Western v. Hodgson

359 F. Supp. 194, 21 Wage & Hour Cas. (BNA) 264
CourtDistrict Court, S.D. West Virginia
DecidedMay 14, 1973
DocketCiv. A. 2917
StatusPublished
Cited by10 cases

This text of 359 F. Supp. 194 (Western v. Hodgson) is published on Counsel Stack Legal Research, covering District Court, S.D. West Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Western v. Hodgson, 359 F. Supp. 194, 21 Wage & Hour Cas. (BNA) 264 (S.D.W. Va. 1973).

Opinion

CHRISTIE, District Judge:

Plaintiffs, employees of Buffalo Mining Company (Buffalo), on behalf of themselves and others similarly situated, instituted this class action against the Secretary of the Department of Labor, Buffalo, and Lorado Super Market, Inc. (Lorado), complaining that the deduction from their wages by Buffalo of amounts owed by plaintiffs to Lorado violates the provisions of § 1 of the Civil Rights Act of 1871 (now 42 U.S.C. § 1983), as well as the provisions of Title III of the Consumer Credit Protection Act, 15 U.S.C. § 1671 et seq. Additionally, plaintiffs complain that although they have sought relief from the Secretary of the Department of Labor, the Secretary has thus far failed and refused to enforce the provisions of the anti-garnishment subchapter of the Consumer Credit Protection Act so as to protect plaintiffs from what they contend are illegal deductions from their wages. Plaintiffs also attack the constitutionality of a West Virginia statutory provision regulating assignment of wages, West Virginia Code Chapter 21, Article 5, Section 3, alleging that the statute is a violation of the Due Process Clause of the Fourteenth Amendment to the Constitution. In the alternative, plaintiffs allege that Buffalo and Lorado have violated this same statutory provision with regard to the deductions which Buffalo has taken from the wages of the plaintiffs and paid to Lorado. This latter claim clearly involves a purely state cause of action and is asserted under the pendent jurisdiction of the court.

Plaintiffs seek injunctive and declaratory relief and monetary damages, asking the court to declare: (1) that the term “garnishment,” as defined in Title III of the Consumer Credit Protection Act, 15 U.S.C. § 1672(c), covers wage assignments and that such wage assignments, therefore, are subject to the regulations imposed by Title III of the Act, (2) that the actions of Lorado and Buffalo with respect to deductions from the payment of plaintiffs’ wages are in violation of the anti-garnishment provisions of the Consumer Credit Protection Act, and (3) that the West Virginia statutory provision governing the assignment of wages, West Virginia Code 21-5-3, violates the Due Process Clause of the Fourteenth Amendment. Plaintiffs further seek injunctive relief requesting the court to order the Secretary of the Department of Labor to enforce the provisions of the Consumer Credit Protection Act with respect to the deduction of the wages of plaintiffs and others similarly situated, by Buffalo, and payment of such deductions to Lora-do. With respect to relief against Buffalo and Lorado, plaintiffs request that in addition to monetary damages, this court permanently enjoin and restrain Buffalo from further depriving plaintiffs and the class they represent of earned wages except as permitted by law and that the court further enjoin and re *196 strain Lorado from taking and collecting wage assignments from plaintiffs and the class they represent, until such time as such assignments are in compliance with the provisions of the laws of the State of West Virginia. Plaintiffs do not state the amount of compensatory damages sought by them, praying only that, with respect to Buffalo, they be awarded an amount equal to the amount wrongfully withheld from their wages, plus interest, and, with respect to Lora-do, that they be .awarded an amount equal to that paid Lorado' pursuant to the wage assignments. Additionally, plaintiffs pray for an award of $20,000.-00 in punitive damages against both Buffalo and Lorado.

By their joint answer, defendants Buffalo and Lorado raise the issues of lack of jurisdiction and failure to state a claim upon which relief may be granted. The defendant Secretary of the Department of Labor, by motion, has moved the court to dismiss the action insofar as it pertains to the Secretary, asserting that the complaint fails to state a claim upon which relief can be granted since it fails to establish that a case or controversy exists between plaintiffs and the Secretary of the Department of Labor and for the further reason that the controversy between the Secretary and the plaintiffs is not “ripe” for judicial action.

STATEMENT OF FACTS

The underlying transactions upon which plaintiffs base their various claims and causes of action, as developed in the pleadings and in argument before the court, may be summarized as follows: Plaintiffs, employees of Buffalo, purchased merchandise from Lorado on credit and, at the same time, executed agreements characterized by the plaintiffs as “purported wage assignments” and by the defendants as “voluntary revocable agreements” authorizing plaintiffs’ employer to deduct amounts owed by plaintiffs to Lorado from their paychecks and pay such amounts directly to Lorado. The executed agreements were then presented by Lorado to Buffalo and, pursuant to the terms of such instruments and the amounts which Lorado informed it were owing by the various plaintiffs, Buffalo deducted the amounts owed from plaintiffs’ wages and paid these amounts directly to Lora-do. As a consequence of such deductions, plaintiffs received no “take home” wages for some pay periods and less than seventy-five percent of their wages for other pay periods. In their complaint, plaintiffs allege that Lorado, in taking such purported wage assignments, and Buffalo, in honoring them, were acting pursuant to and under the provisions of, West Virginia Code 21-5-3. That code section, insofar as it is relevant to this action, provides as follows:

“Nothing herein contained shall affect the right' of an employee to assign part of his claim against his employer except as hereafter provided.
“No assignment of or order for future wages shall be valid for a period exceeding one year from the date of such assignment or order. Such assignment or order shall be acknowledged by the party making the same before a notary public or other officer authorized to take acknowledgments, and such order or assignment shall specify thereon the total amount due and collectible by virtue of the same and three fourths of the periodical earnings or wages of the assignor shall at all times be exempt from such assignment or order and no assignment or order shall be valid which does not so state upon its face: Provided, further, that no such order or assignment shall be valid unless the written acceptance of the employer of the assignor to the making thereof, is endorsed thereon: Provided further, that nothing herein contained shall be construed as affecting the right of employer and employees to agree between themselves as to deductions to be made from the payroll of employees ; . . ..”

*197 Contending that the deductions from their wages by Buffalo of money owed to Lorado was in violation of the anti-garnishment provisions of the Consumer Credit Protection Act, plaintiffs complained to representatives of the Wage and Hour Division of the Department of Labor.

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Bluebook (online)
359 F. Supp. 194, 21 Wage & Hour Cas. (BNA) 264, Counsel Stack Legal Research, https://law.counselstack.com/opinion/western-v-hodgson-wvsd-1973.