Cala v. Buena Vista Tortillas Corp.

Background

Edwin Cala sued Buena Vista Tortillas Corp., Noe Baltazar, and Michaela Vargas under the Fair Labor Standards Act and New York Labor Law. He alleged that the defendants jointly employed him as a package worker from November 2017 through July 22, 2021. According to the amended complaint, he regularly worked more than 40 hours per week, was paid in cash, and was not paid the required minimum wage or overtime rate. He also alleged that the defendants failed to provide required notices about wages, overtime, pay rates, and paydays, and did not provide accurate wage statements.

The amended complaint alleged that Baltazar and Vargas owned or controlled the factory, determined employee wages and hours, and had hiring and firing authority. The complaint was served on the corporate defendant on September 16, 2021, and on Vargas and Baltazar on September 30, 2021. The Clerk entered certificates of default against all three defendants on May 26, 2022. Cala moved for default judgment and served the motion and supporting papers on the defendants.

Court’s analysis

A default occurs when a party fails to plead or otherwise defend. For a default judgment, the court generally accepts the opposing party’s well-pleaded factual allegations as true, but it must still determine whether those allegations establish legal responsibility. The court applies the same pleading standard used for a motion to dismiss when deciding whether the allegations are sufficiently supported.

The court accepted Cala’s complaint allegations as true. It also considered his affidavit supporting the number of hours worked, damages calculations, and attorney’s-fee request. The court found those materials reasonable under the Fair Labor Standards Act and New York Labor Law and concluded that the allegations established the defendants’ liability as a matter of law.

Ruling

Judge J. Paul Oetken granted Cala’s motion for default judgment. The relief awarded was:

- $140,693.00, including compensatory damages, permitted liquidated damages, and prejudgment interest, calculated as provided in 28 U.S.C. § 1961(a); - $2,645.50 in attorney’s fees and $627.00 in costs, calculated as provided in 28 U.S.C. § 1961(a); - Post-judgment interest calculated under 28 U.S.C. § 1961; and - An automatic 15% increase in the total judgment if amounts remain unpaid after the period specified in the order, as required by New York Labor Law § 198(4).

The court directed the Clerk to enter judgment, close the motion, and close the case.