Reyes Guadalupe v. Casas Criollas

597 F. Supp. 2d 255, 2008 U.S. Dist. LEXIS 107170, 2008 WL 5633605
CourtDistrict Court, D. Puerto Rico
DecidedDecember 9, 2008
DocketCivil 07-1459 (GAG/BJM)
StatusPublished
Cited by3 cases

This text of 597 F. Supp. 2d 255 (Reyes Guadalupe v. Casas Criollas) 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
Reyes Guadalupe v. Casas Criollas, 597 F. Supp. 2d 255, 2008 U.S. Dist. LEXIS 107170, 2008 WL 5633605 (prd 2008).

Opinion

AMENDED OPINION AND ORDER

BRUCE J. McGIVERIN, United States Magistrate Judge.

Plaintiffs Bernardo Reyes Guadalupe (“Mr. Reyes”) and his wife, Julia Ines Ramos (“Mrs. Ramos”), bring this action against Casas Criolla, Inc. and Pedro Gó-mez García (“Mr. Gómez”) for damages arising under the Age Discrimination in Employment Act (“ADEA”), 29 U.S.C. § 621 et seq., and related claims. Plaintiffs’ motion for a default judgment was granted (Docket No. 44) and a default damages hearing was held. (Docket No. 48). At the hearing, Mr. Reyes, Mrs. Ramos, and Dr. Miguel Palacios provided tes- ■ timony and plaintiffs offered exhibits into evidence. (Id.) Defendants did not appear at the hearing. (Id.) Plaintiffs filed a post-hearing memorandum of law addressing various legal questions raised by the court concerning the requested damages. (Docket No. 50). The parties have consented to proceed before me. (Docket No. 18).

BACKGROUND

This case arises from defendants’ termination of Mr. Reyes’ employment with Ca- *258 sas Criollas in April 2006. (Docket No. 1). Mr. Reyes was the founder of Casas Criol-las, and was its principal stockholder and president until it was sold to a group of investors led by defendant Gomez in June 2005. (Id., ¶ 14). At the time of the sale, Mr. Reyes entered into an employment contract with the company’s new owners which provided for a two-year term of employment. (Id., ¶ 15). The following year, defendants notified Mr. Reyes that they were terminating his employment. (Id., ¶ 16). In August 2006, Mr. Reyes filed a charge of employment discrimination on the basis of age with the Equal Employment Opportunity Commission (EEOC). (Id., ¶ 22). One month later, Casas Criollas filed a complaint in state court against Mr. Reyes alleging that he had misappropriated funds from the company (the “state court complaint”). (Id., ¶23). Mr. Reyes claims that the state court complaint consisted of false charges and was filed in retaliation for his EEOC complaint. (Id.). Plaintiffs brought claims under the ADEA’s anti-discrimination and anti-retaliation provisions, Puerto Rico Law 80, Law 100, Law No. 115, breach of contract, and Puerto Rico Article 1802. (Id.) The court granted a default judgment on these claims and held a damages hearing. (Docket Nos. 44, 48).

At the hearing, the following exhibits were marked and, unless otherwise noted, admitted into evidence: (1) medical records of Mr. Reyes; (2) medical records of Mrs. Ramos; (3) professional services contract between Casas Criollas and Mr. Reyes, dated June 21, 2005; (4) letter from Carlos H. Raffucci-Caro, Esq. to Mr. Reyes re: Termination of Employment, dated April 13, 2006; (5) letter from Casas Criollas to Department of the Treasury, dated April 30, 2007; (6) Casas Criollas payroll records dated March 3, 2006 through March 24, 2006; (7) Court of First Instance Complaint in Casas Criollas v. Reyes, dated January 4, 2007; (8) “Planilla Informativa Sobre Ingresos de Corpora-ciones de Individuos” 1 (9) Letter from Puerto Rico Department of Labor and Human Resources to Casas Criollas re: notification of charge of discrimination, dated August 2, 2006.

At the hearing, the witnesses provided testimony about Mr. Reyes’ health and emotional problems resulting from his termination and Casas Criollas’ filing of the state court complaint, his earnings while employed by Casas Criollas, and Mrs. Ramos’s health and emotional problems since the state court filing. Mr. Reyes testified that the termination and alleged retaliation caused him medical problems, for which he was still under treatment. His doctor, Miguel Palacios, testified that Mr. Reyes specifically suffered from headache, backache, chest pain, insomnia, and muscle spasms, for which he prescribed various medications, including muscle relaxants and sleeping pills. Dr. Palacios testified that he had treated Mr. Reyes for high blood pressure and diabetes since 1995, but these other ailments had appeared in mid-2006. Since that time, he had seen Mr. Reyes for more frequent office visits as well as for two or three emergency room visits when Mr. Reyes complained of chest pains. Dr. Palacios explained that diagnostic tests for all of Mr. Reyes’s ailments showed normal results, leading him to diagnose that Mr. Reyes’s ailments were attributable to stress. Mrs. Ramos provided further testimony that since the state court filing, her husband had been *259 indignant, melancholic, and complained of physical pain throughout his body.

Mrs. Ramos testified that the state court complaint also had a big impact on her. She suffered from anxiety and depression and continued to cry often. She had received medical treatment for these conditions. Dr. Palacios, who had treated Mrs. Ramos since 1996, testified that in the past few years he had treated her for new conditions of abdominal pain, back pain, insomnia, and anxiety. He had prescribed muscle relaxants, pain medication, Ambien for insomnia, and anxiety medication.

Plaintiffs seek the following amounts and forms of damages: (1) back pay in the amount of $451,954.00, composed of $330,000 for 132 weeks of salary (April 13, 2006-October 24, 2008) at $2500 per week, $30,488.50 reflecting ten percent of profits for year ended December 31, 2005, and $91,465.50 reflecting ten percent of profits for years ended 2006, 2007, and 2008, assuming same level of profit as year ended 2005; (2) front pay in the amount of $505,390.50, composed of $413,925 for 165.57 weeks of salary (September 14, 2008-December 31, 2011) at $2500 per week and $91,465.50 reflecting ten percent of profits for years ended 2009, 2010, 2011; (3) compensatory damages for mental anguish, in an amount plaintiffs ask the court to determine based on testimony heard at the damages hearing, citing cases awarding $100,000 to $300,000 in emotional damages; (4) doubling of damages included in items (1) through (3), pursuant to Puerto Rico Law 100 and Law 115; (5) attorneys’ fees in the amount of 25% of damages pre-doubling, pursuant to Law 100 and Law 115; (6) compensatory damages for Mrs. Ramos’s mental anguish, in an amount plaintiffs ask the court to determine based on testimony heard at the damages hearing, citing cases awarding $100,000 to $300,000 in emotional damages. (Docket No. 50).

DISCUSSION

I. Standard of Review

A default judgment based on the well-pleaded allegations in a complaint establishes only the defendants’ liability, and it is then “incumbent upon the plaintiffs to establish the extent of the damages resulting from the defendant’s violations.” Eisler v. Stritzler, 535 F.2d 148, 153-4 (1st Cir.1976). “Even after default, however, it remains for the court to consider whether the unchallenged facts constitute a legitimate cause of action, since a party in default does not admit mere conclusions of law.” 10A Wright, Miller & Kane, Fed. Prac. & Proc. Civ.Sd § 2688.

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597 F. Supp. 2d 255, 2008 U.S. Dist. LEXIS 107170, 2008 WL 5633605, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reyes-guadalupe-v-casas-criollas-prd-2008.