Padilla v. Maersk Line, Ltd.

603 F. Supp. 2d 616, 2009 A.M.C. 1102, 2009 U.S. Dist. LEXIS 21842, 2009 WL 666953
CourtDistrict Court, S.D. New York
DecidedMarch 12, 2009
Docket07 Civ. 3638 (PKL)
StatusPublished
Cited by6 cases

This text of 603 F. Supp. 2d 616 (Padilla v. Maersk Line, Ltd.) 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
Padilla v. Maersk Line, Ltd., 603 F. Supp. 2d 616, 2009 A.M.C. 1102, 2009 U.S. Dist. LEXIS 21842, 2009 WL 666953 (S.D.N.Y. 2009).

Opinion

OPINION AND ORDER

LEISURE, District Judge:

This matter is before the Court upon plaintiff John Padilla’s (“Padilla”) motion to compel his employer, defendant Maersk Line, Ltd. (“Maersk”), to pay overtime compensation to plaintiff as part of his entitlement to unearned wages. For the reasons stated below, this motion is GRANTED.

*618 BACKGROUND

Padilla brings a complaint on behalf of himself and a proposed class of similarly-situated seamen against Maersk 1 under general maritime law for unearned wages. Padilla claims that he and other similarly situated seamen suffered illness and injury in the service of Maersk’s vessels. (Compl. ¶ 3.) Furthermore, Padilla claims that Maersk paid him unearned wages until the end of voyage, along with maintenance and cure, but failed to pay overtime wages that Padilla otherwise would have earned in service aboard Maersk’s vessel. CSee id. ¶¶ 3-4.)

A. Factual History

The essential facts are undisputed. On October 30, 2006, Padilla was hired as Chief Cook aboard defendant’s vessel, the Maersk Arkansas. (Def.’s Opp’n 1; O’Connell Decl. ¶ 1.) 2 Maersk and Padilla’s union, the Seafarers International Union (“SIU”), are parties to a collective bargaining agreement known as the Standard Freightship Agreement (the “CBA”). 3 (O’Connell Decl. ¶2.) Pursuant to Article V, Section 1 (“Wages”) of the CBA, a Chief Cook in the Steward Department is entitled to regular monthly wages of $3,051.76. (Def.’s Opp’n 1; O’Connell Decl. Ex. A at 50.) In addition, the CBA provides that wages “will be paid on a day for day basis on all contracted vessels .... ” (O’Connell Decl. Ex. A at 27.) Accordingly, the Particulars of Engagement and Discharge (the “shipping articles” 4 ) that Padilla signed upon boarding the Maersk Arkansas list Padilla’s regular daily wage rate as $101.73, which Maersk calculated by dividing the monthly wage rate in the CBA by 30. (Def.’s Opp’n 1; O’Connell Decl. Ex. B.)

Padilla’s sworn testimony is that his regular shift lasted from 6:30 a.m. to 6:30 p.m. (Pl.’s Dep. 29:2, Mar. 26, 2008) 5 , with a coffee break from 9:30-10:30 a.m. and a longer break from 1:00 p.m. to 4:00 p.m. (Id. 29:13-18.) This testimony is consistent with the terms of the CBA, which states that a Chief Cook is required to work eight (8) hours between 6:30 a.m. and 6:30 p.m. (O’Connell Decl. Ex. A at 50.) Pursuant to Article II, Section 21 (“Over *619 time Rates and Penalty Rates”) of the CBA, a Chief Cook in the Steward Department earns $21.06 per hour for all work in excess of eight (8) hours Monday through Friday and any work performed on Saturdays, Sundays, or holidays. (O’Connell Decl. Ex. A at 10, 50.) Although the head of each department must authorize overtime work (id. at 14; see also Pl.’s Dep. 91:17-18), Padilla swears that, on a weekly basis prior to his injury, he performed three (3) overtime hours each weekday and eleven (11) overtime hours each Saturday, Sunday, and holiday. (Padilla Aff. ¶¶ 2-3.) This testimony is consistent with the payroll vouchers for Padilla that Maersk submitted. (See O’Connell Decl. Ex. C.) In addition, at his deposition, Padilla explained that some duties essential to maintaining a well-run ship, such as sougeeing the galley and working the stores, automatically required him to work overtime each week. (Pl.’s Dep. 88, 91:23-92:8, 93-94.) This testimony is also consistent with the CBA, which contemplates that, for members of the Steward Department, certain “non-routine” work, such as preparing and serving night lunches, sougeeing, or any work not specifically designated in the CBA will automatically be paid at the applicable overtime rate. (See O’Connell Decl. Ex. A at 52-55; see also PL’s Dep. 94:16-17.)

After eight days of service aboard the MV Arkansas, Padilla was discharged and repatriated at the Port of Salalah, Oman, on November 6, 2006. (See Def.’s Opp’n 2; Berger Decl. ¶ 7; O’Connell Decl. Ex. B.) At that time, Padilla signed off the ship’s articles, which indicated that he was “unfit for duty.” (Def.’s Opp’n 2; O’Connell Decl. Ex. B.) In addition, the shipping articles indicate that the balance of earned wages owed to Padilla 6 at discharge totaled $1,090.00 and included six days of regular wages plus 34 hours of overtime wages. 7 (O’Connell Decl. Exs. B & C.)

The Maersk Arkansas’s voyage ended on February 26, 2007. (Berger Decl. ¶ 8; O’Connell Decl. ¶ 9.) Maersk paid Padilla unearned wages at a daily rate of $101.73, along with maintenance payments of $16 per day, 8 from Padilla’s discharge until February 26, 2007. (Def.’s Opp’n 2.) Carol Berger, General Manager, Quality Environment, Safety and Security for Maersk, attests that it is not her practice to factor overtime wages into any calculation of unearned wages, and she is unaware of any company in the industry that includes overtime wages in its unearned wage calculations. (Berger Decl. ¶¶ 6, 9.) However, Catherine O’Connell, Maersk’s Jones Act Claims Manager, attests that when Maersk enters into negotiations with a seaman to settle a Jones Act claim, she will recommend that Maersk include overtime in unearned wages to induce the seaman to settle his claim. (O’Connell Decl. ¶ 6.)

Padilla testified at his deposition that he contacted Maersk to request payment of overtime wages that he would have earned but for his injury, but Maersk denied his request, stating that it did not pay over *620 time as unearned wages. (Pl.’s Dep. 62:2— 17.) In addition, Padilla’s testimony indicates that at least one other company has paid him unearned wages consisting of his daily base wage plus overtime he would have earned but for injury or illness. {Id. 63:3-15.) Maersk indicates that Padilla’s replacement man aboard the Maersk Arkansas earned $15,103.52 in overtime wages during his 108 days of service on the Maersk Arkansas. (Pl.’s Reply 3 & Ex. A.)

B. Procedural History

At a December 13, 2007 pre-trial conference before this Court, the parties agreed to have the Court determine defendant’s liability for overtime wages as unearned wages prior to addressing whether the action is suitable for class action status. Now before the Court is Padilla’s motion for judgment on the merit s with respect to Maersk’s liability for payment of overtime wages.

DISCUSSION

Padilla argues that overtime wages are payable as unearned wages. (PL’s Mem. 2.) Padilla relies on Lamont v. United States, 613 F.Supp. 588, 592-93 (S.D.N.Y.1985) (Duffy, J.) for the proposition that a seaman may recover overtime as a component of unearned wages where it was the “apparent custom and practice ...

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Bluebook (online)
603 F. Supp. 2d 616, 2009 A.M.C. 1102, 2009 U.S. Dist. LEXIS 21842, 2009 WL 666953, Counsel Stack Legal Research, https://law.counselstack.com/opinion/padilla-v-maersk-line-ltd-nysd-2009.