Roman v. Korson

152 F.R.D. 101, 1993 U.S. Dist. LEXIS 17825, 1993 WL 522869
CourtDistrict Court, W.D. Michigan
DecidedNovember 30, 1993
DocketNo. 1:91:CV:274
StatusPublished
Cited by17 cases

This text of 152 F.R.D. 101 (Roman v. Korson) is published on Counsel Stack Legal Research, covering District Court, W.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Roman v. Korson, 152 F.R.D. 101, 1993 U.S. Dist. LEXIS 17825, 1993 WL 522869 (W.D. Mich. 1993).

Opinion

OPINION

ENSLEN, District Judge.

This matter is before the Court on plaintiffs’ motion for certification of classes, pursuant to Rule 23(b)(2) of the Federal Rules of Civil Procedure. Also, plaintiffs seek the Court to order notice of the ability to opt-in to a collective action under the Fair Labor Standards Act, 29 U.S.C. § 216(b).

This is a nationwide class action brought by migrant farm workers allegedly wrongfully charged rent while residing in farmer-owned housing constructed with funds provided pursuant to Section 514 of Title V of ' the Housing Act of 1949. 42 U.S.C. §§ 1471-1490r (FmHA § 514).

Plaintiffs assert that the statute and regulations state that borrowers under the program who intend to charge rent or utilities must sign loan agreements, providing for loans at 1% interest, which require prior FmHA approval of rent and utility charges, notice to current tenants, and an opportunity to comment on future rent or utility increases. The loan agreement, FmHA Instruction 1944-D, according to plaintiffs, may be waived by the state director of FmHA when the borrower receives no rental income from the tenants and when the borrower is a farmer or farm partnership or corporation. Plaintiffs contend that a significant number of these loan agreement waivers have been granted to farmer-borrowers nationwide.

Plaintiffs allege that many borrowers have been charging rent and utilities though they had no loan agreements and had no prior approval of such charges from the Farmers Home Administration. These charges, plaintiffs assert, were in violation of FmHA § 514. Further, plaintiffs contend that the FmHA was well aware of the violations and the problem because of audits published in 1986 [104]*104and 1990 by the United States Department of Agriculture and Office of the Inspector General (OIG).

Plaintiffs contend that the Farmers Home Administration (FmHA) failed to remedy the violations by borrowers. In addition, they contend that the FmHA failed to conduct inspections of the § 514 projects as mandated by FmHA regulations, 7 C.F.R. § 1930. The “federal defendants” include the U.S. Department of Agriculture; the Farmers Home Administration (FmHA); and four officials of these agencies.

Plaintiffs also have brought suit against one particular farmer, Gerald Korson, individually and doing business as Jerry Korson Farms, and also against Doroteo Carrizales, allegedly a farm labor contractor of Mr. Korson’s in 1989, who is a resident of Texas. Plaintiffs claim that Mr. Korson received FmHA § 514 loans totalling at least $184,-500, and that Mr. Korson charged migrant farm workers as much as $430 per month for rent and utilities, even though he signed no loan agreement and though such charges were not preapproved by the FmHA.

Plaintiffs further claim that Mr. Korson’s charges were well above market rates for rent since 1986, and that he violated numerous state and federal statutes concerning employment law and landlord tenant law.

Finally, plaintiffs claim that Mr. Korson unlawfully collected rent and utilities for Section 514 housing; charged flat utility fees far exceeding actual costs; withheld security deposits and failed to provide an inventory checklist on move-in or move-out with respect to such security deposits; paid less than minimum wage to some workers; violated housing health and safety standards; and failed to provide adequate disclosures of terms and conditions of employment and housing and made misrepresentations of facts to prospective workers.

As a remedy, plaintiffs and others similarly situated seek declaratory and injunctive relief for violations of their rights under Title V of the Housing Act; as well as violations of the Administrative Procedure Act (APA), 5 U.S.C. §§ 551-559; the Migrant and Seasonal Agricultural Worker Protection Act (AWPA), 29 U.S.C. §§ 1801-1872; the Fan-Labor Standards Act (FLSA), 29 U.S.C. §§ 201-219; and the due process clause in the fifth amendment of the United States Constitution. They also bring pendent claims under the Michigan Security Deposit Act, Mieh.Comp.Laws Ann. §§ 554.601-554.-616; the Michigan Consumer Protection Act, Mieh.Comp.Laws Ann. § 445.901 et seq.; Mieh.Comp.Laws Ann. § 408.581, concerning employing persons to work at a distance from their home localities; and breach of contract. Plaintiffs also seek damages and statutory and liquidated damages when applicable.

The second amended complaint identifies an overall nationwide class of plaintiffs, plus five subclasses. The subclasses concern defendant Korson and not the federal defendants.

Plaintiffs’ motion for certification has worded the proposed class descriptions a little differently from the description in their complaint, except for the nationwide class. The classes specified in the motion appear to be substantially the same as those identified in the complaint, except that some are more clearly stated in the motion. Consequently, the Court will consider certification of the following classes as specified in their motion:

I. The Nationwide § 514 Class: All agricultural workers in the United States who reside, have resided or will reside in FmHA § 514 projects operating without loan agreements who have been or will be charged unauthorized rent and/or utilities.
IA. Korson § 514 Subclass: All agricultural workers since 1986 who have been housed by defendant Korson in FmHA § 514 housing and who have paid rent and/or utilities.
II. Korson Security Deposit Class: All agricultural workers who paid defendant Korson a security deposit in connection with their tenancy in Korson’s housing, and who were not given an inventory checklist upon move-in and move-out, and/or who received neither a refund of their security deposit nor a list of damages for which the security deposit was retained.
[105]*105III. Korson Flat Utility Fee Class: All agricultural workers who were housed by Korson since 1986, and who will be housed by him in the future, who were or will by charged flat utility fees grossly in excess of and bearing no relationship to the actual costs.
IV. Korson AWPA Class: All agricultural workers who have worked for Korson since 1986, or who will work for him in the future, who were not given disclosures required by the AWPA, or whose AWPA rights were violated (including minimum wage and housing health and safety violations).
IVA. Korson MCL Subclass (regarding employing persons to work at a distance from their homes): All agricultural workers who have worked for Korson since 1986, or who will work for him in the future, who were not given written disclosures of the terms and conditions of employment.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Alexander v. Miller
E.D. Kentucky, 2021
May v. Blackhawk Mining, LLC
319 F.R.D. 233 (E.D. Kentucky, 2017)
Davidson v. Henkel Corp.
302 F.R.D. 427 (E.D. Michigan, 2014)
Miller v. University of Cincinnati
241 F.R.D. 285 (S.D. Ohio, 2006)
Saur v. Snappy Apple Farms, Inc.
203 F.R.D. 281 (W.D. Michigan, 2001)
Peoples Rights Organization, Inc. v. Montgomery
756 N.E.2d 127 (Ohio Court of Appeals, 2001)
Roman v. Korson
89 F. Supp. 2d 899 (W.D. Michigan, 2000)
Zelaya v. J.M. Macias, Inc.
175 F.R.D. 625 (E.D. North Carolina, 1997)
Rodriguez v. Carlson
166 F.R.D. 465 (E.D. Washington, 1996)
O'Neil v. Appel
165 F.R.D. 479 (W.D. Michigan, 1996)
Rodger v. Electronic Data Systems Corp.
160 F.R.D. 532 (E.D. North Carolina, 1995)
Ballan v. Upjohn Co.
159 F.R.D. 473 (W.D. Michigan, 1994)

Cite This Page — Counsel Stack

Bluebook (online)
152 F.R.D. 101, 1993 U.S. Dist. LEXIS 17825, 1993 WL 522869, Counsel Stack Legal Research, https://law.counselstack.com/opinion/roman-v-korson-miwd-1993.