Martinez v. 189 Chrystie Street Partners, LP d/b/a The Box

CourtDistrict Court, S.D. New York
DecidedAugust 22, 2023
Docket1:22-cv-03111
StatusUnknown

This text of Martinez v. 189 Chrystie Street Partners, LP d/b/a The Box (Martinez v. 189 Chrystie Street Partners, LP d/b/a The Box) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Martinez v. 189 Chrystie Street Partners, LP d/b/a The Box, (S.D.N.Y. 2023).

Opinion

UNITED STATES DISTRICT COURT DOC #: SOUTHERN DISTRICT OF NEW YORK DATE FILED: 08/22/2 023 -------------------------------------------------------------- X SHANELL MARTINEZ, : : Plaintiff, : : -against- : : 189 CHRYSTIE STREET PARTNERS, LP, : 22-CV-3111 (VEC) d/b/a THE BOX, VARIETY WORLDWIDE, LLC, : SIMON HAMMERSTEIN, JAVIER VIVAS, : OPINION & ORDER GIZA SELIMI, and NENAD KARAC, : : Defendants. : -------------------------------------------------------------- X VALERIE CAPRONI, United States District Judge: Plaintiff, once a “bottle server” at The Box, has sued her former employers for harassment, discrimination, wage and hour violations, and sex trafficking pursuant to the New York State Human Rights Law (“NYSHRL”), New York City Human Rights Law (“NYCHRL”), the Fair Labor Standards Act (“FLSA”), New York Labor Law (“NYLL”), and the Trafficking Victims Protection Act (“TVPA”), as well as for fraud and unjust enrichment. Am. Compl., Dkt. 39.1 Defendants moved to dismiss the Amended Complaint pursuant to Federal Rule of Civil Procedure 12(b)(6), and Plaintiff opposed the motion. Mot., Dkt. 42; Pl. Opp., Dkt. 59. For the reasons discussed below, the motion to dismiss is DENIED, and the stay on discovery is lifted.2 Plaintiff is further ordered to show cause why her NYLL recordkeeping claims should not be dismissed for lack of standing. 1 On October 5, 2022, the Court ordered Plaintiff to file a redlined version of the Amended Complaint in accordance with the Undersigned’s Individual Rules. Order, Dkt. 40. The version of the amended complaint subsequently filed by Ms. Martinez at docket entry 41 contains minor differences from the amended complaint filed at docket entry 39. Because Plaintiff did not seek leave from this Court or consent from Defendants to further amend the complaint, the Court considers only the amended complaint filed at docket entry 39. See Fed. R. Civ. P. 15(a) (permitting a party to amend as of right only once). 2 On October 28, 2022, the Court granted Defendants’ motion to stay discovery pending resolution of the motion to dismiss. Order, Dkt. 46. BACKGROUND3 Ms. Martinez was formerly employed as a bottle server by The Box, a nightclub known for its erotic atmosphere.4 Am. Compl. ¶¶ 3, 37. The Box is owned by Variety Worldwide, LLC, and individual Defendants, Messrs. Hammerstein, Vivas, and Selimi, are owners,

executives, or managers at The Box. Id. ¶¶ 7–11, 36. A. Harassment Ms. Martinez was employed at The Box from 2017 until she was furloughed in early 2020 when the New York Governor’s Executive Order forced The Box’s closing as part of the state’s response to the COVID-19 pandemic.5 Id. ¶¶ 33–34, 38, 187–88. From the outset, the individual Defendants instructed Ms. Martinez to accept that male patrons would “be handsy,” id. ¶ 44, to flirt with male patrons, and to give them “anything that they wanted,” including sexual favors, id. ¶ 27; see also id. ¶¶ 44, 62–63, 154–55. The individual Defendants frequently made sexually and racially charged comments to and about Ms. Martinez; those comments at times escalated into sexual advances and nonconsensual sexual contact. See, e.g., id. ¶¶ 51, 60,

107–13, 125, 143, 160, 162, 169. Within the first month of Ms. Martinez’s employment, Mr. Hammerstein brought her to a private room and bathroom in which female staff could provide male customers and employers sexual services. Id. ¶¶ 49–51. Mr. Hammerstein ordered Ms. Martinez to spread her legs in a

3 The well-pled facts in the Complaint are assumed true for purposes of evaluating Defendant’s motion to dismiss. See Nielsen v. Rabin, 746 F.3d 58, 62 (2d Cir. 2014). 4 See, e.g., Melena Ryzik, Is the Box Still Edgy?, N.Y. Times (Oct. 28, 2007), https://www.nytimes.com/ 2007/10/28/fashion/28boite.html (describing the Box “as a Moulin Rouge-style theater of the extreme,” at which “[t]he one constant seems to be female nudity”); Jacob Bernstein & Sadiba Hasan, The Met Gala Was Just the Start. Welcome to the After-Parties., N.Y. Times (May 4, 2023), https://www.nytimes.com/2023/05/02/fashion/met-gala- after-parties.html (describing the Box as a “burlesque club”). 5 The Box reopened at some point but Plaintiff was never recalled to work. Am. Compl. ¶ 188. bathroom stall; Mr. Hammerstein stated he had sexual intercourse with women in that stall and had installed a mirror so that he could watch himself having intercourse. Id. ¶¶ 51–52. On other occasions, Mr. Hammerstein touched Ms. Martinez, praised her physical appearance, asked her to spin and show him her body, and inquired into her relationship status. See, e.g., id. ¶ 60. Mr.

Selimi and Mr. Karac also told Ms. Martinez that they preferred women with darker skin, and Mr. Karac commented on Ms. Martinez’s anatomy. Id. ¶¶ 107–112, 159–60. Mr. Karac propositioned Ms. Martinez and touched her sexually, including on her buttocks, and pressed his penis against her buttocks and leg. Id. ¶¶ 111–13, 121, 125–26, 143– 44, 160, 177. In October 2017, Mr. Karac cornered Ms. Martinez while she was undressing in the employee changing room. Id. ¶ 115. Mr. Karac refused to leave when asked and, instead, locked the door and blocked her exit. Id. ¶ 115–16. Subsequently, Mr. Karac stated that he was aware of and enjoyed the inaccurate rumors that Ms. Martinez was having sex with him to keep her job. Id. ¶¶ 117–18. When Ms. Martinez continued to refuse Mr. Karac’s sexual advances, Mr. Karac reduced her scheduled work hours. Id. ¶¶ 119–20. On September 20, 2019, Mr.

Karac asked Ms. Martinez to comment on the size of a dildo, unzipped his pants, placed the dildo in his pants, approached Plaintiff, and pointed his groin toward her. Id. ¶ 163. These incidents caused Ms. Martinez to suffer mental distress, including panic attacks. Id. ¶¶ 145, 188. Ms. Martinez reported the harassment to Mr. Vivas and provided him a list of witnesses. Id. ¶¶ 179–82. In November 2019, Mr. Vivas suspended Mr. Karac for two weeks and provided him remedial training. Id. ¶¶ 174, 179–80. Although Mr. Vivas never spoke to the employees Ms. Martinez had identified as witnesses, he told Ms. Martinez that no one had corroborated her allegations. Id. ¶¶ 180, 182. After the two-week suspension elapsed, Ms. Martinez was again required to report to Mr. Karac; Mr. Karac again reduced her scheduled work hours. Id. ¶¶ 183–84. B. Compensation In addition to harassing her, Ms. Martinez alleges that Defendants did not fairly

compensate her. Defendants required Ms. Martinez to recruit clients, including by dressing in provocative clothing and visiting bars five nights a week; at times, she accompanied men she had recruited to The Box, where she entertained them. Id. ¶¶ 72–79, 94. Although she was promised a ten percent commission based on the spending of each customer she recruited, she was not paid her full commission. Id. ¶¶ 100–02. When she complained about unpaid wages, Defendants retaliated. Id. ¶ 104. Once or twice a week, Defendants required Ms. Martinez to work overtime but did not pay her overtime wages, and Mr. Karac would sometimes clock her out while she was still working. Id. ¶¶ 81–86. Two or three days per week, Ms. Martinez was required to be on call from 5:00 p.m. until 3:00 a.m.; she was not compensated for being on call unless she was

actually called in to work. Id. ¶¶ 87–88. Ms. Martinez was also not compensated for staff meetings, which lasted two to three hours and were held twice a month. Id. ¶ 89. Ms. Martinez’s hourly wage ranged from $8.00 to $10.00 per hour, but, at all times, her hourly wage rate was below the applicable minimum wage in New York City for tipped employees. Id. ¶¶ 65–71, 190–95. In August 2018, Mr.

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Martinez v. 189 Chrystie Street Partners, LP d/b/a The Box, Counsel Stack Legal Research, https://law.counselstack.com/opinion/martinez-v-189-chrystie-street-partners-lp-dba-the-box-nysd-2023.