Romero v. Synergy Restoration LLC

CourtDistrict Court, D. Arizona
DecidedJanuary 6, 2025
Docket2:24-cv-01602
StatusUnknown

This text of Romero v. Synergy Restoration LLC (Romero v. Synergy Restoration LLC) is published on Counsel Stack Legal Research, covering District Court, D. Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Romero v. Synergy Restoration LLC, (D. Ariz. 2025).

Opinion

1 WO 2 3 4 5 6 IN THE UNITED STATES DISTRICT COURT 7 FOR THE DISTRICT OF ARIZONA

9 Milton Iturrios Romero, No. CV-24-01602-PHX-MTL

10 Plaintiff, ORDER

11 v.

12 Synergy Restoration LLC, et al.,

13 Defendants. 14 15 Plaintiff Milton Iturrios Romero moves for default judgment against Defendants 16 Synergy Restoration, LLC (“Synergy”), Bradley Schultz, and Sarah Schultz (collectively, 17 the “Defendants”), pursuant to Rule 55(b)(2) of the Federal Rules of Civil Procedure. 18 (Doc. 14.) For the following reasons, the Court will grant the motion for default judgment. 19 I. BACKGROUND 20 As the Clerk of Court has entered default (Doc. 13), the Court takes the complaint’s 21 factual allegations as true. See Geddes v. United Fin. Grp., 559 F.2d 557, 560 (9th Cir. 22 1977) (“The general rule of law is that upon default the factual allegations of the complaint, 23 except those relating to the amount of damages, will be taken as true.”). 24 The complaint alleges claims of failure to pay overtime and minimum wages in 25 violation of the Fair Labor Standards Act (“FLSA”), failure to pay minimum wages in 26 violation of the Arizona Minimum Wage Act (“AZMWA”), and failure to pay wages due 27 and owing in violation of the Arizona Wage Act (“AZWA”). (Doc. 1 ¶¶ 63-85.) 28 In October 2023, Romero began working for Synergy, “a restoration company” 1 owned and operated by Mr. and Mrs. Schultz. (Id. ¶¶ 15, 30.) Until December 2023, 2 Romero worked as a non-exempt manual laborer engaged in laying floor.1 (Id. ¶ 31; 3 Doc. 14-1 at 5.) During this time, Romero worked “between 50 and 60 hours or more per 4 week” for compensation “on a piece rate basis, regardless of the number of hours he worked 5 in a given week.” (Doc. 1 ¶¶ 42, 33.) But Defendants did not pay Romero for his final two 6 work weeks or his overtime hours.2 (Id. ¶¶ 43, 52.) 7 As a result, Romero filed a lawsuit asserting two violations of the FLSA, one 8 violation of the AZMWA, and one violation of the AZWA. (Id. ¶¶ 63-85.) Romero alleges 9 he was an employee who Defendants misclassified as an independent contractor. (Id. ¶ 36.) 10 He seeks monetary damages for his final two work weeks, federal and state liquidated 11 damages, as well as attorneys’ fees and costs. (Doc. 14 at 6-7, 9-11.) In total, excluding 12 attorneys’ fees and costs and post-judgment interest, Romero requests $12,603.90 against 13 Synergy, with $7,274.40 of that amount to be held jointly and severally against all 14 Defendants. (Id. at 12.) Romero also requests that damages be augmented by post-judgment 15 interest pursuant to 28 U.S.C. § 1961. (Id.) Finally, Romero asks that the Court allow him 16 to file a motion for attorneys’ fees and costs following the award of default judgment. (Id.) 17 Roughly two months after Romero filed the complaint, Mr. Schultz called Romero’s 18 attorney and left a voicemail stating, “[o]bviously we need to do something here.” 19 (Doc. 14-2 at 2.) In response, Romero’s attorney called and texted Mr. Schultz on multiple 20 occasions “but never received return correspondence.” (Doc. 14 at 8.) Despite being served 21 with the summons and complaint (Docs. 9, 10, 11), Defendants failed to file an answer, 22 respond to the complaint, or file a notice of appearance. Romero’s application for default 23 was entered by the Clerk on August 12, 2024, and he now moves for default judgment

24 1 In the complaint, Romero alleges he worked “approximately nine months,” from October 2023 until December 2023. (Doc. 1 ¶¶ 31, 40(h), 41.) However, in Romero’s motion for 25 default judgment, he alleges he worked from October 2023 until December 2024, or “about 13 work weeks.” (Doc. 14 at 5.) The Court will use the December 2023 date from the 26 complaint. See Geddes, 559 F.2d at 560 (taking the factual allegations in the complaint as true) (emphasis added). 27 2 Section 7 of the FLSA provides for overtime compensation of employees, including those paid on a piece rate basis. See Navarro v. Bean Drywall Inc., No. CV-06-2096-PHX-GMS, 28 2009 WL 10707832, at *3 (D. Ariz. Oct. 16, 2009) (citing Hodgson v. Cactus Craft of Ariz., 481 F.2d 464, 467 (9th Cir. 1973)). 1 against Defendants. (Docs. 13, 14.) 2 II. DISCUSSION 3 A. Jurisdiction, Venue, and Service 4 “When entry of judgment is sought against a party who has failed to plead or 5 otherwise defend, a district court has an affirmative duty to look into its jurisdiction over 6 both the subject matter and the parties.” Tuli v. Republic of Iraq, 172 F.3d 707, 712 (9th 7 Cir. 1999). Romero asserts claims arising under the FLSA, the AZMWA, and the AZWA. 8 (Doc. 1 ¶ 1.) Pursuant to 28 U.S.C. § 1331, the Court has subject matter jurisdiction over 9 claims arising out of federal law, including claims under the FLSA. 29 U.S.C. § 201, et 10 seq. Romero’s state law claims under the AZMWA and the AZWA, form “part of the same 11 case or controversy under Article III of the United States Constitution.” (Doc. 1 ¶ 9.) 12 28 U.S.C. § 1367. Thus, the Court has supplemental jurisdiction over Romero’s state law 13 claims. 14 Further, Romero alleges that venue and personal jurisdiction requirements are 15 satisfied because all Defendants “regularly conduct business in and have engaged in the 16 wrongful conduct alleged herein . . . in [] this judicial district.” (Id. ¶ 10.) Since “a 17 substantial part of the events or omissions giving rise to the claim” occurred in this district, 18 venue is proper. 28 U.S.C. § 1391(b)(2). Additionally, the Court has personal jurisdiction 19 over the parties because Synergy is licensed to conduct business in Arizona and “has 20 officers, and/or maintains agents for the transaction of its customary business in Maricopa 21 County.” (Id. ¶ 12.) Similarly, Romero is a resident of the state of Arizona. (Id. ¶ 11.) 22 Service is properly executed by delivering a copy of the summons and the complaint 23 to the individual personally. Fed. R. Civ. P. 4(e)(2)(A); Ariz. R. Civ. P. 4.1(d)(1). Here, 24 Mrs. Schultz was personally served on July 18, 2024. (Doc. 11.) On the same occasion, she 25 accepted service on behalf of her husband at their place of residence. (Doc. 10.) 26 Service on a corporation can be executed by serving a copy of the summons and the 27 complaint on a statutory agent. Fed. R. Civ. P. 4(h)(1)(B); Ariz. R. Civ. P. 4.1(i). 28 Mr. Schultz is Synergy’s registered statutory agent, and he provided authorization for 1 service upon it to be left with his wife. (Doc. 9.) Because he is the statutory agent and one 2 of Synergy’s owners, the corporation received sufficient notice of the complaint. See Chan 3 v. Soc’y Expeditions, Inc., 39 F.3d 1398, 1404 (9th Cir. 1994) (“Rule 4 is a flexible rule 4 that should be liberally construed to uphold service so long as a party receives sufficient 5 notice of the complaint.”). Therefore, all Defendants were properly served. 6 B.

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Romero v. Synergy Restoration LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/romero-v-synergy-restoration-llc-azd-2025.