Reynoso v. Grullon Bakery Inc.

Background

Raul De Jesus Reynoso sued Grullon Bakery Inc., Grullon Bakery #1 Corp., Grullon Bakery #2 Corp., and Ramon Grullon, individually. The complaint alleged violations of the Fair Labor Standards Act of 1938 (FLSA), the New York Labor Law (NYLL), and the New York Codes, Rules, and Regulations (NYCRR). Reynoso sought wage-related relief, including unpaid overtime, liquidated damages, spread-of-hours wages, and other forms of relief.

The court reviewed the complaint, an order requiring the defendants to explain why default judgment should not be entered, the transcript of the December 3, 2018 hearing, Reynoso's April 19, 2019 letter, and his March 27, 2020 declaration and proposed judgment. Reynoso stated that he and his law firm could not locate the address of Ramon Grullon or one of the corporate defendants, and that the remaining corporate defendants were inactive. He consented to dismissal of the claims against Grullon Bakery Inc., Grullon Bakery #2 Corp., and Ramon Grullon.

Damages and Rule 54(c)

Reynoso's proposed judgment sought $235,189.52 against Grullon Bakery #1 Corp. The court awarded:

- $107,029.76 in unpaid overtime wages under the FLSA; - $107,029.76 in liquidated damages under the FLSA for the unpaid overtime; and - $10,545 in spread-of-hours wages under the NYLL and NYCRR.

The court explained that Federal Rule of Civil Procedure 54(c) prevents a default judgment from differing in kind from, or exceeding in amount, the relief demanded in the pleadings. Reynoso's complaint requested liquidated damages equal to his unpaid overtime wages, but it did not request liquidated damages for the spread-of-hours claim. The court therefore did not award the additional $10,545 in liquidated damages that appeared to be included in the proposed total.

The complaint also sought declaratory and injunctive relief, statutory damages under the Wage Theft Prevention Act, prejudgment interest, attorney's fees, and costs. Because those forms of relief were not included in the damages calculation or proposed judgment, the court treated those claims as waived and abandoned.

Disposition

The court dismissed Reynoso's claims against Grullon Bakery Inc., Grullon Bakery #2 Corp., and Ramon Grullon. It entered default judgment against Grullon Bakery #1 Corp. and awarded Reynoso $224,604.52, plus post-judgment interest under 28 U.S.C. § 1961 from the date judgment was entered. The court requested that the Clerk close the case.