Teri v. Spinelli

980 F. Supp. 2d 366, 23 Wage & Hour Cas.2d (BNA) 675, 2013 WL 5819672, 2013 U.S. Dist. LEXIS 154673
CourtDistrict Court, E.D. New York
DecidedOctober 28, 2013
DocketNo. 05-CV-2777 (PKC)(RML)
StatusPublished
Cited by13 cases

This text of 980 F. Supp. 2d 366 (Teri v. Spinelli) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Teri v. Spinelli, 980 F. Supp. 2d 366, 23 Wage & Hour Cas.2d (BNA) 675, 2013 WL 5819672, 2013 U.S. Dist. LEXIS 154673 (E.D.N.Y. 2013).

Opinion

MEMORANDUM & ORDER

PAMELA K. CHEN, District Judge:

Representative Plaintiffs, Rachel Teri and Daniel Watkins, along with Opt-In Class Plaintiffs (collectively, “Plaintiffs”), move for summary judgment against Salvatore Spinelli (“Spinelli” or “Defendant”) and the Salvatore Spinelli Law Office (“Spinelli Law Office,” together with Spinelli, the “Spinelli Defendants”) for failing to pay overtime wages in violation of the Fair Labor Standards Act (“FLSA”), 29 U.S.C. § 201 et seq., and the New York Labor Law (“NYLL”), N.Y.C.R.R ¶ 142.2-2.

Spinelli, an attorney proceeding pro se,1 opposes Plaintiffs’ motion for summary judgment and cross-moves for: (i) decertification of Plaintiffs’ FLSA collective action; (ii) dismissal of co-defendant John P. Fiumano from this action; (in) dismissal of the Spinelli Law Office from this action; (iv) dismissal of Spinelli from this action on the grounds that all of Plaintiffs’ claims as against him are barred by [369]*369the FLSA’s statute of limitations; (v) an order precluding Plaintiffs from certifying as a class pursuant to Federal Rule of Civil Procedure (“FRCP”) 23(a) and/or New York Civil Practice Law and Rule (“NYCPLR”) 902; and (vi) dismissal of the action without prejudice upon decertification of the Plaintiffs’ FLSA action. (Spinelli Notice of Cross-Motion (“Dkt. 128— 17”).)

BACKGROUND

The Court recites only the history and facts necessary to resolve the motions at bar.

1. Procedural History

On June 8, 2005, Plaintiffs Teri and Watkins brought this action against their former employer, Defendant Oxford Management Services, Inc. (“OMS”) and individual defendants who were OMS officers and directors, Richard A. Pinto, Charles Harris, Patrick R. Pinto, Peter C. Pinto and John Fiumano (“Individual OMS Defendants,” together with OMS, the “OMS Defendants”). Plaintiffs alleged that they are entitled to unpaid overtime wages from the OMS Defendants, liquidated damages, and attorneys’ fees. (Compl. ¶ 2. (Dkt. 1)). The Spinelli Defendants were not yet a party to the action.

On September 26, 2006, Plaintiffs sought court approval (“Dkt. 32”), and subsequently moved, to amend their Complaint to add the Spinelli Defendants to the action (“Motion to Amend”),2 alleging that, during the course of discovery, they obtained evidence supporting the extension of their overtime pay claims to the Spinelli Defendants under the FLSA’s single enterprise or joint employer theories of liability. (Dkt. 45.)

On August 13, 2007, with the Motion to Amend pending, Plaintiffs moved to strike the OMS Defendants’ Answer pursuant to Rule 37 of the Federal Rules of Civil Procedure (“Motion to Strike”) (Dkt. 58) for, inter alia, repeated failures to comply with discovery requests and the Court’s orders. (Dkt. 61.) By Order dated September 18, 2007, Judge Hurley granted Plaintiffs’ Motion to Amend. (Dkt. 71.) Thereafter, by Memorandum and Order, dated November 18, 2009, Judge Hurley, adopting Magistrate Judge Wall’s Report and Recommendation, granted Plaintiffs’ Motion to Strike in its entirety, striking the OMS Defendants’ Answer and directing the Clerk of the Court to note the default of the OMS Defendants. (Dkt. 86.) The Court concluded, however that because Plaintiffs’ claims against Spinelli remained pending, and because Plaintiffs had not moved for the entry of a final judgment as to the defaulting defendants, the default judgment would not be entered until such time as Plaintiffs’ claims against Spinelli were resolved. (Dkt. 86.) As a result, only Plaintiffs’ claims against Spinelli and the Spinelli Law Office remain to be litigated.

The case was reassigned to the undersigned on April 18, 2013. Plaintiffs’ motion for summary judgment and the Spinelli Defendants cross-motions are before the Court.

II. Relevant Factual History

A. The Parties

Defendant OMS is a New York corporation that engaged in business as a debt collections agency. (Plaintiffs’ Local Rule 56.1 Statement (“PI. 56.1”) ¶¶ 1-2.)3 Its [370]*370principal office is located at 135 Maxess Road, Melville, New York 11747 (“Maxess Road Property”). (PI. 56.1 ¶ 1.) The Individual OMS Defendants were officers and/or directors of OMS during the relevant time period. (PI. 56.1 ¶ 5.)

OMS employed Plaintiffs as collections agents during the time period relevant to this action. (PI. 56.1 ¶ 3.) Teri worked for OMS as a collections agent from September or October 2003 until January 2004. (Id.) Watkins worked for OMS and Spinelli from September 19, 2000 until June 18, 2004. (Id.) OMS collections agents were responsible for communicating with individual consumers who owed debts to OMS clients. (Harris Tr. 10.)4

Spinelli is an attorney who has operated a solo law practice since 1972. (Spinelli Tr. 23-25.)5 From approximately 2003 to 2009, Spinelli maintained an office on the second floor of the Maxess Road Property, where he engaged in private practice and also served as General Counsel for OMS. (Spinelli Tr. 25-29.) Oxford Realty Corp. (“Oxford Realty”) owns the Maxess Road Property, and OMS leases space from Oxford Realty. (Spinelli Tr. 30-31.) Spinelli paid no rent for his office, which was “gratis from Oxford [Realty].” (Spinelli Tr. 28.) Oxford Realty and OMS share common ownership. (Spinelli Tr. 30-31.) Specifically, OMS Defendants Peter Pinto, Patrick Pinto, and Harris have ownership interests in both companies. (Spinelli Tr. 30-31.) Spinelli and his wife have ownership rights in Oxford Realty but not OMS. (Spinelli Tr. 31-32, 34.)

B. Spinelli’s Relationship with OMS

Spinelli began to function as counsel for OMS in 2002. (Spinelli Tr. 74.) From approximately 2002 to 2003, Spinelli operated out of an office located at 535 Broad Hollow Road, Melville, New York, which was owned by Oxford Realty. (Spinelli Tr. 35-36.) Around that time, Spinelli began “employing” OMS collections agents. (Spinelli Tr. 74-75.) He shared employees with OMS, including Watkins, as well as Opt-in Plaintiffs Steven Bristol, Richard Costa, Kenneth Garretson, Adam Nagel, George Ramirez, and Jonathan Gascott. (Pl. 56.1 ¶ 13.)

In addition to sharing OMS collections agents, Spinelli employed supervisor-level OMS personnel. (PL 56.1 ¶¶ 15-16.) For example, Spinelli employed Harris as Director of Collections in a supervisory role while Harris was simultaneously employed by OMS as Executive Vice President. (Spinelli Tr. 66-68, 185-86.) Spinelli also employed Richard Madden as supervisor of collections during his tenure with OMS. (Spinelli Tr. 186-87.) Spinelli and OMS [371]*371shared the same “bookkeeper,” Richard Galeota. (Spinelli Tr. 87-88.) Spinelli employed 59 collections agents, all of whom were simultaneously employed by OMS, to perform work for him related to OMS collections. (PI. 56.1 ¶¶ 17-18 (listing names).)

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Bluebook (online)
980 F. Supp. 2d 366, 23 Wage & Hour Cas.2d (BNA) 675, 2013 WL 5819672, 2013 U.S. Dist. LEXIS 154673, Counsel Stack Legal Research, https://law.counselstack.com/opinion/teri-v-spinelli-nyed-2013.