Santos v. Cuba Tropical, Inc.

829 F. Supp. 2d 1304, 2011 WL 5361118
CourtDistrict Court, S.D. Florida
DecidedNovember 7, 2011
DocketCase No. 10-23818-CIV
StatusPublished
Cited by4 cases

This text of 829 F. Supp. 2d 1304 (Santos v. Cuba Tropical, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Santos v. Cuba Tropical, Inc., 829 F. Supp. 2d 1304, 2011 WL 5361118 (S.D. Fla. 2011).

Opinion

[1306]*1306 OPINION RE: THE COURT’S ENDORSED ORDER GRANTING DEFENDANTS’ MOTION FOR PARTIAL SUMMARY JUDGMENT

ANDREA M. SIMONTON, United States Magistrate Judge.

This matter is before the Court upon Defendants’ Motion for Partial Summary Judgment (DE # 70, 71). Plaintiffs have filed a Response (DE #72), and Defendants have filed a Reply (DE # 75, 81). The Honorable Patricia A. Seitz has referred this case to the undersigned Magistrate Judge for all further proceedings (DE # 62). On September 23, 2011, the undersigned held the Pretrial Conference, at which Edilberto Marban and Isaac Ma-mane appeared on behalf of Plaintiffs, and Carmen Rodriguez appeared on behalf of Defendants. The Court ruled on several pretrial matters at the Pretrial Conference and heard argument on Defendants’ Motion (DE # 91).1 Following the Pretrial Conference, the undersigned granted Defendants’ Motion by Endorsed Order in advance of a detailed opinion explaining the basis for the ruling, due to the nearness of the trial date, in order to enable the parties to efficiently prepare for trial. The Endorsed Order stated that an opinion detailing the basis for this ruling would be filed separately (DE # 93). This Opinion follows.

I. Plaintiffs’ Complaint; Defendants’ Answers and Affirmative Defenses

Plaintiffs Felix Santos, Carlos Garcia and Jose A. Valdes Prieto have filed this one-count action seeking damages for unpaid overtime wages, as well as costs and attorneys’ fees, from their former employer, corporate Defendant Cuba Tropical, Inc. (“Cuba Tropical”), and individual Defendant Jose L. Rodriguez, pursuant to the Fair Labor Standards Act, 29 U.S.C. §§ 201 to 219 (“FLSA”) (DE # 17 at 1-2).2 Plaintiffs contend that they were stock persons for Cuba Tropical, a supermarket supplier. They contend that although they regularly worked over 40 hours per week, they were not paid overtime. As to Defendant Rodriguez, Plaintiffs allege that he “has operational control over the Defendant corporation and is directly involved in decisions affecting employee compensation and hours worked by employees such as Plaintiffs” (DE # 17 at 3). Plaintiffs, accordingly, assert that Defendant Rodriguez is an “employer” under the FLSA, pursuant.to 29 U.S.C. § 203(d). Defendants deny this allegation in their Answers and Affirmative Defenses (DE # 25 at 2; 26 at 2). Defendant Rodriguez further specifies in his affirmative defenses that he does not qualify as an employer under the economic reality test and, therefore, cannot be held liable in this action (DE # 26 at 7-8). Plaintiffs seek to recover against both Defendants, jointly and severally (DE # 17 at 6).

II. Defendants’ Motion for Partial Summary Judgment

Defendants have moved for'partial summary judgment, seeking to dismiss all claims against Jose L. Rodriguez in his individual capacity (DE # 70 at l).3 Defendants claim that, in order for Defendant Rodriguez to be held liable in his individual capacity for the alleged FLSA viola[1307]*1307tions, he must be considered an “employer” under the FLSA provisions. As the crux of their argument, Defendants cite Patel v. Wargo, which requires that a person found to be an employer “must either be involved in the day-today operation or have some direct responsibility for the supervision of the employee.” 803 F.2d 632, 638 (11th Cir.1986) (DE # 70 at 3).

Defendants assert that no evidence suggests that Defendant Rodriguez had any control over the corporate Defendant, let alone day-to-day operational control or direct responsibility for employee supervision (DE # 70 at 4). Specifically, Defendant Rodriguez has not been on the premises of Cuba Tropical’s facility in four years, so he could not have had a hand in day-to-day operations (DE # 70 at 4). In his deposition, Defendant Rodriguez claims ignorance of any number of management areas of Cuba Tropical, including determining pay rates, the facility’s operating hours, who manages the facility, categories of managers, duties of floor workers, insurance held by Cuba Tropical, or even who is running the company (DE #70 at 4). He disclaims responsibility for day-today operations or delegation of authority to managers. Although Defendant Rodriguez is an acknowledged part owner of Cuba Tropical and could step in at any time to exercise greater control over Cuba Tropical, more is required to be considered an employer under Patel (DE #70 at 5). Moreover, other evidence supports Defendant Rodriguez’s claims. Specifically, Cuba Tropical’s corporate representative, Fausto Alvarez, confirmed managers’ control (as opposed to Defendant Rodriguez’s) regarding employee hiring and wage-setting, and that Defendant Rodriguez does not visit the facility (DE # 70 at 5). In addition, Plaintiffs have testified that they had never met Defendant Rodriguez although they recognized his name as the man who signed their paychecks (DE # 70 at 5-6; 72 at 2).4

III. Plaintiffs’Response

In response, Plaintiffs argue that Defendant Rodriguez had ultimate financial and operational control of Plaintiffs’ employment and, therefore, is an employer for FLSA purposes. He controls the “purse strings,” guides company policies, authorizes FLSA compliance, “solves major problems,” and ultimately determines wage levels (DE # 72 at 4-5). In supporting these assertions, Plaintiffs point to Defendant Rodriguez as the only signatory on Cuba Tropical’s bank account (the “purse strings” argument), his authorization of the decision to use an employee leasing company (control over “major problems”), his hiring of the initial set of company managers (guidance of company policies), and his signing (or authorizing rubber stamp signing) of employees’ paychecks (determination of employee wages). With regard to hiring managers, Plaintiffs rely upon Herman v. RSR Sec. Services Ltd., 172 F.3d 132, 140 (2d Cir.1999), to argue that this fact is a strong indication of control (DE # 72 at 5). Finally, Plaintiffs assert that their application for employment was through Presidente Supermarket, another company purportedly more directly managed by Defendant Rodriguez (DE # 72 at 6). In support of this last assertion, Plaintiffs attach to their Response copies of Plaintiffs’ applications, which appear to be on Presidente Supermarket forms (DE # 72-2).

[1308]*1308Plaintiffs offer the following evidence in an effort to controvert Defendants’ claims. As Plaintiffs note, Defendant Rodriguez is one of two owners of Cuba Tropical; his sister, the other part owner, lives fulltime in Chicago (DE # 72 at 2). Defendant Rodriguez admits to hiring managers to operate Cuba Tropical when it was initially created, and to continuing communication with Fausto Alvarez. Specifically, he states, in response to a question regarding whether he delegates authority to managers to run Cuba Tropical, “No, I don’t— you know, I don’t give them orders. I don’t tell them what to do.

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Cite This Page — Counsel Stack

Bluebook (online)
829 F. Supp. 2d 1304, 2011 WL 5361118, Counsel Stack Legal Research, https://law.counselstack.com/opinion/santos-v-cuba-tropical-inc-flsd-2011.