Tlacoapa v. Carregal

386 F. Supp. 2d 362, 2005 U.S. Dist. LEXIS 19925, 2005 WL 2186153
CourtDistrict Court, S.D. New York
DecidedJune 22, 2005
Docket02 CIV. 4671(SCR)
StatusPublished
Cited by40 cases

This text of 386 F. Supp. 2d 362 (Tlacoapa v. Carregal) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tlacoapa v. Carregal, 386 F. Supp. 2d 362, 2005 U.S. Dist. LEXIS 19925, 2005 WL 2186153 (S.D.N.Y. 2005).

Opinion

MEMORANDUM DECISION AND ORDER

ROBINSON, District Judge.

Gerardo Tlacoapa, the prevailing party in this action brought under the Fair Labor Standards Act and the New York Labor Law, now moves for an award of damages and for reasonable attorneys’ fees and costs. For the reasons discussed below, Plaintiffs motions are granted, but Plaintiff and his attorneys are awarded amounts less than what they have requested.

I. Background

Gerardo Tlacoapa (the “Plaintiff’) brought this action against Robert G. Car-regal d/b/a The Rockologists (the “Defendant”), seeking damages for unpaid wages and expenses under the Fair Labor Standards Act, 29 U.S.C. § 200 et seq. (“FLSA”), and the New York Labor Law §§ 681, 663 (“Labor Law”).

Plaintiff filed his complaint in this action on June 18, 2002. After initially being assigned to the docket of Judge Swain, it was transferred to this court on October 7, 2003. After a bench trial in December 2004, the court found Defendant liable for unpaid wages and overtime, in violation of the FLSA. See 29 U.S.C. § 216(b). In addition, the court awarded Plaintiff attorneys fees and costs, pursuant to both FLSA, see 29 U.S.C. § 216(b), and the Labor Law. See N.Y. Lab. Law §§ 198, 663 (McKinney 2002).

At the conclusion of trial, the court ordered the Plaintiff to submit specific requests for damages, attorneys fees and costs, in order to facilitate the court’s determination of appropriate damages and attorneys fees in this case. With respect *366 to damages, Plaintiff requested $7,713.50 in unpaid wages and overtime, an equivalent amount in liquidated damages and $576 in unpaid cleaning expenses, for a total of $16,003.00. In its post-trial submission, Defendant contends that the total amount of unpaid wages due is $2,020, and that both liquidated damages and reimbursement for cleaning expenses are inappropriate in this case.

With respect to attorneys fees and litigation costs, Plaintiff initially requested $77,391 in attorneys fees and $2,534.49 in litigation costs for a total of $79,925.49. Plaintiff later requested additional fees of $3,186 and costs of $135.45, incurred in preparing post-trial submissions and responses, for a total of $85,781.43 in attorneys fees and costs. 1 Defendant contends that this amount is unreasonable, but has not proposed a specific alternative amount.

In addition, at various points during the trial, the parties made motions regarding the Defendant’s corporate form. Specifically, on the morning of the first day of trial, the Defendant submitted a motion to dismiss the Plaintiffs complaint on the ground that Plaintiff incorrectly named Robert Carregal, the individual, as the defendant, rather than the corporation, Robert Carregal, Inc., which Defendant claims was the Plaintiffs actual employer. At the close of testimony in this case, Plaintiff filed a motion to amend the complaint to include Robert G. Carregal, Inc. and its successor corporation, the Rockologists, Inc., as defendants in this case, on the grounds that they are alter egos of the Defendant, Robert G. Carregal. The court reserved judgment on these motions as well.

II. Analysis

A. The Defendant’s Motion To Dismiss And Plaintiffs Motion To Amend

The Defendant’s motion to dismiss, having been submitted on the first day of trial, is clearly untimely, and for that reason alone must be denied. More importantly, however, the court finds, based on evidence submitted at trial, that Robert Carregal, Inc. and its successor corporation, The Rockologists, Inc., are alter egos of the Defendant, Robert G. Carregal. Specifically, trial testimony and other evidence indicates that the Defendant was the only officer and shareholder of both corporations, that the Defendant failed to follow corporate formalities, and that there was a complete intermingling of corporate and personal accounts and funds.

Motions to amend may be granted “when justice so requires.” Fed. R. Crv. P. 15(a). Given the nature of the relationship between the Defendant and the corporate entities that he owns, and the possibility that the failure to grant Plaintiffs motion might facilitate the Defendant’s improper avoidance of liability in this case, justice requires that Plaintiffs motion to amend be granted.

B. Damages

1. Unpaid Wages And Overtime

The bench trial in this case involved the testimony of only four witnesses — three for the Plaintiff, including the Plaintiff himself, the Plaintiffs wife, and one of Plaintiffs co-workers, and the Defendant. In general, the court finds the testimony of Plaintiffs witnesses to be credible with *367 respect to the nature and extent of work performed by Plaintiff. The testimony of each of Plaintiffs witnesses appeared trustworthy, was generally consistent with the testimony of the others, and was corroborated by personal records made contemporaneously by Plaintiffs wife. By contrast, the court finds the Defendant’s testimony considerably less credible — a determination made easy by the Defendant’s admission, on his second day of testimony, to have lied, and offered falsified records, during his first day on the witness stand.

Precisely calculating Plaintiffs damages is difficult, because the Defendant failed to maintain accurate and comprehensive records of Plaintiffs employment. FLSA and its implementing regulations require an employer to “make, keep, and preserve such records of the persons employed by him and of the wages, hours, and other conditions and practices of employment maintained by [the employer].” 29 U.S.C. § 211(c). Ordinarily, an employee seeking to recover unpaid minimum wages or overtime under FLSA “has the burden of proving that he performed work for which he was not properly compensated.” Anderson v. Mt Clemens Pottery Co., 328 U.S. 680, 687, 66 S.Ct. 1187, 90 L.Ed. 1515 (1946). However, when an employer fails to maintain records concerning the employee’s wages, hours, and other terms and conditions of employment as required by FLSA, the plaintiff may carry out this burden “if he proves that he has in fact performed work for which he was improperly compensated and if he produces sufficient evidence to show the amount and extent of that work as a matter of just and reasonable inference.” Id.See also Reich v. Southern New England Telecomms. Corp., 121 F.3d 58, 66 (2d Cir.1997).

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Bluebook (online)
386 F. Supp. 2d 362, 2005 U.S. Dist. LEXIS 19925, 2005 WL 2186153, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tlacoapa-v-carregal-nysd-2005.