Muniz v. Re Spec Corp.

230 F. Supp. 3d 147, 2017 U.S. Dist. LEXIS 7570, 2017 WL 238482
CourtDistrict Court, S.D. New York
DecidedJanuary 19, 2017
Docket16-CV-02878 (BCM)
StatusPublished
Cited by7 cases

This text of 230 F. Supp. 3d 147 (Muniz v. Re Spec Corp.) 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
Muniz v. Re Spec Corp., 230 F. Supp. 3d 147, 2017 U.S. Dist. LEXIS 7570, 2017 WL 238482 (S.D.N.Y. 2017).

Opinion

MEMORANDUM AND ORDER

BARBARA MOSES, United States - Magistrate Judge.

In this wage and hour case, before me for all purposes pursuant to 28 U.S.C. § 636(c), nine food service workers assert claims under the Fair Labor Standards Act, 29 U.S.C. §§ 201 et seq. (FLSA), and New York Labor Law §§ 190 et seq. and 650 et seq. (NYLL), against the owners and operators of the restaurants where they were formerly employed. Defendants have moved to disqualify plaintiffs’ counsel, Michael Faillace, Esq. and the law firm of Michael Faillace & Associates, P.C. (the Firm), and to dismiss the First Amended Complaint. Defendants contend that the Firm has a conflict of interest because, in addition to the hourly workers named as plaintiffs in the First Amended Complaint, it also represents the former day manager of one of defendants’ restaurants, who is potentially liable as an “employer” for any wage and hour violations and therefore should be aligned with defendants, not plaintiffs. For the reasons set forth below, both branches of the motion are DENIED.

BACKGROUND

Plaintiffs Pedro Muniz and Octavio Gonzalez, represented by the Firm, commenced this action on April 18, 2016, alleging that their former employers Re Spec Corp d/b/a Jackson Hole (Re Spec), 3K Foods Inc. d/b/a Jackson Hole (3K Foods), George Kalogeras, Thomas Kalogeras, Dimitri Kalogeras, Liliana Kalogeras, and Stelio Kalogeras violated the minimum wage, overtime, spread-of-hours, and recordkeeping provisions of the FLSA and NYLL. Compl. (Dkt. No. 1), ¶¶ 1-11, 16-25. Muniz and Gonzalez alleged that they worked “as sandwich makers and waiter” at two New York City restaurants operated by defendants under the name Jackson Hole, one on Madison Avenue and one on Columbus Avenue. Compl. ¶¶2-4, 39, 63. They further alleged that the individual defendants were “owners, managers, principals or agents” of the two corporate defendants. Id. ¶ 3; see also id. ¶¶ 21-25.

On September 30, 2016, original plaintiff Muniz, joined by additional plaintiffs Alejandro Mendoza Jimenez, Armando de Jesus Sontay, Ismael Morales, Lucio Flores, Raul Sanchez Rufino, Rigoberto Andres Juarez, Teofilo Mendez, and Eustolio Aquino—but not original co-plaintiff Gonzalez—filed their First Amended Complaint, once again asserting wage and hour claims against Re Spec, 3K Foods, and George, Thomas, and Dimitri Kalogeras. See First Am. Compl. (Dkt. No. 38), ¶¶ 1-14.1 The current plaintiffs allege that they worked as “sandwich makers, food preparers, cooks, delivery workers, and waiter” at the Jackson Hole restaurants. Id. ¶¶ 4, 10. The First Amended Complaint, like the original Complaint, alleges violations of the minimum wage, overtime, spread-of-hours, and recordkeeping provisions of the FLSA and NYLL. Id. ¶¶ 13-14.

On October 13, 2016, defendants filed the instant motion (Dkt. No. 41), arguing [150]*150that the Firm has a conflict of interest stemming from its representation of Gonzalez, who was “not a sandwich maker but rather the day manager” at the Jackson Hole restaurant on Madison Avenue, with authority to hire and fire employees, grant time off, schedule breaks and meal periods, and supervise other employees, including Muniz. See Def. Mem. of Law (Dkt. No. 44), at 2. Further, defendants assert, attorney Faillace and the Firm were aware of Gonzalez’s true status and responsibilities because they represented another group of Jackson Hole employees in a previous (now settled) wage and hour lawsuit in this District, entitled Ortiz, et al. v. Re Spec. Corp., et al., No. 14-CV-00270 (AJN), in which “Gonzalez was repeatedly identified as a manager by the Ortiz plaintiffs in their examinations before trial at which attorney Faillace appeared and represented these workers.” Def. Mem. of Law at 3. Although Gonzalez is no longer a plaintiff in this action, defendants contend that “his shadow remains to cast doubt” upon “the merit of the entire claim and whether attorney Faillace should not be disqualified and the action dismissed.” Id. at 2-3. In addition, defendants argue, Gonzalez “could have been in possession of confidential information” and could have passed that information to the Firm to assist counsel in identifying the new plaintiffs added in the First Amended Complaint. Id. at 3,12.

FACTS

' Gonzalez worked at defendants’ Madison Avenue restaurant from February 1988 to March 2013, when it closed. Compl. ¶ 15; Decl. of George Kalogeras, dated Oct. 13, 2016 (Dkt. No. 42), ¶ 7.

On January 14, 2014—ten months after Gonzalez left defendants’ employ—the Firm filed the Ortiz action on behalf of a group of employees and former employees at both restaurants. On February 13, 2015, the Firm filed a separate action, entitled Juarez v. Re Spec Corp., No. 15-CV-01057 (AJN), on behalf of additional employees. On May 27, 2015, Ortiz and Juarez were consolidated, with Ortiz designated the lead case. On September 30, 2015—five days before the consolidated case was scheduled for trial—the parties informed United States District Judge Alison J. Nathan that the action was settled, and on January 7, 2016, United States Magistrate Judge Ronald L. Ellis, who had presided over the settlement negotiations, approved the parties’ agreement as fair and reasonable.

Before the Ortiz matter settled, three of the plaintiffs in that case testified at deposition that Gonzalez was one of their supervisors at the Madison Avenue restaurant. Fernando Arellanes testified that five people supervised him at that location, including Gonzalez (whom he called Octavio) and four members of the Kalogeras family: Vivian, George, Thomas, and Stelio. See Fernando Arellanes Dep. (Kalogeras Decl. Ex. A), at 35. Octavio, Vivian and Stelio set his schedule. Id. at 35-36. Vivian or Stelio set his pay and gave it to him. Id. at 36. Asked who told him what to do when he was working, the witness testified:

A. They would give the order to Octavio, and Octavio would give us the order.
Q. Who would give the order to Octavio?

A. All four of them.

Id. at 36. Arnulfo Vasquez and Iginio Arel-lanes gave similar testimony, identifying Octavio as one of the individuals who supervised them, along with various members of the Kalogeras family. See Vasquez Dep. (Kalogeras Decl. Ex. B), at 21; Iginio Arellanes Dep. (Kalogeras Decl. Ex. C), at 32.

Gonzalez was neither a plaintiff nor a defendant in Ortiz (or its constituent actions), did not testify at deposition, and [151]*151was not on either side’s witness list for trial. See Jt. Prelim. Trial Rep., dated Sept. 15, 2015 (Dkt. No. 78 in 14-CV-00270), at 11-13. The defendants in Ortiz—including both of the corporations and two of the Kalogeras family members named as defendants here—made no effort to add Gonzalez as a third-party defendant. This action was filed on April 18, 2016, three months after Ortiz was dismissed and more than three years after Gonzalez’s employment at Jackson Hole ended.

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230 F. Supp. 3d 147, 2017 U.S. Dist. LEXIS 7570, 2017 WL 238482, Counsel Stack Legal Research, https://law.counselstack.com/opinion/muniz-v-re-spec-corp-nysd-2017.