Salto v. Alberto's Construction, LLC

District Court, S.D. New York·Decided July 31, 2020·No. 7:17-cv-03583·Unknown

Opinion

and on behalf of all others similarly situated, Plaintiff, DECISION AND ORDER -against- 17 Cry. 3583 (PED) ALBERTO’S CONSTRUCTION, LLC AND CARLOS RIVERA-SALTO, individually, Defendants, goannas ncnmmnnn casa nana aan manana PAUL E. “DAVISON, U.S.MLI: On May 12, 2017, the plaintiff, Robinson Salto (“Plaintiff”), on behalf of himself and others similarly situated, filed a complaint asserting wage-and-hour claims pursuant to the Fair Labor Standards Act (“FLSA”) and the New York Labor Law (““NYLL”) against the defendants, Carlos Rivera-Salto (“Defendant”) and Alberto’s Construction, LLC (collectively “Defendants”). Dkt. 1, On November 6, 2018, the undersigned, pursuant to an order of reference, dated July 25, 2018, Dkt. 25, conducted a settlement conference during which the parties engaged in extensive, court-supervised negotiations. At a follow-up telephone conference, on November 16, 2018, the parties informed the Court that they had agreed on settlement terms. On December 4, 2018, the parties consented to Magistrate Judge jurisdiction for all purposes pursuant to 28 U.S.C. § 636(c). Dkt. 31. On January 28, 2019, Plaintiff, on behalf of all parties, filed a copy of the parties’ fully executed settlement agreement, Dkts. 35-1, 45-2, and a proposed stipulation and order of dismissal, Dkt. 35-2, which this Court so ordered on February 1, 2019, Dkt. 36. The Court retained jurisdiction for the sole purpose of enforcing the settlement agreement. Dkt. 36. Presently before this Court is Plaintiff's Motion to Enforce the Parties’ Settlement Agreement

and Enter Judgement. Dkt. 43. For the reasons set forth below, Plaintiff's motion is GRANTED. I. BACKGROUND The parties’ settlement agreement provided that Defendants were to pay Plaintiff, and Plaintiff's counsel, an aggregate amount of $60,000.00 over a twelve-month period. The first payments were to be paid on or before March 1, 2019. The parties agreed that each month the payments would be made by three separate checks, all sent directly to Plaintiff's counsel. Two checks in the amount of $1,633.56 each were to be made payable to Plaintiff to cover the Plaintiff's back wages and liquidated damages, respectively, totaling $39,205.44 over twelve months, The third check in the amount of $1,732.88 was to be made payable to Borrelli & Associates, P.L.L.C., to cover attorneys’ fees and costs, totaling $20,794.56 over twelve months. The agreement also provided the following: In the event that Defendants fail to make the settlement payments in a timely manner pursuant to the above schedule set forth in this Agreement, counsel for Plaintiff shall provide notice of the default by email to Defendants .... Defendants will then have ten (10) days from the date of receipt of such notice within which to cure the default by delivering to Plaintiff’s attorneys at the address listed above via overnight delivery any amounts due and owing to Plaintiffs attorneys. If Defendants timely cure their breach, no other dates in the above schedule shall become altered or in any way affected. If Defendants fail to timely cure their breach, two hundred percent (200%) of the entire unpaid balance of the payments ($60,000.00 less any payments made under this Agreement) will then become due and owing, and Plaintiff may apply to the Court, which will retain jurisdiction over the Action to enforce the terms of this Agreement, to enter judgement for that amount, plus reasonable attorneys’ fees and costs associated with seeking judgement for Defendants’ breach including costs and fees for any motion for costs and fees. Dkt. 45-2 at 4. Plaintiff alleges that, to date, Defendants have failed to make any payments covering Plaintiff's back wages and liquidated damages. As to attorneys’ fees, the parties

agree that Defendants were initially making timely payments and that Defendants, at some point, fell behind on payments. Plaintiff appears to now contend that, as of the date of their reply to Defendants’ opposition to this motion, Defendants were behind one payment for attorneys’ fees and costs in the amount of $1,732.88. Dkt. 50 at 6. Defendants assert that they caught up on these payments and deny that they are in default

on attorneys’ fees and costs owed. Dkts. 48 at 1-2; 49 at 1. As of December 10, 2019, the date of the filing of the instant motion, Defendants had made nine payments totaling $15,595.94 for attorneys’ fees and costs, leaving a total of $5,198.65 owed. Dkts. 45 at 6; 48 at 1. As of January 17, 2020, the date on which Plaintiff filed his reply, Plaintiff acknowledged that Defendants had made two additional payments towards attorneys’ fees and costs, bringing the total payments made to eleven. Dkt. 50 at 5. Thus, as eleven payments were due as of January 17, 2020, and the parties agree that eleven payments had been made as of that date, Defendants were no longer in default as it relates to attorneys’ fees and costs owed pursuant to the settlement agreement. Following the Court’s approval of the settlement agreement, Defendants allege that Plaintiff was arrested after he was involved in a car accident purportedly caused by his driving under the influence. Dkts. 48 at 2, 49 at 2. Defendant avers that he bailed Plaintiff, his uncle, out of jail and that Plaintiff subsequently left the United States and returned to his country of origin, Ecuador, to avoid further legal trouble related to the accident. Dkts. 48 at 2, 49 at 2.

' As noted above, the first payment from Defendants was due on or before March 1, 2019; therefore, on January 1, 2019, the eleventh payment became due.

Defendants concede that they have not made payments to Plaintiff strictly in the manner agreed upon in the settlement agreement; however, they contend that this is due to the fact that after Plaintiff moved to Ecuador, Plaintiff allegedly began harassing Defendant’s family in an attempt to obtain the settlement payments ahead of the agreed upon schedule. Dkts. 48 at 2, 49 at 2. Defendant further alleges that, on one occasion, Plaintiff showed up at Defendant’s father’s home “with several armed men and threatened him.” Dkt. 49 at 2, In an attempt to end the harassment, Defendant alleges that he and his brother, Romulo H. Rivera (“Romulo”), came to

an agreement whereby Romulo would pay Plaintiff the $40,000.00 owed in the settlement agreement and, in exchange, Defendant “agreed to transfer a house that [he] purchased in Ecuador a few years earlier to Romulo.” Dkt. 48 at 2; 49 at 2. However, as the house in question was originally purchased in Romulo’s name, there was no actual transfer of title in this exchange and, thus, Defendant was unable to produce evidence of this transfer. Dkt. 49 at 3. Additionally, Defendant asserts that Romulo has since sold the house. Jd. Defendant further alleges that Plaintiff initially demanded that he be paid in cash, but Romulo refused and, instead, paid Plaintiff with two $20,000 certified checks from Banco Bolivariano. fd. As noted, Defendants concede that these payments were not in strict compliance with the settlement agreement. Dkt. 48 at 2. Plaintiff, on the other hand, denies that he ever received any money from Defendants or Defendant’s relatives. Dkts. 45 at 4, 51 at 1. On or about March 22, 2019, Plaintiff contends that he called his attorney in this matter to inquire as to why he had not received the first payment he

was owed that became due on March 1, 2019. Dkt. 51. Plaintiffs counsel then sought an explanation from Defense counsel as to this missing payment. After speaking with Defendant, Defense counsel replied to Plaintiff's counsel via email that after Plaintiff allegedly harassed

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