Antonio Valdes Cruz and John Butler v. Freeman's Construction & Engineering Group, Inc., Guillermo Angel Alonso, and The Pinewood Holding Company, LLC

Summary

This amended Report and Recommendation addresses Plaintiffs’ motion for final default judgment in an action alleging violations of the Fair Labor Standards Act’s minimum-wage and overtime provisions. The court recommends granting the motion, finding personal jurisdiction, venue, subject-matter jurisdiction, liability by default, and unpaid wage damages with an equal amount of liquidated damages. The amendment corrects references to Plaintiff Antonio Valdes Cruz’s surname.

Holdings

1. A default judgment is warranted when the pleadings contain a sufficient basis for the judgment, meaning the claims are adequately pleaded and would survive a motion to dismiss; Plaintiffs adequately pleaded FLSA minimum-wage and overtime violations and supported their damages with sworn declarations and documentary evidence.
2. Defendants waived objections to personal jurisdiction by appearing and failing to raise the defense in a responsive pleading or Rule 12 motion.
3. Venue was proper in the Middle District of Florida because a substantial part of the events giving rise to the claims occurred in the district.
4. Plaintiffs established a sufficient basis for default judgment on their FLSA minimum-wage and overtime claims against Defendants.
5. Defendants were not entitled to deduct the lodging credits from Plaintiffs' wages because they failed to maintain and produce records establishing the reasonable cost of the lodging and the alleged credit exceeded the actual cost or generated a profit.
6. Plaintiffs were entitled to liquidated damages equal to their unpaid minimum and overtime wages because Defendants did not establish good faith.

Questions Presented

1. Whether the pleadings and evidence provided a sufficient basis for entry of default judgment on Plaintiffs' FLSA minimum-wage and overtime claims.
2. Whether the Court had personal jurisdiction over Defendants despite Defendants' failure to raise a personal-jurisdiction defense in their answer or a Rule 12 motion.
3. Whether venue was proper in the Middle District of Florida.
4. Whether Defendants were subject to FLSA coverage and could be treated as employers or joint employers.
5. Whether Defendants were entitled to deduct lodging credits from Plaintiffs' wages.
6. Whether Plaintiffs were entitled to liquidated damages, attorney fees, and costs.

Disposition

other