Ramon Valle v. Ceres Environmental Services, Inc.

Court of Appeals for the Eleventh Circuit·Decided May 25, 2022·No. 21-12020·Unpublished

Opinion

[DO NOT PUBLISH]

In the

United States Court of Appeals For the Eleventh Circuit

No. 21-12020

RAMON VALLE, Individually and on behalf of others similarly situated, YASMAUY GARCIA, FRANCISCO SEGUI, GABRIEL SANTINI, DANIEL PEREZ, ABBY MADRID, Plaintiffs-Appellants,

versus CERES ENVIRONMENTAL SERVICES, INC., a Minnesota corporation, ENVIRONMENTAL RESTORATION GROUP OF SOUTH FLORIDA, LLC, 2 Opinion of the Court 21-12020

d.b.a. Environmental Restoration Group, LLC,

Defendants-Appellees,

AA AND K RESTORATION GROUP, LLC, a Florida Limited Liability Company, ALFRED MILLER, Individually, KATHERINE M. BISCARDI, Individually, et al.,

Defendants.

Appeal from the United States District Court for the Southern District of Florida D.C. Docket No. 1:19-cv-20873-KMM

Before WILLIAM PRYOR, Chief Judge, ROSENBAUM, and BRASHER, Circuit Judges. WILLIAM PRYOR, Chief Judge:

21-12020 Opinion of the Court 3

This appeal concerns whether Ceres Environmental Services and its subcontractor, Environmental Restoration Group, were employers of a group of disaster-relief workers under the Fair Labor Standards Act. Because the record supports the reasoning of the district court that the workers did not economically depend on Ceres or Environmental Restoration Group and because the workers forfeited their remaining challenges to the judgment, we affirm.

I. BACKGROUND

Ceres, which describes itself as “one of the world’s largest . . . disaster recovery groups,” contracted with Jackson County, Florida, to provide disaster-relief services if a natural or man-made disaster occurred between 2015 and 2019. (Capitalization removed .) Under that agreement, upon notification by the County, Ceres would “mobilize equipment and personnel to the designated location[s] within forty-eight . . . hours” through subcontractors to provide disaster-recovery services. The agreement also provided that all work performed to fulfill the contract should comply with applicable laws, including the Fair Labor Standards Act, 29 U.S.C. § 201. The County notified Ceres of its need for disaster relief services under the contract in response to Hurricane Michael.

Ceres subcontracted with Environmental Restoration Group to provide disaster-relief services. The sole member of the Group is Jade Smith. The Group obtained a subcontract with Ceres through Smith’s personal relationship with Stephen Leighton, who knew employees of Ceres. Under its subcontract with Ceres, the 4 Opinion of the Court 21-12020

Group provided ten crews of workers to the Hurricane Michael project.

The Group then subcontracted with AA & K Restoration Group to provide a crew of workers and the machinery to support that crew to the Hurricane Michael project. AA & K has two members , Alfred Miller and Katherine Biscardi. AA & K never contracted with Ceres. AA & K submitted invoices to the Group for payment.

AA & K hired a crew of several workers, Ramon Valle, Yasmany Garcia, Francisco Segui, Gabriel Santini, Daniel Perez, and Abby Madrid, to fulfill its contract with the Group. AA & K recruited , negotiated pay rates with, and paid these workers directly. AA & K also supplied the equipment used by the workers and assigned workers to particular equipment. AA & K did not pay the workers all the wages they were owed.

Ceres and AA & K each had distinct roles in the Hurricane Michael recovery project. Ceres was the general contractor and employed a project manager who oversaw the entire disaster-relief effort. The project manager would assign subcontractor crews, like the AA & K crew, to worksite areas based on the subcontractor’s access to equipment and manpower. Ceres controlled access to the worksite and could theoretically remove subcontractors. After the subcontractor finished work on an assigned area, Ceres would inspect the job to ensure the work satisfied specifications before considering it complete and assigning the subcontractor a new area. Ceres did not give direction to the workers on how to clear the 21-12020 Opinion of the Court 5

debris or supervise their regular work. The project manager would also hold occasional safety meetings with the subcontractor crews. And the heavy equipment used by subcontractors was subject to Ceres’s approval and had to bear a Ceres logo placard. Apart from the safety meetings and an inspection of a trailer provided by AA & K for the workers, the workers did not interact with Ceres.

AA & K supervised and directed the workers’ efforts to clear the areas assigned to the crew. AA & K provided all equipment that the workers needed to perform their jobs and assigned workers to pieces of equipment. Juan Carlos Lopez, a non-party AA & K representative , was the direct supervisor of the workers when the owners of AA & K were not present, and AA & K gave Lopez supervisory authority. When Lopez or the owners of AA & K were not present, Lopez put one of the workers in charge instead. When the workers were paid, AA & K paid them by check or direct deposit .

Valle filed a complaint on behalf of a putative class alleging a violation of the Fair Labor Standards Act for failure to pay wages and overtime wages and for breach of contract. The complaint named as defendants Biscardi, Miller, and AA & K. Valle amended the complaint to name Ceres and the Group as defendants. Garcia, Segui, Santini, Perez, and Madrid opted into the action. The workers moved for conditional certification. The district court denied that motion because the workers failed to show that they had a reasonable basis to believe that there were similarly situated 6 Opinion of the Court 21-12020

workers apart from those who already opted in or that, if such workers existed, they would desire to opt into this action.

Ceres and the Group moved for summary judgment, and the workers moved for partial summary judgment. The workers, Ceres, and the Group all argued that they were entitled to a summary judgment on whether Ceres and the Group were joint employers of the workers. The workers argued in their motion for summary judgment and in their responses to Ceres’s and the Group’s motions that Ceres and the Group were their joint employers , but they focused almost exclusively on their relationship with Ceres. The workers argued that each factor in the eight-factor framework for assessing joint-employment claims favored a finding of joint employment. Ceres and the Group argued that each of the factors weighed against a finding of joint employment.

Ceres and the Group also argued that they were entitled to a summary judgment on the breach-of-contract claim. The Group argued that none of the workers ever had a contract with the Group or met with the Group or any of its representatives and that there were no facts in the record supporting the allegation that the workers contracted with the Group. Ceres likewise argued that no contract between Ceres and the workers existed and that no evidence could support any offer and acceptance between Ceres and the workers. Ceres argued that the only contract that the workers had was with AA & K, and that the workers did not include a claim for unjust enrichment or quantum meruit, which it argued are distinct causes of action under Florida law.

21-12020 Opinion of the Court 7

The workers responded by arguing that they had a contract implied in fact. The workers again focused their arguments on their relationship with Ceres. They argued that because all the work they performed “was done in furtherance of the contractual obligations ” of Ceres to the County, a contract must be imputed because they performed work “under circumstances in which [Ceres, the Group, and the workers] . . . underst[ood] . . . compensation [would] be paid.”

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Ramon Valle v. Ceres Environmental Services, Inc., (11th Cir. 2022).

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