Shamburg v. Ayvaz Pizza, LLC

CourtDistrict Court, W.D. Virginia
DecidedAugust 22, 2025
Docket5:24-cv-00098
StatusUnknown

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

Bluebook
Shamburg v. Ayvaz Pizza, LLC, (W.D. Va. 2025).

Opinion

AT CHARLOTTESVILLE, VA FILED August 22, 2025 LAURA A. AUSTIN, CLERK IN THE UNITED STATES DISTRICT COURT BY: sf AUDA □□□ FOR THE WESTERN DISTRICT OF VIRGINIA HARRISONBURG DIVISION

Chandler Shamburg, ef a/, ) ) Plaintiffs, ) ) v. ) Civil Action No. 5:24-cv-00098 ) Ayvaz Pizza, LLC et a/, ) ) Defendants. ) MEMORANDUM OPINION This matter is before the court on a motion to dismiss filed by Defendants Ayvaz Pizza, LLC and Shoukat Dhanani (together, the “Ayvaz Defendants”) (Dkt. 22). For the reasons that follow, this court will grant the motion in part and deny the motion in part. I. Background A. Factual Background Pacts alleged in the complaint are accepted as true for the purpose of resolving the motion and should be viewed in the light most favorable to Plaintiffs. Philips v. Pitt Cnty. Mem’ Hosp., 572 F.3d 176, 180 (4th Cir. 2009). At different times between 2020 and 2024, Plaintiffs Chandler Shamburg, Debralyn Duke, Crystal Sandle, Nolan Wright, Mario Shivers, Marvin Alexander, and Jacob Tafoya! were delivery drivers for Ayvaz Defendants, who operated over

' Since Plaintiffs filed their complaint in November 2024, Nan Murray, Sam Hubert, Juan Simonetti, Andrew Cyrus, Ashtyn Christian, Jessica Stewart, Melissa ’Tamez, Mutasem Shahed, Sofiane Saada, Luther Grant, Michael Schwerin, Dread Thomas, Jessica Lockhart, Brandon Mcnerney, Habibullah Sheerzad, Mohammad Sheerzad, Tony Bolden, Ghulam Hakimi, Rachel Candler, and Vijay Rohatgi have filed notices of consent to join suit, thereby becoming Plaintiffs in this collective action. (Dkts. 6, 11, 12, 13, 27, 39, 41, 43, 47, 51.)

300 Pizza Hut locations across the United States (“Ayvaz Pizza Hut Franchise Stores”). (Compl. ¶¶ 1, 2, 11, 14, 17, 20, 23, 26, 29, 75, 121, 142, 164, 185, 207, 228, 249 (Dkt. 1).) Ayvaz Defendants have operated Ayvaz Pizza Hut Franchise Stores since September

2021.2 (Id. ¶¶ 74, 193.) Ayvaz Pizza, LLC (“Ayvaz”) is a foreign limited liability company with a principal place of business in Texas. (Id. ¶ 34.) Ayvaz is registered to do business in Virginia and operates an unidentified number of Pizza Hut Franchise Stores within the Commonwealth. (Id. ¶¶ 34, 37.) While employed as delivery drivers for Ayvaz Defendants, Plaintiffs worked “dual jobs” in which they “completed deliveries and received tips” and also “helped inside the store

and did not receive tips.” (Id. ¶ 77.) Plaintiffs’ claims focus on their work completing deliveries. (Id. ¶ 78.) Plaintiffs were paid minimum wage, slightly above minimum wage, or minimum wage minus a tip credit for the hours they worked making deliveries. (Id. ¶ 82.) They were required to use their own cars, ensure their cars were legally compliant, pay car- related costs including gasoline expenses, maintenance and part costs, insurance, financing charges, and licensing and registration costs, pay storage costs, cell phone costs, and data

charges, and pay for other necessary equipment. (Id. ¶¶ 83–86.) Ayvaz Pizza Hut Franchise Stores did not track actual expenses incurred by their delivery drivers while on the job or reimburse for those expenses. (Id. ¶¶ 89–92.) Rather, the stores paid delivery drivers per each delivery they made until May 2022, when they began paying drivers per each mile they drove during deliveries. (Id. ¶¶ 87–88.) Ayvaz Pizza Hut

2 The complaint asserts that multiple Plaintiffs worked for Ayvaz Pizza Hut Franchise Stores in 2020 before Ayvaz Defendants acquired the stores in September 2021. (See Compl. ¶¶ 164, 185, 207.) Franchise Stores’ reimbursement payments to delivery drivers were less than the IRS standard business mileage rate. (Id. ¶ 106.) As a result of the car-related expenses incurred by Plaintiffs, they allege that “they were

deprived of minimum wages guaranteed to them by the [Fair Labor Standards Act (“FLSA”)] and state law.” (Id. ¶ 117.) That is because Plaintiffs are paid a wage very close to minimum wage—and thus any car-related expenses “kicked back” to Ayvaz Defendants “an amount sufficient to cause minimum wage violations.” (Id. ¶ 119.) B. Prior Cases Filed Against Ayvaz Defendants This case follows several other cases filed against Ayvaz Defendants in the U.S. District

Courts for Minnesota, Texas, New Mexico, and Georgia. See Stotesbery v. Muy Pizza-Tejas, LLC, No. 0:22-cv-01622 (D. Minn. filed June 21, 2022); Garza v. Ayvaz Pizza, LLC, No. 4:23-cv- 01379 (S.D. Tex. filed Apr. 12, 2023); Echeverria v. Ayvaz Pizza, LLC, No. 2:23-cv-00134 (D.N.M. filed Feb. 13, 2023); Ramsey v. Ayvaz Pizza, LLC, No. 1:23-cv-04801 (N.D. Ga. filed Oct. 19, 2023). Two cases are worth mentioning in detail. 1. Stotesbery v. Muy Pizza-Tejas, LLC, No. 0:22-cv-01622 (D. Minn. filed Jun. 21, 2022)

On June 21, 2022, John Stotesbery filed a complaint against Muy Pizza-Tejas, LLC, Ayvaz Pizza, LLC, Shoukat Dhanani, Doe Corporation 1-10, and John Doe 1-10 in the U.S. District Court for the District of Minnesota. Stotesbery v. Muy Pizza-Tejas, LLC, Compl. ¶ 1. Stotesbery alleged defendants required him and similarly situated employees to incur all costs related to automobile use and care while employed as delivery drivers for defendants’ Pizza Hut franchises. Id. ¶ 76. Until May 2022, Stotesbery and similarly situated delivery drivers

were reimbursed per each delivery they completed. Id. ¶ 78. In May 2022, defendants began to reimburse delivery drivers per mile driven. Id. ¶ 79. As in Shamburg, the reimbursements offered by defendants were not based on actual expenses and were less than the IRS business mileage rate. Id. ¶¶ 80, 90.

In Stotesbery, defendants filed partial motions to dismiss based on lack of personal jurisdiction. Id., Dkts. 23, 28. They argued that the FLSA collective action should be dismissed because the defendant Muy Pizza-Tejas, LLC was a foreign entity with its principal place of business located outside of the state; thus, the court lacked jurisdiction over collective class members who lived and worked outside of Minnesota. Id., Dkt. 25 at 2–5. The U.S. District Court for the District of Minnesota granted the motion and dismissed members of the

collective action who did not live in or work in Minnesota. Stotesbery v. Muy Pizza-Tejas, LLC, Dkt. 58. The Stotesbery plaintiffs later requested permission to file a motion to reconsider the order granting the motion to dismiss. Id., Dkt. 164. Their argument hinged on the Supreme Court’s ruling in Mallory v. Norfolk Southern Railway Co., where the Supreme Court held that a Pennsylvania court could exercise general personal jurisdiction over a Virginia company via its

business registration in that state without offending the Due Process Clause of the Fourteenth Amendment. 600 U.S. 122, 141–45 (2023); see Stotesbery v. Muy Pizza-Tejas, LLC, Dkt. 158. The district court denied the plaintiffs’ request for reconsideration, clarifying that Mallory was solely a reaffirmation of established precedent and did not alter the court’s proper reliance on prior Eighth Circuit precedent. Stotesbery v. Muy Pizzas, LLC, Dkt. 247 at 4–5. Plaintiffs then attempted to amend their complaint, see id., Dkt. 249, to include the

Mallory general jurisdiction argument. See id., Dkt. 250. The court denied their second motion to amend, referencing the plaintiffs’ failure to bring their legal theory of personal jurisdiction at the outset of the case or amend at an earlier stage. Id., Dkt. 310 at 6–7. The court suggested that an amendment may prejudice defendants and noted the opt-in opportunities for plaintiffs

presented by parallel suits in other federal district courts. Id. at 9–12. The Minnesota-based collective class members who remained in the suit settled with the Muy defendants in early 2025, but litigation against other defendants, including Ayvaz Pizza LLC and Shoukat Dhanani, remains pending.

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