1996). Questions of statutory interpretation are reviewed de novo. United States v. Moore, 541 F.3d 1323, 1326 (11th Cir.2008).

III. DISCUSSION

A. Definition of “Employer” under FLSA

Pak first challenges the district court’s entry of judgment and denial of his motions based on a finding that he is individually liable as an employer under the FLSA. The FLSA defines an employer as including “any person acting directly or indirectly in the interest of an employer in relation to an employee.” 29 U.S.C. § 203(d). A corporate officer is personally liable as an FLSA employer if he has “operational control of a corporation’s covered enterprise,” which may be involvement in the day-to-day operation of the company or direct supervision of the employee at issue. Patel v. Wargo, 803 F.2d 632, 637-38 (11th Cir.1986).

Pak was the CEO and 75% owner of Appliance Direct, but that is only one factor to consider in determining whether he could be held liable as an employer under the FLSA. Considering the totality of the circumstances, the evidence at trial was sufficient to show that Pak was an employer of the Plaintiffs. Pak’s involvement in Appliance Direct included more than a majority ownership interest and office of CEO. At trial there was evidence showing him to have guided company policy and to have given instructions to managers regarding job duties; that he was the ultimate decision maker at the company; that he negotiated leases and vendor contracts; and significantly, that he directed that the Plaintiffs not be given subcontracts for delivery services, among other involvements.

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Bluebook (online)
708 F.3d 1233, 23 Fla. L. Weekly Fed. C 1877, Counsel Stack Legal Research, https://law.counselstack.com/opinion/leonard-moore-v-appliance-directinc-ca11-2013.