Ray v. 1650 Broadway Associates Inc.

CourtDistrict Court, S.D. New York
DecidedSeptember 29, 2020
Docket1:16-cv-09858
StatusUnknown

This text of Ray v. 1650 Broadway Associates Inc. (Ray v. 1650 Broadway Associates Inc.) 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
Ray v. 1650 Broadway Associates Inc., (S.D.N.Y. 2020).

Opinion

USDC SDNY UNITED STATES DISTRICT COURT DOCUMENT SOUTHERN DISTRICT OF NEW YORK ELECTRONICALLY FILED . TST DOC □□ KEVIN RAY, BRIAN ESPOSITO, SAMUEL : DATE FILED: __“2ee LADD, and JENNA MILLER, Individually — : and on Behalf of Others Similarly Situated, —: : 16-CV-9858 (VSB) Plaintiffs, : : OPINION & ORDER - against - :

1650 BROADWAY ASSOCIATES INC. d/b/a: Ellen’s Stardust Diner and Kenneth Sturm, : Jointly and Severally, : Defendants. : wane KX Appearances: Benjamin Nathan Dictor Thomas John Lamadrid Eisner & Mirer, P.C. New York, NY Counsel for Plaintiffs Roger J Bernstein New York, NY Counsel for Plaintiffs Michael T. Bissinger Day Pitney, L.L.P. New York, NY 10036 Counsel for Defendants VERNON S. BRODERICK, United States District Judge: Plaintiffs Kevin Ray, Brian Esposito, Samuel Ladd and Jenna Miller (“Named Plaintiffs” or “Plaintiffs”) bring this instant action pursuant to the Fair Labor Standards Act (“FLSA”), 29 U.S.C. § 201, et seg., and New York Labor Law (““NYLL”), N.Y. Lab. Law

§ 650 et seq., against Defendants 1650 Broadway Associates, Inc. d/b/a Ellen’s Stardust Diner (“Ellen’s”) and Kenneth Sturm (“Defendants”). Before me is Plaintiff’s unopposed motion seeking an order: 1) granting preliminary approval of the Class Action Final Settlement Agreement and Mutual Releases (the “Settlement Agreement”); 2) conditionally certifying the proposed classes; 3) appointing Named Plaintiffs as class representatives; 4) appointing Eisner &

Dictor, P.C. and Roger J. Bernstein (“Plaintiffs’ Counsel”) as class counsel; 5) approving the proposed Notice of Class and Collective Action Settlement (“Class Notice”); 6) appointing Rust Consulting as the settlement claims administrator; and 7) scheduling a Final Approval Hearing. For the reasons set forth below, Plaintiff’s unopposed motion is GRANTED. Factual Background 1650 Broadway Associates Inc. is a New York corporation doing business as Ellen’s Stardust Diner, a diner located at 1650 Broadway, New York, New York 10019. (Am. Compl. ¶ 9.)1 Kenneth Sturm is a co-owner of 1650 Broadway Associates Inc. and a manager of Ellen’s. (Id. ¶ 10.) The Named Plaintiffs are current and former employees of Ellen’s. (Dictor Decl. ¶ 5.)2

Kevin Ray (“Ray”) was employed as a server from July 5, 2005 to September 15, 2016. (Am. Compl. ¶ 16.) Brian Esposito (“Esposito”) has worked as a server at Ellen’s since November 2013. (Id. ¶ 20.) Samuel Ladd (“Ladd”) has been employed as a server since April 2013. (Id. ¶ 25.) Jenna Miller (“Miller”) worked as a served from September 2008 until September 2016. (Id. ¶ 29.) The Named Plaintiffs allege that Defendants 1) failed to pay proper minimum wages; 2) improperly distributed tip credits by requiring servers to share tips with ineligible employees;

1 “Am. Compl.” refers to Named Plaintiffs’ Amended Complaint filed on May 25, 2017. (Doc. 112.) 2 “Dictor Decl.” refers to Plaintiffs’ counsel Benjamin Dictor’s November 7, 2019 declaration in support of Plaintiff’s motion for preliminary settlement approval. (Doc. 169-2.) 3) withheld portions of gratuity charges from customers who hosted parties at Ellen’s; and 4) provided wage statements that did not accurately report the number of hours worked, and failed to show the regular hourly rate of pay and the tip credit amount Defendants claimed. (Dictor Decl. ¶ 10.) Procedural History

The Named Plaintiffs filed their complaint alleging FLSA and NYLL violations against Defendants on December 21, 2016 (“Complaint”). (Doc. 1.) On February 17, 2017, Defendants submitted a letter requesting a pre-trial conference in connection with a potential motion to dismiss pursuant to Federal Rule of Civil Procedure 12(b)(6). (Doc. 96.) By endorsement dated February 23, 2017, I granted Defendants’ request for a pretrial conference. (Doc. 100.) The parties appeared before me on April 28, 2017. Following the pre-motion conference, the parties submitted a joint status letter on May 12, 2017. (Doc. 106.) On May 25, 2017, Plaintiffs filed an amended complaint (“Amended Complaint”). (Doc. 112.) Defendants filed an answer to the Amended Complaint with counterclaims against Named Plaintiffs and claims against non-party

former employees identified as Third-Party Defendants on July 12, 2017. (Doc. 118.) Defendants brought claims and counterclaims for conversion, civil theft, aiding and abetting, breach of the duty of loyalty and fiduciary duty, unjust enrichment, fraud and theft by deception, and violations of the Computer Fraud and Abuse Act (“CFAA”), 18 U.S.C. § 1030. (Id.) In August 2018, after six months of exchanging discovery, the parties agreed to conduct mediation before Carol Wittenberg. (Pls.’ Mem. 6; Dictor Decl. ¶ 25).3 The parties—including Named Plaintiffs—attended a day-long mediation session on November 9, 2018. (Pls.’ Mem. 7.)

3 Pls.’ Mem. refers to the Memorandum of Law in Support of Plaintiff’s Motion for Preliminary Approval of Class & Collective Action Settlement, filed on November 7, 2019. (Doc. 169.) During the mediation, the parties agreed on a settlement amount and other settlement issues. The parties continued to negotiate outstanding issues and executed a Memorandum of Understanding on November 26-27, 2018. Id. Plaintiffs filed the unopposed motion currently before me on November 7, 2019. (Doc. 169.) Legal Standard

Under the FLSA, employees may pursue collective actions to recover unpaid wages where the employees are “similarly situated” and give consent to become a party in a writing filed with the court. See 29 U.S.C. § 216(b). A district court may implement § 216(b) by “facilitating notice to potential plaintiffs of the pendency of the action and of their opportunity to opt-in as represented plaintiffs.” Myers v. Hertz Corp., 624 F.3d 537, 554 (2d Cir. 2010) (internal quotation marks omitted). The court may also direct a defendant employer to disclose the names and addresses of potential class members. See Hoffmann-La Roche Inc. v. Sperling, 493 U.S. 165, 169–70 (1989). In the Second Circuit there is a two-step certification process for FLSA opt-in collective

actions. Myers, 624 F.3d at 554–55. At the first stage, the district court must make “an initial determination to send notice to potential opt-in plaintiffs who may be ‘similarly situated’ to the named plaintiffs with respect to whether a FLSA violation has occurred.” Id. at 555. In order to achieve conditional certification, plaintiffs must make only a “‘modest factual showing’ that they and potential opt-in plaintiffs ‘together were victims of a common policy or plan that violated the law.’” Id. (quoting Hoffmann v. Sbarro, Inc., 982 F. Supp. 249, 261 (S.D.N.Y. 1997)). “The key element of that showing is a shared unlawful policy; that is, while the proposed collective need not be identical in every possible respect, its potential members must be similarly situated with respect to the allegedly unlawful policy or practice.” Korenblum v. Citigroup, Inc., 195 F. Supp. 3d 475, 479 (S.D.N.Y. 2016) (internal quotation marks omitted). “Plaintiffs may satisfy this requirement by relying on their own pleadings, affidavits, declarations, or the affidavits and declarations of other potential class members.” Hallissey v. Am. Online, Inc., No. 99-CIV-3785 (KTD), 2008 WL 465112, at *1 (S.D.N.Y. Feb.

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