Pineda v. LOPITO, ILEANA & HOWIE, INC.

656 F. Supp. 2d 268, 2009 U.S. Dist. LEXIS 75534, 2009 WL 2746549
CourtDistrict Court, D. Puerto Rico
DecidedAugust 25, 2009
DocketCivil 06-1397CCC
StatusPublished

This text of 656 F. Supp. 2d 268 (Pineda v. LOPITO, ILEANA & HOWIE, INC.) is published on Counsel Stack Legal Research, covering District Court, D. Puerto Rico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pineda v. LOPITO, ILEANA & HOWIE, INC., 656 F. Supp. 2d 268, 2009 U.S. Dist. LEXIS 75534, 2009 WL 2746549 (prd 2009).

Opinion

AMENDED ORDER

CARMEN CONSUELO CEREZO, District Judge.

The Order issued today (docket entry 175) is amended for the sole purpose of adding the following case in support of footnote 1: Pickens v. Equitable Life Assurance Soc., 413 F.2d 1390 (5th Cir.1969).

Before the Court is a Fed.R.Civ.P. 50(a)(1) oral motion submitted by defendants Lopito, Ileana and Howie, Inc. (LIH), Digital Audiovisual Services, Inc. (DAS) and Carlos Pepe Rodriguez on all claims after conclusion of the presentation of plaintiffs evidence. Both parties fully argued for and against the motion. Having considered the evidence and the controlling case law, the Court RULES as follows:

Regarding plaintiffs Title VII claims of unlawful discrimination based on gender *270 and national origin under 42 U.S.C. § 2000e, et seq., and his A.D.E.A. claim of unlawful discrimination based on age under 29 U.S.C. §§ 621-634, the Court finds that plaintiff has provided a legally sufficient evidentiary basis to place these discrimination claims before the finder of facts.

Regarding the local Law 100 (29 L.P.R.A. § 146, et. seq.) claim based on political discrimination, the Rule 50(a)(1) motion is GRANTED as to all defendants. Such motion is DENIED as to the Law 100 discrimination claims based on age and national origin. The Court’s ruling on the Law 100 political discrimination will be further discussed below.

The Rule 50(a)(1) motion on plaintiffs local Law 80 claim for unjust dismissal brought under 29 L.P.R.A. § 185 is DENIED.

The Article 1802 negligence claim under the Puerto Rico Civil Code, 31 L.P.R.A. § 5141 against LIH, DAS and Carlos José Rodriguez (fourth cause of action) for intentional infliction of emotional distress upon plaintiff and for loss of income resulting from his termination is MOOT, since plaintiff in its Motion Complying with Court Order filed on September 17, 2007 (docket entry 72) agreed to withdraw its fourth cause of action or voluntarily accept dismissal thereof since Law 100 allowed him recovery for emotional damages and Law 80 is the exclusive remedy for dismissal-without-just-cause claims.

The Rule 50(a)(1) motion filed by LIH and Carlos José Rodriguez for all claims against them under the A.D.E.A., Title VII, Puerto Rico Law 80 and Puerto Rico Law 100 is GRANTED as to LIH regarding all claims. As to individual defendant Carlos José Rodriguez, it is GRANTED as to the A.D.E.A., Title VII and Law 80 claims and DENIED as to the Law 100 age and national origin claims of discrimination.

Regarding Law 80, there is no evidence that Mr. Carlos José Rodriguez was plaintiff Juan Guillermo Pineda’s employer at any time. As to the Law 80 claim against LIH, plaintiff contends that both LIH and DAS were his employer during the relevant time period based on the argument that since these two corporations had a same board of directors, common stock holders, one same system of accounting and shared a human resources department, the two corporations were one same entity. Plaintiff also raises that in a request for admissions the answer provided was that LIH and DAS were his employer. 1 Plaintiff has not at all discussed the alter-ego theory although his claims of common stock holders, board of directors and other common denominators all point to this theory.

The parties stipulated in the amended Joint Proposed Pretrial Order filed on June 29, 2007 (docket entry 48), at page 19 that: “(1) Mr. Pineda was hired by LIH in 1997. Mr. Pineda was General Manager of DAS from April 1998 to November 23, 2004.” On August 19, 2009, during cross-examination, Mr. Pineda testified that as General Manager of DAS he was responsible to obtain money for the company so that he and the rest of the employees could be paid. He further testified that DAS is a separate corporation from LIH and the finances for each are individual, and that if DAS continued losing money and could not pay the salaries, rent and utilities, it could possibly close down if it did not have other projects. During that *271 same cross-examination, he referred to LIH as his client. Referring during the August 18, 2009 cross-examination to the sum of $53,000.00 due to a weather condition, he explained that the $53,000.00 were really received by LIH, not received by DAS, and that this made a difference because that amount is not reflected in “DAS numbers” but in “LIH numbers.”

Exhibit 2 for plaintiff lists LIH and the names of the affiliated companies. Each company has its own social security employer number. Noemí Diaz-Torres, chief financial officer for all of the companies, testified on August 10, 2009 as plaintiffs witness that there is a central financial department and shared resources and that inter-company charges are made for the administrative services provided to the different companies; that LIH invoiced DAS for payroll services and for accounting services and that all companies paid LIH for those services and the cost of the services were reflected in the statement of income and losses of the different companies. She referred to these services as the costs of operation, rent, or other services paid by DAS to LIH such as telephone, cleaning, cafeteria, insurance, and support services for financing and receptionists. She further stated that the charges by LIH regarding services to the different corporations are pre-established, based on a formula discussed with all of the general managers of the companies and that, before they are charged each year, each manager signs a contract regarding the services and determining the charges because those charges are fixed amounts. During direct that same day, she explained that a checkbook was kept at LIH for all the companies and that all checks required two signatures, one of them being that of the general manager of the corresponding company.

Mr. Pineda acknowledged during cross-examination on August 19, 2009 that his salary check came from DAS and that at the beginning of the year he had to prepare a budget for the board of directors where he included his as well as the salaries of all DAS employees.

Plaintiff has failed to present evidence that could trigger the alter-ego doctrine since, beyond pointing to common stock holders and the sharing of common resources for which the different companies paid their share, he has not shown that LIH controlled the other corporations, that DAS and the other corporations lacked corporate integrity or that they were shells employed by LIH as an artifice or for illegal purposes. The fact that Mr. Pineda had dual functions as general manager of DAS and as a producer for LIH’s creative department for a specified period of time does not justify piercing the corporate veil.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Belk Arce v. Martínez
146 P.R. Dec. 215 (Supreme Court of Puerto Rico, 1998)
Hernández v. Trans Oceanic Life Insurance
151 P.R. Dec. 754 (Supreme Court of Puerto Rico, 2000)
Díaz Fontánez v. Wyndham Hotel Corp.
155 P.R. Dec. 364 (Supreme Court of Puerto Rico, 2001)

Cite This Page — Counsel Stack

Bluebook (online)
656 F. Supp. 2d 268, 2009 U.S. Dist. LEXIS 75534, 2009 WL 2746549, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pineda-v-lopito-ileana-howie-inc-prd-2009.