Galindo v. Yummy Foods Deli Corp.

Background

Plaintiffs Felipe Galindo and Gonzalo Cornelio Basurto, individually and on behalf of others similarly situated, moved for default judgment against Yummy Foods Deli Corp., doing business as Yummy Food Deli, Fouad Hamoud Hadwan, and Tawfiq Hadwan. The motion was referred to Magistrate Judge Cave, who recommended that the motion be granted and that Galindo and Cornelio receive damages.

The report and recommendation gave the parties fourteen days to object and warned that failing to object on time would waive the right to object. No objections or requests for more time were filed. The court therefore stated that the parties had waived their right to object to the report and recommendation or to obtain appellate review. The court nevertheless reviewed the report and recommendation and found it well reasoned and supported by the facts and law.

Ruling

The court adopted the report and recommendation in its entirety and granted the motion for default judgment.

For Galindo, the court awarded:

- $12,652.52 in compensatory damages, consisting of $10,263.17 in overtime wages and $2,389.35 in spread-of-hours wages; - $12,652.52 in liquidated damages; - Prejudgment interest on the $12,652.52 in overtime and spread-of-hours damages at nine percent per year from June 14, 2020, through February 9, 2024, the date of judgment; and - Postjudgment interest under 28 U.S.C. § 1961.

For Cornelio, the court awarded:

- $37,191.50 in compensatory damages, consisting of $6,685.74 in straight-time wages, $24,379.74 in overtime wages, and $6,126.02 in spread-of-hours wages; - $37,191.50 in liquidated damages; - Prejudgment interest on the $37,191.50 in unpaid minimum, overtime, and spread-of-hours wages at nine percent per year from April 28, 2020, through February 9, 2024; and - Postjudgment interest under 28 U.S.C. § 1961.

The court also awarded the plaintiffs $14,285 in attorney fees and $402 in costs. Under New York Labor Law § 198(4), the judgment will automatically increase for damages awarded under that law that remain unpaid after the applicable 90-day period described in the order, if no appeal is pending.

The court dismissed with prejudice the plaintiffs’ claims for statutory damages under the New York Wage Theft Prevention Act, identified in the order as the WTPA and codified at New York Labor Law §§ 195 and following, because the plaintiffs lacked standing. The Clerk of Court was directed to terminate the default-judgment motion and close the case. Judge Jessica G. L. Clarke signed the order on February 9, 2024.