Veloz v. MM Custom House Inc.

CourtDistrict Court, E.D. New York
DecidedMarch 26, 2024
Docket1:19-cv-00852
StatusUnknown

This text of Veloz v. MM Custom House Inc. (Veloz v. MM Custom House Inc.) 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
Veloz v. MM Custom House Inc., (E.D.N.Y. 2024).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK ----------------------------------------------------------------x JOSE VELOZ AND GALILEO MEJIA, on behalf : of themselves and others similarly situated; : : Plaintiffs, : : -against- : MEMORANDUM AND ORDER : 19-cv-852(DLI)(JRC) MM CUSTOM HOUSE INC., d/b/a : SPEEDWORLD; MANUEL MASTROMIHALIS; : and MIKE MICHAEL : : Defendants. : ----------------------------------------------------------------x DORA L. IRIZARRY, United States District Judge:

On February 13, 2019, Jose Veloz (“Veloz”) and Galileo Mejia (“Mejia”) (collectively, “Plaintiffs”) initiated this putative collective action on behalf of themselves and others similarly situated against MM Custom House Inc., d/b/a Speedworld (“Speedworld”), Manuel Mastromihalis (“Mastromihalis”), and Mike Michael (“Michael”) (collectively, “Defendants”), alleging violations of the Fair Labor Standards Act of 1938 (“FLSA”), 29 U.S.C. § 201 et seq., and § 207(a); the New York Labor Law (“NYLL”), § 650 et seq., § 160, and § 195; and corresponding New York Codes, Rules and Regulations (“NYCRR”). See, Compl., Dkt. Entry No. 1. Defendants answered the complaint on March 27, 2019. See, Ans., Dkt. Entry No. 15. More than four years after the initiation of this case, and at the point where the case is trial ready, Defendants raise the issue of Article III standing for Plaintiffs’ sixth and seventh causes of action of the complaint, alleging violations of NYLL §§ 195(1) and (3) and have moved for partial summary judgment to dismiss them pursuant to Federal Rule of Civil Procedure 56. See, Defs.’ Letter re: Pretrial Stipulations, Dkt. Entry No. 52; Defs.’ Mem. of Law in Supp. of Mot. for Partial Summ. J. (“Mot.”), Dkt. Entry No. 62. Plaintiffs opposed the motion. See, Pls.’ Mem. of Law in Opp’n to Defs.’ Mot. (“Opp.”), Dkt. Entry No. 63. Plaintiffs Veloz and Mejia each submitted declarations along with their memorandum of law in opposition to the motion for partial summary judgment. See, Decl. of Jose Veloz (“Veloz Decl.”), Dkt. Entry No. 64; Decl. of Galileo Mejia (“Mejia Decl.”), Dkt. Entry No. 65. Defendants replied. See, Defs.’ Reply (“Reply”), Dkt. Entry

No. 68. For the reasons set forth below, Defendants’ motion for partial summary judgment is denied. BACKGROUND I. Local Civil Rule 56.1 – Facts and Evidence Considered Rule 56.1 of the Local Civil Rules of the United States District Courts for the Southern and Eastern Districts of New York (“Local Rule 56.1”) requires that a party moving for summary judgment submit “a separate, short and concise statement, in numbered paragraphs” setting forth material facts as to which there is no genuine issue to be tried. See, Local Civ. R. 56.1(a). Similarly, a party opposing a motion for summary judgment shall submit papers that include “a

correspondingly numbered paragraph responding to each numbered paragraph in the statement of the moving party, and if necessary, additional paragraphs containing a separate, short and concise statement of additional material facts as to which it is contended that there exists a genuine issue to be tried.” See, Local Civ. R. 56.1(b). The facts set forth in the moving party’s Rule 56.1 Statement will be deemed admitted “unless specifically controverted by a correspondingly numbered paragraph” in the opposing party’s Rule 56.1 counterstatement. See, Local Civ. R. 56.1(c); See also, Holtz v. Rockefeller & Co., 258 F.3d 62, 72 (2d Cir. 2001). Here, Defendants’ Local Rule 56.1 Statement consists of five paragraphs, and Plaintiffs’ Local Rule 56.1 Counterstatement consists of objections to all five paragraphs as well as 20 numbered paragraphs of additional facts. See, Defs.’ Rule 56.1 Statement (“Defs.’ 56.1”), Dkt. Entry No. 60; Pls.’ Rule 56.1 Counterstatement (“Pls.’ 56.1”), Dkt. Entry No. 67. Paragraphs 1, 2, 3 and 5 of Defendants’ Rule 56.1 Statement do not set forth material facts. Paragraph 1 states the date that the summons and complaint were filed, which is readily apparent from the case

docket. Paragraph 2 states allegations set forth in the complaint. Plaintiffs object to both Paragraphs 1 and 2 as not material facts, but do not dispute them. See, Pls.’ 56.1 ¶¶ 1-2. The complaint is not verified and, therefore, not admissible. Paragraph 3 is a conclusory allegation: “The complaint’s allegations concerning the Defendants’ violation of the wage notice and wage statement provisions do not link those violations to any injury but instead simply allege that the violations occurred.” Plaintiffs object to this paragraph as not a material fact and they dispute it. See, Pls.’ 56.1 ¶ 3. This paragraph is inadmissible as a legal conclusion. Defendants explicitly state that Paragraph 5 is a disputed fact. Plaintiffs do not allege otherwise. See, Pls.’ 56.1 ¶ 5. The only undisputed material fact is contained in Paragraph 4, which restates the stipulation between the parties that Defendants “did not provide the required wage notices, and did not did

not [sic] provide the wage statements required by NYLL §195(3).” See, Pls.’ 56.1 ¶ 4. Plaintiffs’ objection that this is not a statement of material fact is overruled in light of the parties’ stipulation. In reviewing this motion for partial summary judgment, the Court has considered only facts that have been established by admissible evidence and disregarded conclusory allegations and legal arguments contained in the Rule 56.1 Statements. See, Holtz, 258 F.3d at 73. The Court also has exercised its discretion to “conduct an assiduous review of the record” in order “to consider what the parties [have] fail[ed] to point out in their Local Rule 56.1 Statements.” Id. (internal quotation marks and citation omitted). II. Factual Background Speedworld is an auto repair, collision, and customization shop, located at 7720 Queens Blvd., Elmhurst, NY 11373. Compl. ¶ 32; Joint Pretrial Order (“JPTO”) ¶ VI(3), Dkt. Entry No. 41. Prior to December 2015, Michael was an owner and day-to-day overseer of Speedworld, and

was responsible for hiring and firing employees and determining their rates, methods of pay, and the hours that employees are required to work. Compl. ¶ 33; JPTO ¶ VI(5). From December 2015 through at least December 4, 2019, Mastromihalis was an owner and day-to-day overseer of Speedworld, with the same responsibilities as Michael. Compl. ¶ 33; JPTO ¶ VI(4). Veloz and Mejia formerly were employed by Speedworld. Veloz worked for Speedworld from in or about 2009 through July 23, 2018. Compl. ¶ 34. Mejia worked for Speedworld from on or about January 15, 2014 through on or about July 23, 2018. Id. ¶ 38. Defendants did not provide wage notices to Plaintiffs at the time they were hired as required under NYLL § 195(1) or wage statements throughout their employment as required under NYLL § 195(3). Compl. ¶ 44-45; Stipulation, Dkt. Entry No. 55. Defendants contend that they provided

alternate wage statements, even though they did not comply with NYLL § 195(3); however, Plaintiffs deny that any such statements were provided. See, Stipulation. The record does not contain any information about the nature of the supposed alternate wage statements.1 LEGAL STANDARD AND ANALYSIS I. Summary Judgment Summary judgment is appropriate where “the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R.

1 In a letter filed on September 28, 2022, Defendants contended that they had provided wage statements as required by NYLL § 195(3), which they would present as trial Exhibits B and D. See, Defs.’ Letter, Sept. 28, 2022, Dkt. Entry No. 52.

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