Liriano Urena v. 0325 Tuta Corp.

Background

Rafael Alejandro Liriano Urena, Charlie Uverea, and Abisai Nava brought claims for unpaid wages under the Fair Labor Standards Act and the New York Labor Law against 0325 Tuta Corp. doing business as La Gran Antillana, California Market Corp., Pablo Peguero, Andy Peguero, and “Miyiera Doe.” On February 24, 2022, the court entered default judgments against every defendant except “Miyiera Doe.” A default judgment is a judgment entered when a defendant has failed to defend the case. The court then referred the damages calculation and the question of whether default could be entered against “Miyiera Doe” to Magistrate Judge Gabriel W. Gorenstein.

Report and objections

Magistrate Judge Gorenstein recommended awards of $160,458 to Urena, $39,103.54 to Uverea, and $16,447.36 to Nava, before calculating daily interest. The recommendations included unpaid minimum wages, unpaid overtime, unpaid spread-of-hours damages where applicable, liquidated damages, and $10,000 in statutory damages for each plaintiff’s notice and wage-statement violations. He also recommended $1,494 in costs, denial of attorneys’ fees, and dismissal of “Miyiera Doe” because the plaintiffs had not properly identified and served her within the allowed time.

The plaintiffs objected to the recommendation denying attorneys’ fees. They submitted additional declarations, but the court found that the submissions did not adequately show that the attorneys’ time records were made while the work was being completed. The court also declined to consider new evidence submitted with the objections and noted that the new declaration addressed only attorney William Oates and did not support the entries of the other attorneys.

Ruling

Judge George B. Daniels denied the plaintiffs’ application for attorneys’ fees. The court adopted the magistrate judge’s recommendations concerning damages and costs after reviewing the unchallenged portions for clear error and independently reviewing the attorneys’ fee issue.

The court directed entry of final judgment ordering 0325 Tuta, California Market, Pablo Peguero, and Andy Peguero to pay:

- Urena: $695.60 in unpaid minimum wages, $67,631.40 in unpaid overtime, $6,972 in unpaid spread-of-hours damages, $75,299 in liquidated damages, $10,000 in statutory damages, and interest at $18.57 per day beginning February 27, 2019, until judgment is entered on his unpaid wages. - Uverea: $14,326.77 in unpaid overtime, $225 in unpaid spread-of-hours damages, $14,551.77 in liquidated damages, $10,000 in statutory damages, and interest at $3.59 per day beginning April 26, 2020, until judgment is entered on his unpaid wages. - Nava: $2,645.58 in unpaid minimum wages, $578.10 in unpaid overtime, $3,223.68 in liquidated damages, $10,000 in statutory damages, and interest at $0.80 per day beginning September 9, 2020, until judgment is entered on her unpaid wages.

The defendants were also ordered to pay $1,494 in costs. Under the order, if any judgment amount remains unpaid 90 days after judgment is issued, or 90 days after the appeal period ends if no appeal is pending, whichever is later, the total judgment automatically increases by 15%. The action was dismissed as to “Miyiera Doe,” and the Clerk was directed to enter judgment and close the case.