Levy v. Scheid

CourtDistrict Court, D. Colorado
DecidedAugust 28, 2025
Docket1:24-cv-00375
StatusUnknown

This text of Levy v. Scheid (Levy v. Scheid) is published on Counsel Stack Legal Research, covering District Court, D. Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Levy v. Scheid, (D. Colo. 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLORADO Judge Nina Y. Wang

Civil Action No. 24-cv-00375-NYW-NRN

EDWARD LEVY,

Plaintiff,

v.

ROBERT DANIEL SCHEID, SCHEID CLEVELAND, LLC, and CESARE MORGANTI,

Defendants,

and

ROBERT DANIEL SCHEID, and SCHEID CLEVELAND, LLC,

Third-Party Plaintiffs,

ATLAS LAW FIRM, P.C.,

Third-Party Defendant.

MEMORANDUM OPINION AND ORDER

This matter is before the Court on Defendant’s Renewed Motion for Summary Judgment Seeking Dismissal of: (A) the First Claim for Relief Due to the Non-Applicability of the FLSA; and (B) the Remaining State Law Claims Due to Lack of Subject Matter Jurisdiction (the “Motion for Summary Judgment”), [Doc. 51], and Plaintiff’s Motion to Strike Defendants’ Reply in Support of Renewed Motion for Summary Judgment or for Other Sanctions (the “Motion to Strike”), [Doc. 68]. The Court finds that oral argument would not materially assist in the resolution of these Motions. For the reasons herein, the Motion for Summary Judgment and the Motion to Strike are respectfully DENIED. BACKGROUND On February 7, 2024, Plaintiff Edward Levy (“Plaintiff” or “Mr. Levy”) sued Robert

Daniel Scheid (“Mr. Scheid”), Scheid Cleveland, LLC (“Scheid Cleveland”), and Cesare Morganti (“Mr. Morganti,” and collectively with Mr. Scheid and Scheid Cleveland, “Defendants”). See [Doc. 1 at 1]. Mr. Levy claims that he “was employed by Scheid Cleveland . . . from February 24, 2022 through July 8, 2022 as a junior associate . . . [and] as an administrative assistant.” [Id. at ¶ 29]. Mr. Morganti is or was a client of Scheid Cleveland, and Plaintiff claims he was hired by Scheid Cleveland to work on the Morganti case. [Id. at ¶¶ 16–17]. Broadly speaking, Mr. Levy alleges that he was denied wages for work he performed on the Morganti case. See, e.g., [id. at ¶¶ 70–76]. Plaintiff asserts claims under the Fair Labor Standards Act (“FLSA”), the Colorado Wage Act, and Colorado common law. [Id. at ¶¶ 68–106]. Mr. Scheid and Scheid Cleveland then filed

counterclaims against Mr. Levy and third-party claims against Atlas Law Firm, P.C. (“Atlas Law Firm”) for breach of contract, promissory estoppel, concealment, and false representations. [Doc. 9 at 57–63 ¶¶ 118–59]. At the May 29, 2024 Scheduling Conference, the Honorable N. Reid Neureiter declined to enter a scheduling order due to concerns about the FLSA’s applicability to this dispute. [Doc. 34 at 1]. Instead, he permitted limited early discovery and directed Defendants to file an early summary judgment motion concerning only the applicability of the FLSA. [Id. at 2]. After that limited discovery, Defendants filed a summary judgment motion. See [Doc. 36 (the “First Summary Judgment Motion”)]. On December 5, 2024, this Court denied the First Summary Judgment Motion without prejudice after identifying numerous issues within the Parties’ briefs, including violations of Rule 56 of the Federal Rules of Civil Procedure and the undersigned’s Civil Practice Standards. See [Doc. 50]. The Court permitted Defendants to file another

motion, expressly ordering the Parties to review the Court’s Practice Standards and Rule 56. [Id. at 4]. The Court also ordered the Parties to “focus[] only on the facts that are actually material to the issues to be decided at summary judgment.” [Id.]. Defendants filed their Motion for Summary Judgment on January 12, 2025, see [Doc. 51], and the matter is fully briefed, see [Doc. 61; Doc. 67].1 The facts underlying this case are largely in dispute, and the Court sets forth the limited undisputed material facts below. Undisputed Material Facts. Mr. Levy is a licensed attorney and the owner of Atlas Law Firm. [Doc. 51 at ¶ 1; Doc. 61 at 6 ¶ 1; Doc. 9 at 35 ¶ 6; Doc. 23 at ¶ 6]. Scheid Cleveland is a limited liability company with two members: Mr. Scheid and Cleveland & Associates, P.C. [Doc. 51 at ¶¶ 4–5; Doc. 61 at 6 ¶¶ 4–5; Doc. 51-6 at ¶ 4]. Jan Cleveland

(“Ms. Cleveland”) is the sole shareholder of Cleveland & Associates. [Doc. 51 at ¶ 5; Doc. 61 at 6 ¶ 5; Doc. 51-8 at ¶ 3].2 At all times relevant to this dispute, Atlas Law Firm and Scheid Cleveland operated out of a shared office space called “Office Evolution.” [Doc. 51 at ¶¶ 2, 4; Doc. 61 at 6 ¶¶ 2, 4; Doc. 51-4 at 2; Doc. 51-7 at 2; Doc. 51-6 at ¶ 3].

1 Despite the Court’s prior admonitions and its suggestion that “[t]he sheer volume of assertions [of fact in the Parties’ prior summary judgment briefing] suggests genuine disputes of material fact,” [Doc. 50 at 3], the Parties’ current briefing contains many of the same issues identified in the Court’s December 5 Minute Order. The Court declines to permit the Parties a third opportunity to brief these issues. See Fed. R. Civ. P. 1. 2 Ms. Cleveland is not a named party to this case. The nature of Mr. Levy’s working relationship with Scheid Cleveland is vigorously disputed and the crux of this case. Focusing only on what is undisputed, the Parties agree that Mr. Levy performed work on Scheid Cleveland cases as early as 2019. [Doc. 51 at ¶¶ 75–76; Doc. 61 at 12 ¶¶ 75–76; Doc. 51-6 at ¶¶ 71–72].3 Scheid Cleveland and

Mr. Morganti executed a fee agreement, and Mr. Levy did not have a separate agreement with Mr. Morganti. [Doc. 51 at ¶¶ 83–84; Doc. 61 at 13 ¶¶ 83–84; Doc. 51-9 at ¶¶ 3, 5]. Mr. Levy performed work on the Morganti case in 2020, 2022, and 2023. [Doc. 51 at ¶ 82; Doc. 61 at 13 ¶ 82; Doc. 51-6 at ¶¶ 80, 86, 94]. The work Mr. Levy performed included reviewing pleadings and discovery, conducting legal research, and “generating . . . drafts” of substantive briefs. [Doc. 51 at ¶ 96; Doc. 61 at 14 ¶ 96; Doc. 51-6 at ¶¶ 86– 87].4 Scheid Cleveland never issued a Form W-2 or a Form 1099 to Mr. Levy. [Doc. 51 at ¶ 52; Doc. 61 at 10 ¶ 52; id. at 19 ¶ 27; Doc. 67 at 10 ¶ 27; Doc. 51-6 at ¶ 47; Doc. 61- 43 at ¶ 36].5

LEGAL STANDARD Under Rule 56 of the Federal Rules of Civil Procedure, summary judgment is appropriate “if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(a). “A dispute is genuine if there is sufficient evidence so that a rational trier of fact could resolve

3 Although Mr. Levy attempts to dispute limited portions of Defendants’ assertions of fact, Mr. Levy does not dispute that he performed work on Scheid Cleveland cases. See [Doc. 61 at 12 ¶¶ 75–76]. 4 Mr. Levy claims that he also performed document review and clerical work, but he does not deny that he performed the work described above. See [Doc. 61 at 14 ¶ 96]. 5 Mr. Levy disputes whether he received a Form W-4 or Form I-9, but not whether he received a Form W-2. See [Doc. 61 at 10 ¶ 52]. the issue either way. A fact is material if under the substantive law it is essential to the proper disposition of the claim.” Crowe v. ADT Sec. Servs., Inc., 649 F.3d 1189, 1194 (10th Cir. 2011) (cleaned up). A movant who does not bear the ultimate burden of persuasion at trial does not

need to disprove the other party’s claim; rather, the movant must only point the Court to a lack of evidence for the other party on an essential element of that party’s claim. Adler v.

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