Tripp v. Perdue Foods LLC

CourtDistrict Court, D. Maryland
DecidedAugust 22, 2024
Docket1:24-cv-00987
StatusUnknown

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

Bluebook
Tripp v. Perdue Foods LLC, (D. Md. 2024).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MARYLAND

BARBARA TRIPP, * * Plaintiff, * * v. * Civil Case No: 1:24-cv-00987-JMC PERDUE FOODS LLC, * * Defendant. * * * * * * * * * * * * * * MEMORANDUM OPINION AND ORDER Plaintiff, Barbara Tripp, filed this lawsuit on April 4, 2024, against Defendant, Perdue Foods LLC, alleging violations of the Fair Labor Standards Act (“FLSA”) and seeking declaratory judgment under the Federal Declaratory Judgment Act. (ECF No. 1). Presently pending before the Court are two motions: (1) Defendant’s Motion to Dismiss or Transfer (ECF No. 20); and (2) Defendant’s Expedited Motion to Stay Its Response to Plaintiff’s Motion for Conditional Certification (ECF No. 21).1 Those motions are fully briefed (ECF Nos. 24, 25, 26) and no hearing is necessary. See Loc. R. 105.6 (D. Md. 2023). For the reasons explained below, the motion to stay will be denied as moot and the motion to dismiss will be denied.

1 Plaintiff filed a Motion for Conditional Certification of a Collective Action on June 12, 2024. (ECF No. 19). Defendant filed its motion to dismiss the following day, and its motion to stay on June 14, 2024. (ECF Nos. 20, 21). The Court previously approved the parties’ joint request to stay briefing on Plaintiff’s motion pending the outcome of Defendant’s motion to stay. See (ECF No. 23). I. BACKGROUND Plaintiff “worked under contract as a [chicken] grower for Defendant” in Aulander, North Carolina. (ECF No. 1 at 2).2 Plaintiff’s Complaint details several facets of the chicken growing and consumption industry. Specifically, Plaintiff’s Complaint alleges that Defendant is the “third largest broiler chicken company in the country.” Id. at 3. “Broilers” are chickens raised for meat consumption. Id. Although the United States broiler industry historically featured “individual farmers raising chickens and selling them to live poultry dealers or poultry processors,” it now

consists mostly of large companies known as “integrators” who “combine the various stages of production, a process known as vertical integration.” Id. Defendant is “highly vertically integrated, with its employees overseeing almost every aspect” of the broiling process. Id. But while Defendant “now directly owns almost all of its broiler supply chain it has generally not purchased the farms where its chicks are raised to full weight.” Id. Instead, Defendant supposedly “outsources the process of raising birds to broiler growers that [Defendant] calls ‘independent farmers,’ and it requires these farmers to pay for facilities and tools of the trade that [Defendant] dictates are necessary to grow broilers.” Id. at 3– 4. In turn, such “independent farmers” raise the chickens that Defendant owns from the time that

they hatch “until they are large enough to slaughter.” Id. at 4. Plaintiff alleges that Defendant controls virtually every aspect of growers’ operations. Id. This is despite the fact that growers shoulder “most of the financial risk—including the large investment necessary to build barns (to [Defendant’s] specifications and for its benefit), and the risk of loss if a flock is lost due to a power outage or disease.” Id. Defendant also “requires

2 When the Court cites to a particular page number or range, the Court is referring to the page numbers located in the electronic filing stamps provided at the top of each electronically filed document. At the motion to dismiss stage, the Court “accept[s] as true all well-pleaded facts and construe[s] them in the light most favorable to the plaintiff.” Harvey v. Cable News Network, Inc., 48 F.4th 257, 268 (4th Cir. 2022). growers to work exclusively for [Defendant].” Id. This includes measures as far as prohibiting growers and their family members from visiting farms associated with other integrators. Id. at 4– 5. These terms and others are typically laid out in Poultry Producer Agreements that Defendant uses as “a form contract with its growers nationwide,” which “attempt to assert that growers . . . are independent contractors” rather than employees. Id. at 6.

Plaintiff posits that the above system “offloads enormous capital costs and financial risks” onto growers, as Defendant effectively “forces growers to bear [costs such as constructing chicken houses, upgrading equipment, managing waste, and potentially losing chickens] by deceptively classifying growers as independent contractors while meticulously controlling virtually every moment and every aspect of their work.” Id. at 5. “Having taken on large loans to pay for facilities and upgrades” to meet Defendant’s standards, “and then being required to take on even more debt for further upgrades and equipment,” “growers have no meaningful choice but to continue growing for [Defendant] as long as [Defendant] permits them to.” Id. In other words, Plaintiff alleges that Defendant “has devised a scheme to saddle growers with risk and debt, while at the same time

directing and controlling every aspect of the chicken growing process and refusing to compensate growers in the manner that federal law requires” based on their classification as independent contractors rather than employees. Id. The essence of Plaintiff’s Complaint is that Defendant “wants to have its cake and eat it too: have growers that function as controlled employees but compensate them as if they are independent contractors and force them to bear financial burdens that employees should not have to bear for their employer’s benefit.” Id. at 8. Specific to Plaintiff’s claims, Plaintiff “worked as a grower for [Defendant] through October 2021.” Id. at 25. In that role, Plaintiff was required to “maintain the farm and facilities in the conditions required” by Defendant “and otherwise provide the kinds of equipment necessary for [Defendant’s] processes.” Id. Plaintiff further alleges that Defendant “worked to hide the full scope of its control” over Plaintiff’s farm “and the full scope of financial obligations it would force her to incur.” Id. Plaintiff opted into an FLSA collective action against Defendant on July 25, 2023, filed in the United States District Court for the Middle District of Georgia. Id. “The allegations in that

lawsuit are substantively the same as the allegations here regarding [Defendant’s] misclassification of growers.” Id. That district court dismissed Plaintiff from that case on March 14, 2024, “without prejudice, for reasons unrelated to the merits of her claims or her ability to represent an FLSA collective.” Id. Plaintiff then filed the present lawsuit. II. STANDARD OF REVIEW A. Motion to Stay

“A district court has broad discretion to stay proceedings as part of its inherent power to control its own docket.” City of Annapolis, Md. v. BP P.L.C., No. CV ELH-21-772, 2021 WL 2000469, at *2 (D. Md. May 19, 2021) (citing Landis v. N. Am., 299 U.S. 248, 254 (1936)). “When considering a discretionary motion to stay, courts typically examined three factors: (1) the impact on the orderly course of justice, sometimes referred to as judicial economy, measured in terms of the simplifying or complicating of issues, proof, and questions of law which could not be expected from a stay; (2) the hardship to the moving party if the case is not stayed; and (3) the potential damage or prejudice to the non-moving party if a stay is granted.” Id. “Additionally, courts consider the length of the requested stay and whether proceedings in another matter involve similar issues.” Id. B. Motion to Dismiss or Transfer The purpose of Federal Rule of Civil Procedure 12(b)(6) “is to test the sufficiency of a complaint and not to resolve contests surrounding the facts, the merits of a claim, or the applicability of defenses.” Presley v.

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Tripp v. Perdue Foods LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tripp-v-perdue-foods-llc-mdd-2024.