Rodrigo Tarango v. Chemix Energy Services, LLC

CourtDistrict Court, W.D. Texas
DecidedApril 6, 2021
Docket5:18-cv-00370
StatusUnknown

This text of Rodrigo Tarango v. Chemix Energy Services, LLC (Rodrigo Tarango v. Chemix Energy Services, LLC) is published on Counsel Stack Legal Research, covering District Court, W.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rodrigo Tarango v. Chemix Energy Services, LLC, (W.D. Tex. 2021).

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF TEXAS SAN ANTONIO DIVISION

RODRIGO TARANGO, § INDIVIDUALLY AND ON BEHALF § OF OTHERS SIMILARSITUATED; § JOHNATHAN SAVIS, BLAINE § LASHLEY, ISMAEL BEAS, AARON § DEGROAT, JOSHUA MCNABB, § MICHAEL RODRIGUEZ, RICARDO § RANGEL, REFUGIO A. BENAVIDES, § JR., ABELARDO GARCIA, § JOHNATHAN JUAREZ, JON-PAUL § EVIEZ, ARNULFO TIJERINA, JR., § § Plaintiffs, § § CIVIL NO. SA-18-CV-00370-XR v. § § CHEMIX ENERGY SERVICES, LLC, § AND ROBERT BEAUBOUEF, § § Defendants. §

ORDER ON MOTION FOR DEFAULT JUDGMENT On this date, the Court considered Plaintiffs’ Second Renewed Motion for Default Judgment (ECF No. 72) and Memorandum in Support (ECF No. 73). Background This case arises under the Fair Labor Standards Act (“FLSA”). On April 26, 2018, Plaintiff Rodrigo Tarango brought this suit on behalf of himself and others similarly situated for failure to pay overtime. Plaintiffs worked for Defendants as operators and allege that they were misclassified by Defendants as exempt and paid a salary. Am. Compl. ¶ 4, 49. They allege that they worked overtime hours for which they were not paid the proper overtime rate. Id. ¶ 36. A class was certified on July 19, 2018, and sixteen additional plaintiffs opted in. Plaintiffs’ Amended Complaint, filed August 14, 2019, asserts FLSA claims against Defendants Chemix Energy Services, LLC, Robert Beaubouef, Beau Beaubouef, and Nathan H. Mays. ECF No. 42. It was later determined that Robert Beaubouef and Beau Beaubouef were the same person, and Beau Beaubouef was dismissed. Plaintiffs were unable to effect service on

Nathan Mays, and he was dismissed. Plaintiffs properly served Defendants Chemix Energy Services, LLC, and it answered, but its counsel withdrew and it failed to obtain new counsel as ordered. Accordingly, the Court struck its answer and defenses, and Chemix is now in default. Plaintiffs personally served Robert Beaubouef on October 16, 2019 (ECF No. 51), and he failed to answer or otherwise appear, and is in default. The Clerk properly entered default as to Robert Beaubouef and Chemix Energy Services, LLC on May 12, 2020. ECF No. 64. Plaintiffs now seek a default judgment as to these Defendants. Analysis The Court previously ruled that Plaintiffs had established Defendants’ liability under the FLSA based on the unrefuted allegations of the Amended Complaint. Plaintiffs originally sought

damages for all Plaintiffs but submitted only the declaration of Plaintiff Tarango and no supporting documentation. The Court required Plaintiffs to submit proof of damages as to each Plaintiff and to address potential limitations issues. In response, six Plaintiffs sought damages in the renewed motion for default judgment. The Court noted additional problems with their submissions, and Plaintiffs filed a second renewed motion seeking damages for five of the Plaintiffs: Rodrigo Tarango, Abelardo Garcia, Jonathan Juarez, Blaine Lashley, and Orlando Rodriguez. Plaintiffs no longer sought damages for Refugio Benavides as all his claims were outside the limitations period. The Court held an evidentiary hearing on damages on January 14, 2021. At the hearing, the remaining five Plaintiffs gave testimony, and counsel for Plaintiffs asked that all other opt-in Plaintiffs’ claims be dismissed without prejudice. A. Statute of Limitations The Court first addresses the applicable limitations periods. The FLSA establishes a two-

year statute of limitations for ordinary violations and a three-year period for willful violations. 29 U.S.C. § 255(a). The Court finds that the admitted allegations in the First Amended Complaint establish that Defendants engaged in willful violations of the FLSA, such that a three-year statute of limitations applies. “A cause of action accrues at each regular payday immediately following the work period during which the services were rendered for which the wage or overtime compensation is claimed.” Halferty v. Pulse Drug Co., 821 F.2d 261, 271 (5th Cir. 1987) (citation omitted); see also Hendrix v. City of Yazoo City, 744 F. Supp. 1412, 1415 (S.D. Miss. 1989) (“[T]he failure of an employer to pay minimum wages or overtime . . . constitutes a continuing violation, such that a new cause of action accrues with each paycheck.” (citations omitted)). Courts have consistently

interpreted the FLSA to allow plaintiffs to recover damages for pay periods “as far back as the statute of limitations will reach.” Pruiett v. West End Rests., LLC, No. 3:11–00747, 2011 WL 5520969, at *5 (M.D. Tenn. Nov. 14, 2011). In a FLSA collective action, the statute of limitations for a named plaintiff (here, Tarango) runs from the date that the plaintiff files the complaint, while the limitations period for an opt-in plaintiff runs from the date the written opt-in consent is filed in court. Sandoz v. Cingular Wireless LLC, 553 F.3d 913, 916-17 (5th Cir. 2008); 29 U.S.C. § 256. Thus, as to Defendant Chemix, the three-year period runs from April 26, 2015 to April 26, 2018 for Plaintiff Tarango. Blaine Lashley opted in on June 20, 2018. Refugio A. Benavides, Jr. opted in on November 5, 2018. Abelardo Garcia opted in on November 6, 2018. Johnathan Juarez opted in on November 9, 2018. And Orlando Rodriguez opted in on January 16, 2019. The statute of limitations thus runs back three years from their opt-in dates as to their claims against Chemix.

The Amended Complaint adding Robert Beaubouef as a Defendant was filed August 14, 2019. In the renewed motion, Plaintiffs state that the relevant date for limitations for claims against Beaubouef is the date of the filing of the Amended Complaint. The Court will therefore apply that date, and thus the three-year period for all Plaintiffs for their claims against Beaubouef runs from August 14, 2016 to August 14, 2019. As Plaintiffs recognize, this means that opt-in Plaintiff Refugio Benavides cannot recover any damages from Chemix or Beaubouef, since he worked in August and September 2015, and did not opt in until November 2018. Thus, Refugio Benavides’s claims will be dismissed with prejudice as barred by limitations. Limitations also affects Blaine Lashley’s claims against Beaubouef, as will be discussed below.

B. Damages Although the Court initially granted default judgment on liability based on the pleadings, it noted that the pay stubs submitted in support of damages contained some evidence that Plaintiffs were in fact paid on an hourly basis rather than salaried. The Court ordered Plaintiffs to be prepared to present evidence at the hearing supporting their allegation that they were paid on a salary basis notwithstanding the pay stubs indicating hourly and overtime pay and also to explain any agreements with Defendants concerning compensation, including how salary and bonuses were to be calculated and paid, and whether the bi-weekly salary was intended to compensate Plaintiff for all hours worked or only for 40 hours per week. The remaining five Plaintiffs were all Operators who alleged that they worked in excess of 40 hours per week (from 80 to 100 hours per week) and were not paid overtime wages. To establish liability, Plaintiffs rely in part on the admitted allegations of the First Amended Complaint (“FAC”), which include allegations that: (1) it was Defendants’ policy to classify

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Rodrigo Tarango v. Chemix Energy Services, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rodrigo-tarango-v-chemix-energy-services-llc-txwd-2021.