Rodriguez v. Benitez RMB Corp.

Background

Plaintiffs brought claims under the Fair Labor Standards Act (FLSA) and New York labor laws against Benitez RMB Corp., BMNY Construction Corp., Jose Benitez Argueta, and Cup Benedetto, collectively called the defendants. Plaintiffs alleged that they worked as rebar workers on construction sites in New York State approximately between June and August 2021, worked more than 40 hours per week, and were not paid the required minimum wage or overtime wages.

Plaintiffs served the defendants. The defendants did not answer or otherwise respond to the complaint. On February 1, 2022, the Clerk entered certificates of default. After plaintiffs moved for default judgment, the court issued an order requiring the defendants to explain why default judgment should not be entered. The defendants were served with that order and did not respond.

Legal standard

Federal Rule of Civil Procedure 55 establishes a two-step process for default judgment. First, the Clerk enters a certificate of default when a party fails to plead or otherwise defend. Second, the court may enter default judgment on the plaintiff’s motion.

A defendant’s failure to answer admits the complaint’s well-pleaded allegations, except allegations concerning damages. Before entering judgment, the court must determine whether those allegations establish the defendant’s legal liability. A default does not automatically establish the amount of damages; plaintiffs must provide evidence showing damages with reasonable certainty.

Ruling

The court accepted the complaint’s well-pleaded liability allegations as true because of the defendants’ default. It concluded that the defendants had breached their federal and state legal obligations to pay plaintiffs the required minimum and overtime wages.

Judge Andrew L. Carter, Jr. granted plaintiffs’ motion for default judgment as to liability. The order did not decide the amount of damages.