Mercedes v. Underground Liquidation Inc.
- Valerie Caproni
- 1:23-cv-04766
- U.S. District Court · Southern District of New York
- 4
In Mercedes v. Underground Liquidation Inc., Judge Caproni adopted most of a damages recommendation, awarding Cesar Mercedes $177,688.62 plus costs and interest.
Cesar Mercedes was awarded damages, costs, and interest; Underground Liquidation Inc. was the defendant against which the default judgment and award were entered.
What happened
In Mercedes v. Underground Liquidation Inc., Cesar Mercedes sued Underground Liquidation Inc. for alleged unpaid overtime, minimum wages, and related recordkeeping violations under federal and New York law. Underground did not respond after being served, and the court entered a default judgment.
A magistrate judge recommended awarding Mercedes $182,688.62 in damages, $1,232 in costs, and interest. Neither party objected. Judge Caproni found one error: the $5,000 New York wage-notice claim was barred by the statute of limitations because Mercedes said he began working in April 2015.
Judge Caproni adopted the recommendation except for that $5,000 award. The court awarded Mercedes $177,688.62 in damages, $1,232 in costs, $17.70 per day in additional pre-judgment interest until final judgment, and post-judgment interest, then closed the case.
The detailed version
- Mercedes v. Underground Liquidation Inc. · No. 1:23-cv-04766
- Valerie Caproni
- Oct. 1, 2024
Background
Cesar Mercedes sued Underground Liquidation Inc., doing business as Magic Mattress R US, under the Fair Labor Standards Act and New York Labor Law. He alleged overtime, minimum-wage, and recordkeeping violations. Mercedes served Underground’s summons and complaint on October 3, 2023, by leaving the papers with its general agent, Jose Martinez. Underground did not appear or respond by the October 24, 2023 deadline.
The court entered a default judgment on January 30, 2024. The case was then referred to Magistrate Judge Robyn F. Tarnofsky to determine damages and prepare a report and recommendation. Judge Tarnofsky recommended awarding Mercedes $182,688.62 in damages for unpaid wages, liquidated damages, statutory penalties, and pre-judgment interest; $1,232.00 in reasonable costs; $17.70 per day in pre-judgment interest after August 12, 2024, until final judgment; and post-judgment interest under 28 U.S.C. § 1961. Neither party objected to the recommendation.
Wage-Notice Claim
The recommendation included $5,000 in statutory damages for Underground’s failure to provide the wage notice required by New York Labor Law § 195(1)(a). The court explained that the six-year limitations period, extended by 288 days because of COVID, barred that claim. The complaint stated that Mercedes began working in April 2015, so the wage-notice claim was untimely when the case was filed on June 6, 2023.
Ruling
Judge Caproni ordered that, except for the $5,000 wage-notice damages, the report and recommendation was adopted in full. The court awarded Mercedes $177,688.62 in damages, $1,232.00 in reasonable costs, $17.70 per day in pre-judgment interest for each day after August 12, 2024, until the Clerk entered final judgment, and post-judgment interest under 28 U.S.C. § 1961.
The court stated that neither party’s failure to object allowed appellate review of the decision, because the report had warned of that consequence. The court also certified that any appeal would not be taken in good faith and denied permission to proceed without paying filing fees for an appeal. The Clerk was directed to terminate open motions and close the case.
Read the full 4-page opinion on CourtListener, the free public archive maintained by the Free Law Project.