Ramirez v. Unique Transitional Homes Staffing LLC

CourtDistrict Court, D. Arizona
DecidedApril 23, 2024
Docket2:23-cv-01882
StatusUnknown

This text of Ramirez v. Unique Transitional Homes Staffing LLC (Ramirez v. Unique Transitional Homes Staffing LLC) is published on Counsel Stack Legal Research, covering District Court, D. Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ramirez v. Unique Transitional Homes Staffing LLC, (D. Ariz. 2024).

Opinion

1 WO 2 3 4 5 6 IN THE UNITED STATES DISTRICT COURT 7 FOR THE DISTRICT OF ARIZONA 8 9 Olga Ramirez, No. CV-23-01882-PHX-DGC 10 Plaintiff, ORDER AND DEFAULT JUDGMENT

11 v. 12 Unique Transitional Homes Staffing LLC, an Arizona limited liability company; and 13 Eddie Lee Pearson and Peggy Pearson, a married couple, 14 Defendants. 15

16 17 Plaintiff Olga Ramirez asserts claims for unpaid wages against Unique Transitional 18 Homes Staffing LLC (“Transitional Homes”) and Eddie and Peggy Pearson (collectively 19 “Defendants”). Doc. 1. The Clerk entered default against Defendants pursuant to Federal 20 Rule of Civil Procedure 55(a). Doc. 9. Plaintiff moves for default judgment under Rule 21 55(b). Doc. 13. For reasons stated below, default judgment is appropriate and will be 22 entered in the amount of $90,679.68, plus applicable interest. 23 I. Background. 24 According to Plaintiff’s complaint, Transitional Homes is a limited liability 25 company that owns and operates a sober living home in Maricopa County, Arizona. Doc. 1 26 ¶¶ 12-13, 31-32. Eddie and Peggy Pearson, a married couple, are the owners of 27 Transitional Homes. Id. ¶ 15. Defendants employed Plaintiff as the sober living home 28 manager between February and August 2023. Id. ¶¶ 33-34. 1 Defendants agreed to pay Plaintiff $1,000 per week regardless of the number of 2 hours she worked. Id. ¶¶ 35-38. Rather than classify Plaintiff as a nonexempt employee, 3 Defendants misclassified her as an independent contractor. Id. ¶¶ 39-45, 55-64. 4 Throughout her employment with Defendants, Plaintiff worked approximately 16 hours 5 per day, seven days a week. Id. ¶¶ 46-48. Defendants paid Plaintiff no overtime wages for 6 working more than 40 hours in a workweek and paid her no wages for nine workweeks in 7 the months of May, June, and August 2023. Id. ¶¶ 38, 48-54, 65. 8 The complaint asserts claims under the Fair Labor Standards Act (“FLSA”), 29 9 U.S.C. § 201 et seq. (counts one and two), the Arizona Minimum Wage Act (“AMWA”), 10 A.R.S. § 23-362 et seq. (count three), and the Arizona Wage Act (“AWA”), A.R.S. § 11 23-350 et seq. (count four). Id. ¶¶ 77-99. The complaint’s prayers for relief request unpaid 12 minimum and overtime wages, liquidated and treble damages, reasonable attorneys’ fees 13 and costs, and applicable interest. See id. 14 Defendants were served with process but have failed to answer or otherwise respond 15 to the complaint. See Docs. 5-7; Fed. R. Civ. P. 12. As noted, the Clerk entered 16 Defendants’ default and Plaintiff now moves for default judgment. Docs. 9, 13. 17 Defendants have filed no response to the motion and the time for doing so has expired. See 18 Fed. R. Civ. P. 6; LRCiv 7.2(c). 19 II. Default Judgment. 20 After the Clerk enters a defendant’s default, the Court may enter default judgment 21 under Rule 55(b)(2). The decision whether to enter default judgment is discretionary. See 22 Schmidt v. AmerAssist A/R Sols. Inc., No. CV-20-00230-PHX-DWL, 2020 WL 6135181, 23 at *1 (D. Ariz. Oct. 19, 2020) (citing Aldabe v. Aldabe, 616 F.2d 1089, 1092 (9th Cir. 24 1980)). While the Court it is not required to make detailed findings of fact, see Fair 25 Housing of Marin v. Combs, 285 F.3d 899, 906 (9th Cir. 2002), it should consider several 26 factors: (1) the possibility of prejudice to the plaintiff, (2) the merits of the claims, (3) the 27 sufficiency of the complaint, (4) the amount of money at stake, (5) the possibility of factual 28 1 disputes, (6) whether default is due to excusable neglect, and (7) the policy favoring 2 decisions on the merits, see Eitel v. McCool, 782 F.2d 1470, 1471-72 (9th Cir. 1986). 3 Plaintiff argues that that the Eitel factors favor default judgment. Doc. 13 at 3-8. 4 The Court agrees. 5 A. The Eitel Factors. 6 1. Prejudice to Plaintiff. 7 The first Eitel factor “considers whether the plaintiff will suffer prejudice if default 8 judgment is not entered.” PepsiCo, Inc. v. Cal. Sec. Cans, 238 F. Supp. 2d 1172, 1177 9 (C.D. Cal. 2002). This factor favors default judgment where the defendant fails to answer 10 the complaint because the plaintiff “would be denied the right to judicial resolution of the 11 claims presented, and would be without other recourse for recovery.” Marquez v. Chateau 12 Hosp., Inc., No. CV-20-0107 FMO (RAOx), 2020 WL 5118077, at *2 (C.D. Cal. June 11, 13 2020). 14 Defendants have not appeared in this action despite being served with process more 15 than six months ago. See Docs. 5-7. Because “default judgment is the only means to 16 compensate Plaintiff [for the unpaid wages], denial of Plaintiff’s request for default 17 judgment will effectively immunize Defendants from liability and leave Plaintiff without 18 redress.” Osgood v. Main Streat Mktg., LLC, No. 16cv2415-GPC(BGS), 2018 WL 19 11408584, at *2 (S.D. Cal. Mar. 21, 2018). The first Eitel factor favors default judgment. 20 See Avila v. JBL Cleaning Servs. LLC, No. CV-23-00398-PHX-DJH, 2024 WL 863710, 21 at *3 (D. Ariz. Feb. 29, 2024) (finding the same in an action for unpaid wages because 22 “without an entry of default judgment, Plaintiff’s damages would remain unrelieved”). 23 2. Merits of the Claims and Sufficiency of the Complaint. 24 These Eitel factors are often analyzed together and require the Court to consider 25 whether the complaint states plausible claims for relief under the Rule 8 pleading standard. 26 See PepsiCo, 238 F. Supp. 2d at 1175; Best W. Int’l Inc. v. Ghotra Inc., No. CV-20-01775- 27 PHX-MTL, 2021 WL 734585, at *3 (D. Ariz. Feb. 25, 2021); Danning v. Lavine, 572 F.2d 28 1386, 1388-89 (9th Cir. 1978). A claim is plausible when it is brought under a cognizable 1 legal theory and the plaintiff pleads “factual content that allows the court to draw the 2 reasonable inference that the defendant is liable for the misconduct alleged.” Ashcroft v. 3 Iqbal, 556 U.S. 662, 678 (2009) (citing Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 4 (2007)). When applying these Eitel factors, “the factual allegations of the complaint, 5 except those relating to the amount of damages, [are] taken as true.” Geddes v. United Fin. 6 Grp., 559 F.2d 557, 560 (9th Cir. 1977). 7 Accepting as true the well-pled factual allegations of Plaintiff’s complaint, the Court 8 finds that she has stated plausible claims for relief under the FLSA, the AMWA, and the 9 AWA. The second and third Eitel factors therefore favor default judgment. 10 a. FLSA Claims (Counts One and Two). 11 The FLSA requires employers to pay their employees a minimum hourly wage and 12 additional overtime wages for any time spent working in excess of a forty-hour workweek 13 (not less than one and a half times the hourly wage). 29 U.S.C. §§ 206

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Bluebook (online)
Ramirez v. Unique Transitional Homes Staffing LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ramirez-v-unique-transitional-homes-staffing-llc-azd-2024.